N-able sets $75 million stock repurchase program

BURLINGTON, Mass. - N-able, Inc. (NYSE:NABL), a global provider of software for IT services with a market capitalization of $1.35 billion, announced a share repurchase initiative, signaling confidence in the company’s strategic direction and value proposition for shareholders. The program, authorized by the Board of Directors, allows for the repurchase of up to $75 million of its common stock. According to InvestingPro data, the stock is currently trading near its 52-week low of $6.75, having declined over 42% in the past six months.

The repurchase program is designed to offer the company flexibility in its capital allocation strategy, complementing its commitment to long-term growth. "We believe strongly in the opportunities ahead for N-able and our potential to create long-term value for our shareholders as we execute on our strategic vision," stated John Pagliuca, President and CEO of N-able. InvestingPro analysis shows the company maintains impressive gross profit margins of 83.45% and has achieved profitability over the last twelve months, with additional insights available in the comprehensive Pro Research Report.

The company may buy back shares from time to time, depending on market conditions, through open market or privately negotiated transactions, and in line with regulatory requirements. N-able has the discretion to start, pause, or stop the repurchase program at any time or from time to time, and the authorization does not have an expiration date.

N-able provides IT service providers with solutions to monitor, manage, and secure their customers’ systems, data, and networks. The company’s scalable platform and suite of products aim to simplify complex IT ecosystems and support partners in protecting their customers and expanding their service offerings. With revenue growth of 10.49% in the last twelve months and a stable beta of 0.41, InvestingPro subscribers can access over 10 additional key insights and detailed financial metrics about N-able’s performance and valuation.

The announcement also contains forward-looking statements regarding the company’s expectations for the share repurchase program. These statements are based on current beliefs and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Factors that may impact the company’s ability to repurchase shares include economic conditions, customer acquisition and retention, geopolitical events, and other risks detailed in the company’s filings with the Securities and Exchange Commission. Investors seeking detailed analysis can access N-able’s comprehensive Fair Value assessment and financial health metrics through the Pro Research Report, available exclusively on InvestingPro.

This share repurchase program is based on a press release statement from N-able, Inc. and reflects the company’s strategic financial decisions without suggesting broader industry trends or implications.

In other recent news, N-Able Inc. reported its fourth-quarter 2024 earnings, surpassing Wall Street expectations with an earnings per share (EPS) of $0.10 compared to the forecast of $0.08. The company’s revenue for the quarter reached $116.5 million, slightly exceeding the anticipated $113.71 million. However, despite these positive results, N-Able’s guidance for the first quarter and full-year 2025 fell short of analyst expectations, with projected revenue of $115-116 million for Q1 and $486.5-492.5 million for the full year, below the consensus estimates. Analysts from Scotiabank and BMO Capital Markets have adjusted their price targets for N-Able, with Scotiabank lowering it to $8.75 and BMO to $8.50, both maintaining a neutral rating on the stock.

The adjustments follow concerns about N-Able’s future revenue and EBITDA margins, despite the potential benefits from its recent acquisition of Adlumin. The acquisition is expected to enhance N-Able’s security offerings, but analysts have expressed cautious optimism about the company’s ability to demonstrate consistent revenue generation. N-Able’s full-year 2024 results showed a total revenue of $466.1 million, marking a 10.5% increase year-over-year, with a subscription revenue of $459.0 million, up 11.4% YoY. The company’s financial outlook for 2025 includes an adjusted EBITDA margin of 27% to 28%, with a total annual recurring revenue (ARR) expected to grow by 7% to 9% YoY. As N-Able navigates these developments, investors will be closely monitoring its ability to achieve the projected growth and profitability.

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