Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 22, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,000 | ||
Entity Common Stock, Shares Outstanding | 184,762,998 | ||
Documents Incorporated by Reference | Part III of this Annual Report on Form 10-K incorporates certain information by reference from the definitive proxy statement for the registrant’s 2024 Annual Meeting of Stockholders to be filed within 120 days of the registrant’s fiscal year ended December 31, 2023 (the “Proxy Statement”). Except with respect to information specifically incorporated by reference in this Annual Report on Form 10-K, the Proxy Statement is not deemed to be filed as part of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001834488 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Austin, Texas |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 153,048 | $ 98,847 |
Accounts receivable, net of allowances of $1,171 and $1,330 as of December 31, 2023 and 2022, respectively | 40,013 | 34,798 |
Income tax receivable | 8,001 | 7,814 |
Prepaid and other current assets | 23,729 | 12,697 |
Total current assets | 224,791 | 154,156 |
Property and equipment, net | 36,838 | 37,404 |
Operating lease right-of-use assets | 32,067 | 31,752 |
Deferred taxes | 1,087 | 795 |
Goodwill | 838,497 | 828,795 |
Intangible assets, net | 6,717 | 8,873 |
Other assets, net | 22,794 | 17,082 |
Total assets | 1,162,791 | 1,078,857 |
Current liabilities: | ||
Accounts payable | 5,239 | 3,544 |
Accrued liabilities and other | 49,366 | 35,630 |
Current operating lease liabilities | 6,443 | 5,771 |
Income taxes payable | 4,523 | 1,629 |
Current portion of deferred revenue | 12,646 | 11,740 |
Current debt obligation | 3,500 | 3,500 |
Total current liabilities | 81,717 | 61,814 |
Long-term liabilities: | ||
Deferred revenue, net of current portion | 167 | 387 |
Non-current deferred taxes | 1,820 | 2,783 |
Non-current operating lease liabilities | 33,064 | 33,110 |
Long-term debt, net of current portion | 331,509 | 333,488 |
Other long-term liabilities | 3,154 | 5,204 |
Total liabilities | 451,431 | 436,786 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value: 550,000,000 shares authorized and 183,220,689 and 180,849,537 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 183 | 181 |
Preferred stock, $0.001 par value: 50,000,000 shares authorized and no shares issued and outstanding as of December 31, 2023 and 2022, respectively | 0 | 0 |
Additional paid-in capital | 666,522 | 632,871 |
Accumulated other comprehensive income (loss) | 4,409 | (7,815) |
Retained earnings | 40,246 | 16,834 |
Total stockholders' equity | 711,360 | 642,071 |
Total liabilities and stockholders' equity | $ 1,162,791 | $ 1,078,857 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Allowance for doubtful accounts receivable | $ 1,171 | $ 1,330 |
Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 550,000,000 | 550,000,000 |
Common stock, issued (in shares) | 183,220,689 | 180,849,537 |
Common stock, outstanding (in shares) | 183,220,689 | 180,849,537 |
Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | |||
Subscription and other revenue | $ 421,880 | $ 371,769 | $ 346,456 |
Cost of revenue: | |||
Cost of revenue | 66,369 | 56,133 | 46,677 |
Amortization of acquired technologies | 1,839 | 2,477 | 5,755 |
Total cost of revenue | 68,208 | 58,610 | 52,432 |
Gross profit | 353,672 | 313,159 | 294,024 |
Operating expenses: | |||
Sales and marketing | 134,691 | 125,301 | 112,678 |
Research and development | 78,180 | 63,484 | 53,959 |
General and administrative | 69,885 | 71,125 | 80,575 |
Amortization of acquired intangibles | 597 | 5,853 | 13,482 |
Total operating expenses | 283,353 | 265,763 | 260,694 |
Operating income | 70,319 | 47,396 | 33,330 |
Other expense: | |||
Interest expense, net | (30,252) | (18,852) | (20,472) |
Other income (expense), net | 4,259 | 1,881 | (1,266) |
Total other expense, net | (25,993) | (16,971) | (21,738) |
Income before income taxes | 44,326 | 30,425 | 11,592 |
Income tax expense | 20,914 | 13,718 | 11,479 |
Net income | $ 23,412 | $ 16,707 | $ 113 |
Net income per share: | |||
Basic earnings (loss) per share (in dollars per share) | $ 0.13 | $ 0.09 | $ 0 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.13 | $ 0.09 | $ 0 |
Weighted-average shares used to compute net income per share: | |||
Shares used in computation of basic earnings (loss) per share (in shares) | 182,371 | 180,136 | 167,460 |
Shares used in computation of diluted earnings (loss) per share (in shares) | 185,980 | 181,297 | 168,667 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 23,412 | $ 16,707 | $ 113 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 12,224 | (22,868) | (33,938) |
Other comprehensive income (loss) | 12,224 | (22,868) | (33,938) |
Comprehensive income (loss) | $ 35,636 | $ (6,161) | $ (33,825) |
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 (in shares) at Dec. 31, 2020 | 0 | |||||
Balance at beginning of period at Dec. 31, 2020 | $ 631,197 | $ 0 | $ 582,206 | $ 0 | $ 48,991 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Foreign currency translation adjustment | (13,912) | (13,912) | ||||
Net income | (14) | (14) | ||||
Net transfers from Parent | 10,783 | 10,783 | ||||
Issuance of stock (in shares) | 20,623,000 | |||||
Issuance of stock | 216,000 | $ 21 | 216,000 | (21) | ||
Distribution of net proceeds from Private Placement to Parent | (216,000) | (216,000) | ||||
Net transfers to Parent | (18,161) | (18,161) | ||||
Consummation of Separation transaction (in shares) | 158,020,000 | |||||
Consummation of Separation transaction | 179 | $ 158 | (583,837) | 583,858 | ||
Stock-based compensation | 9,023 | 9,023 | ||||
Balance at end of period (in shares) at Jul. 19, 2021 | 178,643,000 | |||||
Balance at end of period at Jul. 19, 2021 | 619,095 | $ 179 | 0 | 583,837 | 35,079 | 0 |
Balance at beginning of period (in shares) at Dec. 31, 2020 | 0 | |||||
Balance at beginning of period at Dec. 31, 2020 | 631,197 | $ 0 | 582,206 | 0 | 48,991 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Foreign currency translation adjustment | (33,938) | |||||
Net income | 113 | |||||
Balance at end of period (in shares) at Dec. 31, 2021 | 179,049,000 | |||||
Balance at end of period at Dec. 31, 2021 | 618,355 | $ 179 | 0 | 602,996 | 15,053 | 127 |
Balance at beginning of period (in shares) at Jul. 19, 2021 | 178,643,000 | |||||
Balance at beginning of period at Jul. 19, 2021 | 619,095 | $ 179 | 0 | 583,837 | 35,079 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Foreign currency translation adjustment | (20,026) | (20,026) | ||||
Net income | 127 | 127 | ||||
Issuance of stock (in shares) | 11,000 | |||||
Issuance of stock | 0 | |||||
Consummation of Separation transaction | 863 | 863 | ||||
Exercise of stock options (in shares) | 39,000 | |||||
Exercise of stock options | 23 | 23 | ||||
Restricted stock units issued, net of shares withheld for taxes (in shares) | 356,000 | |||||
Restricted stock units issued, net of shares withheld for taxes | (2,209) | (2,209) | ||||
Stock-based compensation | 20,482 | 20,482 | ||||
Balance at end of period (in shares) at Dec. 31, 2021 | 179,049,000 | |||||
Balance at end of period at Dec. 31, 2021 | 618,355 | $ 179 | 0 | 602,996 | 15,053 | 127 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Foreign currency translation adjustment | (22,868) | (22,868) | ||||
Net income | 16,707 | 16,707 | ||||
Issuance of stock (in shares) | 61,000 | |||||
Issuance of stock | 0 | |||||
Issuance of stock under employee stock purchase plan | 1,315 | 1,315 | ||||
Issuance of stock under employee stock purchase plan (in shares) | 142,000 | |||||
Exercise of stock options (in shares) | 42,000 | |||||
Exercise of stock options | 108 | 108 | ||||
Restricted stock units issued, net of shares withheld for taxes (in shares) | 1,556,000 | |||||
Restricted stock units issued, net of shares withheld for taxes | (8,323) | $ 2 | (8,325) | |||
Stock-based compensation | $ 36,777 | 36,777 | ||||
Balance at end of period (in shares) at Dec. 31, 2022 | 180,849,537 | 180,850,000 | ||||
Balance at end of period at Dec. 31, 2022 | $ 642,071 | $ 181 | 0 | 632,871 | (7,815) | 16,834 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Foreign currency translation adjustment | 12,224 | 12,224 | ||||
Net income | 23,412 | 23,412 | ||||
Issuance of stock (in shares) | 3,000 | |||||
Issuance of stock | 0 | |||||
Issuance of stock under employee stock purchase plan | $ 1,681 | 1,681 | ||||
Issuance of stock under employee stock purchase plan (in shares) | 194,000 | |||||
Exercise of stock options (in shares) | 50,006 | 50,000 | ||||
Exercise of stock options | $ 72 | 72 | ||||
Restricted stock units issued, net of shares withheld for taxes (in shares) | 2,124,000 | |||||
Restricted stock units issued, net of shares withheld for taxes | (11,974) | $ 2 | (11,976) | |||
Stock-based compensation | $ 43,874 | 43,874 | ||||
Balance at end of period (in shares) at Dec. 31, 2023 | 183,220,689 | 183,221,000 | ||||
Balance at end of period at Dec. 31, 2023 | $ 711,360 | $ 183 | $ 0 | $ 666,522 | $ 4,409 | $ 40,246 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income | $ 23,412 | $ 16,707 | $ 113 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 21,623 | 24,440 | 33,771 |
(Benefit from) provision for doubtful accounts | (159) | (323) | 2,153 |
Stock-based compensation expense | 43,570 | 36,527 | 29,430 |
Amortization of debt issuance costs | 1,601 | 1,623 | 732 |
Loss on lease modification | 0 | 0 | 271 |
Deferred taxes | 330 | (1,423) | (1,913) |
Operating lease right-of-use assets, net | (1,550) | (1,168) | (741) |
Loss (gain) on foreign currency exchange rates | 358 | (1,246) | 1,433 |
Gain on contingent consideration | (1,443) | (83) | 0 |
Other non-cash expenses | 220 | 148 | 0 |
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in business combinations: | |||
Accounts receivable | (7,060) | (3,432) | (5,567) |
Income taxes receivable | (174) | (567) | (5,999) |
Prepaid expenses and other assets | (10,823) | 283 | (10,673) |
Accounts payable | 1,833 | (1,624) | (455) |
Due to and from affiliates | 0 | (402) | (8,302) |
Accrued liabilities and other | 16,065 | 3,003 | 11,923 |
Accrued related party interest payable | 0 | 0 | (2,477) |
Income taxes payable | 2,966 | (3,188) | 158 |
Deferred revenue | 684 | 1,358 | 1,253 |
Other long-term assets | (1,274) | 780 | 231 |
Other long-term liabilities | (90) | 0 | 0 |
Net cash provided by operating activities | 90,089 | 71,413 | 45,341 |
Cash flows from investing activities | |||
Purchases of property and equipment | (13,780) | (12,834) | (30,664) |
Purchases of intangible assets | (8,556) | (8,176) | (4,169) |
Acquisitions, net of cash acquired | 0 | (9,199) | 0 |
Net cash used in investing activities | (22,336) | (30,209) | (34,833) |
Cash flows from financing activities | |||
Proceeds from Private Placement, net of $9,000 of issuance costs | 0 | 0 | 216,000 |
Distribution of net proceeds from Private Placement to Parent | 0 | 0 | (216,000) |
Payments of tax withholding obligations related to restricted stock units | (11,976) | (8,325) | (2,230) |
Exercise of stock options | 72 | 108 | 23 |
Proceeds from issuance of common stock under employee stock purchase plan | 1,681 | 1,315 | 0 |
Proceeds from Credit Agreement | 0 | 0 | 350,000 |
Repayments of borrowings due to affiliates | 0 | 0 | (372,650) |
Deferred acquisition payments | (1,450) | 0 | 0 |
Repayments of borrowings from Credit Agreement | (3,500) | (3,500) | (875) |
Net transfers to Parent | 0 | 0 | (6,515) |
Payment for debt issuance costs | 0 | 0 | (10,075) |
Net cash used in financing activities | (15,173) | (10,402) | (42,322) |
Effect of exchange rate changes on cash and cash equivalents | 1,621 | 1,309 | (1,240) |
Net increase (decrease) in cash and cash equivalents | 54,201 | 32,111 | (33,054) |
Cash and cash equivalents | |||
Beginning of period | 98,847 | 66,736 | 99,790 |
End of period | 153,048 | 98,847 | 66,736 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 28,437 | 15,570 | 20,387 |
Cash paid for income taxes | 14,934 | 16,303 | 19,029 |
Supplemental disclosure of non-cash activities: | |||
Change in purchases of property, equipment and leasehold improvements included in accounts payable and accrued expenses | (378) | (728) | 1,138 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 5,123 | $ 967 | $ 31,079 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Statement of Cash Flows [Abstract] | |
Stock issuance costs | $ 9,000 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2023 | |
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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation 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 13. 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 (“ASC”) 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 13. 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 13. 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 continued to be provided by SolarWinds under a Transition Services Agreement. Additionally, we provided some services to SolarWinds under such Transition Services Agreement. The Transition Services Agreement terminated during the year ended December 31, 2022, on the expiration of the term of the last service provided under it . See Note 13. 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. Emerging Growth Company We historically qualified as an EGC under Section 102(b)(1) of the JOBS Act, which exempts EGCs from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non‑emerging growth companies but any such election to opt out is irrevocable. N-able historically elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, N-able, as an emerging growth company, could adopt the new or revised standard at the time private companies adopted the new or revised standard. N-able's historical results are included as a part of the Parent's financial statements prior to the Separation and Distribution, which are filed with the Securities and Exchange Commission (“SEC”). Prior to the Separation and Distribution, N-able tracked the effective dates and adopted all guidance applicable to it consistent with the manner that the Parent tracked and adopted all applicable guidance. This may make comparison of N-able’s historical financial statements with another public company, which is neither an emerging growth company nor an emerging growth company which has not opted out of using the extended transition period, difficult because of the potential differences in accounting standards used. Based on the market value of our common stock held by non-affiliates as of June 30, 2023 (the last business day of the most recently completed second fiscal quarter), we ceased to qualify as an EGC as of the end of the fiscal year ending December 31, 2023. As a result, we are no longer able to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not EGCs including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. In addition, we are no longer able to use the extended transition period for complying with new or revised accounting standards available to emerging growth companies and will be required to adopt new or revised accounting standards as of the effective dates for public companies Segment Information Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by the company’s chief operating decision‑maker in deciding how to allocate resources and in assessing performance. N-able currently operates in one reportable business segment. 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 years ended December 31, 2023 and 2022 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. Foreign Currency Translation The functional currency of our foreign subsidiaries is determined in accordance with authoritative guidance issued by the Financial Accounting Standards Board (“FASB”). We translate assets and liabilities for these subsidiaries at exchange rates in effect at the balance sheet date. We translate income and expense accounts for these subsidiaries at the average monthly exchange rates for the periods. We record resulting translation adjustments as a component of accumulated other comprehensive income (loss) within total Parent company net investment prior to the Separation and Distribution and within stockholders' equity following the Separation and Distribution. We record gains and losses from currency transactions denominated in currencies other than the functional currency as other income (expense), net in our Consolidated Statements of Operations. Local currency transactions of international subsidiaries that have the U.S. dollar as the functional currency are remeasured into U.S. dollars using current rates of exchange for monetary assets and liabilities and historical rates of exchange for non-monetary assets and liabilities. The foreign currency transactional and re-measurement exchange gains and (losses) were $0.9 million, $2.2 million, and $(1.8) million for the years ended December 31, 2023, 2022 and 2021, respectively. Cash and Cash Equivalents All cash and cash equivalents included in the Consolidated Financial Statements are legally owned by N-able legal entities. We consider highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. As of December 31, 2023 and 2022, we have money market fund financial assets of $98.6 million and $48.4 million, respectively, which are included in “cash and cash equivalents” in our Consolidated Balance Sheets. See “Fair Value Measurements” below and Note 7. Fair Value Measurements for further details regarding the fair value measurements of our money market fund financial assets. Parent Company Net Investment For periods prior to the Separation and Distribution, N-able's equity on the Consolidated Balance Sheets represents SolarWinds’ historical net investment in the Business, and is presented as “Parent company net investment” in lieu of stockholders' equity. For periods prior to the Separation and Distribution, the Consolidated Statements of Stockholders' Equity and Parent Company Net Investment include corporate allocations, net cash transfers and other property transfers between SolarWinds and the Business, as well as short term due to affiliates, short term due from affiliates and long term due to affiliates between N-able and other SolarWinds affiliates that were settled on a current basis. All transactions reflected in Parent company net investment in the accompanying Consolidated Balance Sheets have been considered cash receipts and payments for purposes of the Consolidated Statements of Cash Flows and are reflected as financing activities in the accompanying Consolidated Statements of Cash Flows. Acquisitions The purchase price of our acquired businesses is allocated to the assets acquired and the liabilities assumed based on their estimated fair values, with the excess recorded as goodwill in the reporting unit expected to benefit from the business combination. If applicable, we estimate the fair value of contingent consideration payments in determining the purchase price. