Investing.com -- Shares of N-able, Inc. (NYSE: NABL) fell sharply by 27% after the company announced its fourth quarter and full-year 2024 results, which included a lower-than-expected revenue forecast for the first quarter and full-year 2025. Despite exceeding revenue guidance for the fourth quarter with a 7% YoY growth, the company’s projections did not meet analyst expectations, prompting a significant drop in stock value.

The software company reported a fourth-quarter earnings per share (EPS) of $0.10, surpassing the analyst estimate of $0.08. However, the revenue for the quarter was $116.5 million, only slightly above the consensus estimate of $113.71 million. The company’s guidance for Q1 2025 indicates revenue of $115-116 million, falling short of the anticipated $120.4 million. Furthermore, the full-year 2025 revenue forecast is set at $486.5-492.5 million, below the consensus estimate of $512.2 million.

N-able’s president and CEO, John Pagliuca, expressed confidence in the company’s position and its prospects for 2025, citing investments in security leadership and channel partnerships. CFO Tim O’Brien highlighted the company’s progress and strategic acquisition of Adlumin, which is expected to enhance N-able’s security and IT management platform. Despite these positive developments, the market reacted negatively to the forward-looking financial outlook.

The company’s full-year 2024 results showed a total revenue of $466.1 million, a 10.5% YoY increase, with a subscription revenue of $459.0 million, up 11.4% YoY. N-able also reported a total annual recurring revenue (ARR) of $482.5 million, an 8.6% YoY growth. These figures reflect the company’s strong performance in 2024, yet investor sentiment has been dampened by the cautious outlook for 2025.

N-able’s balance sheet as of December 31, 2024, showed total cash and cash equivalents of $85.2 million and total debt, net of issuance costs, of $333.1 million. The company’s financial outlook for 2025 includes an adjusted EBITDA margin of 27% to 28%, with a total ARR expected to grow by 7% to 9% YoY.

As the company navigates the challenges ahead, investors will be closely monitoring N-able’s ability to achieve its projected growth and profitability in the evolving IT services market.

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