N-able (NABL) 10-Q 11 Aug 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Aug. 08, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-40297
Entity Registrant Name	N-able, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	85-4069861
Entity Address, Address Line One	30 Corporate Drive
Entity Address, Address Line Two	Suite 400
Entity Address, City or Town	Burlington
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01803
City Area Code	781
Local Phone Number	328-6490
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	NABL
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		180,213,050
Entity Central Index Key	0001834488
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 86,618	$ 66,736
Accounts receivable, net of allowances of $1,580 and $1,653 as of June 30, 2022 and December 31, 2021, respectively	34,087	33,041
Income tax receivable	9,092	7,250
Prepaid and other current assets	13,629	13,962
Total current assets	143,426	120,989
Property and equipment, net	36,451	38,748
Operating lease right-of-use assets	34,417	36,206
Deferred taxes	1,697	1,681
Goodwill	809,707	840,923
Intangible assets, net	3,569	8,066
Other assets, net	9,504	9,086
Total assets	1,038,771	1,055,699
Current liabilities:
Accounts payable	4,384	5,865
Due to affiliates	145	464
Accrued liabilities and other	26,683	30,944
Current operating lease liabilities	5,795	4,830
Income taxes payable	6,983	4,600
Current portion of deferred revenue	10,991	10,675
Current debt obligation	3,500	3,500
Total current liabilities	58,481	60,878
Long-term liabilities:
Deferred revenue, net of current portion	158	223
Non-current deferred taxes	3,121	2,632
Non-current operating lease liabilities	36,176	37,822
Long-term debt, net of current portion	334,429	335,379
Other long-term liabilities	412	410
Total liabilities	432,777	437,344
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock, $0.001 par value: 550,000,000 shares authorized and 180,146,580 and 179,049,429 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	180	179
Preferred stock, $0.001 par value: 50,000,000 shares authorized and no shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	0	0
Additional paid-in capital	616,148	602,996
Accumulated other comprehensive (loss) income	(19,889)	15,053
Retained earnings	9,555	127
Total stockholders' equity	605,994	618,355
Total liabilities and stockholders' equity	$ 1,038,771	$ 1,055,699

Consolidated and Combined Balan

Consolidated and Combined Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Allowance on accounts receivable	$ 1,580	$ 1,653
Common stock, par or stated value per share (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	550,000,000	550,000,000
Common stock, shares issued (in shares)	180,146,580	179,049,429
Common stock outstanding (in shares)	180,146,580	179,049,429
Preferred stock, par or stated value per share (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue:
Subscription and other revenue	$ 91,627	$ 85,340	$ 182,487	$ 168,530
Cost of revenue:
Cost of revenue	13,624	11,783	26,905	23,087
Amortization of acquired technologies	545	1,037	1,527	3,741
Total cost of revenue	14,169	12,820	28,432	26,828
Gross profit	77,458	72,520	154,055	141,702
Operating expenses:
Sales and marketing	32,020	24,498	63,074	50,212
Research and development	15,241	12,501	30,626	24,543
General and administrative	18,440	21,364	36,069	41,592
Amortization of acquired intangibles	1,460	4,276	2,921	10,295
Total operating expenses	67,161	62,639	132,690	126,642
Operating income	10,297	9,881	21,365	15,060
Other expense:
Interest expense, net	(3,845)	(6,082)	(7,371)	(12,600)
Other income (expense), net	175	(54)	1,234	(583)
Total other expense	(3,670)	(6,136)	(6,137)	(13,183)
Income before income taxes	6,627	3,745	15,228	1,877
Income tax expense	2,300	3,283	5,800	5,693
Net income (loss)	$ 4,327	$ 462	$ 9,428	$ (3,816)
Net income (loss) per share:
Basic earnings (loss) per share (in dollars per share)	$ 0.02	$ 0	$ 0.05	$ (0.02)
Diluted earnings (loss) per share (in dollars per share)	$ 0.02	$ 0	$ 0.05	$ (0.02)
Weighted-average shares used to compute net income (loss) per share:
Weighted-average common shares outstanding used in computing basic earnings (loss) per share (in shares)	180,034	158,124	179,948	158,124
Weighted-average shares used in computing diluted earnings (loss) per share (in shares)	180,504	158,124	180,675	158,124

Consolidated Statements of Comp

Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 4,327	$ 462	$ 9,428	$ (3,816)
Other comprehensive (loss) income:
Foreign currency translation adjustment	(25,775)	5,407	(34,942)	(13,912)
Other comprehensive (loss) income	(25,775)	5,407	(34,942)	(13,912)
Comprehensive (loss) income	$ (21,448)	$ 5,869	$ (25,514)	$ (17,728)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Parent Company Net Investment	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Balance at beginning of period at Dec. 31, 2020	$ 631,197		$ 582,206		$ 48,991
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(3,816)		(3,816)
Foreign currency translation adjustment	(13,912)				(13,912)
Stock-based compensation	9,023		9,023
Net Transfers to Parent	10,783		10,783
Balance at end of period at Jun. 30, 2021	633,275		598,196		35,079
Balance at beginning of period at Mar. 31, 2021	614,732		585,060		29,672
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	462		462
Foreign currency translation adjustment	5,407				5,407
Stock-based compensation	4,274		4,274
Net Transfers to Parent	8,400		8,400
Balance at end of period at Jun. 30, 2021	$ 633,275		$ 598,196		35,079
Balance at beginning of period (in shares) at Dec. 31, 2021	179,049,429	179,049,000
Balance at beginning of period at Dec. 31, 2021	$ 618,355	$ 179		$ 602,996	15,053	$ 127
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	9,428					9,428
Foreign currency translation adjustment	(34,942)				(34,942)
Exercise of stock options (in shares)		23,000
Exercise of stock options	27			27
Restricted stock units issued, net of shares withheld for taxes (in shares)		961,000
Restricted stock units issued, net of shares withheld for taxes	(5,542)	$ 1		(5,543)
Issuance of stock	$ 0
Issuance of stock (in shares)		57,000
Issuance of stock under employee stock purchase plan (in shares)	57,000
Issuance of stock under employee stock purchase plan	$ 568
Stock-based compensation	$ 18,100			18,100
Balance at end of period (in shares) at Jun. 30, 2022	180,146,580	180,147,000
Balance at end of period at Jun. 30, 2022	$ 605,994	$ 180		616,148	(19,889)	9,555
Balance at beginning of period (in shares) at Mar. 31, 2022		179,916,000
Balance at beginning of period at Mar. 31, 2022	618,556	$ 180		607,261	5,886	5,228
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	4,327					4,327
Foreign currency translation adjustment	(25,775)				(25,775)
Exercise of stock options (in shares)		10,000
Exercise of stock options	11			11
Restricted stock units issued, net of shares withheld for taxes (in shares)		215,000
Restricted stock units issued, net of shares withheld for taxes	(991)			(991)
Issuance of stock	0
Issuance of stock (in shares)		6,000
Issuance of stock under employee stock purchase plan	0
Stock-based compensation	$ 9,866			9,866
Balance at end of period (in shares) at Jun. 30, 2022	180,146,580	180,147,000
Balance at end of period at Jun. 30, 2022	$ 605,994	$ 180		$ 616,148	$ (19,889)	$ 9,555

