N-able's Q1 2021 revenues were roughly $82.7 million to $82.9 million, representing 13% growth from Q1 2020 for the MSP software provider, parent SolarWinds disclosed today as part of a preliminary report. Finalized results are expected on April 29, 2021.
Moreover, SolarWinds is on track to complete the previously announced N-able business spin off in Q2 of 2021, SolarWinds CEO Sudhakar Ramakrishna said in a statement.
The existing N-able team, led by CEO John Pagliuca, will continue to lead the MSP-focused software business.
N-able Business Performance
The preliminary Q1 2021 report shows that the MSP software business largely avoided any major revenue setbacks associated with the SolarWinds Orion breach.
The breach, disclosed in December 2020, was not associated with N-able's software, according to digital forensics investigations performed by SolarWinds, N-able, KPMG and CrowdStrike.
Still, the cyberattack slightly impacted January 2021 sales in the MSP software business as some partners and customers assessed the potential impact of the Orion incident, SolarWinds’ CFO J. Barton Kalsu said during a February 2021 call with Wall Street analysts.
Once SolarWinds was able to assure MSPs that the attack did not involve the MSP software business, MSP-related sales returned to their usual performance, Kalsu indicated during that February call.
Generally speaking, N-able's YoY quarterly revenue had been growing about 15 percent in recent years.
SolarWinds and N-able Q1 2021 Revenues: A Closer Look
SolarWinds' total revenue will be in the range of $255.8 million to $256.8 million for Q1, representing approximately 4% year-over-year growth, and consisting of:
- Core IT Management revenue in the range of $173.1 million to $173.9 million, representing a consistent year-over-year performance.
- N-able revenue in the range of $82.7 million to $82.9 million, representing 13% year-over-year growth.
In a prepared statement, Ramakrishna said:
“We are pleased with our preliminary first quarter financial results, which exceeded the high end of our previously provided outlook with respect to both non-GAAP total revenue and adjusted EBITDA. I am extremely proud of the poise and collaboration that our team has exhibited to deliver value to our customers, contributing to our better than anticipated first quarter results. I continue to be encouraged by the resiliency of our business, and the positive customer and partner feedback to our ‘Secure by Design’ initiatives. Our entire team remains focused on our mission to deliver powerful, affordable, and secure solutions.”
SolarWinds' stock ($SWI) rose 2.2 percent in after-market trading following the preliminary financial results disclosure.
The SolarWinds and N-able preliminary Q1 2021 financial results arrive a few weeks after rival Datto said revenue was $139 million in Q4 of 2020, up 10 percent from Q4 of 2019.