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of the tangible and intangible assets acquired and liabilities assumed, including the deferred tax asset valuation allowances and acquired income tax uncertainties, with the corresponding offset to goodwill. We include the operating results of acquisitions in our Consolidated Financial Statements from the acquisition date. Acquisition related costs are expensed separately from the acquisition as incurred and are primarily included in general and administrative expenses in our Consolidated Statements of Operations. The fair value of identifiable intangible assets is based on significant judgments made by management. We typically engage third party valuation appraisal firms to assist us in determining the fair values and useful lives of the assets acquired. The valuation estimates and assumptions are based on historical experience and information obtained by management, and include, but are not limited to, future expected cash flows earned from the product technology and discount rates applied in determining the present value of those cash flows. Unanticipated events and circumstances may occur that could affect the accuracy or validity of such assumptions, estimates or actual results. Acquired identifiable intangible assets are amortized on the straight-line method over their estimated economic lives, which are generally two Impairment of Goodwill, Intangible Assets and Long-lived Assets Goodwill Goodwill represents the amount of the purchase price in excess of the estimated fair value of net assets of businesses acquired in a business combination. Our goodwill was primarily derived from the take private transaction of SolarWinds in February 2016 and subsequent business combinations, where the purchase price exceeded the fair value of the net identifiable assets acquired. We test goodwill at least annually during the fourth quarter or sooner when circumstances indicate an impairment may exist. An impairment of goodwill is recognized when the carrying amount of a reporting unit exceeds its fair value. For purposes of the annual impairment test, we first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value, a “Step 0” analysis. If, based on a review of qualitative factors, it is more likely than not that the fair value of a reporting unit is less than its carrying value we perform “Step 1” of the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. If the carrying value exceeds the fair value, an impairment loss is recognized for the amount by which the reporting unit's carrying value exceeds its fair value, not to exceed the carrying value of goodwill in that reporting unit. In October 2023, we performed a qualitative, “Step 0,” assessment for our single reporting unit. For “Step 0,” we assessed several events and circumstances that could affect the significant inputs used to determine the fair value of the reporting unit, including the significance of the amount of excess fair value over carrying value, consistency of operating margins and cash flows, budgeted-to-actual performance from prior year, overall change in economic climate, changes in the industry and competitive environment, key management turnover, and earnings quality and sustainability. As of October 1, 2023, there were no unanticipated changes or negative indicators in the above qualitative factors that would impact the fair value of the Business as of the annual impairment date. As such, we determined there were no indicators of impairment and that it is more likely than not that the fair value of a reporting unit is greater than its carrying value and therefore performing the next step of impairment test was unnecessary. Fair value determination of our reporting unit requires considerable judgment and is sensitive to changes in underlying assumptions and factors. As a result, there can be no assurance that the estimates and assumptions made for purposes of the quantitative goodwill impairment test will prove to be an accurate prediction of future results. If an event occurs that would cause us to revise our estimates and assumptions used in analyzing the value of our goodwill, the revision could result in a non-cash impairment charge that could have a material impact on our financial results. Long-Lived Assets We evaluate the recoverability of our long-lived assets, including finite-lived intangible assets and other assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Our finite-lived intangible assets are primarily related to assets acquired at the take private transaction of SolarWinds and subsequent business combinations. Events or changes in circumstances that could result in an impairment review include, but are not limited to, significant underperformance relative to historical or projected future operating results, significant changes in the manner of use of the acquired assets or the strategy for our overall business, and significant negative industry or economic trends. In the event that the net book value of our long-lived assets exceeds the future undiscounted net cash flows attributable to such assets, an impairment charge would be required. Impairment, if any, is recognized in the period of identification to the extent the carrying amount of an asset or asset group exceeds the fair value of such asset or asset group. For the years ended December 31, 2023 and 2022, there were no indicators that our long-lived assets were impaired. Fair Value Measurements We apply the authoritative guidance on fair value measurements for financial assets and liabilities, such as our money market fund financial assets and contingent consideration 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 was not carried at fair value. See Note 13. Relationship with Parent and Related Entities for further details regarding our related party debt. See Note 7. Fair Value Measurements for a summary of our financial instruments accounted for at fair value on a recurring basis as of December 31, 2023 and 2022. As of December 31, 2023 and 2022, 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 9. Debt for additional information regarding our debt. Accounts Receivable Accounts receivable represent trade receivables from customers when we have sold subscriptions for software-as-a-service (“SaaS”) offerings as well as subscription-based term licenses and from the sale of maintenance services associated with our perpetual license products and have not yet received payment. We present accounts receivable net of an allowance for doubtful accounts. We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. In doing so, we consider the current financial condition of the customer, the specific details of the customer account, the age of the outstanding balance and the current economic environment. Any change in the assumptions used in analyzing a specific account receivable might result in an additional allowance for doubtful accounts being recognized in the period in which the change occurs. Our allowance for doubtful accounts was $1.2 million, $1.3 million and $1.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. Property and Equipment We record property and equipment at cost and depreciate them using the straight-line method over their estimated useful lives as follows: Useful Life Equipment, servers and computers 3 - 5 Furniture and fixtures 5 - 7 Software 3 - 5 Leasehold improvements Lesser of lease term or useful life Upon retirement or sale of property and equipment, we remove the cost of assets disposed of and any related accumulated depreciation from our accounts and credit or charge any resulting gain or loss to operating expense. We expense repairs and maintenance as they are incurred. Research and Development Costs Research and development expenses primarily consist of personnel costs and contractor fees related to the development of new software products and enhancements to existing software products. Personnel costs include salaries, bonuses and stock-based compensation and related employer-paid payroll taxes, as well as an allocation of our facilities, depreciation, benefits and IT costs. Research and development costs are charged to operations as incurred. Internal-Use Software Costs We capitalize costs related to developing new functionality for our suite of products that are hosted and accessed by our customers on a subscription basis. We also capitalize costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalized costs are recorded as part of other assets, net in our Consolidated Balance Sheets. Maintenance and training costs are expensed as incurred. Internal-use software costs are amortized on a straight-line basis over its estimated useful life, generally three years, and included in cost of revenue in the Consolidated Statements of Operations. There were no impairments to internal-use software costs during the periods presented. On December 14, 2022, we completed the acquisition of certain assets, primarily in the form of intellectual property, from a third party for a total consideration of up to $6.5 million, including $3.1 million of cash paid on the acquisition date, $1.0 million of product delivery fees, and up to $2.5 million payable upon the achievement of certain software engineering and knowledge transfer milestones as of September 1, 2023, and December 1, 2023. We funded the transaction with cash on hand. We incurred less than $0.1 million in acquisition-related costs during the three months ended December 31, 2022, which are included in general and administrative expense. Prior to the acquisition, N-able had an existing Original Equipment Manufacturing Agreement (“OEM Agreement”) with the third party, whereby $1.0 million had previously been recorded as a prepaid royalty. The OEM Agreement was terminated as of the acquisition date, and the $1.0 million previously recorded as a prepaid royalty is now classified as product delivery fees. The total consideration of $6.5 million has been capitalized as costs to obtain internal-use computer software from third parties and will be amortized over an estimated useful life of three years, beginning when the related technology is deemed ready for its intended use, in accordance with our policy for the capitalization of internal-use software costs. The $3.1 million of cash paid on the acquisition date and $1.0 million of product delivery fees is deemed to be the total value of technology ready for its intended use as of the acquisition date and will be amortized over an estimated useful life of three years, beginning on the acquisition date. The $2.5 million of contingent consideration is deemed to be the total value of technology not ready for its intended use as of the acquisition date. During the year ended December 31, 2023, $1.5 million of cash was paid due to the achievement of two of the software engineering and knowledge transfer milestones, with the related technology deemed ready for its intended use. The remaining contingent consideration liabilities of $1.0 million are included in “accrued liabilities and other” in our Consolidated Balance Sheets as of December 31, 2023, and will be re-evaluated at least quarterly, with the resulting gains and losses recognized as an adjustment to the amount capitalized as costs to obtain internal-use computer software from third parties. No gains or losses on the contingent consideration were recognized during the years ended December 31, 2023 and 2022, respectively. See Note 8. Accrued Liabilities and Other and Note 15. Commitments and Contingencies for additional information regarding the contingent consideration liabilities. We had $18.3 million and $13.7 million of net internal-use software costs capitalized as of December 31, 2023 and 2022, respectively. Amortization expense of internal-use software costs was $3.4 million, $2.5 million, and $2.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. Debt Issuance Costs Debt issuance costs for our secured credit facilities are presented as a deduction from the corresponding debt liability on our Consolidated Balance Sheets and amortized on an effective interest rate method over the term of the associated debt as interest expense in our Consolidated Statements of Operations. Amortization of debt issuance costs included in interest expense was $1.6 million, $1.6 million, and $0.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. See Note 9. Debt for discussion of our secured credit facilities. Contingencies We account for claims and contingencies in accordance with authoritative guidance that requires we record an estimated loss from a claim or loss contingency when information available prior to issuance of our Consolidated Financial Statements indicates a liability has been incurred at the date of our Consolidated Financial Statements and the amount of the loss can be reasonably estimated. If we determine that it is reasonably possible but not probable that an asset has been impaired or a liability has been incurred, we disclose the amount or range of estimated loss if material or that the loss cannot be reasonably estimated. Accounting for claims and contingencies requires us to use our judgment. We consult with legal counsel on those issues related to litigation and seek input from other experts and advisors with respect to matters in the ordinary course of business. See Note 15. Commitments and Contingencies for a discussion of contingencies. Revenue Recognition We generate revenue from fees received for our SaaS solutions as well as subscriptions for our subscription-based term licenses and from the sale of maintenance services associated with our perpetual licenses. We recognize revenue related to contracts from customers when we transfer promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This is determined by following a five-step process which includes (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price and (5) recognizing revenue when or as we satisfy a performance obligation, as described below. • Identify the contract with a customer. We generally use an electronic or manually signed order form, purchase order, an authorized credit card, or the receipt of a cash payment as evidence of a contract provided that collection is considered probable. We sell our products through our direct inside sales force and through our distributors and resellers. Sales through resellers and distributors are typically evidenced by a reseller or distributor agreement, together with purchase orders or authorized credit cards on a transaction-by-transaction basis. Our distributors and resellers do not carry inventory of our software and we generally require them to specify the end user of the software at the time of the order. Our distributors and resellers have no rights of return or exchange for software that they purchase from us and payment for these purchases is due to us without regard to whether the distributors or resellers collect payment from their customers. • Identify the performance obligations in the contract. Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the MSP partner that are separately identifiable from other promises in the contract, or distinct. If not considered distinct, the promised goods or services are combined with other goods or services and accounted for as a combined performance obligation. Determining the distinct performance obligations in a contract requires judgment. Our performance obligations primarily include SaaS solutions, subscription-based term licenses and maintenance support including unspecified upgrades or enhancements to new versions of our software solutions. See additional discussion of our performance obligations below. • Determine the transaction price. We determine the transaction price based on the contractual consideration and the amount of consideration we expect to receive in exchange for transferring the promised goods or services to the customer. We account for sales incentives to MSP partners, resellers or distributors as a reduction of revenue at the time we recognize the revenue from the related product sale. We report revenue net of any sales tax collected. Our return policy generally does not allow our MSP partners to return software products or services. • Allocate the transaction price. For contracts that contain multiple performance obligations, we allocate the transaction price of the contract to each distinct performance obligation based on a relative stand-alone selling price basis. Determining stand-alone selling prices for our performance obligations requires judgment and are based on multiple factors primarily including historical selling prices and discounting practices for products and services. We review the stand-alone selling price for our performance obligations periodically and update, if needed, to ensure that the methodology utilized reflects our current pricing practices. • Recognize revenue when or as we satisfy a performance obligation. Revenue is recognized when or as performance obligations are satisfied either over time or at a point in time by transferring a promised good or service. We consider this transfer to have occurred when risk of loss transfers to the MSP partner, reseller or distributor or the MSP partner has access to their subscription which is generally upon electronic activation of the licenses |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Spinpanel B.V. On July 1, 2022, we completed the acquisition of all the outstanding equity of 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. We incurred net acquisition-related costs of $0.3 million during the year ended December 31, 2022, which are included in general and administrative expense. Goodwill and acquired identifiable intangible assets for this acquisition are not deductible for tax purposes. During the three months ended March 31, 2023, a measurement period adjustment of $1.6 million was recorded to non-current deferred tax liabilities and goodwill. See Note 4. Goodwill and Intangible Assets for further details regarding changes in goodwill during the year ended December 31, 2023. The measurement period concluded as of June 30, 2023. The following table summarizes the amounts recognized for the assets acquired and liabilities assumed: (in thousands) Current assets, including cash acquired of $6 $ 128 Property and equipment, net 48 Current liabilities (1,199) Non-current deferred tax liabilities (764) Identifiable intangible assets Developed technology 8,890 Customer relationships 80 Goodwill 7,176 Total assets acquired, net $ 14,359 The following table summarizes the total consideration for the assets acquired and liabilities assumed: (in thousands) Cash paid, net of cash acquired of $6 $ 9,199 Contingent consideration 5,160 Total consideration, net $ 14,359 The following table summarizes the fair value of the acquired identifiable intangible assets and weighted-average useful life by category: Fair Value Weighted-Average Useful Life (in thousands) (in years) Developed technology $ 8,890 5 Customer relationships 80 3 Total identifiable intangible assets $ 8,970 The results of operations related to Spinpanel since the acquisition date are included in our Consolidated Financial Statements during the years ended December 31, 2023 and 2022. As noted above, total consideration includes up to $10.0 million payable upon the achievement of certain revenue metrics through July 1, 2025. The contingent consideration liabilities will be re-evaluated periodically, but at least quarterly, with the resulting gains and losses recognized within general and administrative expense in our Consolidated Statements of Operations. The fair value of this contingent consideration was $5.2 million at the date of acquisition, $5.1 million as of December 31, 2022, and $3.7 million as of December 31, 2023, resulting in the recognition of a gain of $1.4 million and $0.1 million during the years ended December 31, 2023 and 2022, respectively. The current portion of the contingent consideration of $0.8 million is included in “accrued liabilities and other” and the non-current portion of $2.9 million is included in “other long-term liabilities” in our Consolidated Balance Sheets as of December 31, 2023. See Note 7. Fair Value Measurements , Note 8. Accrued Liabilities and Other and Note 15. Commitments and Contingencies for additional information regarding the contingent consideration liabilities. Pro forma information for the acquisition has not been provided because the impact of the historical financials on our revenue, net income and net income per share is not material. We recognize revenue on the acquired products in accordance with our revenue recognition policy as described in Note 2. Summary of Significant Accounting Policies . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table reflects the changes in goodwill for the years ended December 31, 2023 and 2022: (in thousands) Balance as of December 31, 2021 $ 840,923 Acquisitions 8,726 Foreign currency translation (20,854) Balance as of December 31, 2022 828,795 Acquisitions (1,550) Foreign currency translation 11,252 Balance as of December 31, 2023 $ 838,497 Intangible Assets Intangible assets consisted of the following as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Gross Accumulated Net Gross Accumulated Net (in thousands) Developed product technologies $ 30,441 $ (23,766) $ 6,675 $ 30,054 $ (21,803) $ 8,251 Customer relationships 92,134 (92,092) 42 92,662 (92,040) 622 Trademarks 713 (713) — 713 (713) — Total intangible assets $ 123,288 $ (116,571) $ 6,717 $ 123,429 $ (114,556) $ 8,873 Intangible asset amortization expense was as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Intangible asset amortization expense $ 2,436 $ 8,330 $ 19,065 As of December 31, 2023, we estimate aggregate intangible asset amortization expense to be as follows: Estimated Amortization (in thousands) 2024 $ 1,930 2025 1,916 2026 1,902 2027 961 2028 8 Total amortization expense $ 6,717 The expected amortization expense is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, changes in foreign currency exchange rates, impairment of intangible assets, future changes to expected asset lives of intangible assets and other events. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table summarizes the fair value of our money market fund financial assets and contingent consideration financial liabilities that were measured on a recurring basis as of December 31, 2023 and 2022. See Note 3. Acquisitions , Note 8. Accrued Liabilities and Other and Note 15. Commitments and Contingencies for additional information regarding our contingent consideration liabilities. There have been no transfers between fair value measurement levels during the year ended December 31, 2023. Fair Value Measurements at December 31, 2023 Using Quoted Prices in Significant Significant Total (in thousands) Assets: Money market funds $ 98,560 $ — $ — $ 98,560 Liabilities: Contingent consideration $ — $ — $ 3,650 $ 3,650 Fair Value Measurements at December 31, 2022 Using Quoted Prices in Significant Significant Total (in thousands) Assets: Money market funds $ 48,389 $ — $ — $ 48,389 Liabilities: Contingent consideration $ — $ — $ 5,090 $ 5,090 As of December 31, 2023 and 2022, 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 9. Debt |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net, including software, consisted of the following: December 31, 2023 2022 (in thousands) Servers, equipment and computers $ 52,774 $ 38,669 Furniture and fixtures 6,658 6,386 Software 885 885 Leasehold improvements 22,948 21,450 $ 83,265 $ 67,390 Less: Accumulated depreciation and amortization (46,427) (29,986) Property and equipment, net $ 36,838 $ 37,404 Depreciation and amortization expense on property and equipment was as follows for the years ended December 31, 2023, 2022, and 2021: Year Ended December 31, 2023 2022 2021 (in thousands) Depreciation and amortization $ 15,228 $ 13,249 $ 12,226 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases We lease our offices and do not own any real estate. Our corporate headquarters is located in Burlington, Massachusetts. We lease office space domestically and internationally in various locations for our operations, including facilities located in Austin, Texas; Bucharest, Romania; Dundee, United Kingdom; Edinburgh, United Kingdom; Emmeloord, Netherlands; Lisbon, Portugal; Manila, Philippines; Minsk, Belarus; Morrisville, North Carolina; Ottawa, Canada; Sydney, Australia; Utrecht, Netherlands; Warsaw, Poland; Uster, Switzerland; and Vienna, Austria. Our leases are all classified as operating and have remaining terms of less than one year to 8.4 years. The components of operating lease costs for the years ended December 31, 2023 and 2022 were as follows: Year Ended December 31, 2023 2022 (in thousands) Operating lease costs $ 6,804 $ 6,888 Variable lease costs (1) 1,120 1,293 Short-term lease costs 221 299 Sublease income received (488) — Total lease costs $ 7,657 $ 8,480 ____________ (1) Primarily includes common area maintenance and other service charges for leases in which we pay a proportionate share of those costs as we have elected to not separate lease and non-lease components for our office leases. Maturities of our operating lease liabilities as of December 31, 2023 were as follows: December 31, 2023 (in thousands) 2024 $ 8,119 2025 6,764 2026 6,735 2027 5,665 2028 5,365 Thereafter 13,438 Total minimum lease payments 46,086 Less: imputed interest (6,579) Present value of operating lease liabilities $ 39,507 As of December 31, 2023, the weighted-average remaining lease term of our operating leases was 6.9 years and the weighted-average discount rate used in the calculation of our lease liabilities was 4.7%. |