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities
Net income (loss)	$ 9,428	$ (3,816)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	12,233	19,289
(Benefit from) provision for doubtful accounts	(73)	500
Stock-based compensation expense	17,966	9,023
Deferred taxes	345	(2,381)
Amortization of debt issuance costs	814	0
Operating lease right-of-use assets, net	(424)	0
(Gain) loss on foreign currency exchange rates	(597)	467
Other non-cash expenses	43	0
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in business combinations:
Accounts receivable	(1,512)	(1,327)
Income tax receivable	(1,884)	(153)
Prepaid expenses and other assets	217	(6,117)
Accounts payable	(839)	(5,336)
Due to and from affiliates	(463)	12,184
Accrued liabilities and other	(1,822)	5,118
Accrued related party interest payable	0	(2,039)
Income taxes payable	1,965	(2,197)
Deferred revenue	358	(126)
Other long-term assets	112	0
Net cash provided by operating activities	35,867	23,089
Cash flows from investing activities
Purchases of property and equipment	(5,427)	(12,757)
Purchases of intangible assets	(2,356)	(2,252)
Net cash used in investing activities	(7,783)	(15,009)
Cash flows from financing activities
Payments of tax withholding obligations related to restricted stock	(5,543)	0
Exercise of stock options	27	0
Proceeds from issuance of common stock under employee stock purchase plan	568	0
Repayments of borrowings from Credit Agreement	(1,750)	0
Repayments of borrowings due to affiliates	0	(68,620)
Net transfers from Parent	0	10,783
Net cash used in financing activities	(6,698)	(57,837)
Effect of exchange rate changes on cash and cash equivalents	(1,504)	(433)
Net increase (decrease) in cash and cash equivalents	19,882	(50,190)
Cash and cash equivalents
Beginning of period	66,736	99,790
End of period	86,618	49,600
Supplemental disclosure of cash flow information:
Cash paid for interest	6,183	14,640
Cash paid for income taxes	3,829	9,816
Supplemental disclosure of non-cash activities:
Change in purchases of property, equipment and leasehold improvements included in accounts payable and accrued expenses	(583)	(2,653)
Right-of-use assets obtained in exchange for operating lease liabilities	$ 967	$ 21,235

Organization and Nature of Oper

Organization and Nature of Operations	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Nature of Operations	Organization and Nature of Operations Background On August 6, 2020, SolarWinds Corporation ("SolarWinds" or "Parent") announced that its board of directors had authorized management to explore a potential spin-off of its managed service provider ("MSP") business into our company, a newly created and separately traded public company, and separate into two distinct, publicly traded companies (the "Separation"). On July 19, 2021, SolarWinds completed the Separation through a pro-rata distribution (the "Distribution") of all the outstanding shares of our common stock it held to the stockholders of record of SolarWinds as of the close of business on July 12, 2021 (the "Record Date"). Each SolarWinds stockholder of record received one share of our common stock, $0.001 par value, for every two shares of SolarWinds common stock, $0.001 par value, held by such stockholder as of the close of business on the Record Date. SolarWinds distributed 158,020,156 shares of our common stock in the Distribution, which was effective at 11:59 p.m., Eastern Time, on July 19, 2021. The Distribution reflected 316,040,312 shares of SolarWinds common stock outstanding on July 12, 2021 at a distribution ratio of one share of our common stock for every two shares of SolarWinds common stock. In addition, on July 19, 2021, and prior to completion of the Distribution, we issued 20,623,282 newly-issued shares of our common stock in connection with a private placement of N-able’s common stock (the “Private Placement”). As a result of the Distribution, we became an independent public company and our common stock is listed under the symbol "NABL" on the New York Stock Exchange. Our financial statements for the periods through the Separation and Distribution date of July 19, 2021 are prepared on a “carve-out” basis as described below. Description of Business N-able, Inc., a Delaware corporation, together with its subsidiaries is a leading global provider of cloud-based software solutions for MSPs, enabling them to support digital transformation and growth for small and medium-sized enterprises ("SMEs"), which we define as those enterprises having less than 1,000 employees. With a flexible technology platform and powerful integrations, N-able makes it easy for MSPs to monitor, manage, and protect their end-customer systems, data, and networks. Our growing portfolio of security, automation, and backup and recovery solutions is built for IT services management professionals. N-able simplifies complex ecosystems and enables customers to solve their most pressing challenges. In addition, we provide extensive, proactive support—through enriching partner programs, hands-on training, and growth resources—to help MSPs deliver exceptional value and achieve success at scale. Through our multi-dimensional land and expand model and global presence, we are able to drive strong recurring revenue growth and profitability. N-able qualifies as an “emerging growth company” (“EGC”) as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”).

