N-able, Inc. reported significant financial performance improvements in its latest 10-Q filing for the third quarter and nine months ended September 30, 2024. Total revenue for Q3 2024 reached $116.4 million, an increase of 8.3% from $107.6 million in Q3 2023. For the nine-month period, revenue rose 11.5% to $349.6 million, compared to $313.5 million in the same period last year. Subscription revenue, which constitutes the majority of total revenue, increased by 9.3% to $115.0 million for Q3 2024 and by 12.4% to $343.9 million for the nine months.

The company’s gross profit for Q3 2024 was $96.5 million, up from $90.2 million in Q3 2023, while operating income improved to $23.9 million from $18.4 million year-over-year. Net income for Q3 2024 was $10.8 million, compared to $6.0 million in Q3 2023, reflecting a substantial increase in profitability. Basic earnings per share for the quarter rose to $0.06 from $0.03 in the prior year.

N-able's total assets as of September 30, 2024, were $1.2 billion, up from $1.2 billion at the end of 2023. Current assets also increased significantly to $282.3 million from $224.8 million, driven by higher cash and cash equivalents, which rose to $174.4 million from $153.0 million. The company’s total stockholders' equity increased to $765.0 million from $711.4 million.

The company continues to focus on strategic growth, having completed the acquisition of Spinpanel B.V. in July 2022, which has contributed to its service offerings. As of September 30, 2024, N-able had approximately 25,000 customers and reported a 6.6% increase in the number of managed service provider (MSP) partners with annualized recurring revenue over $50,000.

Operating expenses for Q3 2024 were $72.6 million, a slight increase from $71.9 million in Q3 2023. Notably, research and development expenses rose by 16.4% to $23.0 million, reflecting the company's commitment to enhancing its product offerings. The company also reported a decrease in sales and marketing expenses, which fell by 4.1% to $32.3 million.

N-able's financial health remains robust, with compliance to all covenants of its Credit Agreement, which includes a total outstanding debt of $410.0 million as of September 30, 2024. The effective interest rate on this debt was 8.07%. The company has also implemented various security enhancements in response to the cyber incident affecting its parent company, SolarWinds, ensuring no direct financial impact on N-able.