N-able (NABL) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 8, 2026 astatine 10:57 AM CDT 31 min read

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DATE

Thursday, May 7, 2026 astatine 8:30 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — John Pagliuca

• Chief Financial Officer — Tim O'Brien

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Full Conference Call Transcript

John Pagliuca: Thank you, Griffin, and welcome, everyone, to our telephone this morning. Today, we'll reappraisal our archetypal 4th results, sermon cardinal trends we're seeing done caller manufacture engagements and item however AI innovation is tangibly expanding our bundle opportunity. We volition absorption peculiarly connected our AI innovation, wherever we are automating enactment historically delivered done labor-intensive services, helping organizations run much efficiently and securely portion besides increasing our TAM. This advancement matters present arsenic advancements successful frontier models are fundamentally rewriting the menace landscape, compressing effect times for defenders and empowering attackers to exploit vulnerabilities astatine unprecedented velocity and scale.

We judge our end-to-end cyber resilience level is purpose-built for this moment, positioning N-able to pb arsenic cybersecurity reaches an inflection point. Let's leap close in. Starting with the quarter, our results were strong. First 4th ARR was $548 million, increasing 8% year-over-year successful changeless currency, and adjusted EBITDA borderline was 27%. Quarterly gross and nett gross dollar retention some improved quarter-over-quarter and year-over-year, with trailing 12-month nett retention present astatine 106%. Let's locomotion done the drivers of that performance. First, we proceed to spot momentum upmarket. The fig of customers with implicit $50,000 of ARR grew by 13% year-over-year, and this cohort present represents 62% of N-able's full ARR.

In addition, customers with implicit $100,000 of ARR correspond 41% of our yearly recurring revenue. This upmarket advancement is further exemplified by our enactment arsenic Manchester City Football Club's authoritative cybersecurity partner. As the nine operates astatine planetary standard connected the field, N-able protects its captious information and systems, securing its integer situation disconnected the field. The concern underscores our quality to service complex, high-profile organizations. More broadly, fixed the beardown retention successful our upmarket cohorts, we judge our occurrence successful this conception provides a coagulated instauration for aboriginal growth. Second, our transmission enlargement strategy is working. 4 of our apical 5 caller lawsuit wins successful the quarter, including the Manchester City deal, were done value-added resellers, oregon VAR channel.