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation Our interim Consolidated Financial Statements do not include all of the information and footnotes required by United States of America generally accepted accounting principles ("GAAP") for complete financial statements. The interim financial information is unaudited, but reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2021. Prior to the Separation from SolarWinds Our financial statements for the periods through the Separation and Distribution date of July 19, 2021 are Consolidated Financial Statements prepared on a “carve-out” basis. The Consolidated Statements of Operations include all revenues and costs directly attributable to N-able as well as an allocation of expenses related to facilities, functions and services provided by SolarWinds prior to the Separation and Distribution. These corporate expenses have been allocated to us based on direct usage or benefit, where identifiable, with the remainder allocated based on headcount. See Note 4. Relationship with Parent and Related Entities for further details. The allocated costs were deemed to be settled by N-able to SolarWinds in the period in which the expense was recorded in the Consolidated Statements of Operations and these settlements were reflected in cash flows from operating activities in the Consolidated Statements of Cash Flows. Current and deferred income taxes and related tax expense have been determined based on the stand-alone results of N-able by applying Accounting Standards Codification No. 740, Income Taxes (“ASC 740”), to N-able’s operations in each country as if it were a separate taxpayer (i.e. following the Separate Return Methodology). SolarWinds maintains various stock-based compensation plans at a corporate level. N-able employees participated in those programs prior to the Separation and Distribution and a portion of the compensation cost associated with those plans is included in N-able’s Consolidated Statements of Operations. The stock-based compensation expense is included within Parent company net investment for periods prior to the Separation and Distribution, with the accumulated balance included within Parent company net investment being transferred to additional paid-in capital upon consummation of the Separation and Distribution. The amounts presented in the Consolidated Financial Statements are not necessarily indicative of future awards. See Note 4. Relationship with Parent and Related Entities for further details. SolarWinds' third party debt and the related interest have not been allocated to us for any of the applicable periods presented because SolarWinds' borrowings were primarily for corporate cash purposes and were not directly attributable to N-able. In addition, none of the N-able legal entities guaranteed the debt nor were they jointly and severally liable for SolarWinds' debt. Any transactions which have been included in the Consolidated Financial Statements from legal entities which are not exclusively operating as N-able legal entities are considered to be effectively settled in the Consolidated Financial Statements at the time the transaction is recorded between SolarWinds and the N-able business. The total net effect of the settlement of these intercompany transactions is reflected in the Consolidated Statements of Cash Flows as a financing activity. See Note 4. Relationship with Parent and Related Entities for further details. All of the allocations and estimates in the Consolidated Financial Statements are based on assumptions that management believes are reasonable. However, the Consolidated Financial Statements included herein may not be indicative of the results of operations and cash flows of N-able in the future or if N-able had been a separate, stand-alone publicly traded entity during the applicable periods presented. Actual costs that may have been incurred if we had been a standalone company would depend on a number of factors, including the organizational structure, whether functions were outsourced or performed by employees, and strategic decisions made in areas such as information technology and infrastructure. Going forward, we may perform these functions using our own resources or outsourced services. For a period following the Separation and Distribution, however, some of these functions continue to be provided by SolarWinds under a Transition Services Agreement. Additionally, we provide some services to SolarWinds under such Transition Services Agreement. See Note 4. Relationship with Parent and Related Entities for further details regarding allocated shared costs with SolarWinds. Following the Separation from SolarWinds Our financial statements for periods from July 20, 2021 forward are Consolidated Financial Statements based on our reported results as a standalone company. We prepared our Consolidated Financial Statements in conformity with GAAP and the reporting regulations of the Securities and Exchange Commission ("SEC"). The accompanying Consolidated Financial Statements include the accounts of N-able, Inc. and the accounts of its wholly owned subsidiaries. We have eliminated all intercompany balances and transactions. Use of Estimates The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The impact from the rapidly changing market and economic conditions due to the coronavirus disease 2019 ("COVID-19") pandemic on our business, results of operations and financial condition is uncertain. We have made estimates of the impact of the COVID-19 pandemic within our financial statements as of and for the three and six months ended June 30, 2022 and 2021 which did not result in material adjustments. The estimates assessed included, but were not limited to, allowances for credit losses, the carrying values of goodwill and intangible assets and other long-lived assets, valuation allowances for tax assets and revenue recognition and may change in future periods. The actual results that we experience may differ materially from our estimates. The accounting estimates that require our most significant, difficult and subjective judgments include: • the valuation of goodwill, intangibles, long-lived assets and contingent consideration; • revenue recognition; • income taxes; and • management’s assessment of allocations of expenses prior to the Separation and Distribution. Recently Adopted and Issued Accounting Pronouncements As of June 30, 2022, there have been no recent accounting pronouncements or changes in accounting pronouncements that are expected to have a material impact on our consolidated financial position, results of operations, or cash flows. Fair Value Measurements We apply the authoritative guidance on fair value measurements for financial assets and liabilities that are measured at fair value on a recurring basis and non-financial assets and liabilities, such as goodwill, intangible assets and property, plant and equipment that are measured at fair value on a non-recurring basis. The guidance establishes a three-tiered fair value hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as follows: Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets accessible by us. Level 2: Inputs that are observable in the marketplace other than those inputs classified as Level 1. Level 3: Inputs that are unobservable in the marketplace and significant to the valuation. The carrying amounts reported in our Consolidated Balance Sheets for cash, accounts receivable, accounts payable and other accrued expenses approximate fair value due to relatively short periods to maturity. Our related party debt with SolarWinds Holdings, Inc. prior to the Separation is not carried at fair value. See Note 4. Relationship with Parent and Related Entities for further details regarding our related party debt. The carrying amounts reported in our Consolidated Balance Sheets for cash, accounts receivable, accounts payable and other accrued expenses approximate fair value due to relatively short periods to maturity. We held no financial instruments as of June 30, 2022 and December 31, 2021. As of June 30, 2022 and December 31, 2021, the carrying value of our outstanding debt approximates its estimated fair value as the interest rate on the debt is adjusted for changes in market rates. See Note 5. Debt for additional information regarding our debt. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component are summarized below: Foreign Currency Translation Adjustments Accumulated Other Comprehensive Income (Loss) (in thousands) Balance at December 31, 2021 $ 15,053 $ 15,053 Other comprehensive loss before reclassification (34,942) (34,942) Net current period other comprehensive loss (34,942) (34,942) Balance at June 30, 2022 $ (19,889) $ (19,889) Revenue Our revenue consists of the following: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Subscription revenue $ 89,369 $ 82,821 $ 178,004 $ 163,492 Other revenue 2,258 2,519 4,483 5,038 Total subscription and other revenue $ 91,627 $ 85,340 $ 182,487 $ 168,530 During the three month periods ended June 30, 2022 and 2021, respectively, we recognized the following revenue from subscription and other services at a point in time and over time: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Revenue recognized at a point in time $ 14,749 $ 15,082 $ 30,263 $ 30,192 Revenue recognized over time 76,878 70,258 $ 152,224 $ 138,338 Total revenue recognized $ 91,627 $ 85,340 $ 182,487 $ 168,530 Deferred Revenue Deferred revenue primarily consists of transaction prices allocated to remaining performance obligations from annually billed subscription agreements and maintenance services associated with our historical sales of perpetual license products which are delivered over time. Certain of our maintenance agreements are billed annually in advance for services to be performed over a 12-month period. We initially record the amounts allocated to maintenance performance obligations as deferred revenue and recognize these amounts ratably on a daily basis over the term of the maintenance agreement. Details of our total deferred revenue balance was as follows: Total Deferred Revenue (in thousands) Balance at December 31, 2021 $ 10,898 Deferred revenue recognized (9,701) Additional amounts deferred 9,952 Balance at June 30, 2022 $ 11,149 We expect to recognize revenue related to remaining performance obligations as of June 30, 2022 as follows: Revenue Recognition Expected by Period Total Less than 1 year 1-3 years More than 3 years (in thousands) Expected recognition of deferred revenue $ 11,149 $ 10,991 $ 158 $ — Cost of Revenue Amortization of Acquired Technologies. Amortization of acquired technologies included in cost of revenue relate to our subscription products as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Amortization of acquired technologies $ 545 $ 1,037 $ 1,527 $ 3,741

Goodwill

Goodwill	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The following table reflects the changes in goodwill for the six months ended June 30, 2022: (in thousands) Balance at December 31, 2021 $ 840,923 Foreign currency translation (31,216) Balance at June 30, 2022 $ 809,707

