Why did NABL consistently outperform earnings forecasts in 2024?

N-able Inc. (NABL) consistently outperformed earnings forecasts in 2024 due to several key factors:

1. Strong Revenue Growth: N-able reported a total revenue of $116.51 million for Q4 2024, which exceeded market expectations by $2.79 million. This revenue surprise can be attributed to robust growth in its core business segments, particularly in the areas of cloud-based software solutions for managed service providers.

NABL Revenue Surprise, Total Revenue

2. Strategic Acquisitions: N-able's acquisition of Adlumin has been instrumental in bolstering its market position and revenue streams. Despite some concerns regarding future revenue forecasts, the integration of Adlumin has thus far shown positive results, contributing to N-able's ability to exceed earnings expectations.
3. Market Position and Growth Prospects: N-able's focus on the rapidly growing security and cloud-based software markets positions it well for sustained growth. The company's solutions cater to the increasing demand for remote monitoring, data protection, and security services, which has been a significant growth driver.

In summary, N-able's strong revenue growth, strategic acquisitions, and favorable market conditions have collectively contributed to its consistent outperformance of earnings forecasts in 2024.