N-able’s Stevie Win Shines Light on AI Ambitions Amid Revenue Slump

N-able, Inc. (NYSE: NABL) recently claimed a Gold Stevie Award in the Business Intelligence Solution – Implementation category at the 2025 Stevie Awards for Sales & Customer Service, recognizing its use of AI to enhance customer engagement and decision-making. The win, announced as the cybersecurity software provider faces near-term revenue headwinds, underscores a critical tension: Can N-able’s long-term bets on artificial intelligence and cybersecurity innovation offset its current growth struggles?

The award, determined by judges evaluating over 2,100 global nominations, highlights N-able’s “partner-first” strategy, which integrates AI into customer support to drive actionable insights. Frank Colletti, Chief Revenue Officer, called the win a “testament to our investment in tools that help us listen better and act faster.” This focus aligns with N-able’s broader mission to provide a unified cyber resiliency platform for businesses—a vision that hinges on AI-driven tools, third-party integrations, and training for managed service providers (MSPs).

But beneath the accolades lies a financial reality that investors must confront. N-able’s Q1 2025 revenue guidance of $115–$116 million reflects a 1–2% year-over-year decline (or 3–4% growth in constant currency), far below analysts’ expectations of $120.4 million. The shortfall, blamed on execution challenges in its annual contract initiative and the still-unproven integration of its $200 million Adlumin acquisition, triggered a 20% stock drop since January, leaving shares at $8.50—30% below 2024 highs.

The Stevie Award arrives at a pivotal moment. On May 8, N-able will host its Q1 earnings call, where investors will demand clarity on three key issues:
1. Whether the company can exceed its conservative revenue guidance, signaling a potential rebound.
2. Progress on the Adlumin integration, which added $2.5 million in revenue in Q4 2024 but remains a work in progress for bolstering XDR (Extended Detection and Response) capabilities.
3. How N-able plans to achieve its 7–9% Annual Recurring Revenue (ARR) growth target and 27–28% adjusted EBITDA margin for 2025, up from 26% in 2024.

The Stevie win may help N-able’s case. The recognition signals that its AI investments—such as immutable backups and AI-powered restore processes—are resonating in a crowded cybersecurity market. Analysts at JPMorgan and Needham have highlighted Adlumin’s potential to strengthen N-able’s offerings, even as BMO Capital Markets downgraded its price target to $8.50, citing “execution risks.”

N-able’s financial flexibility remains a double-edged sword. With $215 million in cash, a $75 million share repurchase program, and an 84% gross profit margin, the company has room to maneuver. Yet its $355 million in long-term debt and a P/E ratio of 56.2—reflecting sky-high investor expectations—leave little room for error.

The company’s ultimate success hinges on balancing ambition with execution. The cybersecurity market, projected to grow 10% annually through 2027, offers ample opportunity. N-able’s 1,765 employees and global reach, including strong U.S. and U.K. presences, position it to capitalize—if it can deliver on its AI and integration promises.

Conclusion: N-able’s Stevie Award is a bright spot in an otherwise challenging quarter. While the company’s near-term revenue struggles and margin targets pose risks, its strategic moves—Adlumin, AI-driven tools, and a partner-centric model—align with a fast-growing market. Investors will judge the stock’s prospects based on May 8’s earnings call: Can N-able prove it’s turning the corner? With a $1.2 billion market cap and institutional ownership at 95.66%, the stakes are high. A strong showing could re-ignite growth narratives; a stumble might deepen skepticism. For now, the Stevie win is a reminder that N-able’s long game remains viable—if it can execute.