Relationship with Parent and Re

Relationship with Parent and Related Entities	6 Months Ended
	Jun. 30, 2022
Related Party Transactions [Abstract]
Relationship with Parent and Related Entities	Relationship with Parent and Related Entities Prior to the Separation and Distribution, the N-able business was managed and operated in the normal course of business consistent with other affiliates of SolarWinds. Accordingly, certain shared costs for the periods through the Separation and Distribution date of July 19, 2021 have been allocated to N-able and reflected as expenses in the Consolidated Financial Statements. Management considers the allocation methodologies used to be reasonable and appropriate reflections of the historical SolarWinds expenses attributable to N-able for purposes of the stand-alone financial statements. However, the expenses reflected in the Consolidated Financial Statements may not be indicative of the actual expenses that would have been incurred during the periods presented if N-able historically operated as a separate, stand-alone entity. In addition, the expenses reflected in the Consolidated Financial Statements may not be indicative of related expenses that will be incurred in the future by N-able. General Corporate Overhead For the periods through the Separation and Distribution date of July 19, 2021, SolarWinds provided facilities, information technology services and certain corporate and administrative services to the N-able business. Expenses relating to these services have been allocated to N-able and are reflected in the Consolidated Financial Statements. Where direct assignment is not possible or practical, these costs were allocated based on headcount. The following table summarizes the components of general allocated corporate expenses for the three and six months ended June 30, 2021: Three Months Ended June 30, Six Months Ended June 30, 2021 2021 (in thousands) General and administrative $ 10,012 $ 19,101 Research and development 63 135 Sales and marketing 6 34 Cost of revenue 8 50 Total $ 10,089 $ 19,320 Due to and from Affiliates In connection with the Separation and Distribution, we repaid all related party debt due to SolarWinds Holdings, Inc. and had no remaining related party debt due to SolarWinds Holdings, Inc. as of June 30, 2022 and December 31, 2021. On February 25, 2016, we entered into a loan agreement with SolarWinds Holdings, Inc. with an original principal amount of $250.0 million and a maturity date of February 25, 2023. Borrowings under the loan agreement bear interest at a floating rate which is equal to an adjusted London Interbank Offered Rate ("LIBOR") for a three-month interest period plus 9.8%. Prepayments of borrowings under the loan are permitted. In connection with the Separation and Distribution, we repaid this debt in full. On May 27, 2016, we entered into an additional loan agreement with SolarWinds Holdings, Inc. The loan agreement, as amended, has an original principal amount of $200.0 million and a maturity date of May 27, 2026. Borrowings under the loan agreement bear interest at a fixed rate of 2.24%. Prepayments of borrowings under the loan are permitted. In connection with the Separation and Distribution, we repaid this debt in full. Interest expense related to the activity with SolarWinds Holdings, Inc. was $6.1 million and $12.6 million for the three and six months ended June 30, 2021, respectively. The repayment of principal for these related party borrowings is reflected as a financing activity in the Consolidated Statements of Cash Flows. Due to affiliates within current liabilities primarily comprises $0.1 million and $0.5 million relating to transition services provided by SolarWinds as of June 30, 2022 and December 31, 2021, respectively. Due from affiliates within accounts receivable comprises $0.2 million and $0.1 million of receivables due from SolarWinds as of June 30, 2022 and December 31, 2021, respectively. Equity-Based Incentive Plans Prior to the Separation and Distribution, certain of our employees participated in Parent’s equity-based incentive plans. Under the SolarWinds Corporation 2016 Equity Incentive Plan (the "2016 Plan"), our employees, consultants, directors, managers and advisors were awarded stock-based incentive awards in a number of forms, including non-qualified stock options. The ability to grant any future equity awards under the 2016 Plan terminated in October 2018. Under the SolarWinds Corporation 2018 Equity Incentive Plan, our employees were eligible to be awarded stock-based incentive awards, including non-statutory stock options or incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock units and other cash-based or share-based awards. Awards granted to our employees under the Parent incentive plans generally vested over periods ranging from one For the periods through the Separation and Distribution date of July 19, 2021, compensation costs associated with our employees’ participation in Parent's incentive plans have been specifically identified for employees who exclusively supported our operations and were allocated to us as part of the cost allocations from Parent. Total costs charged to us related to our employees’ participation in Parent’s incentive plans were $4.1 million for the three months ended June 30, 2021. In connection with the Separation and Distribution, all of the vested and outstanding and unvested SolarWinds equity awards held by our employees were converted to N-able awards through the Conversion. The modification of these equity awards resulted in incremental compensation expense to the extent the estimated fair value of the awards immediately following the modification exceeded the estimated fair value of the awards immediately prior to the modification. This expense is to be recognized upfront for all vested and outstanding awards and over the remaining vesting term for all unvested awards. For the three and six months ended June 30, 2022, we recognized $0.6 million and $1.2 million, respectively, of incremental expense in connection with the Conversion. We include stock-based compensation expense in operating expense (general and administrative, sales and marketing and research and development) and cost of revenue on our Consolidated Statements of Operations, depending on the nature of the employee’s role in our operations. Agreements with SolarWinds In connection with the completion of the Separation and Distribution on July 19, 2021, we entered into several agreements with SolarWinds that, among other things, provide a framework for our relationship with SolarWinds after the Separation and Distribution . The following summarizes some of the most significant agreements and relationships that we continue to have with SolarWinds. Separation and Distribution Agreement The Separation and Distribution Agreement sets forth our agreements with SolarWinds regarding the principal actions taken in connection with the Separation and Distribution . It also sets forth other agreements that govern aspects of our relationship with SolarWinds following the Separation and Distribution , including (i) the manner in which legal matters and claims are allocated and certain liabilities are shared between N-able and SolarWinds; (ii) other matters including transfers of assets and liabilities, treatment or termination of intercompany arrangements and the settlement or extinguishment of certain liabilities and other obligations between N-able and SolarWinds; and (iii) mutual indemnification clauses. The Separation and Distribution Agreement also provides that SolarWinds will be liable and obligated to indemnify us for all liabilities based upon, arising out of, or relating to the Cyber Incident other than certain specified expenses for which we will be responsible. The term of the Separation and Distribution Agreement is indefinite and it may only be terminated with the prior written consent of both N-able and SolarWinds. Transition Services Agreement We entered into a Transition Services Agreement pursuant to which N-able and SolarWinds provide various services to each other. Under this agreement, SolarWinds continues to provide us with certain corporate and shared services, such as engineering, marketing, internal audit and travel support in exchange fo r the fees specified in the agreement. The Transition Services Agreement will terminate on the expiration of the term of the last service provided under it, which N-able anticipates to be on or around December 31, 2022. We incurred less than $0.1 million of costs under the Transition Services Agreement during the three and six months ended June 30, 2022, respectively. Tax Matters Agreement We entered into a Tax Matters Agreement with SolarWinds that governs the parties’ respective rights, responsibilities and obligations with respect to tax liabilities a nd benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings and other matters regarding taxes. Costs incurred under the Tax Matters Agreement were insignificant during the three and six months ended June 30, 2022, respectively. Software OEM Agreements We entered into Software OEM Agreements with SolarWinds pursuant to which SolarWinds granted to N-able, and N-able granted to SolarWinds, a non-exclusive and royalty-bearing license to market, advertise, distribute and sublicense certain SolarWinds and N-able software products, respectively, to customers on a worldwide basis. Each agreement has a two year term, and may be terminated by the applicable licensor in certain instances. We earned $0.4 million and $0.7 million of revenue and incurred less than $0.1 million and $0.1 million of costs under the Software OEM Agreements during the three and six months ended June 30, 2022, respectively. Employee Matters Agreement We entered into an Employee Matters Agreement with SolarWinds that governs N-able's and SolarWinds’ compensation and employee benefit obligations with respect to the employees and other service providers of each company, and generally allocated liabilities and responsibilities relating to employment matters and employee compensation and benefit plans and programs. Costs incurred under the Employee Matters Agreement were insignificant during the three and six months ended June 30, 2022, respectively. Intellectual Property Matters Agreement We entered into an Intellectual Property Matters Agreement with SolarWinds pursuant to which each party granted to the other party a generally irrevocable, non-exclusive, worldwide, and royalty-free license to use certain intellectual property rights retained by the other party. Under the Intellectual Property Matters Agreement, the term for the licensed or sublicensed know-how is perpetual and the term for each licensed or sublicensed patent is until expiration of the last valid claim of such patent. The Intellectual Property Matters Agreement will terminate only if N-able and SolarWinds agree in writing to terminate it. Costs incurred under the Intellectual Property Matters Agreement were insignificant during the three and six months ended June 30, 2022, respectively. Trademark License Agreement We entered into a Trademark License Agreement with SolarWinds pursuant to which SolarWinds granted to N-able a generally limited, worldwide, non-exclusive and royalty-free license to use certain trademarks retained by SolarWinds that were used by SolarWinds in the conduct of its business prior to the Separation and Distribution. The Trademark License Agreement will terminate once we cease to use all of the licensed trademarks. Costs incurred under the Trademark License Agreement were insignificant during the three and six months ended June 30, 2022, respectively. Software Cross License Agreement We entered into a Software Cross License Agreement with SolarWinds pursuant to which each party granted to the other party a generally perpetual, irrevocable, non-exclusive, worldwide and, subject to certain exceptions, royalty-free license to certain software libraries and internal tools for limited uses. The term of the Software Cross License Agreement will be perpetual unless N-able and SolarWinds agree in writing to terminate the agreement. We earned less than $0.1 million and less than $0.1 million of revenue and incurred $0.2 million and $0.4 million of costs under the Software Cross License Agreement during the three and six months ended June 30, 2022, respectively.