Accrued Liabilities and Other
Accrued Liabilities and Other | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities and Other | Accrued Liabilities and Other Accrued liabilities and other current liabilities were as follows: December 31, 2023 2022 (in thousands) Payroll-related accruals $ 26,788 $ 19,622 Value-added and other tax 8,976 1,904 Purchasing accruals 3,330 4,390 Accrued royalties 2,550 1,104 Accrued contingent consideration liability 1,800 2,746 Accrued other liabilities 5,922 5,864 Total accrued liabilities and other $ 49,366 $ 35,630 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
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 December 31, 2023: As of December 31, 2023 Amount Outstanding Effective Rate (in thousands, except interest rates) Term loan facility $ 342,125 8.40 % Revolving credit facility — — % Total principal amount 342,125 Unamortized discount and debt issuance costs (7,116) Total debt, net 335,009 Less: Current debt obligation (3,500) Long-term debt, net of current portion $ 331,509 Under the Credit Agreement, borrowings denominated in U.S. dollars under the Revolving Facility bore 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%, until the LIBOR-based rate was replaced, as described below. Under the Credit Agreement, borrowings denominated in Euros under the Revolving Facility bear interest at a floating rate of an Adjusted Euro Interbank Offered Rate (“EURIBOR”) rate (subject to a “floor” of 0.0%) for a specified interest period plus an applicable margin of 3.00%. Under the Credit Agreement, borrowings under the Term Loan bore 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%, until the LIBOR-based rate was replaced, as described below. Each margin is subject to reductions to 2.75% and 1.75%, respectively, based on our first lien net leverage ratio. On June 26, 2023, the parties entered into Amendment No. 1 (“Amendment No. 1”) to the Credit Agreement. Amendment No. 1 amended the Credit Agreement to, among other things, replace the LIBOR-based rate included in the Credit Agreement with a SOFR-based rate, as an interest rate benchmark. Other than the foregoing, the material terms of the Credit Agreement described herein remain unchanged. The effective interest rate on our outstanding debt remained as a LIBOR-based rate until August 31, 2023, at which point it transitioned to a SOFR-based rate. 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 December 31, 2023, we were in compliance with all covenants of the Credit Agreement. The following table summarizes the future minimum principal payments under Credit Agreement as of December 31, 2023: (in thousands) 2024 $ 3,500 2025 3,500 2026 3,500 2027 3,500 2028 328,125 Total minimum principal payments $ 342,125 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Common Stock and Preferred Stock As set by our certificate of incorporation, the Company has authorized 550,000,000 shares of common stock, par value of $0.001 per share, and 50,000,000 shares of preferred stock, par value of $0.001 per share. Each share of common stock entitles the holder thereof to one vote on each matter submitted to a vote at any meeting of stockholders. Equity Incentive Awards 2021 Equity Incentive Plan In August 2021, our board of directors adopted and our stockholders approved our 2021 Equity Incentive Plan (the “2021 Plan”). It is intended to make available incentives that will assist us to attract, retain and motivate employees, including officers, consultants and directors. We may provide these incentives through the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and units and other cash-based or stock-based awards. As of December 31, 2023, 15,049,123 shares were reserved for future grants under the 2021 Plan. Awards may be granted under the 2021 Plan to our employees, including officers, directors or consultants or those of any present or future parent or subsidiary corporation or other affiliated entity. All awards must be evidenced by a written agreement between us and the holder of the award and may include stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance shares and performance units (“PSUs”), and cash-based awards and other stock-based awards. In the event of a change in control as described in the 2021 Plan, the acquiring or successor entity may assume or continue all or any awards outstanding under the 2021 Plan or substitute substantially equivalent awards. Any awards that are not assumed or continued in connection with a change in control or are not exercised or settled prior to the change in control will terminate effective as of the time of the change in control. Our compensation committee may provide for the acceleration of vesting of any or all outstanding awards upon such terms and to such extent as it determines, except that the vesting of all awards held by members of the board of directors who are not employees will automatically be accelerated in full. The 2021 Plan also authorizes our compensation committee, in its discretion and without the consent of any participant, to cancel each or any outstanding award denominated in shares upon a change in control in exchange for a payment to the participant with respect to each share subject to the canceled award of an amount equal to the excess of the consideration to be paid per share of common stock in the change in control transaction over the exercise price per share, if any, under the award. The 2021 Plan will continue in effect until it is terminated by the compensation committee; provided, however, that all awards must be granted, if at all, within ten years of its effective date. The compensation committee may amend, suspend or terminate the 2021 Plan at any time; provided that without stockholder approval, the plan cannot be amended to increase the number of shares authorized, change the class of persons eligible to receive incentive stock options, or effect any other change that would require stockholder approval under any applicable law, regulation or listing rule. RSUs generally vest over the requisite service period of four years, subject to continued employment through each applicable vesting date. PSUs generally vest over a three-year period based on the achievement of specified performance targets for the fiscal year and subject to continued service through the applicable vesting dates. Based on the extent to which the performance targets are achieved, PSUs vest at a specified range of the target award amount. We have granted employees restricted stock and options at exercise prices equal to the fair value of the underlying common stock at the time of grant, as determined by our board of directors on a contemporaneous basis. As of December 31, 2023, common stock-based incentive awards of 8,709,392 shares were outstanding under the 2021 Plan, consisting of 75,835 stock options, 6,929,321 shares of restricted stock units, and 1,704,236 shares of performance stock units. Conversion of SolarWinds Equity Stock Awards In connection with the Separation and Distribution, all of the outstanding and unvested SolarWinds equity awards held by our employees were converted to N-able awards through the Conversion. As a result of the Conversion, 224,638 stock options, 91,477 shares of restricted common stock, and 2,207,824 shares of restricted stock units were granted during the year ended December 31, 2021. See Note 13. Relationship with Parent and Related Entities for information on the incremental compensation expense recognized during the year ended December 31, 2021 as a result of the Conversion. Stock-Based Compensation Expense Stock-based compensation expense for the years ended December 31, 2023, 2022 and 2021 was $43.6 million, $36.5 million and $29.4 million, respectively, as summarized below: Year Ended December 31, 2023 2022 2021 (in thousands) Cost of revenue $ 1,348 $ 1,146 $ 1,010 Sales and marketing 14,706 12,043 8,761 Research and development 8,560 6,118 4,659 General and administrative 18,956 17,220 15,000 Total stock-based compensation expense $ 43,570 $ 36,527 $ 29,430 The impact to our income before income taxes due to stock-based compensation expense and the related income tax benefits were as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Impact to income before income taxes due to stock-based compensation $ 43,570 $ 36,527 $ 29,430 Income tax benefit related to stock-based compensation 1,334 872 310 Stock Option Awards Stock option grant activity under the 2021 Plan was as follows during the year ended December 31, 2023: Number of Weighted- Aggregate Weighted- Outstanding balances as of December 31, 2022 125,841 $ 0.89 Options exercised (50,006) 1.44 Options forfeited — — Options expired — — Outstanding balances as of December 31, 2023 75,835 $ 0.53 Options exercisable as of December 31, 2023 75,835 $ 0.53 $ 965 3.3 Options vested and expected to vest as of December 31, 2023 75,835 $ 0.53 $ 965 3.3 No stock option awards were granted during the years ended December 31, 2023 and 2022. For stock option awards granted during the year ended December 31, 2021, we estimated the fair value at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Year Ended December 31, 2021 Expected dividend yield — % Volatility 45.5 % Risk-free rate of return 0.5 % Expected life 3.47 years See Note 2. Summary of Significant Accounting Policies for additional information on determining the fair value of our stock-based incentive awards. There is no unrecognized stock-based compensation expense related to unvested stock options and subject to recognition in future periods as of December 31, 2023. Restricted Stock The following table summarizes information about restricted stock activity subject to vesting under the 2021 Plan during the year ended December 31, 2023: Number of Unvested balances as of December 31, 2022 3,416 Restricted stock vested (3,416) Restricted stock repurchased - unvested shares — Unvested balances as of December 31, 2023 — Restricted stock was purchased at fair market value by the employee receiving the restricted stock award and restricted common stock was issued at the date of grant. The weighted-average grant date fair market value of restricted common stock purchased was $1.52 per share. The aggregate intrinsic value of restricted stock vested during the year ended December 31, 2023 was less than $0.1 million. Restricted stock is subject to certain restrictions, such as vesting and a repurchase right. The common stock acquired by the employee is restricted stock because vesting is conditioned upon (i) continued employment through the applicable vesting date and (ii) for employees at the level of group vice president and above, the achievement of certain financial performance targets determined by the board of directors. Pursuant to the Separation and Distribution, the restricted stock is subject to repurchase by SolarWinds in the event the stockholder ceases to be employed or engaged (as applicable) by the Company for any reason or in the event of a change of control or due to certain regulatory burdens. As a result, we have no liability for unvested shares as of December 31, 2023 and 2022, respectively. Restricted Stock Units The following table summarizes information about restricted stock unit activity under the 2021 Plan during the year ended December 31, 2023: Number of Weighted-Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Weighted-Average Remaining Contractual Term Unvested balances as of December 31, 2022 5,745,906 $ 12.07 $ 59,068 1.3 Restricted stock units granted 4,055,424 10.52 Restricted stock units vested (2,592,104) 12.23 Restricted stock units forfeited (279,905) 11.46 Unvested balances as of December 31, 2023 6,929,321 $ 11.12 $ 91,814 1.2 The total fair value of restricted stock units vested during the year ended December 31, 2023 was $31.4 million. The total unrecognized stock-based compensation expense related to unvested restricted stock units and subject to recognition in future periods is $63.3 million as of December 31, 2023 and we expect to recognize this expense over a weighted-average period of 2.5 years. Performance Stock Units The following table summarizes information about performance stock unit activity under the 2021 Plan during the year ended December 31, 2023: Number of Weighted-Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Weighted-Average Remaining Contractual Term Unvested balances as of December 31, 2022 1,486,515 $ 12.03 $ 15,281 0.9 Performance stock units granted 954,937 10.38 Performance stock units vested (566,137) 12.15 Performance stock units forfeited (171,079) 11.89 Unvested balances as of December 31, 2023 1,704,236 $ 11.08 $ 22,581 0.8 The total unrecognized stock-based compensation expense related to unvested performance stock units and subject to recognition in future periods is $7.4 million as of December 31, 2023 and we expect to recognize this expense over a weighted-average period of 0.8 years. Employee Stock Purchase Plan In August 2021, our board of directors adopted and our stockholders approved our 2021 Employee Stock Purchase Plan (the “ESPP”). We reserved a total of 2,500,000 shares of our common stock available for sale under our ESPP, and 2,164,234 shares remained available for future issuance as of December 31, 2023. Our ESPP permits eligible participants to purchase common stock through payroll deductions of up to 20% of their eligible compensation during the offering period. The ESPP will typically be implemented through consecutive six-month offering periods. Amounts deducted and accumulated from participant compensation, or otherwise funded in any participating non-U.S. jurisdiction in which payroll deductions are not permitted, are used to purchase shares of our common stock at the end of each offering period. The purchase price of the shares will be 85% of the lesser of the fair market value of our common stock on the first day of the offering period and the fair market value on the last day of the offering period. No participant may purchase more than $25,000 worth of common stock per calendar year. Stock-based compensation expense related to our ESPP plan was $0.6 million, $0.5 million, and $0.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
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 per share follows: Year Ended December 31, 2023 2022 2021 (in thousands) Basic earnings per share: Numerator: Net income $ 23,412 $ 16,707 $ 113 Denominator: Weighted-average common shares outstanding used in computing basic earnings per share 182,371 180,136 167,460 Basic earnings per share $ 0.13 $ 0.09 $ 0.00 Diluted earnings per share: Numerator: Net income $ 23,412 $ 16,707 $ 113 Denominator: Weighted-average shares used in computing basic earnings per share 182,371 180,136 167,460 Add dilutive impact of employee equity plans 3,609 1,161 1,207 Weighted-average shares used in computing diluted earnings per share 185,980 181,297 168,667 Diluted earnings per share $ 0.13 $ 0.09 $ 0.00 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 periods presented because their effect would have been anti-dilutive or for which the performance condition had not been met at the end of the period: Year Ended December 31, 2023 2022 2021 (in thousands) Restricted stock units 29,863 2,957 203 Total anti-dilutive shares 29,863 2,957 203 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 401(k) Plan Our eligible employees participate in a 401(k) matching program. We, as sponsor of the plan, use an independent third party to provide administrative services to the plan. We have the right to terminate the plan at any time. Employees are fully vested in all contributions to the plan. Our expense related to the plan was as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Employee benefit plan expense $ 1,855 $ 1,495 $ 1,440 |
Relationship with Parent and Re
Relationship with Parent and Related Entities | 12 Months Ended |
Dec. 31, 2023 | |
