N-able (NABL) 10-Q 9 May 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	May 06, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-40297
Entity Registrant Name	N-able, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	85-4069861
Entity Address, Address Line One	30 Corporate Drive
Entity Address, Address Line Two	Suite 400
Entity Address, City or Town	Burlington
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01803
City Area Code	781
Local Phone Number	328-6490
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	NABL
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		184,763,424
Entity Central Index Key	0001834488
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 139,227	$ 153,048
Accounts receivable, net of allowances of $1,224 and $1,171 as of March 31, 2024 and December 31, 2023, respectively	39,752	40,013
Income tax receivable	10,446	8,001
Prepaid and other current assets	32,843	23,729
Total current assets	222,268	224,791
Property and equipment, net	35,414	36,838
Operating lease right-of-use assets	30,656	32,067
Deferred taxes	1,041	1,087
Goodwill	829,790	838,497
Intangible assets, net	6,136	6,717
Other assets, net	24,626	22,794
Total assets	1,149,931	1,162,791
Current liabilities:
Accounts payable	4,032	5,239
Accrued liabilities and other	36,421	49,366
Current operating lease liabilities	6,310	6,443
Income taxes payable	10,612	4,523
Current portion of deferred revenue	12,884	12,646
Current debt obligation	3,500	3,500
Total current liabilities	73,759	81,717
Long-term liabilities:
Deferred revenue, net of current portion	217	167
Non-current deferred taxes	1,775	1,820
Non-current operating lease liabilities	31,554	33,064
Long-term debt, net of current portion	331,032	331,509
Other long-term liabilities	2,532	3,154
Total liabilities	440,869	451,431
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock, $0.001 par value: 550,000,000 shares authorized and 184,762,998 and 183,220,689 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively	185	183
Preferred stock, $0.001 par value: 50,000,000 shares authorized and no shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively	0	0
Additional paid-in capital	667,161	666,522
Accumulated other comprehensive loss (income)	(5,986)	4,409
Retained earnings	47,702	40,246
Total stockholders' equity	709,062	711,360
Total liabilities and stockholders' equity	$ 1,149,931	$ 1,162,791

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Allowance on accounts receivable	$ 1,224	$ 1,171
Common stock, par or stated value per share (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	550,000,000	550,000,000
Common stock, shares issued (in shares)	184,762,998	183,220,689
Common stock outstanding (in shares)	184,762,998	183,220,689
Preferred stock, par or stated value per share (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue:
Subscription and other revenue	$ 113,749	$ 99,818
Cost of revenue:
Cost of revenue	17,836	15,753
Amortization of acquired technologies	461	456
Total cost of revenue	18,297	16,209
Gross profit	95,452	83,609
Operating expenses:
Sales and marketing	35,816	32,563
Research and development	22,082	18,810
General and administrative	17,049	17,348
Amortization of acquired intangibles	14	564
Total operating expenses	74,961	69,285
Operating income	20,491	14,324
Other expense:
Interest expense, net	(7,621)	(7,200)
Other income, net	285	988
Total other expense, net	(7,336)	(6,212)
Income before income taxes	13,155	8,112
Income tax expense	5,699	4,573
Net income	$ 7,456	$ 3,539
Net income per share:
Basic earnings per share (in dollars per share)	$ 0.04	$ 0.02
Diluted earnings per share (in dollars per share)	$ 0.04	$ 0.02
Weighted-average shares used to compute net income per share:
Shares used in computation of basic earnings per share (in shares)	184,015	181,435
Shares used in computation of diluted earnings per share (in shares)	187,174	183,191

Consolidated Statements of Comp

Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 7,456	$ 3,539
Other comprehensive (loss) income:
Foreign currency translation adjustment	(10,395)	5,703
Other comprehensive (loss) income	(10,395)	5,703
Comprehensive (loss) income	$ (2,939)	$ 9,242