Debt

Debt	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Debt	Debt In connection with the Separation and Distribution, on July 19, 2021, certain subsidiaries of the Company, including N-able International Holdings I, Inc. (as guarantor) and N-able International Holdings II, Inc. (as borrower), entered into a credit agreement (the "Credit Agreement") with JPMorgan Chase, Bank, N.A. as administrative agent and collateral agent and the lenders from time to time party thereto. N-able International Holdings I, Inc. is a holding company with no other operations, cash flows, material assets or liabilities other than the equity interests in N-able International Holdings II, Inc. The Credit Agreement provides for $410.0 million of first lien secured credit facilities (the "Credit Facilities"), consisting of a $60.0 million revolving credit facility (the "Revolving Facility"), and a $350.0 million term loan facility (the "Term Loan"). On July 19, 2021, prior to the completion of the Distribution, the Company distributed approximately $16.5 million, representing the proceeds from the Term Loan, net of the repayment of related party debt due to SolarWinds Holdings, Inc., payment of intercompany trade payables, and fees and other transaction-related expenses, to SolarWinds. The Revolving Facility will primarily be available for general corporate purposes. The following table summarizes information relating to our outstanding debt as of June 30, 2022: June 30, 2022 Amount Outstanding Effective Rate (in thousands, except interest rates) Term loan facility $ 347,375 4.57 % Revolving credit facility — — % Total principal amount 347,375 Unamortized discount and debt issuance costs (9,446) Total debt, net 337,929 Less: Current debt obligation (3,500) Long-term debt, net of current portion $ 334,429 Borrowings denominated in U.S. dollars under the Revolving Facility bear interest at a floating rate of an Adjusted LIBOR rate (subject to a “floor” of 0.0%) for a specified interest period plus an applicable margin of 3.00%. The borrowings denominated in Euros under the Revolving Facility bear interest at a floating rate of an Adjusted EURIBOR rate (subject to a “floor” of 0.0%) for a specified interest period plus an applicable margin of 3.00%. Borrowings under the Term Loan bear interest at a floating rate of an Adjusted LIBOR rate (subject to a “floor” of 0.5%) for a specified interest period plus an applicable margin of 3.00%. Each margin is subject to reductions to 2.75% and 1.75%, respectively, based on our first lien net leverage ratio. In addition to paying interest on loans outstanding under the Revolving Facility, we are required to pay a commitment fee of 0.375% per annum in respect of unused commitments thereunder, subject to a reduction to 0.25% per annum based on our first lien net leverage ratio. The Term Loan requires quarterly repayments equal to 0.25% of the original principal amount, commencing in December 2021 through June 2028. The final maturity dates of the Revolving Facility and Term Loan are July 18, 2026 and July 18, 2028, respectively. The Credit Agreement contains a number of covenants that, among other things, restrict, subject to certain exceptions, our ability to: incur additional indebtedness; create liens; engage in mergers or consolidations; sell or transfer assets; pay dividends and distributions or repurchase our capital stock; make investments, loans, or advances; prepay certain junior indebtedness; engage in certain transactions with affiliates; and enter into negative pledge agreements. In addition, the Revolving Facility is subject to a financial covenant requiring compliance with a maximum first lien net leverage ratio of 7.50 to 1.00 at the end of each fiscal quarter, which will trigger when loans outstanding under the Revolving Facility exceed 35% of the aggregate commitments under the Revolving Facility. The Credit Agreement contains certain customary events of default, including, among others, failure to pay principal, interest or other amounts; inaccuracy of representations and warranties; violation of covenants; cross events of default; certain bankruptcy and insolvency events; certain ERISA events; certain undischarged judgments; and change of control. As of June 30, 2022, we were in compliance with all covenants of the Credit Agreement. The following table summarizes the remaining future minimum principal payments under Credit Agreement as of June 30, 2022: (in thousands) 2022 $ 1,750 2023 3,500 2024 3,500 2025 3,500 2026 3,500 Thereafter 331,625 Total minimum principal payments $ 347,375

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share A reconciliation of the number of shares in the calculation of basic and diluted earnings (loss) per share follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Basic earnings (loss) per share: Numerator: Net income (loss) $ 4,327 $ 462 $ 9,428 $ (3,816) Denominator: Weighted-average common shares outstanding used in computing basic earnings (loss) per share 180,034 158,124 179,948 158,124 Basic earnings (loss) per share $ 0.02 $ 0.00 $ 0.05 $ (0.02) Diluted earnings (loss) per share: Numerator: Net income (loss) $ 4,327 $ 462 $ 9,428 $ (3,816) Denominator: Weighted-average shares used in computing basic earnings (loss) per share 180,034 158,124 179,948 158,124 Add dilutive impact of employee equity plans 470 — 727 — Weighted-average shares used in computing diluted earnings (loss) per share 180,504 158,124 180,675 158,124 Diluted earnings (loss) per share $ 0.02 $ 0.00 $ 0.05 $ (0.02) The dilutive impact of employee equity awards was not applicable to the calculation of diluted net loss per share for the three months ended June 30, 2021 as the effect would have been anti-dilutive. The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of the diluted net income per share attributable to common stockholders for the three and six months ended June 30, 2022 because their effect would have been anti-dilutive or for which the performance condition had not been met at the end of the period: Three Months Ended June 30, Six Months Ended June 30, 2022 2022 (in thousands) Restricted stock units 6,310 3,798 Total anti-dilutive shares 6,310 3,798