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 year ended December 31, 2021: Year Ended December 31, 2021 (in thousands) General and administrative $ 20,357 Research and development 253 Sales and marketing 297 Cost of revenue 140 Total $ 21,047 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 $9.3 million for the year ended December 31, 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 years ended December 31, 2023, 2022, and 2021, we recognized $1.0 million, $2.2 million, and $2.7 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 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 provided various services to each other. Under this agreement, SolarWinds continued 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 terminated during the year ended December 31, 2022, on the expiration of the term of the last service provided under it . We incurred $0.1 million and $1.7 million of costs under the Transition Services Agreement during the years ended December 31, 2022 and 2021, 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 years ended December 31, 2023, 2022, and 2021 , 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 had a two year initial term, and each agreement was renewed for an additional two year term during the year ended December 31, 2023. We earned $1.7 million, $1.5 million, and $0.5 million of revenue and incurred $0.2 million, $0.3 million, and $0.1 million of costs under the Software OEM Agreements during the years ended December 31, 2023, 2022, and 2021, 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 years ended December 31, 2023, 2022, and 2021 , 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 years ended December 31, 2023, 2022, and 2021 , 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 years ended December 31, 2023, 2022, and 2021 , 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 $0.2 million, $0.1 million, and $0.1 million of revenue and incurred $0.2 million, $0.5 million, and $0.7 million of costs under the Software Cross License Agreement during the years ended December 31, 2023, 2022, and 2021, respectively. Sublease Agreement We entered into a Sublease Agreement with SolarWinds for our office space in Austin, Texas. We incurred operating lease costs of $0.7 million, $0.6 million, and $0.2 million under the Sublease Agreement during the years ended December 31, 2023, 2022, and 2021, respectively. Due to and from Affiliates There were no amounts due to or from SolarWinds as of December 31, 2023 and 2022, respectively, due to the termination of the Transition Services Agreement during the year ended December 31, 2022. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes U.S. and international components of income before income taxes were as follows: Year Ended December 31, 2023 2022 2021 (in thousands) U.S. $ (26,289) $ (22,574) $ (37,028) International 70,615 52,999 48,620 Income before income taxes $ 44,326 $ 30,425 $ 11,592 Income tax expense was composed of the following: Year Ended December 31, 2023 2022 2021 (in thousands) Current: Federal $ — $ — $ — State 250 10 2 International 21,152 15,661 13,324 21,402 15,671 13,326 Deferred: Federal — — — State — — — International (488) (1,953) (1,847) (488) (1,953) (1,847) Income tax expense $ 20,914 $ 13,718 $ 11,479 The difference between the income tax expense (benefit) derived by applying the federal statutory income tax rate to our income before income taxes and the amount recognized in our Consolidated Financial Statements is as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Expense derived by applying the federal statutory income tax rate to income before income taxes $ 9,308 $ 6,389 $ 2,434 State taxes, net of federal benefit 250 50 (105) Research and experimentation tax credits — (170) — Global intangible low-taxed income (49) 3,128 — Withholding tax 79 — — Transaction costs 399 488 1,999 Pre-Separation and Distribution net operating losses and other deferred tax assets — — 21,130 Non-deductible executive compensation 2,099 1,246 — Valuation allowance for deferred tax assets 2,867 (827) (15,383) Stock-based compensation 2,569 2,856 1,258 Meals and entertainment 224 140 75 Effect of foreign operations 2,328 465 (88) Other 840 (47) 159 $ 20,914 $ 13,718 $ 11,479 The components of the net deferred tax amounts recognized in the accompanying Consolidated Balance Sheets were: December 31, 2023 2022 (in thousands) Deferred tax assets: Allowance for doubtful accounts $ 400 $ 331 Accrued expenses 94 149 Net operating loss 1,939 1,892 Stock-based compensation 5,220 4,442 Interest 1,770 12 Deferred revenue 5 74 Leases 754 806 Other credits 14 7 Total deferred tax assets 10,196 7,713 Valuation allowance (4,913) (3,637) Deferred tax assets, net of valuation allowance 5,283 4,076 Deferred tax liabilities: Property and equipment 2,427 2,522 Prepaid expenses 918 474 Leases 1,064 931 Intangibles 1,607 2,137 Total deferred tax liabilities 6,016 6,064 Net deferred tax asset (liability) $ (733) $ (1,988) As of December 31, 2021, we had net operating loss carry forwards for U.S. federal income tax purposes of approximately $5.8 million, all of which was utilized during fiscal year ended December 31, 2022. Pursuant to the Separation and Distribution that occurred on July 19, 2021, all pre-Separation and Distribution federal net operating losses remain with SolarWinds. The U.S. federal net operating losses generated after the Separation and Distribution are available to offset future U.S. federal taxable income and do not expire. As of December 31, 2023 and 2022, we had net operating loss carry forwards for certain state income tax purposes of approximately $3.9 million. Pursuant to the Separation and Distribution that occurred on July 19, 2021, all pre-Separation and Distribution combined state net operating losses remain with SolarWinds. These state net operating losses are available to offset future state taxable income and begin to expire in 2029. As of December 31, 2023 and 2022, we had foreign net operating loss carry forwards of approximately $6.3 million. As of December 31, 2020, we had foreign net operating loss carry forwards of approximately $14.8 million, which were available to offset future foreign taxable income and began to expire in 2022. These foreign net operating loss carry forwards primarily related to the United Kingdom and Canada and were fully utilized during the year ended December 31, 2021. We establish valuation allowances when necessary to reduce deferred tax assets to amounts expected to be realized. As of December 31, 2023, we recorded a valuation allowance of $4.9 million in the U.S. As of December 31, 2022, we recorded a valuation allowance of $2.0 million in the U.S. and $1.6 million outside the U.S., respectively. The Tax Act imposes a mandatory transition tax on accumulated foreign earnings as of December 31, 2017. Effective January 1, 2018, the Tax Act creates a new territorial tax system in which we will recognize the tax impact of including certain foreign earnings in U.S. taxable income as a period cost. For the year ended December 31, 2021, we did not incur a global intangible low-taxed income, or GILTI, liability; however, to the extent that we incur expense under the GILTI provisions, we will treat it as a component of income tax expense in the period incurred. As a result of the Tax Act, our accumulated foreign earnings as of December 31, 2017 and 2018 have been subjected to U.S. tax. Moreover, all future foreign earnings will be subject to a new territorial tax system and dividends received deduction regime in the U.S. As of December 31, 2023, the undistributed earnings of our foreign subsidiaries of approximately $146.9 million are permanently reinvested outside the U.S. Accordingly, no provision for foreign withholding tax or state income taxes associated with a distribution of these earnings has been made. Determination of the amount of the unrecognized deferred tax liability on these unremitted earnings is not practicable. As of December 31, 2023, we do not have any accrued interest and penalties related to unrecognized tax benefits. The aggregate changes in the balance of our gross unrecognized tax benefits, excluding accrued interest and penalties, were as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Balance, beginning of year $ — $ — $ 87 Increases for tax positions related to the current year — — — Decreases for tax positions related to the current year — — — Increases for tax positions related to prior years — — — Decreases for tax positions related to prior years — — (87) Settlement with taxing authorities — — — Reductions due to lapsed statute of limitations — — — Balance, end of year $ — $ — $ — We do not believe that it is reasonably possible that our unrecognized tax benefits will significantly change in the next twelve months. We file U.S., state and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2012 through 2021 tax years generally remain open and subject to examination by federal, state and foreign tax authorities. We are currently under examination by the IRS for the tax years 2013 through the period ending February 2016. During the three months ended March 31, 2021, we finalized a settlement agreement with the IRS for the tax years 2011 to 2012. We are currently under audit by the Massachusetts Department of Revenue for the 2015 through February 2016 tax years, and the Texas Comptroller for the 2015 through 2018 tax years. We are not currently under audit in any other taxing jurisdictions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
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. We are party to a stockholders’ agreement dated as of July 19, 2021, by and among N-able, Inc. and the stockholders named therein, as amended December 13, 2021 (the “Stockholders’ Agreement”). On March 16, 2023, a stockholder who is not party to the agreement filed a Complaint for Declaratory Relief in the Court of Chancery of the State of Delaware against us seeking, among other relief, class action certification and a declaratory judgment that certain provisions in the Stockholders’ Agreement are unenforceable, including, among others, provisions relating to the election and removal of directors, the composition of committees and the hiring, or termination of the employment, of our chief executive officer. Oral arguments were held on February 6, 2024. 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. Commitments as a Result of Acquisitions 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. The contingent consideration liabilities will be re-evaluated periodically, but at least quarterly, with the resulting gains and losses recognized within general and administrative expense in our Consolidated Statements of Operations and acquisition related costs within our non-GAAP financial measures. The fair value of this contingent consideration was $5.2 million at the date of acquisition, $5.1 million as of December 31, 2022, and $3.7 million as of December 31, 2023, resulting in the recognition of a gain of $1.4 million and $0.1 million during the years ended December 31, 2023 and 2022, respectively. The current portion of the contingent consideration of $0.8 million is included in “accrued liabilities and other” and the non-current portion of $2.9 million is included in “other long-term liabilities” in our Consolidated Balance Sheets as of December 31, 2023. See Note 3. Acquisitions , Note 7. Fair Value Measurements , and Note 8. Accrued Liabilities and Other for additional information regarding the contingent consideration liabilities. On December 14, 2022, we completed the acquisition of certain assets, primarily in the form of intellectual property, from a third party for a total consideration of up to $6.5 million, including $3.1 million of cash paid on the acquisition date, $1.0 million of product delivery fees, and up to $2.5 million payable upon the achievement of certain software engineering and knowledge transfer milestones as of September 1, 2023, and December 1, 2023. The total consideration of $6.5 million has been capitalized as costs to obtain internal-use computer software from third parties and will be amortized over an estimated useful life of three years, beginning when the related technology is deemed ready for its intended use, in accordance with our policy for the capitalization of internal-use software costs. The $2.5 million of contingent consideration is deemed to be the total value of technology not ready for its intended use as of the acquisition date. During the year ended December 31, 2023, $1.5 million of cash was paid due to the achievement of two of the software engineering and knowledge transfer milestones, with the related technology deemed ready for its intended use. The remaining contingent consideration liabilities of $1.0 million are included in “accrued liabilities and other” in our Consolidated Balance Sheets as of December 31, 2023, and will be re-evaluated at least quarterly, with the resulting gains and losses recognized as an adjustment to the amount capitalized as costs to obtain internal-use computer software from third parties. No gains or losses on the contingent consideration were recognized during the years ended December 31, 2023 and 2022, respectively. See Note 2. Summary of Significant Accounting Policies and Note 8. Accrued Liabilities and Other for additional information regarding the contingent consideration liabilities. |
Operating Segments and Geograph
Operating Segments and Geographic Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Operating Segments and Geographic Information | Operating Segments and Geographic Information We operate as a single segment. The chief operating decision-maker is considered to be our Chief Executive Officer of N-able. The chief operating decision-maker allocates resources and assesses performance of the business at the combined N-able level. The authoritative guidance for disclosures about segments of an enterprise establishes standards for reporting information about operating segments. It defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance. Our Chief Executive Officer manages the business as a multi-product business that utilizes its model to deliver software products to customers regardless of their geography or IT environment. Operating results including discrete financial information and profitability metrics are reviewed at the consolidated entity level for purposes of making resource allocation decisions and for evaluating financial performance. Accordingly, we considered ourselves to be in a single operating and reportable segment structure. We based revenue by geography on the shipping address of each MSP partner. Other than the United States and the United Kingdom, no single country accounted for 10% or more of our total revenue during these periods. The following tables set forth revenue and net long-lived assets by geographic area: Year Ended December 31, 2023 2022 2021 (in thousands) Revenue United States, country of domicile $ 205,836 $ 181,033 $ 160,833 United Kingdom 43,196 38,414 38,526 All other international 172,848 152,322 147,097 Total revenue $ 421,880 $ 371,769 $ 346,456 December 31, 2023 2022 (in thousands) Long-lived assets, net United States, country of domicile $ 14,269 $ 17,713 Switzerland 13,705 12,629 Canada 3,032 1,169 All other international 5,832 5,893 Total long-lived assets, net $ 36,838 $ 37,404 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Additions Beginning Balance Charge to Expense Charge to Other Accounts Deductions Ending Balance (in thousands) Allowance for doubtful accounts, customers and other: Year ended December 31, 2021 $ 751 $ 3,260 $ — $ (2,358) $ 1,653 Year ended December 31, 2022 1,653 3,265 — (3,588) 1,330 Year ended December 31, 2023 1,330 4,323 — (4,482) 1,171 Tax valuation allowances: Year ended December 31, 2021 $ 18,256 $ — $ — $ (15,383) $ 2,873 Year ended December 31, 2022 2,873 — 1,591 (827) 3,637 Year ended December 31, 2023 3,637 2,867 — (1,591) 4,913 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Jul. 19, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||||
Net Income (Loss) Attributable to Parent | $ 127 | $ (14) | $ 23,412 | $ 16,707 | $ 113 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Kathleen Pai [Member] | |
Trading Arrangements, by Individual | |
Name | Kathleen Pai |
Title | EVP, Chief People Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | November 22, 2023 |
Arrangement Duration | 253 days |
Aggregate Available | 18,399 |
Officer Trading Arrangement [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During the three months ended December 31, 2023, one of the Company’s officers adopted the stock trading plan described below: Name and Title Character of Trading Arrangement 1 Date Adopted Duration of Trading Arrangement 2 Aggregate Number of Kathleen Pai Rule 10b5-1 November 22, 2023 Until August 1, 2024 18,399 _____________ (1) Trading arrangements characterized as a “Rule 10b5-1 Trading Arrangement” are intended to satisfy the affirmative defense of Rule 10b5-1(c), as amended (the “Rule”) and only permits transactions upon expiration of the applicable mandatory cooling-off period under the Rule. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 13. 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 (“ASC”) 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 13. 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 13. 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 continued to be provided by SolarWinds under a Transition Services Agreement. Additionally, we provided some services to SolarWinds under such Transition Services Agreement. The Transition Services Agreement terminated during the year ended December 31, 2022, on the expiration of the term of the last service provided under it . See Note 13. 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. |
Emerging Growth Company | We historically qualified as an EGC under Section 102(b)(1) of the JOBS Act, which exempts EGCs from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non‑emerging growth companies but any such election to opt out is irrevocable. N-able historically elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, N-able, as an emerging growth company, could adopt the new or revised standard at the time private companies adopted the new or revised standard. N-able's historical results are included as a part of the Parent's financial statements prior to the Separation and Distribution, which are filed with the Securities and Exchange Commission (“SEC”). Prior to the Separation and Distribution, N-able tracked the effective dates and adopted all guidance applicable to it consistent with the manner that the Parent tracked and adopted all applicable guidance. This may make comparison of N-able’s historical financial statements with another public company, which is neither an emerging growth company nor an emerging growth company which has not opted out of using the extended transition period, difficult because of the potential differences in accounting standards used. Based on the market value of our common stock held by non-affiliates as of June 30, 2023 (the last business day of the most recently completed second fiscal quarter), we ceased to qualify as an EGC as of the end of the fiscal year ending December 31, 2023. As a result, we are no longer able to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not EGCs including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. In addition, we are no longer able to use the extended transition period for complying with new or revised accounting standards available to emerging growth companies and will be required to adopt new or revised accounting standards as of the effective dates for public companies |
Segment Information | Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by the company’s chief operating decision‑maker in deciding how to allocate resources and in assessing performance. N-able currently operates in one reportable business segment. |
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 years ended December 31, 2023 and 2022 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. |
Foreign Currency Translation | The functional currency of our foreign subsidiaries is determined in accordance with authoritative guidance issued by the Financial Accounting Standards Board (“FASB”). We translate assets and liabilities for these subsidiaries at exchange rates in effect at the balance sheet date. We translate income and expense accounts for these subsidiaries at the average monthly exchange rates for the periods. We record resulting translation adjustments as a component of accumulated other comprehensive income (loss) within total Parent company net investment prior to the Separation and Distribution and within |
Cash and cash equivalents | All cash and cash equivalents included in the Consolidated Financial Statements are legally owned by N-able legal entities. We consider highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. As of December 31, 2023 and 2022, we have money market fund financial assets of $98.6 million and $48.4 million, respectively, which are included in “cash and cash equivalents” in our Consolidated Balance Sheets. See “Fair Value Measurements” below and Note 7. Fair Value Measurements for further details regarding the fair value measurements of our money market fund financial assets. |
Parent Company Net Investment | For periods prior to the Separation and Distribution, N-able's equity on the Consolidated Balance Sheets represents SolarWinds’ historical net investment in the Business, and is presented as “Parent company net investment” in lieu of stockholders' equity. For periods prior to the Separation and Distribution, the Consolidated Statements of Stockholders' Equity and Parent Company Net Investment include corporate allocations, net cash transfers and other property transfers between SolarWinds and the Business, as well as short term due to affiliates, short term due from affiliates and long term due to affiliates between N-able and other SolarWinds affiliates that were settled on a current basis. All transactions reflected in Parent company net investment in the accompanying Consolidated Balance Sheets have been considered cash receipts and payments for purposes of the Consolidated Statements of Cash Flows and are reflected as financing activities in the accompanying Consolidated Statements of Cash Flows. |