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Balance at beginning of period (in shares) at Dec. 31, 2022		180,850,000
Balance at beginning of period at Dec. 31, 2022	$ 642,071	$ 181	$ 632,871	$ (7,815)	$ 16,834
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	3,539				3,539
Foreign currency translation adjustment	5,703			5,703
Exercise of stock options (in shares)		26,000
Exercise of stock options	21		21
Restricted stock units issued, net of shares withheld for taxes (in shares)		1,069,000
Restricted stock units issued, net of shares withheld for taxes	(5,837)	$ 1	(5,838)
Issuance of stock (in shares)		3,000
Issuance of stock	0
Issuance of stock under employee stock purchase plan (in shares)		88,000
Issuance of stock under employee stock purchase plan	771		771
Stock-based compensation	9,927		9,927
Balance at end of period (in shares) at Mar. 31, 2023		182,036,000
Balance at end of period at Mar. 31, 2023	$ 656,195	$ 182	637,752	(2,112)	20,373
Balance at beginning of period (in shares) at Dec. 31, 2023	183,220,689	183,221,000
Balance at beginning of period at Dec. 31, 2023	$ 711,360	$ 183	666,522	4,409	40,246
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,456				7,456
Foreign currency translation adjustment	(10,395)			(10,395)
Restricted stock units issued, net of shares withheld for taxes (in shares)		1,438,000
Restricted stock units issued, net of shares withheld for taxes	(12,239)	$ 2	(12,241)
Issuance of stock under employee stock purchase plan (in shares)		105,000
Issuance of stock under employee stock purchase plan	1,200		1,200
Stock-based compensation	$ 11,680		11,680
Balance at end of period (in shares) at Mar. 31, 2024	184,762,998	184,763,000
Balance at end of period at Mar. 31, 2024	$ 709,062	$ 185	$ 667,161	$ (5,986)	$ 47,702

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net income	$ 7,456	$ 3,539
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,819	5,667
Provision for (benefit from) doubtful accounts	53	(91)
Stock-based compensation expense	11,547	9,850
Deferred taxes	(6)	8
Amortization of debt issuance costs	399	394
Operating lease right-of-use assets, net	(46)	(110)
Loss on foreign currency exchange rates	796	25
(Gain) loss on contingent consideration	(1,407)	240
Other non-cash expenses	84	31
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in business combinations:
Accounts receivable	(121)	(1,393)
Income tax receivable	(2,462)	(5,816)
Prepaid expenses and other assets	(8,981)	(2,181)
Accounts payable	(1,389)	(270)
Accrued liabilities and other	(11,705)	(3,837)
Income taxes payable	6,005	5,297
Deferred revenue	289	509
Other long-term assets	(1,920)	(1,275)
Other long-term liabilities	(227)	44
Net cash provided by operating activities	4,184	10,631
Cash flows from investing activities
Purchases of property and equipment	(3,438)	(3,404)
Purchases of intangible assets	(1,689)	(2,211)
Net cash used in investing activities	(5,127)	(5,615)
Cash flows from financing activities
Payments of tax withholding obligations related to restricted stock units	(12,241)	(5,838)
Exercise of stock options	0	21
Proceeds from issuance of common stock under employee stock purchase plan	1,200	771
Repayments of borrowings from Credit Agreement	(875)	(875)
Net cash used in financing activities	(11,916)	(5,921)
Effect of exchange rate changes on cash and cash equivalents	(962)	138
Net decrease in cash and cash equivalents	(13,821)	(767)
Cash and cash equivalents
Beginning of period	153,048	98,847
End of period	139,227	98,080
Supplemental disclosure of cash flow information:
Cash paid for interest	7,270	6,689
Cash paid for income taxes	1,779	4,665
Supplemental disclosure of non-cash activities:
Change in purchases of property, equipment and leasehold improvements included in accounts payable and accrued expenses	$ 179	$ (163)

