N-able Shares Plummet: Profit Drop and Revenue Miss Spark Concern

N-able, Inc. (NYSE:NABL) shares have taken a nosedive, reaching an all-time low after the company reported a significant profit decline in the fourth quarter and missed revenue estimates for the first quarter of 2025. The tech giant, which provides cloud-based software solutions for managed service providers (MSPs), has seen its stock price plummet in response to these disappointing results.



N-able's fourth-quarter earnings report revealed a GAAP net income of $3.3 million ($0.02 per share) and adjusted EBITDA of $38.1 million (32.7% margin). While these figures may seem impressive at first glance, they represent a substantial decrease from the previous year. In 2024, n-able reported a GAAP net income of $31.0 million ($0.16 per share) with an adjusted EBITDA of $169.4 million (36.3% margin). This significant drop in profitability has raised concerns among investors.



Adding to the dismay, N-able's first-quarter 2025 revenue missed estimates, with the company expecting total revenue in the range of $115.0 million to $116.0 million. This represents a mere 1% to 2% year-over-year growth, or approximately 3% to 4% growth on a constant currency basis. This slowdown in revenue growth, coupled with the decline in profitability, has led to a sharp decrease in N-able's stock price.

N-able's strategic acquisition of Adlumin, which added XDR and MDR capabilities to its security platform, and key executive hires focused on channel expansion, suggest that the company is reinvesting profits to drive long-term growth. However, these investments may be contributing to the near-term margin compression and slower revenue growth.



As N-able navigates this challenging period, investors should closely monitor the company's progress in integrating Adlumin's capabilities and expanding its channel presence. These strategic initiatives could help N-able maintain its competitive edge and drive future growth. However, the projected slowdown in revenue growth and margin compression in 2025 may continue to impact the company's stock price in the short term.

In conclusion, N-able's shares have plummeted following a profit drop and revenue miss, sparking concern among investors. While the company's strategic initiatives may position it for long-term growth, the near-term challenges could continue to impact its stock price. Investors should closely monitor N-able's progress and assess the potential risks and rewards before making any investment decisions.