Acquisitions | The purchase price of our acquired businesses is allocated to the assets acquired and the liabilities assumed based on their estimated fair values, with the excess recorded as goodwill in the reporting unit expected to benefit from the business combination. If applicable, we estimate the fair value of contingent consideration payments in determining the purchase price. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of the tangible and intangible assets acquired and liabilities assumed, including the deferred tax asset valuation allowances and acquired income tax uncertainties, with the corresponding offset to goodwill. We include the operating results of acquisitions in our Consolidated Financial Statements from the acquisition date. Acquisition related costs are expensed separately from the acquisition as incurred and are primarily included in general and administrative expenses in our Consolidated Statements of Operations. two |
Goodwill | Goodwill represents the amount of the purchase price in excess of the estimated fair value of net assets of businesses acquired in a business combination. Our goodwill was primarily derived from the take private transaction of SolarWinds in February 2016 and subsequent business combinations, where the purchase price exceeded the fair value of the net identifiable assets acquired. We test goodwill at least annually during the fourth quarter or sooner when circumstances indicate an impairment may exist. An impairment of goodwill is recognized when the carrying amount of a reporting unit exceeds its fair value. For purposes of the annual impairment test, we first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value, a “Step 0” analysis. If, based on a review of qualitative factors, it is more likely than not that the fair value of a reporting unit is less than its carrying value we perform “Step 1” of the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. If the carrying value exceeds the fair value, an impairment loss is recognized for the amount by which the reporting unit's carrying value exceeds its fair value, not to exceed the carrying value of goodwill in that reporting unit. In October 2023, we performed a qualitative, “Step 0,” assessment for our single reporting unit. For “Step 0,” we assessed several events and circumstances that could affect the significant inputs used to determine the fair value of the reporting unit, including the significance of the amount of excess fair value over carrying value, consistency of operating margins and cash flows, budgeted-to-actual performance from prior year, overall change in economic climate, changes in the industry and competitive environment, key management turnover, and earnings quality and sustainability. As of October 1, 2023, there were no unanticipated changes or negative indicators in the above qualitative factors that would impact the fair value of the Business as of the annual impairment date. As such, we determined there were no indicators of impairment and that it is more likely than not that the fair value of a reporting unit is greater than its carrying value and therefore performing the next step of impairment test was unnecessary. |
Long-lived Assets | We evaluate the recoverability of our long-lived assets, including finite-lived intangible assets and other assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Our finite-lived intangible assets are primarily related to assets acquired at the take private transaction of SolarWinds and subsequent business combinations. Events or changes in circumstances that could result in an impairment review include, but are not limited to, significant underperformance relative to historical or projected future operating results, significant changes in the manner of use of the acquired assets or the strategy for our overall business, and significant negative industry or economic trends. In the event that the net book value of our long-lived assets exceeds the future undiscounted net cash flows attributable to such assets, an impairment charge would be required. Impairment, if any, is recognized in the period of identification to the extent the carrying amount of an asset or asset group exceeds the fair value of such asset or asset group. For the years ended December 31, 2023 and 2022, there were no indicators that our long-lived assets were impaired. |
Long-lived Assets | We evaluate the recoverability of our long-lived assets, including finite-lived intangible assets and other assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Our finite-lived intangible assets are primarily related to assets acquired at the take private transaction of SolarWinds and subsequent business combinations. Events or changes in circumstances that could result in an impairment review include, but are not limited to, significant underperformance relative to historical or projected future operating results, significant changes in the manner of use of the acquired assets or the strategy for our overall business, and significant negative industry or economic trends. In the event that the net book value of our long-lived assets exceeds the future undiscounted net cash flows attributable to such assets, an impairment charge would be required. Impairment, if any, is recognized in the period of identification to the extent the carrying amount of an asset or asset group exceeds the fair value of such asset or asset group. For the years ended December 31, 2023 and 2022, there were no indicators that our long-lived assets were impaired. |
Fair Value Measurements | We apply the authoritative guidance on fair value measurements for financial assets and liabilities, such as our money market fund financial assets and contingent consideration 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 was not carried at fair value. See Note 13. Relationship with Parent and Related Entities for further details regarding our related party debt. See Note 7. Fair Value Measurements for a summary of our financial instruments accounted for at fair value on a recurring basis as of December 31, 2023 and 2022. As of December 31, 2023 and 2022, 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 9. Debt for additional information regarding our debt. |
Accounts Receivable | Accounts receivable represent trade receivables from customers when we have sold subscriptions for software-as-a-service (“SaaS”) offerings as well as subscription-based term licenses and from the sale of maintenance services associated with our perpetual license products and have not yet received payment. We present accounts receivable net of an allowance for doubtful accounts. We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. In doing so, we consider the current financial condition of the customer, the specific details of the customer account, the age of the outstanding balance and the current economic environment. Any change in the assumptions used in analyzing a specific account receivable might result in an additional allowance for doubtful accounts being recognized in the period in which the change occurs. Our allowance for doubtful accounts was $1.2 million, $1.3 million and $1.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Property and Equipment | We record property and equipment at cost and depreciate them using the straight-line method over their estimated useful lives as follows: Useful Life Equipment, servers and computers 3 - 5 Furniture and fixtures 5 - 7 Software 3 - 5 Leasehold improvements Lesser of lease term or useful life Upon retirement or sale of property and equipment, we remove the cost of assets disposed of and any related accumulated depreciation from our accounts and credit or charge any resulting gain or loss to operating expense. We expense repairs and maintenance as they are incurred. |
Research and Development Costs | Research and development expenses primarily consist of personnel costs and contractor fees related to the development of new software products and enhancements to existing software products. Personnel costs include salaries, bonuses and stock-based compensation and related employer-paid payroll taxes, as well as an allocation of our facilities, depreciation, benefits and IT costs. Research and development costs are charged to operations as incurred. |
Internal-Use Software Costs | We capitalize costs related to developing new functionality for our suite of products that are hosted and accessed by our customers on a subscription basis. We also capitalize costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalized costs are recorded as part of other assets, net in our Consolidated Balance Sheets. Maintenance and training costs are expensed as incurred. Internal-use software costs are amortized on a straight-line basis over its estimated useful life, generally three years, and included in cost of revenue in the Consolidated Statements of Operations. There were no impairments to internal-use software costs during the periods presented. On December 14, 2022, we completed the acquisition of certain assets, primarily in the form of intellectual property, from a third party for a total consideration of up to $6.5 million, including $3.1 million of cash paid on the acquisition date, $1.0 million of product delivery fees, and up to $2.5 million payable upon the achievement of certain software engineering and knowledge transfer milestones as of September 1, 2023, and December 1, 2023. We funded the transaction with cash on hand. We incurred less than $0.1 million in acquisition-related costs during the three months ended December 31, 2022, which are included in general and administrative expense. Prior to the acquisition, N-able had an existing Original Equipment Manufacturing Agreement (“OEM Agreement”) with the third party, whereby $1.0 million had previously been recorded as a prepaid royalty. The OEM Agreement was terminated as of the acquisition date, and the $1.0 million previously recorded as a prepaid royalty is now classified as product delivery fees. The total consideration of $6.5 million has been capitalized as costs to obtain internal-use computer software from third parties and will be amortized over an estimated useful life of three years, beginning when the related technology is deemed ready for its intended use, in accordance with our policy for the capitalization of internal-use software costs. The $3.1 million of cash paid on the acquisition date and $1.0 million of product delivery fees is deemed to be the total value of technology ready for its intended use as of the acquisition date and will be amortized over an estimated useful life of three years, beginning on the acquisition date. The $2.5 million of contingent consideration is deemed to be the total value of technology not ready for its intended use as of the acquisition date. During the year ended December 31, 2023, $1.5 million of cash was paid due to the achievement of two of the software engineering and knowledge transfer milestones, with the related technology deemed ready for its intended use. The remaining contingent consideration liabilities of $1.0 million are included in “accrued liabilities and other” in our Consolidated Balance Sheets as of December 31, 2023, and will be re-evaluated at least quarterly, with the resulting gains and losses recognized as an adjustment to the amount capitalized as costs to obtain internal-use computer software from third parties. No gains or losses on the contingent consideration were recognized during the years ended December 31, 2023 and 2022, respectively. See Note 8. Accrued Liabilities and Other and Note 15. Commitments and Contingencies for additional information regarding the contingent consideration liabilities. |
Debt Issuance Costs | Debt issuance costs for our secured credit facilities are presented as a deduction from the corresponding debt liability on our Consolidated Balance Sheets and amortized on an effective interest rate method over the term of the associated debt as interest expense in our Consolidated Statements of Operations. |
Contingencies | We account for claims and contingencies in accordance with authoritative guidance that requires we record an estimated loss from a claim or loss contingency when information available prior to issuance of our Consolidated Financial Statements indicates a liability has been incurred at the date of our Consolidated Financial Statements and the amount of the loss can be reasonably estimated. If we determine that it is reasonably possible but not probable that an asset has been impaired or a liability has been incurred, we disclose the amount or range of estimated loss if material or that the loss cannot be reasonably estimated. Accounting for claims and contingencies requires us to use our judgment. We consult with legal counsel on those issues related to litigation and seek input from other experts and advisors with respect to matters in the ordinary course of business. See Note 15. Commitments and Contingencies for a discussion of contingencies. |
Revenue Recognition | We generate revenue from fees received for our SaaS solutions as well as subscriptions for our subscription-based term licenses and from the sale of maintenance services associated with our perpetual licenses. We recognize revenue related to contracts from customers when we transfer promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This is determined by following a five-step process which includes (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price and (5) recognizing revenue when or as we satisfy a performance obligation, as described below. • Identify the contract with a customer. We generally use an electronic or manually signed order form, purchase order, an authorized credit card, or the receipt of a cash payment as evidence of a contract provided that collection is considered probable. We sell our products through our direct inside sales force and through our distributors and resellers. Sales through resellers and distributors are typically evidenced by a reseller or distributor agreement, together with purchase orders or authorized credit cards on a transaction-by-transaction basis. Our distributors and resellers do not carry inventory of our software and we generally require them to specify the end user of the software at the time of the order. Our distributors and resellers have no rights of return or exchange for software that they purchase from us and payment for these purchases is due to us without regard to whether the distributors or resellers collect payment from their customers. • Identify the performance obligations in the contract. Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the MSP partner that are separately identifiable from other promises in the contract, or distinct. If not considered distinct, the promised goods or services are combined with other goods or services and accounted for as a combined performance obligation. Determining the distinct performance obligations in a contract requires judgment. Our performance obligations primarily include SaaS solutions, subscription-based term licenses and maintenance support including unspecified upgrades or enhancements to new versions of our software solutions. See additional discussion of our performance obligations below. • Determine the transaction price. We determine the transaction price based on the contractual consideration and the amount of consideration we expect to receive in exchange for transferring the promised goods or services to the customer. We account for sales incentives to MSP partners, resellers or distributors as a reduction of revenue at the time we recognize the revenue from the related product sale. We report revenue net of any sales tax collected. Our return policy generally does not allow our MSP partners to return software products or services. • Allocate the transaction price. For contracts that contain multiple performance obligations, we allocate the transaction price of the contract to each distinct performance obligation based on a relative stand-alone selling price basis. Determining stand-alone selling prices for our performance obligations requires judgment and are based on multiple factors primarily including historical selling prices and discounting practices for products and services. We review the stand-alone selling price for our performance obligations periodically and update, if needed, to ensure that the methodology utilized reflects our current pricing practices. • Recognize revenue when or as we satisfy a performance obligation. Revenue is recognized when or as performance obligations are satisfied either over time or at a point in time by transferring a promised good or service. We consider this transfer to have occurred when risk of loss transfers to the MSP partner, reseller or distributor or the MSP partner has access to their subscription which is generally upon electronic activation of the licenses purchased or access being granted which provides immediate availability of the product to the purchaser. See further discussion below regarding the timing of revenue recognition for each of our performance obligations. The following summarizes our performance obligations from which we generate revenue: Performance obligation When performance obligation is typically satisfied SaaS solutions Over the subscription term, once the service is made available to the MSP partner (over time) Subscription-based term and perpetual licenses Upon the delivery of the license key or password that provides immediate availability of the product (point in time) Technical support and unspecified software upgrades Ratably over the contract period (over time) Subscription Revenue. We primarily derive subscription revenue from the sale of subscriptions to our SaaS solutions and our subscription-based term licenses. Subscription revenue for our SaaS solutions is generally recognized ratably over the subscription term once the service is made available to the MSP partner or when we have the right to invoice for services performed. Our MSP partners do not have the right to take possession of the software for our SaaS solutions. Revenue from the license performance obligation of our subscription-based term licenses is recognized at a point in time upon delivery of the access to the licenses and the revenue from the performance obligation related to the technical support and unspecified software upgrades of our subscription-based term licenses is recognized ratably over the contract period. We generally invoice subscription agreements monthly based on usage or in advance over the subscription period on either a monthly or annual basis. • Other Revenue. Other revenue consists primarily of revenue from the sale of our maintenance services associated with the historical sales of perpetual licenses and revenue from professional services. Customers with maintenance agreements are entitled to receive technical support and unspecified upgrades or enhancements to new versions of their software products on a when-and-if-available basis for the specified contract period. We believe that our technical support and unspecified upgrades or enhancements performance obligations each have the same pattern of transfer to the customer and are therefore accounted for as a single distinct performance obligation. We recognize maintenance revenue ratably on a daily basis over the contract period. Deferred Revenue |
Cost of Revenue | Cost of Revenue . Cost of revenue consists of public cloud infrastructure and hosting fees, an allocation of overhead costs for our subscription revenue and maintenance services, royalty fees and technical support personnel costs. We allocate facilities, depreciation, IT and benefits costs based on headcount Amortization of Acquired Technologies. Amortization of acquired technologies included in cost of revenue was $1.8 million, $2.5 million and $5.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. We amortize to cost of revenue capitalized costs of technologies acquired in connection with the take private transaction of SolarWinds in early 2016 and subsequent business combinations, including the July 1, 2022 acquisition of Spinpanel B.V. (“Spinpanel”). Amortization related to the take private transaction of SolarWinds concluded during the three months ended March 31, 2023 |
Advertising | We expense advertising costs as incurred. Advertising expense is included in sales and marketing expenses in our Consolidated Statements of Operations. |
