N-able Q1 2025 slides: 11% ARR growth, focus on cyber resilience

Published 08/05/2025, 13:06
N-able Q1 2025 slides: 11% ARR growth, focus on cyber resilience

Introduction & Market Context

N-able Inc. (NYSE:NABL) released its May 2025 investor presentation highlighting the company’s strategic focus on cyber resilience for small and mid-market businesses. The presentation comes in the wake of a significant stock decline following its Q4 2024 earnings report, when shares dropped nearly 26% despite beating earnings expectations.

The company positions itself within a substantial market opportunity, targeting the $2.1 trillion SMB and mid-market IT sector. N-able specifically addresses a $44 billion total addressable market (TAM) growing at 14% annually, with its strongest growth potential in security operations ($24B, 15% growth) and data protection ($14B, 17% growth).

As shown in the following chart of N-able’s market opportunity by category:

The presentation emphasizes how small and mid-market businesses face increasing challenges from IT complexity, cybersecurity threats, and data management needs. According to the slides, 55% of IT professionals struggle to manage SaaS sprawl, while 60% of SMB owners cite cybersecurity as a top concern.

Strategic Initiatives & Product Portfolio

N-able’s core mission, as stated in the presentation, is "to protect businesses against evolving cyberthreats with a unified cyber resiliency platform to manage, secure, and recover." The company’s strategy centers on a three-pronged product approach combining unified endpoint management, security operations, and data protection.

The company’s comprehensive cyber resilience platform is illustrated in this detailed breakdown:

N-able’s go-to-market strategy leverages a channel-driven model, delivering its solutions through managed service providers (MSPs), value-added resellers (VARs), and distributors who then serve SMB and mid-market enterprises. This approach creates a multiplier effect for the company’s reach.

The presentation highlights N-able’s recent acquisition of Adlumin, which strengthens its security operations capabilities. According to the Q4 2024 earnings report, Adlumin contributed approximately $2.5 million in revenue during that quarter.

N-able’s competitive differentiation is built on what it calls a "Best of Breed Product Strategy" with an open ecosystem designed specifically for SMB and mid-market use cases. The company’s industry recognition is showcased through various awards:

Financial Performance Highlights

N-able reported annualized recurring revenue (ARR) of $493 million as of March 31, 2025, representing 11% growth. The company maintains approximately 100% recurring revenue with a net retention rate of 101% on a trailing twelve-month basis.

The presentation details consistent historical growth, with revenue increasing from $346 million in FY’21 to $466 million in FY’24, representing a 12% average growth rate. Similarly, adjusted EBITDA grew from $113 million to $169 million over the same period, a 14% CAGR.

The following chart illustrates this consistent top and bottom-line growth:

For Q1 2025, N-able reported revenue of approximately $118 million with adjusted EBITDA of around $32 million, representing a 27% margin. The company’s quarterly performance trend is shown in this detailed chart:

N-able maintains strong profitability with a non-GAAP gross margin of 83% and adjusted EBITDA margin of 34% on a trailing twelve-month basis. The company’s business model shows predictability through stable retention rates and growing average revenue per customer:

Forward-Looking Statements & Guidance

Looking ahead to Q2 2025, N-able projects revenue between $125.5 million and $126.5 million, representing 5-6% year-over-year growth. For the full fiscal year 2025, the company expects:

  • ARR between $519 million and $525 million (8-9% growth)
  • Revenue between $492 million and $497 million (6-7% growth)
  • Adjusted EBITDA between $134 million and $139 million (27-28% margin)

The detailed financial outlook is presented in this guidance summary:

N-able identifies several growth drivers, including cross-selling opportunities across its product suite, which it estimates at over $2.5 billion. The company’s expansion strategy focuses on improving both gross and net retention while acquiring new customers.

Investor Sentiment & Stock Performance

Despite N-able’s consistent financial performance, investor sentiment has been challenging. Following the company’s Q4 2024 earnings report in early 2025, the stock dropped nearly 26% to $7.42, its lowest point in a year, despite beating earnings expectations with EPS of $0.10 versus a forecast of $0.08.

Recent premarket trading shows signs of recovery, with shares up 4.06% to $7.43, though still significantly below the 52-week high of $15.49. The dramatic stock decline suggests investor concerns about future growth prospects, particularly as the company’s projected 6-7% revenue growth for FY’25 represents a slowdown from its historical 12% average.

The presentation attempts to address these concerns by highlighting N-able’s investment thesis:

N-able’s forward guidance of 6-7% revenue growth for FY’25 is slightly more optimistic than the 4-6% mentioned in its Q4 2024 earnings call, potentially indicating improving business conditions or confidence in the company’s growth strategy.

The company faces the challenge of convincing investors that its cyber resilience platform and channel-driven model can accelerate growth in an increasingly competitive market, while maintaining its strong profitability metrics.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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