Organization and Nature of Oper

Organization and Nature of Operations	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Nature of Operations	Organization and Nature of Operations 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 fewer 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	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation Our interim Consolidated Financial Statements do not include all of the information and footnotes required by United States of America generally accepted accounting principles (“GAAP”) for complete financial statements. The interim financial information is unaudited, but reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2023, referred to as our “2023 Annual Report.” 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 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; and • income taxes. Recently Adopted 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. 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, and no remaining contracts, hedging relationships, or other transactions reference LIBOR as of September 30, 2023. See Note 8. Debt for further details regarding the Credit Agreement Money Market Fund Financial Assets As of March 31, 2024 and December 31, 2023, we have money market fund financial assets of $99.4 million and $98.6 million, respectively, which are included in “cash and cash equivalents” in our Consolidated Balance Sheets. See “Fair Value Measurements” below and Note 6. Fair Value Measurements for further details regarding the fair value measurements of our money market fund financial assets. 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. See Note 6. Fair Value Measurements for a summary of our financial instruments accounted for at fair value on a recurring basis as of March 31, 2024 and December 31, 2023. As of March 31, 2024 and December 31, 2023, 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 8. Debt for further details regarding our debt. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component are summarized below: Foreign Currency Translation Adjustments Accumulated Other Comprehensive Income (Loss) (in thousands) Balance as of December 31, 2023 $ 4,409 $ 4,409 Other comprehensive loss before reclassification (10,395) (10,395) Net current period other comprehensive loss (10,395) (10,395) Balance as of March 31, 2024 $ (5,986) $ (5,986) Revenue Our revenue consists of the following: Three Months Ended March 31, 2024 2023 (in thousands) Subscription revenue $ 111,517 $ 97,442 Other revenue 2,232 2,376 Total subscription and other revenue $ 113,749 $ 99,818 During the three month periods ended March 31, 2024 and 2023, respectively, we recognized the following revenue from subscription and other services at a point in time and over time: Three Months Ended March 31, 2024 2023 (in thousands) Revenue recognized at a point in time $ 16,688 $ 15,279 Revenue recognized over time 97,061 84,539 Total revenue recognized $ 113,749 $ 99,818 Deferred Revenue Deferred revenue primarily consists of transaction prices allocated to remaining performance obligations from annually billed subscription agreements and maintenance services associated with our historical sales of perpetual license products which are delivered over time. Certain of our maintenance agreements are billed annually in advance for services to be performed over a 12-month period. We initially record the amounts allocated to maintenance performance obligations as deferred revenue and recognize these amounts ratably on a daily basis over the term of the maintenance agreement. The following table reflects the changes in our total deferred revenue balance for the three months ended March 31, 2024: Total Deferred Revenue (in thousands) Balance as of December 31, 2023 $ 12,813 Deferred revenue recognized (5,496) Additional amounts deferred 5,784 Balance as of March 31, 2024 $ 13,101 We expect to recognize revenue related to remaining performance obligations as of March 31, 2024, as follows: Revenue Recognition Expected by Period Total Less than 1 year 1-3 years More than 3 years (in thousands) Expected recognition of remaining performance obligations $ 85,523 $ 51,221 $ 34,301 $ 1 Cost of Revenue Amortization of Acquired Technologies. During the three month periods ended March 31, 2024 and 2023, respectively, amortization of acquired technologies included in cost of revenue relate to our subscription products as follows: Three Months Ended March 31, 2024 2023 (in thousands) Amortization of acquired technologies $ 461 $ 456

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Acquisitions	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. We funded the transaction with cash on hand. 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. 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 three months ended March 31, 2024 and 2023. 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 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 and $5.1 million, $5.3 million, $3.7 million and $2.2 million as of December 31, 2022, March 31, 2023, December 31, 2023 and March 31, 2024, respectively, resulting in the recognition of a gain of $1.4 million and a loss of $0.2 million for the three months ended March 31, 2024 and 2023, respectively. The current portion of the contingent consideration of less than $0.1 million is included in “accrued liabilities and other” and the non-current portion of $2.2 million is included in “other long-term liabilities” in our Consolidated Balance Sheets as of March 31, 2024. See Note 6. Fair Value Measurements , Note 7. Accrued Liabilities and Other , and Note 11. Commitments and Contingencies for further details regarding our 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

Goodwill	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The following table reflects the changes in goodwill for the three months ended March 31, 2024: (in thousands) Balance as of December 31, 2023 $ 838,497 Foreign currency translation (8,707) Balance as of March 31, 2024 $ 829,790