Leases | We lease facilities worldwide and certain equipment under non-cancellable lease agreements. During 2019, we adopted the new lease accounting guidance, FASB Accounting Standards Update No. 2016-02 “Leases,” or ASC 842. Under ASC 842, we evaluate if a contract is or contains a lease at inception of the contract. If we determine that a contract is or contains a lease, we determine the appropriate lease classification and recognize a right-of-use asset and lease liability at the commencement date of the lease based on the present value of fixed lease payments over the lease term reduced by lease incentives. To determine the present value of lease payments, we use an estimated incremental borrowing rate based on the interest rate a similar borrowing on a collateralized basis would incur based on information available on the lease commencement date as none of our leases provide an implicit rate. We generally base this discount rate on the interest rate incurred on our secured credit facilities and, prior to the Separation and Distribution, by our Parent's senior secured debt, adjusted for considerations for the value, term and currency of the lease. Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. We recognize right-of-use assets and lease liabilities for leasing arrangements with terms greater than one year. Certain lease contracts include obligations to pay for other services, such as operations and maintenance. We account for lease and non-lease components in a contract as a single lease component for all classes of underlying assets except certain classes of equipment. Right-of-use assets are tested for impairment in the same manner as long-lived assets. The terms of some of our lease agreements provide for rental payments on a graduated basis. Operating lease costs are recognized on a straight-line basis over the lease term and recorded in the appropriate income statement line item based on the asset or a headcount allocation for office leases. Certain of our office leases require the payment of our proportionate share of common area maintenance or service charges. As we have elected to account for lease and non-lease components as a single lease component for our real estate leases, these costs are included in variable lease costs. In addition, certain of our leases may include variable payments based on measures that include changes in price indices or market interest rates which are included in variable lease costs and expensed as incurred. We had no finance leases as of and for the periods ended December 31, 2023 and 2022, respectively. See Note 6. Leases for additional information regarding our lease arrangements. |
Income Taxes | We use the liability method of accounting for income taxes as set forth in the authoritative guidance for accounting for income taxes. Under this method, we recognize deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the respective carrying amounts and tax basis of our assets and liabilities. For the period ended July 19, 2021, income taxes as presented in the Consolidated Financial Statements attribute current and deferred income taxes of SolarWinds to the stand-alone financial statements of N-able in a manner that is systematic, rational and consistent with the asset and liability method prescribed by ASC 740. Accordingly, the income tax provision of N-able was prepared following the separate return method for the period. The separate return method applies ASC 740 to the stand-alone financial statements of each member of the consolidated group as if the group members were a separate taxpayer and a stand-alone enterprise. The calculation of our income taxes on a separate return basis requires a considerable amount of judgment and use of both estimates and allocations. As a result, actual transactions included in the Consolidated Financial Statements of SolarWinds may not be included in the separate financial statements of N‑able. Similarly, the tax treatment of certain items reflected in the financial statements of N-able may not be reflected in the Consolidated Financial Statements and tax returns of SolarWinds. Therefore, items such as net operating losses, credit carryforwards and valuation allowances may exist in the stand-alone financial statements that may or may not exist in SolarWinds’ Consolidated Financial Statements. As such, the income taxes of N-able as presented in the Consolidated Financial Statements may not be indicative of the income taxes that N-able will report in the future. Certain operations of N-able have historically been included in a combined or consolidated return with other SolarWinds entities. Current obligations for taxes in certain jurisdictions, where N-able files a combined or consolidated tax return with SolarWinds, are deemed settled with SolarWinds for purposes of the Consolidated Financial Statements. Current obligations for tax in jurisdictions where N-able does not file a combined or consolidated return with SolarWinds, including certain foreign jurisdictions, are recorded within the income tax receivable or income taxes payable on the Consolidated Balance Sheets. On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Tax Act”) was enacted. As a result, income tax attributable to previously undistributed earnings of N-able international subsidiaries was recognized in 2017 and 2018. This liability, which SolarWinds elected to pay over time, remains with SolarWinds and is not reflected in the financial statements of N-able. In the ordinary course of business, there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, the associated interest expense and penalties has been recognized as a component of income tax expense. We establish valuation allowances when necessary to reduce deferred tax assets to the amounts expected to be realized. On a quarterly basis, we evaluate the need for, and the adequacy of, valuation allowances based on the expected realization of our deferred tax assets. The factors used to assess the likelihood of realization include our latest forecast of future taxable income, available tax planning strategies that could be implemented, reversal of taxable temporary differences and carryback potential to realize the net deferred tax assets. See Note 14. Income Taxes |
Concentrations of Risk | Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. Our cash and cash equivalents consisted of cash deposited with banks in demand deposit accounts which may exceed the amount of insurance provided on these deposits. Generally, we may withdraw our cash deposits and redeem our invested cash equivalents upon demand. We strive to maintain our cash deposits with multiple financial institutions of reputable credit and therefore bear minimal credit risk. We provide credit to distributors, resellers and direct customers in the normal course of business. We generally extend credit to new customers based upon industry reputation and existing customers based upon prior payment history. For the years ended December 31, 2023, 2022 and 2021, no distributor, reseller or direct customer represented a significant concentration of our revenue. At December 31, 2023 and 2022, no distributor, reseller or direct customer represented a significant concentration of our outstanding accounts receivable balance. We do not believe that our business is substantially dependent on any distributor or that the loss of a distributor relationship would have a material adverse effect on our business. |
Stock-Based Compensation | We have granted our employees, directors and certain contractors stock-based incentive awards. These awards are in the form of stock options, restricted common stock, restricted stock units and performance stock units. We measure stock-based compensation expense for all share-based awards granted to employees and directors based on the estimated fair value of those awards on the date of grant. The fair value of stock option awards is estimated using a Black-Scholes valuation model. The fair value of restricted common stock, restricted stock units and performance stock units is determined using the fair market value of the underlying common stock on the date of grant less any amount paid at the time of the grant, or intrinsic value. Our stock awards vest on service-based or performance-based vesting conditions. For our service-based awards, we recognize stock-based compensation expense on a straight-line basis over the service period of the award. For our performance-based awards, we recognize stock-based compensation expense on a graded-vesting basis over the service period of each separately vesting tranche of the award, if it is probable that the performance target will be achieved. In connection with the Separation and Distribution, all of the outstanding and unvested SolarWinds equity awards held by our employees were converted to N-able awards (the “Conversion”). As a result of the Conversion, 224,638 stock options, 91,477 shares of restricted common stock, and 2,207,824 shares of restricted stock units were granted during the year ended December 31, 2021. No stock option awards were granted during the year ended December 31, 2023. See Note 10. Stock-Based Compensation and Note 13. Relationship with Parent and Related Entities for information on the incremental compensation expense recognized during the years ended December 31, 2023 and 2022 as a result of the Conversion. |
Net Income (Loss) Per Share | We calculate basic and diluted net income per share attributable to common stockholders in conformity with the two-class method required for companies with participating securities. We compute basic net income per share available to common stockholders by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the reporting period. We compute diluted net income per share similarly to basic net income per share except that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock using the treasury stock method. |
Recently Issued Accounting Pronouncements | In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires an entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, “Revenue from Contracts with Customers,” instead of at fair value on the acquisition date as previously required by ASC 805, “Business Combinations.” The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for acquired revenue contracts and revenue contracts not acquired in a business combination. The updated guidance is effective for public companies for fiscal years beginning after December 15, 2022, and early adoption is permitted. The updated guidance will be applied prospectively to business combinations occurring during or after the fiscal year of adoption. We adopted this standard as of January 1, 2023. The adoption of the standard did not have a material impact on our consolidated financial statements for the year ended December 31, 2023. In March 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provides temporary optional expedients and exceptions to the existing guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to reference rate reform. The standard became effective upon issuance and may be applied to any new or amended contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) through December 31, 2022. In December 2022, the FASB issued ASU No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848,” extending the sunset date of the relief provided under ASU No. 2020-04 to December 31, 2024. During the three months ended September 30, 2023, the effective interest rate on outstanding debt under our credit agreement with JPMorgan Chase, Bank, N.A. (the “Credit Agreement”) transitioned from a LIBOR-based rate to a Secured Overnight Financing Rate (“SOFR”)-based rate. The transition did not have a material impact on our consolidated financial statements for the year ended December 31, 2023, and no remaining contracts, hedging relationships, or other transactions reference LIBOR as of December 31, 2023. See Note 9. Debt for further details regarding the Credit Agreement. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment | We record property and equipment at cost and depreciate them using the straight-line method over their estimated useful lives as follows: Useful Life Equipment, servers and computers 3 - 5 Furniture and fixtures 5 - 7 Software 3 - 5 Leasehold improvements Lesser of lease term or useful life Property and equipment, net, including software, consisted of the following: December 31, 2023 2022 (in thousands) Servers, equipment and computers $ 52,774 $ 38,669 Furniture and fixtures 6,658 6,386 Software 885 885 Leasehold improvements 22,948 21,450 $ 83,265 $ 67,390 Less: Accumulated depreciation and amortization (46,427) (29,986) Property and equipment, net $ 36,838 $ 37,404 Depreciation and amortization expense on property and equipment was as follows for the years ended December 31, 2023, 2022, and 2021: Year Ended December 31, 2023 2022 2021 (in thousands) Depreciation and amortization $ 15,228 $ 13,249 $ 12,226 |
Disaggregation of Revenue | Our revenue consists of the following: Year Ended December 31, 2023 2022 2021 (in thousands) Subscription revenue $ 412,072 $ 362,609 $ 336,845 Other revenue 9,808 9,160 9,611 Total subscription and other revenue $ 421,880 $ 371,769 $ 346,456 During the years ended December 31, 2023, 2022 and 2021, respectively, we recognized the following revenue from subscription and other services at a point in time and over time: Year Ended December 31, 2023 2022 2021 (in thousands) Revenue recognized at a point in time $ 56,359 $ 59,970 $ 62,204 Revenue recognized over time 365,521 311,799 284,252 Total revenue recognized $ 421,880 $ 371,769 $ 346,456 |
Details of Total Deferred Revenue Balance | Details of our total deferred revenue balance was as follows: Total Deferred Revenue (in thousands) Balance as of December 31, 2021 $ 10,898 Deferred revenue recognized (19,922) Additional amounts deferred 21,151 Balance as of December 31, 2022 $ 12,127 Deferred revenue recognized (21,438) Additional amounts deferred 22,124 Balance as of December 31, 2023 $ 12,813 |
Remaining Performance Obligations for Revenue Recognition | We expect to recognize revenue related to the following remaining performance obligations as of December 31, 2023: Revenue Recognition Expected by Period Total Less than 1 1-3 years More than (in thousands) Expected recognition of remaining performance obligations $ 21,055 $ 17,316 $ 3,738 $ 1 |
Schedule of Advertising Expense | Advertising expense was as follows for the years ended December 31, 2023, 2022, and 2021: Year Ended December 31, 2023 2022 2021 (in thousands) Advertising expense $ 17,311 $ 19,560 $ 18,534 |
Changes in Accumulated Other Comprehensive Income (Loss) 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 as of December 31, 2021 $ 15,053 $ 15,053 Other comprehensive loss before reclassification (22,868) (22,868) Net current period other comprehensive loss (22,868) (22,868) Balance as of December 31, 2022 (7,815) (7,815) Other comprehensive income before reclassification 12,224 12,224 Net current period other comprehensive income 12,224 12,224 Balance as of December 31, 2023 $ 4,409 $ 4,409 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Consideration Paid and Amounts Recognized | The following table summarizes the amounts recognized for the assets acquired and liabilities assumed: (in thousands) Current assets, including cash acquired of $6 $ 128 Property and equipment, net 48 Current liabilities (1,199) Non-current deferred tax liabilities (764) Identifiable intangible assets Developed technology 8,890 Customer relationships 80 Goodwill 7,176 Total assets acquired, net $ 14,359 The following table summarizes the total consideration for the assets acquired and liabilities assumed: (in thousands) Cash paid, net of cash acquired of $6 $ 9,199 Contingent consideration 5,160 Total consideration, net $ 14,359 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes the fair value of the acquired identifiable intangible assets and weighted-average useful life by category: Fair Value Weighted-Average Useful Life (in thousands) (in years) Developed technology $ 8,890 5 Customer relationships 80 3 Total identifiable intangible assets $ 8,970 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table reflects the changes in goodwill for the years ended December 31, 2023 and 2022: (in thousands) Balance as of December 31, 2021 $ 840,923 Acquisitions 8,726 Foreign currency translation (20,854) Balance as of December 31, 2022 828,795 Acquisitions (1,550) Foreign currency translation 11,252 Balance as of December 31, 2023 $ 838,497 |
Intangible Assets | Intangible assets consisted of the following as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Gross Accumulated Net Gross Accumulated Net (in thousands) Developed product technologies $ 30,441 $ (23,766) $ 6,675 $ 30,054 $ (21,803) $ 8,251 Customer relationships 92,134 (92,092) 42 92,662 (92,040) 622 Trademarks 713 (713) — 713 (713) — Total intangible assets $ 123,288 $ (116,571) $ 6,717 $ 123,429 $ (114,556) $ 8,873 |
Intangible Asset Amortization Expense | Intangible asset amortization expense was as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Intangible asset amortization expense $ 2,436 $ 8,330 $ 19,065 |
Estimated Intangible Asset Amortization Expense | As of December 31, 2023, we estimate aggregate intangible asset amortization expense to be as follows: Estimated Amortization (in thousands) 2024 $ 1,930 2025 1,916 2026 1,902 2027 961 2028 8 Total amortization expense $ 6,717 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets Measured on a Recurring Basis | There have been no transfers between fair value measurement levels during the year ended December 31, 2023. Fair Value Measurements at December 31, 2023 Using Quoted Prices in Significant Significant Total (in thousands) Assets: Money market funds $ 98,560 $ — $ — $ 98,560 Liabilities: Contingent consideration $ — $ — $ 3,650 $ 3,650 Fair Value Measurements at December 31, 2022 Using Quoted Prices in Significant Significant Total (in thousands) Assets: Money market funds $ 48,389 $ — $ — $ 48,389 Liabilities: Contingent consideration $ — $ — $ 5,090 $ 5,090 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | We record property and equipment at cost and depreciate them using the straight-line method over their estimated useful lives as follows: Useful Life Equipment, servers and computers 3 - 5 Furniture and fixtures 5 - 7 Software 3 - 5 Leasehold improvements Lesser of lease term or useful life Property and equipment, net, including software, consisted of the following: December 31, 2023 2022 (in thousands) Servers, equipment and computers $ 52,774 $ 38,669 Furniture and fixtures 6,658 6,386 Software 885 885 Leasehold improvements 22,948 21,450 $ 83,265 $ 67,390 Less: Accumulated depreciation and amortization (46,427) (29,986) Property and equipment, net $ 36,838 $ 37,404 Depreciation and amortization expense on property and equipment was as follows for the years ended December 31, 2023, 2022, and 2021: Year Ended December 31, 2023 2022 2021 (in thousands) Depreciation and amortization $ 15,228 $ 13,249 $ 12,226 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Operating Lease Costs | The components of operating lease costs for the years ended December 31, 2023 and 2022 were as follows: Year Ended December 31, 2023 2022 (in thousands) Operating lease costs $ 6,804 $ 6,888 Variable lease costs (1) 1,120 1,293 Short-term lease costs 221 299 Sublease income received (488) — Total lease costs $ 7,657 $ 8,480 ____________ |
Lease Liabilities | Maturities of our operating lease liabilities as of December 31, 2023 were as follows: December 31, 2023 (in thousands) 2024 $ 8,119 2025 6,764 2026 6,735 2027 5,665 2028 5,365 Thereafter 13,438 Total minimum lease payments 46,086 Less: imputed interest (6,579) Present value of operating lease liabilities $ 39,507 |
Accrued Liabilities and Other (
Accrued Liabilities and Other (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities and Other Current Liabilities | Accrued liabilities and other current liabilities were as follows: December 31, 2023 2022 (in thousands) Payroll-related accruals $ 26,788 $ 19,622 Value-added and other tax 8,976 1,904 Purchasing accruals 3,330 4,390 Accrued royalties 2,550 1,104 Accrued contingent consideration liability 1,800 2,746 Accrued other liabilities 5,922 5,864 Total accrued liabilities and other $ 49,366 $ 35,630 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The following table summarizes information relating to our outstanding debt as of December 31, 2023: As of December 31, 2023 Amount Outstanding Effective Rate (in thousands, except interest rates) Term loan facility $ 342,125 8.40 % Revolving credit facility — — % Total principal amount 342,125 Unamortized discount and debt issuance costs (7,116) Total debt, net 335,009 Less: Current debt obligation (3,500) Long-term debt, net of current portion $ 331,509 |
Summary of Future Minimum Principal Payments of Debt | The following table summarizes the future minimum principal payments under Credit Agreement as of December 31, 2023: (in thousands) 2024 $ 3,500 2025 3,500 2026 3,500 2027 3,500 2028 328,125 Total minimum principal payments $ 342,125 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense for the years ended December 31, 2023, 2022 and 2021 was $43.6 million, $36.5 million and $29.4 million, respectively, as summarized below: Year Ended December 31, 2023 2022 2021 (in thousands) Cost of revenue $ 1,348 $ 1,146 $ 1,010 Sales and marketing 14,706 12,043 8,761 Research and development 8,560 6,118 4,659 General and administrative 18,956 17,220 15,000 Total stock-based compensation expense $ 43,570 $ 36,527 $ 29,430 The impact to our income before income taxes due to stock-based compensation expense and the related income tax benefits were as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Impact to income before income taxes due to stock-based compensation $ 43,570 $ 36,527 $ 29,430 Income tax benefit related to stock-based compensation 1,334 872 310 |