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the three months ended June 30, 2022 and 2021, we recorded income tax expense of $2.3 million and $3.3 million, respectively, resulting in an effective tax rate of 34.7% and 87.7%, respectively. For the six months ended June 30, 2022 and 2021, we recorded income tax expense of $5.8 million and $5.7 million, respectively, resulting in an effective tax rate of 38.1% and 303.3%, respectively. The decrease in the effective tax rate for the three and six months ended June 30, 2022 compared to the same periods in 2021 was primarily due to an increase in income before income taxes and a decrease in the amount of the unbenefited loss in the U.S. Our policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. At June 30, 2022, we did not have any accrued interest and penalties related to unrecognized tax benefits.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings From time to time, we have been and may be involved in various legal proceedings arising in our ordinary course of business. In the opinion of management, resolution of any pending claims (either individually or in the aggregate) is not expected to have a material adverse impact on our Consolidated Financial Statements, cash flows or financial position and it is not possible to provide an estimated amount of any such loss. However, the outcome of disputes is inherently uncertain. Therefore, although management considers the likelihood of such an outcome to be remote, an unfavorable resolution of one or more matters could materially affect our future results of operations or cash flows, or both, in a particular period.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 1, 2022, we completed the acquisition of all the outstanding equity of Spinpanel B.V. ("Spinpanel") for a total consideration of up to approximately $20.0 million, including up to $10.0 million payable upon the achievement of certain revenue metrics through July 1, 2025. We funded the transaction with cash on hand. Based in the Netherlands, Spinpanel is a multi-tenant Microsoft 365 management and automation platform built for Microsoft Cloud Solution Providers to automate the provisioning, security, and management of all Microsoft tenants, users, and licenses in a single consolidated hub. The acquisition of Spinpanel is intended to help our partners optimize the value of their Microsoft Cloud products and, in turn, give Spinpanel customers access to a wider array of IT management and security solutions. The transaction will be accounted for using the acquisition method of accounting. Accordingly, the results of operations of Spinpanel since the acquisition date will be included in our Consolidated Financial Statements for the third quarter of 2022.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Our interim Consolidated Financial Statements do not include all of the information and footnotes required by United States of America generally accepted accounting principles ("GAAP") for complete financial statements. The interim financial information is unaudited, but reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2021. Prior to the Separation from SolarWinds Our financial statements for the periods through the Separation and Distribution date of July 19, 2021 are Consolidated Financial Statements prepared on a “carve-out” basis. The Consolidated Statements of Operations include all revenues and costs directly attributable to N-able as well as an allocation of expenses related to facilities, functions and services provided by SolarWinds prior to the Separation and Distribution. These corporate expenses have been allocated to us based on direct usage or benefit, where identifiable, with the remainder allocated based on headcount. See Note 4. Relationship with Parent and Related Entities for further details. The allocated costs were deemed to be settled by N-able to SolarWinds in the period in which the expense was recorded in the Consolidated Statements of Operations and these settlements were reflected in cash flows from operating activities in the Consolidated Statements of Cash Flows. Current and deferred income taxes and related tax expense have been determined based on the stand-alone results of N-able by applying Accounting Standards Codification No. 740, Income Taxes (“ASC 740”), to N-able’s operations in each country as if it were a separate taxpayer (i.e. following the Separate Return Methodology). SolarWinds maintains various stock-based compensation plans at a corporate level. N-able employees participated in those programs prior to the Separation and Distribution and a portion of the compensation cost associated with those plans is included in N-able’s Consolidated Statements of Operations. The stock-based compensation expense is included within Parent company net investment for periods prior to the Separation and Distribution, with the accumulated balance included within Parent company net investment being transferred to additional paid-in capital upon consummation of the Separation and Distribution. The amounts presented in the Consolidated Financial Statements are not necessarily indicative of future awards. See Note 4. Relationship with Parent and Related Entities for further details. SolarWinds' third party debt and the related interest have not been allocated to us for any of the applicable periods presented because SolarWinds' borrowings were primarily for corporate cash purposes and were not directly attributable to N-able. In addition, none of the N-able legal entities guaranteed the debt nor were they jointly and severally liable for SolarWinds' debt. Any transactions which have been included in the Consolidated Financial Statements from legal entities which are not exclusively operating as N-able legal entities are considered to be effectively settled in the Consolidated Financial Statements at the time the transaction is recorded between SolarWinds and the N-able business. The total net effect of the settlement of these intercompany transactions is reflected in the Consolidated Statements of Cash Flows as a financing activity. See Note 4. Relationship with Parent and Related Entities for further details. All of the allocations and estimates in the Consolidated Financial Statements are based on assumptions that management believes are reasonable. However, the Consolidated Financial Statements included herein may not be indicative of the results of operations and cash flows of N-able in the future or if N-able had been a separate, stand-alone publicly traded entity during the applicable periods presented. Actual costs that may have been incurred if we had been a standalone company would depend on a number of factors, including the organizational structure, whether functions were outsourced or performed by employees, and strategic decisions made in areas such as information technology and infrastructure. Going forward, we may perform these functions using our own resources or outsourced services. For a period following the Separation and Distribution, however, some of these functions continue to be provided by SolarWinds under a Transition Services Agreement. Additionally, we provide some services to SolarWinds under such Transition Services Agreement. See Note 4. Relationship with Parent and Related Entities for further details regarding allocated shared costs with SolarWinds. Following the Separation from SolarWinds Our financial statements for periods from July 20, 2021 forward are Consolidated Financial Statements based on our reported results as a standalone company. We prepared our Consolidated Financial Statements in conformity with GAAP and the reporting regulations of the Securities and Exchange Commission ("SEC"). The accompanying Consolidated Financial Statements include the accounts of N-able, Inc. and the accounts of its wholly owned subsidiaries. We have eliminated all intercompany balances and transactions.
Use of Estimates	The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The impact from the rapidly changing market and economic conditions due to the coronavirus disease 2019 ("COVID-19") pandemic on our business, results of operations and financial condition is uncertain. We have made estimates of the impact of the COVID-19 pandemic within our financial statements as of and for the three and six months ended June 30, 2022 and 2021 which did not result in material adjustments. The estimates assessed included, but were not limited to, allowances for credit losses, the carrying values of goodwill and intangible assets and other long-lived assets, valuation allowances for tax assets and revenue recognition and may change in future periods. The actual results that we experience may differ materially from our estimates. The accounting estimates that require our most significant, difficult and subjective judgments include: • the valuation of goodwill, intangibles, long-lived assets and contingent consideration; • revenue recognition; • income taxes; and • management’s assessment of allocations of expenses prior to the Separation and Distribution.
Recently Adopted Accounting Pronouncements	As of June 30, 2022, there have been no recent accounting pronouncements or changes in accounting pronouncements that are expected to have a material impact on our consolidated financial position, results of operations, or cash flows.
Fair Value Measurements	We apply the authoritative guidance on fair value measurements for financial assets and liabilities that are measured at fair value on a recurring basis and non-financial assets and liabilities, such as goodwill, intangible assets and property, plant and equipment that are measured at fair value on a non-recurring basis. The guidance establishes a three-tiered fair value hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as follows: Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets accessible by us. Level 2: Inputs that are observable in the marketplace other than those inputs classified as Level 1. Level 3: Inputs that are unobservable in the marketplace and significant to the valuation. The carrying amounts reported in our Consolidated Balance Sheets for cash, accounts receivable, accounts payable and other accrued expenses approximate fair value due to relatively short periods to maturity. Our related party debt with SolarWinds Holdings, Inc. prior to the Separation is not carried at fair value. See Note 4. Relationship with Parent and Related Entities for further details regarding our related party debt. The carrying amounts reported in our Consolidated Balance Sheets for cash, accounts receivable, accounts payable and other accrued expenses approximate fair value due to relatively short periods to maturity. We held no financial instruments as of June 30, 2022 and December 31, 2021. As of June 30, 2022 and December 31, 2021, the carrying value of our outstanding debt approximates its estimated fair value as the interest rate on the debt is adjusted for changes in market rates. See Note 5. Debt
Deferred Revenue	Deferred revenue primarily consists of transaction prices allocated to remaining performance obligations from annually billed subscription agreements and maintenance services associated with our historical sales of perpetual license products which are delivered over time. Certain of our maintenance agreements are billed annually in advance for services to be performed over a 12-month period. We initially record the amounts allocated to maintenance performance obligations as deferred revenue and recognize these amounts ratably on a daily basis over the term of the maintenance agreement.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Changes in accumulated other comprehensive income by component	Changes in accumulated other comprehensive income (loss) by component are summarized below: Foreign Currency Translation Adjustments Accumulated Other Comprehensive Income (Loss) (in thousands) Balance at December 31, 2021 $ 15,053 $ 15,053 Other comprehensive loss before reclassification (34,942) (34,942) Net current period other comprehensive loss (34,942) (34,942) Balance at June 30, 2022 $ (19,889) $ (19,889)
Disaggregation of revenue	Our revenue consists of the following: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Subscription revenue $ 89,369 $ 82,821 $ 178,004 $ 163,492 Other revenue 2,258 2,519 4,483 5,038 Total subscription and other revenue $ 91,627 $ 85,340 $ 182,487 $ 168,530 During the three month periods ended June 30, 2022 and 2021, respectively, we recognized the following revenue from subscription and other services at a point in time and over time: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Revenue recognized at a point in time $ 14,749 $ 15,082 $ 30,263 $ 30,192 Revenue recognized over time 76,878 70,258 $ 152,224 $ 138,338 Total revenue recognized $ 91,627 $ 85,340 $ 182,487 $ 168,530
Details of total deferred revenue balance	Details of our total deferred revenue balance was as follows: Total Deferred Revenue (in thousands) Balance at December 31, 2021 $ 10,898 Deferred revenue recognized (9,701) Additional amounts deferred 9,952 Balance at June 30, 2022 $ 11,149
Remaining performance obligations for revenue recognition	We expect to recognize revenue related to remaining performance obligations as of June 30, 2022 as follows: Revenue Recognition Expected by Period Total Less than 1 year 1-3 years More than 3 years (in thousands) Expected recognition of deferred revenue $ 11,149 $ 10,991 $ 158 $ —
Amortization of acquired technologies	Amortization of acquired technologies included in cost of revenue relate to our subscription products as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Amortization of acquired technologies $ 545 $ 1,037 $ 1,527 $ 3,741