Relationship with Parent and Re

Relationship with Parent and Related Entities	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
Relationship with Parent and Related Entities	Relationship with Parent and Related Entities 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 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. 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. 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 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 (the “Conversion”). The modification of these equity awards resulted in incremental compensation expense to the extent the estimated fair value of the awards immediately following the modification exceeded the estimated fair value of the awards immediately prior to the modification. This expense is to be recognized upfront for all vested and outstanding awards and over the remaining vesting term for all unvested awards. For the three months ended March 31, 2024 and 2023, we recognized $0.1 million and $0.3 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. 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 and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings and other matters regarding taxes. Costs incurred under the Tax Matters Agreement were insignificant during the three months ended March 31, 2024 and 2023, 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 term, and each agreement was renewed for an additional two year term during the year ended December 31, 2023. We earned $0.4 million of revenue during the three months ended March 31, 2024 and 2023, respectively, and incurred less than $0.1 million of costs during the three months ended March 31, 2024 and 2023, respectively, under the Software OEM Agreements. Employee Matters Agreement We entered into an Employee Matters Agreement with SolarWinds that governs N-able's and SolarWinds’ compensation and employee benefit obligations with respect to the employees and other service providers of each company, and generally allocated liabilities and responsibilities relating to employment matters and employee compensation and benefit plans and programs. Costs incurred under the Employee Matters Agreement were insignificant during the three months ended March 31, 2024 and 2023, respectively. Intellectual Property Matters Agreement We entered into an Intellectual Property Matters Agreement with SolarWinds pursuant to which each party granted to the other party a generally irrevocable, non-exclusive, worldwide, and royalty-free license to use certain intellectual property rights retained by the other party. Under the Intellectual Property Matters Agreement, the term for the licensed or sublicensed know-how is perpetual and the term for each licensed or sublicensed patent is until expiration of the last valid claim of such patent. The Intellectual Property Matters Agreement will terminate only if N-able and SolarWinds agree in writing to terminate it. Costs incurred under the Intellectual Property Matters Agreement were insignificant during the three months ended March 31, 2024 and 2023, respectively. Trademark License Agreement We entered into a Trademark License Agreement with SolarWinds pursuant to which SolarWinds granted to N-able a generally limited, worldwide, non-exclusive and royalty-free license to use certain trademarks retained by SolarWinds that were used by SolarWinds in the conduct of its business prior to the Separation and Distribution. The Trademark License Agreement will terminate once we cease to use all of the licensed trademarks. Costs incurred under the Trademark License Agreement were insignificant during the three months ended March 31, 2024 and 2023, respectively. Software Cross License Agreement We entered into a Software Cross License Agreement with SolarWinds pursuant to which each party granted to the other party a generally perpetual, irrevocable, non-exclusive, worldwide and, subject to certain exceptions, royalty-free license to certain software libraries and internal tools for limited uses. The term of the Software Cross License Agreement will be perpetual unless N-able and SolarWinds agree in writing to terminate the agreement. We earned less than $0.1 million and $0.1 million of revenue during the three months ended March 31, 2024 and 2023, respectively, and incurred $0.1 million of costs during the three months ended March 31, 2024 and 2023, respectively, under the Software Cross License Agreement.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following tables summarize the fair value of our money market fund financial assets and contingent consideration financial liabilities that were measured on a recurring basis as of March 31, 2024 and December 31, 2023. See Note 3. Acquisitions and Note 11. Commitments and Contingencies for further details regarding our contingent consideration liabilities. There have been no transfers between fair value measurement levels during the three months ended March 31, 2024. Fair Value Measurements as of March 31, 2024 Using Quoted Prices in Significant Significant Total (in thousands) Assets: Money market funds $ 99,868 $ — $ — $ 99,868 Liabilities: Contingent consideration $ — $ — $ 2,220 $ 2,220 Fair Value Measurements as of 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 As of March 31, 2024 and December 31, 2023, 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 8. Debt

Accrued Liabilities and Other

Accrued Liabilities and Other	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Accrued Liabilities and Other	Accrued Liabilities and Other Accrued and other current liabilities were as follows: March 31, December 31, 2024 2023 (in thousands) Payroll-related accruals $ 14,354 $ 26,788 Value-added and other tax 8,128 8,976 Purchasing accruals 3,685 3,330 Accrued royalties 2,222 2,550 Accrued contingent consideration liability 1,013 1,800 Accrued other liabilities 7,019 5,922 Total accrued liabilities and other $ 36,421 $ 49,366