Option Grant Activity | Stock option grant activity under the 2021 Plan was as follows during the year ended December 31, 2023: Number of Weighted- Aggregate Weighted- Outstanding balances as of December 31, 2022 125,841 $ 0.89 Options exercised (50,006) 1.44 Options forfeited — — Options expired — — Outstanding balances as of December 31, 2023 75,835 $ 0.53 Options exercisable as of December 31, 2023 75,835 $ 0.53 $ 965 3.3 Options vested and expected to vest as of December 31, 2023 75,835 $ 0.53 $ 965 3.3 |
Schedule of Stock Option Valuation Assumptions | For stock option awards granted during the year ended December 31, 2021, we estimated the fair value at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Year Ended December 31, 2021 Expected dividend yield — % Volatility 45.5 % Risk-free rate of return 0.5 % Expected life 3.47 years |
Summary of Restricted Stock Activity | The following table summarizes information about restricted stock activity subject to vesting under the 2021 Plan during the year ended December 31, 2023: Number of Unvested balances as of December 31, 2022 3,416 Restricted stock vested (3,416) Restricted stock repurchased - unvested shares — Unvested balances as of December 31, 2023 — |
Summary of Restricted Stock Unit Activity | The following table summarizes information about restricted stock unit activity under the 2021 Plan during the year ended December 31, 2023: Number of Weighted-Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Weighted-Average Remaining Contractual Term Unvested balances as of December 31, 2022 5,745,906 $ 12.07 $ 59,068 1.3 Restricted stock units granted 4,055,424 10.52 Restricted stock units vested (2,592,104) 12.23 Restricted stock units forfeited (279,905) 11.46 Unvested balances as of December 31, 2023 6,929,321 $ 11.12 $ 91,814 1.2 |
Summary of Performance Stock Unit Activity | The following table summarizes information about performance stock unit activity under the 2021 Plan during the year ended December 31, 2023: Number of Weighted-Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Weighted-Average Remaining Contractual Term Unvested balances as of December 31, 2022 1,486,515 $ 12.03 $ 15,281 0.9 Performance stock units granted 954,937 10.38 Performance stock units vested (566,137) 12.15 Performance stock units forfeited (171,079) 11.89 Unvested balances as of December 31, 2023 1,704,236 $ 11.08 $ 22,581 0.8 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Shares in the Calculation of Basic and Diluted Income Per Share | A reconciliation of the number of shares in the calculation of basic and diluted earnings per share follows: Year Ended December 31, 2023 2022 2021 (in thousands) Basic earnings per share: Numerator: Net income $ 23,412 $ 16,707 $ 113 Denominator: Weighted-average common shares outstanding used in computing basic earnings per share 182,371 180,136 167,460 Basic earnings per share $ 0.13 $ 0.09 $ 0.00 Diluted earnings per share: Numerator: Net income $ 23,412 $ 16,707 $ 113 Denominator: Weighted-average shares used in computing basic earnings per share 182,371 180,136 167,460 Add dilutive impact of employee equity plans 3,609 1,161 1,207 Weighted-average shares used in computing diluted earnings per share 185,980 181,297 168,667 Diluted earnings per share $ 0.13 $ 0.09 $ 0.00 |
Weighted Average Outstanding Shares of Common Stock Equivalents Excluded | 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 periods presented because their effect would have been anti-dilutive or for which the performance condition had not been met at the end of the period: Year Ended December 31, 2023 2022 2021 (in thousands) Restricted stock units 29,863 2,957 203 Total anti-dilutive shares 29,863 2,957 203 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Costs of Retirement Plans | Our expense related to the plan was as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Employee benefit plan expense $ 1,855 $ 1,495 $ 1,440 |
Relationship with Parent and _2
Relationship with Parent and Related Entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 year ended December 31, 2021: Year Ended December 31, 2021 (in thousands) General and administrative $ 20,357 Research and development 253 Sales and marketing 297 Cost of revenue 140 Total $ 21,047 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Before Income Taxes | U.S. and international components of income before income taxes were as follows: Year Ended December 31, 2023 2022 2021 (in thousands) U.S. $ (26,289) $ (22,574) $ (37,028) International 70,615 52,999 48,620 Income before income taxes $ 44,326 $ 30,425 $ 11,592 |
Schedule of Income Tax Expense (Benefit) | Income tax expense was composed of the following: Year Ended December 31, 2023 2022 2021 (in thousands) Current: Federal $ — $ — $ — State 250 10 2 International 21,152 15,661 13,324 21,402 15,671 13,326 Deferred: Federal — — — State — — — International (488) (1,953) (1,847) (488) (1,953) (1,847) Income tax expense $ 20,914 $ 13,718 $ 11,479 |
Schedule of Effective Income Tax Rate Reconciliation | The difference between the income tax expense (benefit) derived by applying the federal statutory income tax rate to our income before income taxes and the amount recognized in our Consolidated Financial Statements is as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Expense derived by applying the federal statutory income tax rate to income before income taxes $ 9,308 $ 6,389 $ 2,434 State taxes, net of federal benefit 250 50 (105) Research and experimentation tax credits — (170) — Global intangible low-taxed income (49) 3,128 — Withholding tax 79 — — Transaction costs 399 488 1,999 Pre-Separation and Distribution net operating losses and other deferred tax assets — — 21,130 Non-deductible executive compensation 2,099 1,246 — Valuation allowance for deferred tax assets 2,867 (827) (15,383) Stock-based compensation 2,569 2,856 1,258 Meals and entertainment 224 140 75 Effect of foreign operations 2,328 465 (88) Other 840 (47) 159 $ 20,914 $ 13,718 $ 11,479 |
Components of Net Deferred Tax Amounts | The components of the net deferred tax amounts recognized in the accompanying Consolidated Balance Sheets were: December 31, 2023 2022 (in thousands) Deferred tax assets: Allowance for doubtful accounts $ 400 $ 331 Accrued expenses 94 149 Net operating loss 1,939 1,892 Stock-based compensation 5,220 4,442 Interest 1,770 12 Deferred revenue 5 74 Leases 754 806 Other credits 14 7 Total deferred tax assets 10,196 7,713 Valuation allowance (4,913) (3,637) Deferred tax assets, net of valuation allowance 5,283 4,076 Deferred tax liabilities: Property and equipment 2,427 2,522 Prepaid expenses 918 474 Leases 1,064 931 Intangibles 1,607 2,137 Total deferred tax liabilities 6,016 6,064 Net deferred tax asset (liability) $ (733) $ (1,988) |
Schedule of Unrecognized Tax Benefits | The aggregate changes in the balance of our gross unrecognized tax benefits, excluding accrued interest and penalties, were as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Balance, beginning of year $ — $ — $ 87 Increases for tax positions related to the current year — — — Decreases for tax positions related to the current year — — — Increases for tax positions related to prior years — — — Decreases for tax positions related to prior years — — (87) Settlement with taxing authorities — — — Reductions due to lapsed statute of limitations — — — Balance, end of year $ — $ — $ — |
Operating Segments and Geogra_2
Operating Segments and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Area | The following tables set forth revenue and net long-lived assets by geographic area: Year Ended December 31, 2023 2022 2021 (in thousands) Revenue United States, country of domicile $ 205,836 $ 181,033 $ 160,833 United Kingdom 43,196 38,414 38,526 All other international 172,848 152,322 147,097 Total revenue $ 421,880 $ 371,769 $ 346,456 |
Schedule of Long-lived Assets by Geographic Area | December 31, 2023 2022 (in thousands) Long-lived assets, net United States, country of domicile $ 14,269 $ 17,713 Switzerland 13,705 12,629 Canada 3,032 1,169 All other international 5,832 5,893 Total long-lived assets, net $ 36,838 $ 37,404 |
Organization and Nature of Op_2
Organization and Nature of Operations (Details) | 12 Months Ended | ||
Jul. 19, 2021 $ / shares shares | Dec. 31, 2023 employee $ / shares | Dec. 31, 2022 $ / shares | |
Subsidiary, Sale of Stock [Line Items] | |||
Spinoff transaction, conversion ratio | 1 | ||
Common stock, par value (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 | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of shares issued (in shares) | 20,623,282 | ||
SolarWinds Holdings, Inc. | |||
Subsidiary, Sale of Stock [Line Items] | |||
Spinoff transaction, conversion ratio | 2 | ||
Common stock, par value (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 - Other Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | |
Accounting Policies [Abstract] | |||
Number of reportable segments | segment | 1 | ||
Unrealized net transaction gains (losses) related to remeasurement | $ | $ 900 | $ 2,200 | $ (1,800) |
Provision for doubtful accounts | $ | 1,200 | 1,300 | 1,700 |
Amortization of debt issuance costs | $ | 1,601 | 1,623 | $ 732 |
Money market funds | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Money market funds | $ | $ 98,600 | $ 48,400 | |
Stock options to purchase common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock units granted (in shares) | shares | 0 | 224,638 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock units granted (in shares) | shares | 91,477 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock units granted (in shares) | shares | 4,055,424 | ||
Restricted Stock Units (RSUs) | 2021 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock units granted (in shares) | shares | 2,207,824 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Acquisitions (Details) | Dec. 31, 2023 |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 2 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 7 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property and Equipment (Details) | Dec. 31, 2023 |
Minimum | Servers, equipment and computers | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Minimum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Minimum | Software | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Maximum | Servers, equipment and computers | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Maximum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Maximum | Software | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Internal-Use Software Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 14, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 13, 2022 | |
Asset Acquisition [Line Items] | ||||||
Internal-use software useful life | 3 years | |||||
Impairments to internal-use software | $ 0 | $ 0 | $ 0 | |||
Capitalized internal-use software, net | $ 13,700 | 18,300 | 13,700 | |||
Capitalized internal-use software and website development costs | $ 3,400 | $ 2,500 | $ 2,200 | |||
Third Party | ||||||
Asset Acquisition [Line Items] | ||||||
Prepaid royalties | $ 1,000 | |||||
Intellectual Property Acquisition | ||||||
Asset Acquisition [Line Items] | ||||||
Internal-use software useful life | 3 years | |||||
Asset acquisition, consideration transferred | $ 6,500 | |||||
Payments for asset acquisition | 3,100 | |||||
Product delivery fees | 1,000 | |||||
Contingent consideration | $ 2,500 | |||||
Asset acquisition, consideration transferred, transaction cost | $ 100 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Revenue Disaggregation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Subscription and other revenue | $ 421,880 | $ 371,769 | $ 346,456 |
Revenue recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Subscription and other revenue | 56,359 | 59,970 | 62,204 |
Revenue recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Subscription and other revenue | 365,521 | 311,799 | 284,252 |
Subscription Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Subscription and other revenue | 412,072 | 362,609 | 336,845 |
Other Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Subscription and other revenue | $ 9,808 | $ 9,160 | $ 9,611 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Revenue, advance billing period | 12 months | |
Change In Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | $ 12,127 | $ 10,898 |
Deferred revenue recognized | (21,438) | (19,922) |
Additional amounts deferred | 22,124 | 21,151 |
Ending balance | $ 12,813 | $ 12,127 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Expected Recognition of Deferred Revenue (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected recognition of deferred revenue | $ 21,055 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected recognition of deferred revenue | $ 17,316 |
Deferred revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected recognition of deferred revenue | $ 3,738 |
Deferred revenue, remaining performance obligation, period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected recognition of deferred revenue | $ 1 |
Deferred revenue, remaining performance obligation, period |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Cost of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Amortization of acquired technologies | $ 1,839 | $ 2,477 | $ 5,755 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Advertising Costs Incurred (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 17,311 | $ 19,560 | $ 18,534 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of period | $ 642,071 | $ 618,355 | $ 631,197 |
Other comprehensive income before reclassification | 12,224 | (22,868) | |
Other comprehensive income (loss) | 12,224 | (22,868) | (33,938) |
Balance at end of period | 711,360 | 642,071 | 618,355 |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (7,815) | 15,053 | |
Other comprehensive income before reclassification | 12,224 | (22,868) | |
Other comprehensive income (loss) | 12,224 | (22,868) | |
Balance at end of period | 4,409 | (7,815) | 15,053 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (7,815) | 15,053 | 48,991 |
Balance at end of period | $ 4,409 | $ (7,815) | $ 15,053 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Estimated the Fair Value for Stock Options (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected dividend yield | 0% |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jul. 01, 2022 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||||
Purchase accounting adjustments | $ 1,600 | $ (1,550) | |||
Gain on contingent consideration | (1,443) | $ (83) | $ 0 | ||
Contingent consideration current | 1,800 | 2,746 | |||
Spinpanel BV | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire businesses, gross | $ 20,000 | ||||
Contingent consideration maximum | 10,000 | ||||
Acquisition related costs | 300 | ||||
Contingent consideration | $ 5,160 | 3,700 | 5,100 | ||
Gain on contingent consideration | 1,400 | $ 100 | |||
Contingent consideration current | 800 | ||||
Accrued contingent consideration liability | $ 2,900 |
Acquisitions - Summary of Asset
Acquisitions - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Cash acquired | $ 6 | |||
Goodwill | $ 838,497 | $ 828,795 | $ 840,923 | |
Acquisitions, net of cash acquired | 0 | 9,199 | $ 0 | |
Spinpanel BV | ||||
Business Acquisition [Line Items] | ||||
Current assets, including cash acquired of $6 | 128 | |||
Property and equipment, net | 48 | |||
Current liabilities | (1,199) | |||
Non-current deferred tax liabilities | (764) | |||
Identifiable intangible assets | 8,970 | |||
Goodwill | 7,176 | |||
Total consideration | 14,359 | |||
Acquisitions, net of cash acquired | 9,199 | |||
Contingent consideration | 5,160 | $ 3,700 | $ 5,100 | |
Total consideration, net | 14,359 | |||
Spinpanel BV | Developed product technologies | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 8,890 | |||
Weighted-average useful life | 5 years | |||
Spinpanel BV | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 80 | |||
Weighted-average useful life | 3 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | |||
Balance at beginning of period | $ 828,795 | $ 828,795 | $ 840,923 |
Acquisitions | 8,726 | ||
Purchase accounting adjustments | $ 1,600 | (1,550) | |
Foreign currency translation | 11,252 | (20,854) | |
Balance at end of period | $ 838,497 | $ 828,795 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 123,288 | $ 123,429 |
Accumulated Amortization | (116,571) | (114,556) |
Net | 6,717 | 8,873 |
Developed product technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 30,441 | 30,054 |
Accumulated Amortization | (23,766) | (21,803) |
Net | 6,675 | 8,251 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 92,134 | 92,662 |
Accumulated Amortization | (92,092) | (92,040) |
Net | 42 | 622 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 713 | 713 |
Accumulated Amortization | (713) | (713) |
Net | $ 0 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible asset amortization expense | $ 2,436 | $ 8,330 | $ 19,065 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Intangible Asset Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Estimated Amortization | ||
2024 | $ 1,930 | |
2025 | 1,916 | |
2026 | 1,902 | |
2027 | 961 | |
2028 | 8 | |
Net | $ 6,717 | $ 8,873 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 98,600 | $ 48,400 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 3,650 | 5,090 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 3,650 | 5,090 |
Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 98,560 | 48,389 |
Recurring | Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 98,560 | 48,389 |
Recurring | Money market funds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Recurring | Money market funds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 0 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 83,265 | $ 67,390 |
Less: Accumulated depreciation and amortization | (46,427) | (29,986) |
Property and equipment, net | 36,838 | 37,404 |
Servers, equipment and computers | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 52,774 | 38,669 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,658 | 6,386 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 885 | 885 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 22,948 | $ 21,450 |
Property and Equipment - Sche_2
Property and Equipment - Schedule of Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | $ 15,228 | $ 13,249 | $ 12,226 |
Leases - Additional Information
Leases - Additional Information (Details) | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | |
Remaining lease term (in years) | 6 years 10 months 24 days |
Weighted-average discount rate of lease liabilities (as a percent) | 4.70% |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Operating lease terms (in years) | 1 year |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Operating lease terms (in years) | 8 years 4 months 24 days |
Leases - Operating Lease Costs
Leases - Operating Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease costs | $ 6,804 | $ 6,888 |
Variable lease costs | 1,120 | 1,293 |
Short-term lease costs | 221 | 299 |
Sublease income received | (488) | 0 |
Total lease costs | $ 7,657 | $ 8,480 |
Leases - Lease Liabilities (Det
Leases - Lease Liabilities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 8,119 |
2025 | 6,764 |
2026 | 6,735 |
2027 | 5,665 |
2028 | 5,365 |
Thereafter | 13,438 |
Total minimum lease payments | 46,086 |
Less: imputed interest | (6,579) |
Present value of operating lease liabilities | $ 39,507 |
Accrued Liabilities and Other -
Accrued Liabilities and Other - Schedule of Accrued Liabilities and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Payroll-related accruals | $ 26,788 | $ 19,622 |
Value-added and other tax | 8,976 | 1,904 |
Purchasing accruals | 3,330 | 4,390 |
Accrued royalties | 2,550 | 1,104 |
Contingent consideration current | 1,800 | 2,746 |
Accrued other liabilities | 5,922 | 5,864 |
Total accrued liabilities and other | $ 49,366 | $ 35,630 |
Debt - Additional Information (
Debt - Additional Information (Details) - Credit Agreement - USD ($) | 12 Months Ended | |
Jul. 19, 2021 | Dec. 31, 2023 | |
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 | |
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% | |
Secured Debt | LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate, floor | 0.50% | |
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 | Eurodollar | ||
Debt Instrument [Line Items] | ||