Goodwill (Tables)

Goodwill (Tables)	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	The following table reflects the changes in goodwill for the six months ended June 30, 2022: (in thousands) Balance at December 31, 2021 $ 840,923 Foreign currency translation (31,216) Balance at June 30, 2022 $ 809,707

Relationship with Parent and _2

Relationship with Parent and Related Entities (Tables)	6 Months Ended
	Jun. 30, 2022
Related Party Transactions [Abstract]
Schedule of the components of general allocated corporate expenses	The following table summarizes the components of general allocated corporate expenses for the three and six months ended June 30, 2021: Three Months Ended June 30, Six Months Ended June 30, 2021 2021 (in thousands) General and administrative $ 10,012 $ 19,101 Research and development 63 135 Sales and marketing 6 34 Cost of revenue 8 50 Total $ 10,089 $ 19,320

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Summary of debt	The following table summarizes information relating to our outstanding debt as of June 30, 2022: June 30, 2022 Amount Outstanding Effective Rate (in thousands, except interest rates) Term loan facility $ 347,375 4.57 % Revolving credit facility — — % Total principal amount 347,375 Unamortized discount and debt issuance costs (9,446) Total debt, net 337,929 Less: Current debt obligation (3,500) Long-term debt, net of current portion $ 334,429
Schedule of maturities of long-term debt	The following table summarizes the remaining future minimum principal payments under Credit Agreement as of June 30, 2022: (in thousands) 2022 $ 1,750 2023 3,500 2024 3,500 2025 3,500 2026 3,500 Thereafter 331,625 Total minimum principal payments $ 347,375

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Reconciliation of shares in basic and diluted earnings per share calculation	A reconciliation of the number of shares in the calculation of basic and diluted earnings (loss) per share follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Basic earnings (loss) per share: Numerator: Net income (loss) $ 4,327 $ 462 $ 9,428 $ (3,816) Denominator: Weighted-average common shares outstanding used in computing basic earnings (loss) per share 180,034 158,124 179,948 158,124 Basic earnings (loss) per share $ 0.02 $ 0.00 $ 0.05 $ (0.02) Diluted earnings (loss) per share: Numerator: Net income (loss) $ 4,327 $ 462 $ 9,428 $ (3,816) Denominator: Weighted-average shares used in computing basic earnings (loss) per share 180,034 158,124 179,948 158,124 Add dilutive impact of employee equity plans 470 — 727 — Weighted-average shares used in computing diluted earnings (loss) per share 180,504 158,124 180,675 158,124 Diluted earnings (loss) per share $ 0.02 $ 0.00 $ 0.05 $ (0.02)
Weighted average shares excluded from earnings per share computation	The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of the diluted net income per share attributable to common stockholders for the three and six months ended June 30, 2022 because their effect would have been anti-dilutive or for which the performance condition had not been met at the end of the period: Three Months Ended June 30, Six Months Ended June 30, 2022 2022 (in thousands) Restricted stock units 6,310 3,798 Total anti-dilutive shares 6,310 3,798

Organization and Nature of Op_2

Organization and Nature of Operations (Details)		6 Months Ended
	Jul. 19, 2021 $ / shares shares	Jun. 30, 2022 employee $ / shares	Dec. 31, 2021 $ / shares
Schedule of Investments [Line Items]
Spinoff transaction, conversion ratio	1
Common stock, par or stated value per share (in dollars per share) | $ / shares	$ 0.001	$ 0.001	$ 0.001
Maximum threshold of number of employees for consideration of a small and medium-sized enterprise | employee		1,000
Private Placement
Schedule of Investments [Line Items]
Sale of stock, number of shares issued in transaction (in shares)	20,623,282
SolarWinds Holdings, Inc.
Schedule of Investments [Line Items]
Spinoff transaction, conversion ratio	2
Common stock, par or stated value per share (in dollars per share) | $ / shares	$ 0.001
Stock issued during period distributed for spinoff (in shares)	158,020,156
Common stock outstanding after distribution due to spinoff (in shares)	316,040,312

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 618,556	$ 614,732	$ 618,355	$ 631,197
Other comprehensive loss before reclassification			(34,942)
Other comprehensive (loss) income	(25,775)	5,407	(34,942)	(13,912)
Balance at end of period	605,994	633,275	605,994	633,275
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period			15,053
Other comprehensive loss before reclassification			(34,942)
Other comprehensive (loss) income			(34,942)
Balance at end of period	(19,889)		(19,889)
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	5,886	29,672	15,053	48,991
Balance at end of period	$ (19,889)	$ 35,079	$ (19,889)	$ 35,079

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Revenue Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Total revenue	$ 91,627	$ 85,340	$ 182,487	$ 168,530
Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenue	14,749	15,082	30,263	30,192
Revenue recognized over time
Disaggregation of Revenue [Line Items]
Total revenue	76,878	70,258	152,224	138,338
Subscription revenue
Disaggregation of Revenue [Line Items]
Total revenue	89,369	82,821	178,004	163,492
Other revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 2,258	$ 2,519	$ 4,483	$ 5,038

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Changes in Deferred Revenue (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Movement in Deferred Revenue [Roll Forward]
Balance at December 31, 2021	$ 10,898
Deferred revenue recognized	(9,701)
Additional amounts deferred	9,952
Balance at June 30, 2022	$ 11,149

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Expected Recognition of Deferred Revenue (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Accounting Policies [Abstract]
Expected recognition of deferred revenue	$ 11,149
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Accounting Policies [Abstract]
Expected recognition of deferred revenue	$ 10,991
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue Recognition Expected by Period	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Accounting Policies [Abstract]
Expected recognition of deferred revenue	$ 158
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue Recognition Expected by Period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01
Accounting Policies [Abstract]
Expected recognition of deferred revenue	$ 0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue Recognition Expected by Period