Debt

Debt	3 Months Ended
	Mar. 31, 2024
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 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 March 31, 2024: Amount Outstanding Effective Rate (in thousands, except interest rates) Term loan facility $ 341,250 8.35 % Revolving credit facility — — % Total principal amount 341,250 Unamortized discount and debt issuance costs (6,718) Total debt, net 334,532 Less: Current debt obligation (3,500) Long-term debt, net of current portion $ 331,032 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. As of March 31, 2024, the effective interest rate on our outstanding debt is 8.35%. 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 March 31, 2024, we were in compliance with all covenants of the Credit Agreement. The following table summarizes the remaining future minimum principal payments under the Credit Agreement as of March 31, 2024: (in thousands) 2024 $ 2,625 2025 3,500 2026 3,500 2027 3,500 2028 328,125 Total minimum principal payments $ 341,250

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2024
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: Three Months Ended March 31, 2024 2023 (in thousands) Basic earnings per share: Numerator: Net income $ 7,456 $ 3,539 Denominator: Weighted-average common shares outstanding used in computing basic earnings per share 184,015 181,435 Basic earnings per share $ 0.04 $ 0.02 Diluted earnings per share: Numerator: Net income $ 7,456 $ 3,539 Denominator: Weighted-average shares used in computing basic earnings per share 184,015 181,435 Add dilutive impact of employee equity plans 3,159 1,756 Weighted-average shares used in computing diluted earnings per share 187,174 183,191 Diluted earnings per share $ 0.04 $ 0.02 The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of the diluted net income per share attributable to common stockholders for the three months ended March 31, 2024 and 2023 because their effect would have been anti-dilutive or for which the performance condition had not been met at the end of the period: Three Months Ended March 31, 2024 2023 (in thousands) Restricted stock units 1,653 1,219 Total anti-dilutive shares 1,653 1,219

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the three months ended March 31, 2024 and 2023, we recorded income tax expense of $5.7 million and $4.6 million, respectively, resulting in an effective tax rate of 43.3% and 56.4%, respectively. The decrease in the effective tax rate for the three months ended March 31, 2024 compared to the same period in 2023 was primarily due to a decrease in the amount of the unbenefited loss in the United States, partially offset by an increase in income before income taxes outside of the United States. Our policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of March 31, 2024, we did not have any accrued interest and penalties related to unrecognized tax benefits. In 2021, the Organization for Economic Co-operation and Development ("OECD") released model rules for a global minimum tax known as Pillar Two. Under such rules, a minimum effective tax rate of 15% would apply to multinational companies with consolidated revenues above €750 million. Although we operate in one or more jurisdictions that have substantively enacted Pillar Two legislation, we have not exceeded the revenue threshold of €750 million, and as such, we do not expect to be subject to the Pillar Two rules in 2024. We file U.S., state and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2012 through 2023 tax years generally remain open and subject to examination by federal, state and foreign tax authorities. We are not currently under audit in any taxing jurisdictions.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
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 judgement 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. Following oral arguments, the court requested supplemental briefing and under a stipulated briefing schedule submissions were completed by May 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 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 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 and $5.1 million, $5.3 million and $3.7 million as of December 31, 2022, March 31, 2023 and December 31, 2023, respectively. As of March 31, 2024, the fair value of this contingent consideration is $2.2 million, resulting in the recognition of a gain of $1.4 million and a loss of $0.2 million for the three months ended March 31, 2024 and 2023, respectively. The current portion of the contingent consideration of less than $0.1 million is included in “accrued liabilities and other” and the non-current portion of $2.2 million is included in “other long-term liabilities” in our Consolidated Balance Sheets as of March 31, 2024. See Note 3. Acquisitions , Note 6. Fair Value Measurements , and Note 7. Accrued Liabilities and Other for further details regarding our 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. 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 was 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 March 31, 2024, 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 three months ended March 31, 2024 and 2023. See Note 7. Accrued Liabilities and Other for further details regarding our contingent consideration liabilities.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income	$ 7,456	$ 3,539

