Thu, May 8, 1:21 PM (8 days ago)
**N-able, Inc. (NABL) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $118.2 million, up 3.9% from Q1 2024, driven by subscription revenue growth. - **Profit Margins:** Operating income was $1.8 million, down from $20.5 million in Q1 2024 due to increased expenses. - **Net Loss:** $7.2 million, compared to a net income of $7.5 million in Q1 2024. - **Cash Flow:** $19.7 million from operations, up from $4.2 million in Q1 2024. **Key Metrics:** - **ARR:** $492.7 million, up 10.3% year-over-year. - **Customer Base:** 2,398 customers with ARR over $50,000, up 9.6% year-over-year. - **Adjusted EBITDA:** $31.6 million, down from $39.6 million in Q1 2024. **Expenses:** - **Operating Expenses:** $88.7 million, up 13.7% from Q1 2024, driven by increased sales, marketing, R&D, and G&A expenses. - **Cost of Revenue:** $27.7 million, up 51.3% from Q1 2024, primarily due to amortization of acquired technologies. **Trends and Uncertainties:** - **Long-Term Contract Initiative:** Increased proportion of long-term committed contracts, impacting revenue recognition. - **Acquisitions:** Recent acquisition of Adlumin, Inc. in November 2024, contributing to revenue growth. - **Foreign Exchange Rates:** Exposure to adverse movements in foreign currency exchange rates. - **Interest Rates:** Variable rate borrowings under the Credit Agreement, impacting interest expense. **Future Operations Impact:** - **Cash Position:** $94.1 million in cash and cash equivalents as of March 31, 2025. - **Debt:** $332.6 million in total borrowings, with a weighted-average interest rate of 7.32%. - **Share Repurchase Program:** Authorized to repurchase up to $75.0 million of common stock. **Conclusion:** N-able, Inc. demonstrated revenue growth and improved cash flow in Q1 2025, but faced increased expenses and a net loss. The company continues to invest in growth through acquisitions and strategic initiatives, while managing uncertainties related to foreign exchange rates and interest rates.