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Cost of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Product Information [Line Items]
Amortization of acquired technologies	$ 545	$ 1,037	$ 1,527	$ 3,741
Subscription and other revenue
Product Information [Line Items]
Amortization of acquired technologies	$ 545	$ 1,037	$ 1,527	$ 3,741

Goodwill (Details)

Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Goodwill [Roll Forward]
Balance at beginning of period	$ 840,923
Foreign currency translation	(31,216)
Balance at end of period	$ 809,707

Relationship with Parent and _3

Relationship with Parent and Related Entities - Components of General Allocated Corporate Expenses (Details) - Affiliated Entity - SolarWinds Holdings, Inc. - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Related Party Transaction [Line Items]
Expenses from transactions with related party	$ 10,089	$ 19,320
General and administrative
Related Party Transaction [Line Items]
Expenses from transactions with related party	10,012	19,101
Research and development
Related Party Transaction [Line Items]
Expenses from transactions with related party	63	135
Sales and marketing
Related Party Transaction [Line Items]
Expenses from transactions with related party	6	34
Cost of revenue
Related Party Transaction [Line Items]
Expenses from transactions with related party	$ 8	$ 50

Relationship with Parent and _4

Relationship with Parent and Related Entities - Additional Information (Details) - USD ($) $ in Thousands			3 Months Ended		6 Months Ended
	May 27, 2016	Feb. 25, 2016	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Related party transaction, term					2 years
Minimum | Equity-Based Incentive Plan
Related Party Transaction [Line Items]
Award vesting period					1 year
Maximum | Equity-Based Incentive Plan
Related Party Transaction [Line Items]
Award vesting period					5 years
Affiliated Entity | SolarWinds Holdings, Inc.
Related Party Transaction [Line Items]
Interest expense, related party				$ 6,100		$ 12,600
Accounts payable, related parties			$ 100		$ 100		$ 500
Accounts receivable, related parties			200		200		100
Expenses (credits) from transactions with related party				10,089		$ 19,320
Affiliated Entity | SolarWinds Holdings, Inc. | Transition Services Agreement
Related Party Transaction [Line Items]
Expenses (credits) from transactions with related party			100		100
Affiliated Entity | SolarWinds Holdings, Inc. | Software OEM Agreements
Related Party Transaction [Line Items]
Expenses (credits) from transactions with related party			100		100
Revenue from related parties			400		700
Affiliated Entity | SolarWinds Holdings, Inc. | Software Cross License Agreement
Related Party Transaction [Line Items]
Expenses (credits) from transactions with related party			200		400
Revenue from related parties			100		100
Affiliated Entity | SolarWinds Holdings, Inc. | Equity-Based Incentive Plan
Related Party Transaction [Line Items]
Expenses (credits) from transactions with related party				$ 4,100
Conversion incremental compensation expense			600		1,200
Affiliated Entity | SolarWinds Holdings, Inc. | Loans Payable
Related Party Transaction [Line Items]
Face amount of debt		$ 250,000
Affiliated Entity | SolarWinds Holdings, Inc. | Loans Payable | Loan Agreement With SolarWinds Holdings, Inc.
Related Party Transaction [Line Items]
Face amount of debt	$ 200,000
Related party transaction, rate	2.24%
Affiliated Entity | SolarWinds Holdings, Inc. | Loans Payable | LIBOR
Related Party Transaction [Line Items]
Basis spread on variable rate		9.80%
Affiliated Entity | SolarWinds Holdings, Inc. | Other Noncurrent Liabilities
Related Party Transaction [Line Items]
Due to affiliates			$ 0		$ 0		$ 0

Debt - Narrative (Details)

Debt - Narrative (Details) - Credit Agreement - USD ($)		6 Months Ended
	Jul. 19, 2021	Jun. 30, 2022
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 410,000,000
Secured Debt
Debt Instrument [Line Items]
Face amount of debt	350,000,000
Payments of line of credit proceeds to former parent	16,500,000
LIBOR floor		0.50%
Basis spread on variable rate		3%
Margin is subject to reductions based on our first lien net leverage ratio, percentage		1.75%
Quarterly periodic payment, as a percentage of original principal		0.25%
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 60,000,000
Margin is subject to reductions based on our first lien net leverage ratio, percentage		2.75%
Commitment fee percentage		0.375%
Covenant, commitment fee percentage, net leverage ratio, reduction per annum		0.25%
Covenant, leverage ratio, maximum		7.50
Covenant, borrowing percentage of commitments, maximum		35%
Revolving Credit Facility | Line of Credit | US Dollars
Debt Instrument [Line Items]
LIBOR floor		0%
Revolving Credit Facility | LIBOR | Line of Credit
Debt Instrument [Line Items]
Basis spread on variable rate		3%
Revolving Credit Facility | Eurodollar | Line of Credit
Debt Instrument [Line Items]
LIBOR floor		0%
Basis spread on variable rate		3%

Debt - Schedule of Debt (Detail

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total principal amount	$ 347,375
Unamortized discount and debt issuance costs	(9,446)
Total debt, net	337,929
Less: Current debt obligation	(3,500)	$ (3,500)
Long-term debt, net of current portion	334,429	$ 335,379
Secured Debt | Credit Agreement
Debt Instrument [Line Items]
Total principal amount	$ 347,375
Effective Rate	4.57%
Total debt, net	$ 347,375
Line of Credit | Revolving Credit Facility | Credit Agreement
Debt Instrument [Line Items]
Total principal amount	$ 0
Effective Rate	0%

Debt - Summary of Future Minimu

Debt - Summary of Future Minimum Principal Payments of Debt (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Debt Instrument [Line Items]
Total debt, net	$ 337,929
Credit Agreement | Secured Debt
Debt Instrument [Line Items]
2022	1,750
2023	3,500
2024	3,500
2025	3,500
2026	3,500
Thereafter	331,625
Total debt, net	$ 347,375

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation of Shares in the Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator:
Net income (loss)	$ 4,327	$ 462	$ 9,428	$ (3,816)
Denominator:
Weighted-average common shares outstanding used in computing basic earnings (loss) per share (in shares)	180,034	158,124	179,948	158,124
Basic earnings (loss) per share (in dollars per share)	$ 0.02	$ 0	$ 0.05	$ (0.02)
Net income (loss)	$ 4,327	$ 462	$ 9,428	$ (3,816)
Add dilutive impact of employee equity plans (in shares)	470	0	727	0
Weighted-average shares used in computing diluted earnings (loss) per share (in shares)	180,504	158,124	180,675	158,124
Diluted earnings (loss) per share (in dollars per share)	$ 0.02	$ 0	$ 0.05	$ (0.02)

Earnings Per Share - Weighted A

Earnings Per Share - Weighted Average Outstanding Shares of Common Stock Equivalents Excluded (Details) - shares shares in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	6,310	3,798
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	6,310	3,798

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income tax expense	$ 2,300	$ 3,283	$ 5,800	$ 5,693
Effective income tax rate	34.70%	87.70%	38.10%	303.30%

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event - Spinpanel BV $ in Millions	Jul. 01, 2022 USD ($)
Subsequent Event [Line Items]
Payments to acquire businesses, gross	$ 20
Business combination, contingent consideration arrangements, range of outcomes, value, high	$ 10