N-Able, Inc. ((NABL)) has held its Q1 earnings call. Read on for the main highlights of the call.
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N-Able, Inc. recently held its earnings call, revealing a positive sentiment despite some challenges. The company showcased strong financial performance, product innovation, and strategic expansion in partnerships, indicating a promising growth trajectory. However, concerns were raised regarding gross margin decline and market uncertainties, which could impact future operations.
First Quarter Financial Performance
N-Able reported a robust first quarter with an annual recurring revenue (ARR) growth of 11% year-over-year in constant currency. The company achieved a revenue of $118.2 million and an adjusted EBITDA of $31.6 million, reflecting a 27% margin. Impressively, N-Able exceeded its top- and bottom-line guidance, underscoring its strong financial health.
Product Innovation and Launches
The company introduced significant product innovations, including breach prevention from Microsoft 365 and Vulnerability Management as a new feature in Unified Endpoint Management (UEM). These launches aim to address customer pain points and enhance N-able’s security offerings, showcasing the company’s commitment to product development.
Recognition and Awards
N-Able’s Cove data protection was named a Champion in Managed BDR by Canalys for the second consecutive year. Additionally, the Adlumin Security Operations solution was recognized as a market leader for MDR in the 2025 Cyber Defense Magazine Global InfoSec Awards, highlighting the company’s excellence in security solutions.
Channel Expansion and Partnerships
The company expanded its go-to-market strategy by adding resellers globally and revamping its partner portal. N-Able received a 5-Star rating in the CRN Partner Program Guide for the fourth consecutive year, reflecting its strong channel relationships and strategic partnerships.
Share Repurchase Program
N-Able announced a $75 million share repurchase authorization program, signaling confidence in its business model and commitment to returning value to shareholders.
Gross Margin Decline
Despite strong financial performance, N-Able experienced a decline in gross margin, dropping to 80.6% from 84.7% in the same period in 2024. This decline poses a challenge that the company needs to address moving forward.
Market Uncertainties
The company acknowledged that evolving trade policies and macroeconomic uncertainty could impact its business operations and customer decision-making, highlighting potential risks in the market environment.
Dollar-Based Net Revenue Retention
N-Able reported a dollar-based net revenue retention of approximately 101%, indicating modest retention with room for improvement. This metric suggests that while the company retains most of its revenue, there is potential for enhancing customer retention strategies.
Forward-Looking Guidance
Looking ahead, N-Able provided substantial financial guidance, raising its full-year 2025 revenue guidance to a range of $492 million to $497 million, representing 6% to 7% year-over-year growth. The company expects full-year ARR to be between $519 million and $525 million, indicating 8% to 9% growth. Additionally, N-Able raised its expected adjusted EBITDA to unlevered free cash flow conversion percentage to approximately 68% for the full year, driven by a revised non-GAAP tax rate of 20% to 21%.
In summary, N-Able’s earnings call reflected a generally positive sentiment with strong financial performance and strategic initiatives. Despite challenges such as gross margin decline and market uncertainties, the company’s focus on innovation, partnerships, and shareholder value positions it well for future growth.