N-able Reports 3.9% Revenue Growth to $118.2 Million in Q1 2025

N-able, Inc. reported its financial results for the first quarter of 2025, revealing total revenue of $118.2 million, a 3.9% increase from $113.7 million in the same period last year. The growth was primarily driven by a rise in subscription revenue, which reached $116.8 million, up from $111.5 million in the prior year. However, the company experienced a net loss of $7.2 million, compared to a net income of $7.5 million in the first quarter of 2024. This decline in profitability was attributed to increased operating expenses, including higher costs related to sales and marketing, research and development, and general administrative expenses.

In terms of operational metrics, N-able's annual recurring revenue (ARR) grew by 10.3% year-over-year, reaching $492.7 million as of March 31, 2025. The number of customers generating over $50,000 in ARR increased to 2,398, a 9.6% rise from the previous year. The company also noted that customers with over $50,000 of ARR now represent approximately 58% of total ARR, up from 56% a year earlier. This growth reflects the successful implementation of the Long-Term Contract Initiative, which has shifted a greater proportion of subscriptions to long-term commitments.

N-able's acquisition of Adlumin, completed in November 2024, has also played a significant role in its strategic development. The integration of Adlumin's security operations platform is expected to enhance N-able's offerings in the cybersecurity space. The acquisition has resulted in increased amortization of acquired technologies, contributing to the rise in cost of revenue, which totaled $27.7 million for the quarter, up from $18.3 million a year ago. The company is also focusing on expanding its workforce, with total employees increasing to 1,800 as of March 31, 2025, compared to 1,598 a year earlier.

Looking ahead, N-able remains optimistic about its growth trajectory, despite the challenges posed by rising operational costs and market conditions. The company plans to continue investing in product development and expanding its sales and marketing efforts to drive customer acquisition and retention. N-able's management believes that its existing cash and cash equivalents, totaling $94.1 million, along with strong cash flow from operations, will be sufficient to support its operational needs and growth initiatives over the next twelve months. The company is also evaluating potential acquisitions to further enhance its market position and product offerings.