Variable rate, floor | 0% | |
Basis spread on variable rate | 3% | |
Revolving Credit Facility | Line of Credit | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3% | |
Revolving Credit Facility | Line of Credit | US Dollars | LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate, floor | 0% |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instruments [Abstract] | ||
Total principal amount | $ 342,125 | |
Unamortized discount and debt issuance costs | (7,116) | |
Total minimum principal payments | 335,009 | |
Less: Current debt obligation | (3,500) | $ (3,500) |
Long-term debt, net of current portion | 331,509 | $ 333,488 |
Credit Agreement | ||
Debt Instruments [Abstract] | ||
Total principal amount | 342,125 | |
Credit Agreement | Secured Debt | ||
Debt Instruments [Abstract] | ||
Total principal amount | $ 342,125 | |
Effective Rate | 8.40% | |
Credit Agreement | Line of Credit | Revolving Credit Facility | ||
Debt Instruments [Abstract] | ||
Total principal amount | $ 0 | |
Effective Rate | 0% |
Debt - Summary of Future Minimu
Debt - Summary of Future Minimum Principal Payments of Debt (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Total minimum principal payments | $ 342,125 |
Credit Agreement | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2024 | 3,500 |
2025 | 3,500 |
2026 | 3,500 |
2027 | 3,500 |
2028 | 328,125 |
Total minimum principal payments | $ 342,125 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2021 USD ($) shares | Aug. 31, 2021 shares | Dec. 31, 2023 USD ($) vote $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | Jul. 19, 2021 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, authorized (in shares) | 550,000,000 | 550,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||
Preferred stock, authorized (in shares) | 50,000,000 | 50,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||
Number of votes per share | vote | 1 | |||||
Stock options outstanding (in shares) | 75,835 | 125,841 | ||||
Stock-based compensation expense | $ | $ 43,570,000 | $ 36,527,000 | $ 29,430,000 | |||
Stock-based compensation expense subject to future recognition | $ | $ 0 | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock units granted (in shares) | 0 | 224,638 | ||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards outstanding (in shares) | 0 | 3,416 | ||||
Stock units granted (in shares) | 91,477 | |||||
Stock-based compensation expense | $ | $ 100,000 | |||||
Stock units granted (in dollars per share) | $ / shares | $ 1.52 | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards outstanding (in shares) | 6,929,321 | 5,745,906 | ||||
Stock units granted (in shares) | 4,055,424 | |||||
Stock units granted (in dollars per share) | $ / shares | $ 10.52 | |||||
Fair value of restricted stock units vested | $ | $ 31,400,000 | |||||
Compensation expense not yet recognized | $ | $ 63,300,000 | |||||
Recognition period of stock-based compensation expense | 2 years 6 months | |||||
Performance Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards outstanding (in shares) | 1,704,236 | 1,486,515 | ||||
Stock units granted (in shares) | 954,937 | |||||
Stock units granted (in dollars per share) | $ / shares | $ 10.38 | |||||
Compensation expense not yet recognized | $ | $ 7,400,000 | |||||
Recognition period of stock-based compensation expense | 9 months 18 days | |||||
ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, capital shares reserved for future issuance (in shares) | 2,500,000 | 2,500,000 | 2,164,234 | |||
Stock-based compensation expense | $ | $ 600,000 | $ 500,000 | $ 100,000 | |||
Maximum stock purchase, percentage of compensation | 20% | 20% | ||||
Offering period length | 6 months | |||||
Purchase price of common stock, percent of market value | 85% | |||||
Maximum value of common stock purchase, per year | $ | $ 25,000 | |||||
2021 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, capital shares reserved for future issuance (in shares) | 15,049,123 | |||||
Expiration period | 10 years | |||||
Awards outstanding (in shares) | 8,709,392 | |||||
2021 Equity Incentive Plan | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Stock units granted (in shares) | 2,207,824 | |||||
2021 Equity Incentive Plan | Performance Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 43,570 | $ 36,527 | $ 29,430 |
Income tax benefit related to stock-based compensation | 1,334 | 872 | 310 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,348 | 1,146 | 1,010 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 14,706 | 12,043 | 8,761 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 8,560 | 6,118 | 4,659 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 18,956 | 17,220 | 15,000 |
Operating Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 43,570 | $ 36,527 | $ 29,430 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Stock Option Awards (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Number of Shares Outstanding | |
Outstanding balances at beginning of period (in shares) | shares | 125,841 |
Options exercised (in shares) | shares | (50,006) |
Options forfeited (in shares) | shares | 0 |
Options expired (in shares) | shares | 0 |
Outstanding balances at end of period (in shares) | shares | 75,835 |
Options exercisable at end of period (in shares) | shares | 75,835 |
Options vested and expected to vest at end of period (in shares) | shares | 75,835 |
Weighted- Average Exercise Price | |
Outstanding balances at beginning of period (in dollars per share) | $ / shares | $ 0.89 |
Options exercised (in dollars per share) | $ / shares | 1.44 |
Options forfeited (in dollars per share) | $ / shares | 0 |
Options expired (in dollars per share) | $ / shares | 0 |
Outstanding balances at the end of period (in dollars per share) | $ / shares | 0.53 |
Options exercisable at end of period (in dollars per share) | $ / shares | 0.53 |
Options vested and expected to vest at end of period (in dollars per share) | $ / shares | $ 0.53 |
Options exercisable as of December 31, 2023 | $ | $ 965 |
Options exercisable as of December 31, 2023 | 3 years 3 months 18 days |
Options vested and expected to vest as of December 31, 2023 | $ | $ 965 |
Options vested and expected to vest as of December 31, 2023 | 3 years 3 months 18 days |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Fair Value of Stock Options (Details) - Stock options to purchase common stock | 12 Months Ended |
Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected dividend yield | 0% |
Volatility | 45.50% |
Risk-free rate of return | 0.50% |
Expected life | 3 years 5 months 19 days |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Shares Outstanding | ||
Unvested balances at beginning of period (in shares) | 5,745,906 | |
Restricted stock granted and issued (in shares) | 4,055,424 | |
Restricted stock vested (in shares) | (2,592,104) | |
Stock units forfeited (in shares) | (279,905) | |
Unvested balances at end of period (in shares) | 6,929,321 | 5,745,906 |
Weighted-Average Grant Date Fair Value Per Share | ||
Unvested balances at beginning of period (in dollars per share) | $ 12.07 | |
Stock units granted (in dollars per share) | 10.52 | |
Stock units vested (in dollars per share) | 12.23 | |
Stock units forfeited (in dollars per share) | 11.46 | |
Unvested balances at end of period (in dollars per share) | $ 11.12 | $ 12.07 |
Aggregate intrinsic value, nonvested | $ 91,814 | $ 59,068 |
Weighted average remaining contractual period, outstanding | 1 year 2 months 12 days | 1 year 3 months 18 days |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity Subject to vesting (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2023 shares | |
Number of Shares Outstanding | |
Unvested balances at beginning of period (in shares) | 3,416 |
Restricted stock vested (in shares) | (3,416) |
Restricted stock repurchased - unvested shares (in shares) | 0 |
Unvested balances at end of period (in shares) | 0 |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Shares Outstanding | ||
Unvested balances at beginning of period (in shares) | 5,745,906 | |
Stock units granted (in shares) | 4,055,424 | |
Restricted stock vested (in shares) | (2,592,104) | |
Stock units forfeited (in shares) | (279,905) | |
Unvested balances at end of period (in shares) | 6,929,321 | 5,745,906 |
Weighted-Average Grant Date Fair Value Per Share | ||
Unvested balances at beginning of period (in dollars per share) | $ 12.07 | |
Stock units granted (in dollars per share) | 10.52 | |
Stock units vested (in dollars per share) | 12.23 | |
Stock units forfeited (in dollars per share) | 11.46 | |
Unvested balances at end of period (in dollars per share) | $ 11.12 | $ 12.07 |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, nonvested | $ 91,814 | $ 59,068 |
Weighted-Average Remaining Contractual Term (in years) | ||
Weighted average remaining contractual period, outstanding | 1 year 2 months 12 days | 1 year 3 months 18 days |
Stock-Based Compensation - Sc_5
Stock-Based Compensation - Schedule of Performance Stock Unit Activity (Details) - Performance Stock Units - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Shares Outstanding | ||
Unvested balances at beginning of period (in shares) | 1,486,515 | |
Stock units granted (in shares) | 954,937 | |
Stock units vested (in shares) | (566,137) | |
Stock units forfeited (in shares) | (171,079) | |
Unvested balances at end of period (in shares) | 1,704,236 | 1,486,515 |
Weighted-Average Grant Date Fair Value Per Share | ||
Unvested balances at beginning of period (in dollars per share) | $ 12.03 | |
Stock units granted (in dollars per share) | 10.38 | |
Stock units vested (in dollars per share) | 12.15 | |
Stock units forfeited (in dollars per share) | 11.89 | |
Unvested balances at end of period (in dollars per share) | $ 11.08 | $ 12.03 |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, nonvested | $ 22,581 | $ 15,281 |
Weighted-Average Remaining Contractual Term (in years) | ||
Weighted average remaining contractual period, outstanding | 9 months 18 days | 10 months 24 days |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Shares in the Calculation of Basic and Diluted Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Jul. 19, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic earnings per share: | |||||
Net income | $ 127 | $ (14) | $ 23,412 | $ 16,707 | $ 113 |
Weighted-average common shares outstanding used in computing basic earnings (loss) per share (in shares) | 182,371 | 180,136 | 167,460 | ||
Basic earnings (loss) per share (in dollars per share) | $ 0.13 | $ 0.09 | $ 0 | ||
Diluted earnings per share: | |||||
Net income | $ 23,412 | $ 16,707 | $ 113 | ||
Weighted-average common shares outstanding used in computing basic earnings (loss) per share (in shares) | 182,371 | 180,136 | 167,460 | ||
Add stock-based incentive stock awards (in shares) | 3,609 | 1,161 | 1,207 | ||
Weighted-average shares used in computing diluted earnings (loss) per share (in shares) | 185,980 | 181,297 | 168,667 | ||
Diluted earnings (loss) per share (in dollars per share) | $ 0.13 | $ 0.09 | $ 0 |
Earnings Per Share - Weighted A
Earnings Per Share - Weighted Average Outstanding Shares of Common Stock Equivalents Excluded (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive shares (in shares) | 29,863 | 2,957 | 203 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive shares (in shares) | 29,863 | 2,957 | 203 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Costs of Retirement Plans (Details) (10-K) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Employee benefit plan expense | $ 1,855 | $ 1,495 | $ 1,440 |
Relationship with Parent and _3
Relationship with Parent and Related Entities - Components of General Allocated Corporate Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
General and administrative | $ 69,885 | $ 71,125 | $ 80,575 |
Research and development | 78,180 | 63,484 | 53,959 |
Sales and marketing | 134,691 | 125,301 | 112,678 |
Cost of revenue | 66,369 | 56,133 | 46,677 |
Total | $ 283,353 | 265,763 | $ 260,694 |
Related Party | SolarWinds Holdings, Inc. | |||
Related Party Transaction [Line Items] | |||
Total | 21,047 | ||
Related Party | SolarWinds Holdings, Inc. | General and administrative | |||
Related Party Transaction [Line Items] | |||
General and administrative | 20,357 | ||
Related Party | SolarWinds Holdings, Inc. | Research and development | |||
Related Party Transaction [Line Items] | |||
Research and development | 253 | ||
Related Party | SolarWinds Holdings, Inc. | Sales and marketing | |||
Related Party Transaction [Line Items] | |||
Sales and marketing | 297 | ||
Related Party | SolarWinds Holdings, Inc. | Cost of revenue | |||
Related Party Transaction [Line Items] | |||
Cost of revenue | $ 140 |
Relationship with Parent and _4
Relationship with Parent and Related Entities - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Operating expenses | $ 283,353,000 | $ 265,763,000 | $ 260,694,000 |
Initial term | 2 years | ||
Renewal term | 2 years | ||
Revenue | $ 421,880,000 | 371,769,000 | 346,456,000 |
Accounts receivable | $ 40,013,000 | 34,798,000 | |
Related Party | Minimum | Equity-Based Incentive Plan | |||
Related Party Transaction [Line Items] | |||
Vesting period | 1 year | ||
Related Party | Maximum | Equity-Based Incentive Plan | |||
Related Party Transaction [Line Items] | |||
Vesting period | 5 years | ||
Related Party | SolarWinds Holdings, Inc. | |||
Related Party Transaction [Line Items] | |||
Operating expenses | 21,047,000 | ||
Accounts payable | $ 0 | ||
Accounts receivable | 0 | ||
Related Party | SolarWinds Holdings, Inc. | Transition Services Agreement | |||
Related Party Transaction [Line Items] | |||
Operating expenses | 100,000 | 1,700,000 | |
Related Party | SolarWinds Holdings, Inc. | Software OEM Agreements | |||
Related Party Transaction [Line Items] | |||
Operating expenses | 200,000 | 300,000 | 100,000 |
Revenue | 1,700,000 | 1,500,000 | 500,000 |
Related Party | SolarWinds Holdings, Inc. | Software Cross License Agreement | |||
Related Party Transaction [Line Items] | |||
Operating expenses | 200,000 | 500,000 | 700,000 |
Revenue | 200,000 | 100,000 | 100,000 |
Related Party | SolarWinds Holdings, Inc. | Sublease Agreement | |||
Related Party Transaction [Line Items] | |||
Operating expenses | 700,000 | 600,000 | 200,000 |
Related Party | SolarWinds Holdings, Inc. | Equity-Based Incentive Plan | |||
Related Party Transaction [Line Items] | |||
Operating expenses | 9,300,000 | ||
Conversion incremental compensation expense | $ 1,000,000 | $ 2,200,000 | $ 2,700,000 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (26,289) | $ (22,574) | $ (37,028) |
International | 70,615 | 52,999 | 48,620 |
Income before income taxes | $ 44,326 | $ 30,425 | $ 11,592 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 250 | 10 | 2 |
International | 21,152 | 15,661 | 13,324 |
Total current income tax expense (benefit) | 21,402 | 15,671 | 13,326 |
Deferred: | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
International | (488) | (1,953) | (1,847) |
Total deferred income tax expense (benefit) | (488) | (1,953) | (1,847) |
Total income tax expense (benefit) | $ 20,914 | $ 13,718 | $ 11,479 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Expense derived by applying the federal statutory income tax rate to income before income taxes | $ 9,308 | $ 6,389 | $ 2,434 |
State taxes, net of federal benefit | 250 | 50 | (105) |
Research and experimentation tax credits | 0 | (170) | 0 |
Global intangible low-taxed income | (49) | 3,128 | 0 |
Withholding tax | 79 | 0 | 0 |
Transaction costs | 399 | 488 | 1,999 |
Pre-Separation and Distribution net operating losses and other deferred tax assets | 0 | 0 | 21,130 |
Non-deductible executive compensation | 2,099 | 1,246 | 0 |
Valuation allowance for deferred tax assets | 2,867 | (827) | (15,383) |
Stock-based compensation | 2,569 | 2,856 | 1,258 |
Meals and entertainment | 224 | 140 | 75 |
Effect of foreign operations | 2,328 | 465 | (88) |
Other | 840 | (47) | 159 |
Total income tax expense (benefit) | $ 20,914 | $ 13,718 | $ 11,479 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 400 | $ 331 |
Accrued expenses | 94 | 149 |
Net operating loss | 1,939 | 1,892 |
Stock-based compensation | 5,220 | 4,442 |
Interest | 1,770 | 12 |
Deferred revenue | 5 | 74 |
Leases | 754 | 806 |
Other credits | 14 | 7 |
Total deferred tax assets | 10,196 | 7,713 |
Valuation allowance | (4,913) | (3,637) |
Deferred tax assets, net of valuation allowance | 5,283 | 4,076 |
Deferred tax liabilities: | ||
Property and equipment | 2,427 | 2,522 |
Prepaid expenses | 918 | 474 |
Leases | 1,064 | 931 |
Intangibles | 1,607 | 2,137 |
Total deferred tax liabilities | 6,016 | 6,064 |
Net deferred tax liability | $ (733) | $ (1,988) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | $ 4,913 | $ 3,637 | ||
Undistributed earnings of foreign subsidiaries | 146,900 | |||
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 5,800 | |||
Valuation allowance | 4,900 | 2,000 | ||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 3,900 | 3,900 | ||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 6,300 | 6,300 | $ 14,800 | |
Valuation allowance | $ 1,600 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits, Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of year | $ 0 | $ 0 | $ 87 |
Increases for tax positions related to the current year | 0 | 0 | 0 |
Decreases for tax positions related to the current year | 0 | 0 | 0 |
Increases for tax positions related to prior years | 0 | 0 | 0 |
Decreases for tax positions related to prior years | 0 | 0 | (87) |
Settlement with taxing authorities | 0 | 0 | 0 |
Reductions due to lapsed statute of limitations | 0 | 0 | 0 |
Balance, end of year | $ 0 | $ 0 | $ 0 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) | 12 Months Ended | ||||
Dec. 14, 2022 | Jul. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Asset Acquisition [Line Items] | |||||
Gain on contingent consideration | $ (1,443,000) | $ (83,000) | $ 0 | ||
Contingent consideration current | $ 1,800,000 | 2,746,000 | |||
Internal-use software useful life | 3 years | ||||
Deferred acquisition payments | $ 1,450,000 | 0 | $ 0 | ||
Spinpanel BV | |||||
Asset Acquisition [Line Items] | |||||
Payments to acquire businesses, gross | $ 20,000,000 | ||||
Contingent consideration maximum | 10,000,000 | ||||
Contingent consideration | $ 5,160,000 | 3,700,000 | 5,100,000 | ||
Gain on contingent consideration | 1,400,000 | 100,000 | |||
Contingent consideration current | 800,000 | ||||
Accrued contingent consideration liability | 2,900,000 | ||||
Intellectual Property Acquisition | |||||
Asset Acquisition [Line Items] | |||||
Asset acquisition, consideration transferred | $ 6,500,000 | ||||
Payments for asset acquisition | 3,100,000 | ||||
Product delivery fees | 1,000,000 | ||||
Contingent consideration | $ 2,500,000 | ||||
Internal-use software useful life | 3 years | ||||
Deferred acquisition payments | 1,500,000 | ||||
Contingent consideration liability, current | 1,000,000 | ||||
Gain (loss) on contingent consideration | $ 0 | $ 0 |
Operating Segments and Geogra_3
Operating Segments and Geographic Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Operating Segments and Geogra_4
Operating Segments and Geographic Information - Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 421,880 | $ 371,769 | $ 346,456 |
United States, country of domicile | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 205,836 | 181,033 | 160,833 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 43,196 | 38,414 | 38,526 |
All other international | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 172,848 | $ 152,322 | $ 147,097 |
Operating Segments and Geogra_5
Operating Segments and Geographic Information - Schedule of Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | $ 36,838 | $ 37,404 |
United States, country of domicile | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | 14,269 | 17,713 |
Switzerland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | 13,705 | 12,629 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | 3,032 | 1,169 |
All other international | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | $ 5,832 | $ 5,893 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for doubtful accounts, customers and other | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | $ 1,330 | $ 1,653 | $ 751 |
Charge to Expense | 4,323 | 3,265 | 3,260 |
Charge to Other Accounts | 0 | 0 | 0 |
Deductions (Write-Offs, Net of Recoveries) | (4,482) | (3,588) | (2,358) |
Ending Balance | 1,171 | 1,330 | 1,653 |
Tax valuation allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | 3,637 | 2,873 | 18,256 |
Charge to Expense | 2,867 | 0 | 0 |
Charge to Other Accounts | 0 | 1,591 | 0 |
Deductions (Write-Offs, Net of Recoveries) | (1,591) | (827) | (15,383) |
Ending Balance | $ 4,913 | $ 3,637 | $ 2,873 |