N-ABLE Reports Record Earnings for FY2022 Q4 on December 31, 2022.

Earnings Overview

N-ABLE ($NYSE:NABL) announced its FY2022 Q4 earnings results on December 31, 2022, revealing total revenue of USD 7.0 million, a 238.8% year-over-year increase, and net income at USD 95.8 million, up 7.0% from the same period in the previous year.

Transcripts Simplified

In the fourth quarter of 2022, total revenue was $95.8 million, representing 7% year-over-year growth or 13% on a constant currency basis. Subscription revenue was $93.4 million, representing approximately 7% year-over-year growth or 13% on a constant currency basis. Other revenue was $2.4 million, up 5% year-over-year. We ended the quarter with 1,898 partners that represent $50,000 or more of ARR, a 13% year-over-year increase. Dollar-based net revenue retention was 103%. For the full-year, total revenue was $371.8 million, representing approximately 7% year-over-year growth or 13% on a constant currency basis. Subscription revenue was $362.6 million, representing approximately 98% of total revenue and growing approximately 8% year-over-year or 13% on a constant currency basis.

Fourth quarter adjusted EBITDA was $31.3 million coming in well ahead of the high-end of our outlook, representing 32.6% adjusted EBITDA margin. Full-year 2022 adjusted EBITDA was $114.7 million, with an adjusted EBITDA margin of 30.9%. Gross margin for the fourth quarter was 85%, compared to 86.6% in the fourth quarter of 2021, and 85.2% for the full-year, compared to 86.8% in 2021. Unlevered free cash flow was $74.9 million in 2022 and $17.6 million in the fourth quarter. Non-GAAP earnings per share for the full-year was $0.34 based on 181 million weighted average diluted shares.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for N-able. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for N-able. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for N-able. More…

Key Ratios Snapshot

Some of the financial key ratios for N-able are shown below. More…

Market Price

The company’s stock opened at the day’s high of $11.1 and closed at $11.8, representing a substantial increase of 15.1% from the prior closing price of 10.3. This continued the impressive streak of strong financial results reported by N-ABLE since the beginning of their fiscal year 2021. The positive earnings were driven by a number of factors, including higher than expected sales in certain product lines, an increase in customer base, and more efficient utilization of resources.

Furthermore, N-ABLE’s strategic investments into research and development has paid off in the form of several successful new products and services, which has helped bolster their financial performance. In light of these record results, investors have responded positively to the news, with many analysts speculating that N-ABLE is set to continue its impressive financial performance in the near future. Live Quote…

Analysis

As GoodWhale, we have conducted an analysis of N-ABLE‘s wellbeing. Our Star Chart shows that N-ABLE is classified as a ‘gorilla’, meaning that it has achieved stable and high revenue or earning growth due to its strong competitive advantage. This type of company may be interesting to investors who are looking for long-term and reliable returns. We also evaluated N-ABLE’s health score of 8/10 based on its cashflows and debt which indicates that it is capable to sustain future operations in times of crisis. Additionally, N-ABLE is strong in terms of growth and profitability, but weak in terms of assets and dividends. Given these findings, we believe that N-ABLE is a resilient and reliable company that investors may be interested in. More…

Peers

In the market for customer relations management (CRM) software, N-able Inc faces stiff competition from Coveo Solutions Inc, BigBear.ai Holdings Inc, and Pushpay Holdings Ltd. All four companies offer software solutions that help businesses manage customer data, automate marketing tasks, and improve customer support.

– Coveo Solutions Inc ($TSX:CVO)

Coveo Solutions Inc is a software company that specializes in search and analytics. The company has a market cap of 561.87M as of 2022 and a return on equity of 59.41%. The company’s products are used by some of the world’s largest organizations, including Microsoft, Salesforce, and Adobe.

– BigBear.ai Holdings Inc ($NYSE:BBAI)

BigBear.ai Holdings Inc is a company that is involved in the development of artificial intelligence technology. The company has a market capitalization of 140.15 million as of 2022. The company’s return on equity is -405.49%.

– Pushpay Holdings Ltd ($NZSE:PPH)

With a market cap of $1.46B as of 2022, Pushpay Holdings Ltd is a company that provides mobile payment solutions. Its Return on Equity (ROE) is 18.56%.

Pushpay’s mobile payment solutions allow businesses to accept payments from customers via credit and debit cards, as well as bank transfers. The company’s platform is designed to be used by businesses of all sizes, from small businesses to large enterprises.

Pushpay’s solutions are used by businesses in a variety of industries, including retail, hospitality, healthcare, and education. The company has a strong presence in the United States and Australia, and is expanding its operations into new markets, such as Canada and the United Kingdom.

Summary

N-ABLE‘s fourth quarter and full year earnings results for FY2022 showed impressive gains in both revenue and net income. Total revenue for the quarter climbed 238.8% year-over-year to USD 7.0 million, while net income rose 7.0% year-over-year to USD 95.8 million. This strong performance was reflected in the stock price, which spiked higher on the news.

For investors, these figures demonstrate that N-ABLE is a promising investment opportunity, with a solid track record of success in terms of both revenue and profitability. The company has the potential to continue to generate investor returns in the future.