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Our interim Consolidated Financial Statements do not include all of the information and footnotes required by United States of America generally accepted accounting principles (“GAAP”) for complete financial statements. The interim financial information is unaudited, but reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2023, referred to as our “2023 Annual Report.”
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 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; and • income taxes.
Recently Issued Accounting Pronouncements and Recently Adopted 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. 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, and no remaining contracts, hedging relationships, or other transactions reference LIBOR as of September 30, 2023. See Note 8. Debt for further details regarding the Credit Agreement
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. See Note 6. Fair Value Measurements for a summary of our financial instruments accounted for at fair value on a recurring basis as of March 31, 2024 and December 31, 2023. As of March 31, 2024 and December 31, 2023, 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 8. Debt for further details regarding our debt.
Deferred Revenue	Deferred revenue primarily consists of transaction prices allocated to remaining performance obligations from annually billed subscription agreements and maintenance services associated with our historical sales of perpetual license products which are delivered over time. Certain of our maintenance agreements are billed annually in advance for services to be performed over a 12-month period. We initially record the amounts allocated to maintenance performance obligations as deferred revenue and recognize these amounts ratably on a daily basis over the term of the maintenance agreement.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Changes in accumulated other comprehensive income by component	Changes in accumulated other comprehensive income (loss) by component are summarized below: Foreign Currency Translation Adjustments Accumulated Other Comprehensive Income (Loss) (in thousands) Balance as of December 31, 2023 $ 4,409 $ 4,409 Other comprehensive loss before reclassification (10,395) (10,395) Net current period other comprehensive loss (10,395) (10,395) Balance as of March 31, 2024 $ (5,986) $ (5,986)
Disaggregation of revenue	Our revenue consists of the following: Three Months Ended March 31, 2024 2023 (in thousands) Subscription revenue $ 111,517 $ 97,442 Other revenue 2,232 2,376 Total subscription and other revenue $ 113,749 $ 99,818 During the three month periods ended March 31, 2024 and 2023, respectively, we recognized the following revenue from subscription and other services at a point in time and over time: Three Months Ended March 31, 2024 2023 (in thousands) Revenue recognized at a point in time $ 16,688 $ 15,279 Revenue recognized over time 97,061 84,539 Total revenue recognized $ 113,749 $ 99,818
Details of total deferred revenue balance	The following table reflects the changes in our total deferred revenue balance for the three months ended March 31, 2024: Total Deferred Revenue (in thousands) Balance as of December 31, 2023 $ 12,813 Deferred revenue recognized (5,496) Additional amounts deferred 5,784 Balance as of March 31, 2024 $ 13,101
Remaining performance obligations for revenue recognition	We expect to recognize revenue related to remaining performance obligations as of March 31, 2024, as follows: Revenue Recognition Expected by Period Total Less than 1 year 1-3 years More than 3 years (in thousands) Expected recognition of remaining performance obligations $ 85,523 $ 51,221 $ 34,301 $ 1
Amortization of acquired technologies	Amortization of Acquired Technologies. During the three month periods ended March 31, 2024 and 2023, respectively, amortization of acquired technologies included in cost of revenue relate to our subscription products as follows: Three Months Ended March 31, 2024 2023 (in thousands) Amortization of acquired technologies $ 461 $ 456

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Summary of consideration paid and amounts recognized for assets acquired and liabilities assumed	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
Summary of fair value of acquired identifiable intangible assets and weighted-average useful life	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 (Tables)

Goodwill (Tables)	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	The following table reflects the changes in goodwill for the three months ended March 31, 2024: (in thousands) Balance as of December 31, 2023 $ 838,497 Foreign currency translation (8,707) Balance as of March 31, 2024 $ 829,790

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair value of financial assets measured on a recurring basis	The following tables summarize the fair value of our money market fund financial assets and contingent consideration financial liabilities that were measured on a recurring basis as of March 31, 2024 and December 31, 2023. See Note 3. Acquisitions and Note 11. Commitments and Contingencies for further details regarding our contingent consideration liabilities. There have been no transfers between fair value measurement levels during the three months ended March 31, 2024. Fair Value Measurements as of March 31, 2024 Using Quoted Prices in Significant Significant Total (in thousands) Assets: Money market funds $ 99,868 $ — $ — $ 99,868 Liabilities: Contingent consideration $ — $ — $ 2,220 $ 2,220 Fair Value Measurements as of 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

Accrued Liabilities and Other (

Accrued Liabilities and Other (Tables)	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued and other current liabilities were as follows: March 31, December 31, 2024 2023 (in thousands) Payroll-related accruals $ 14,354 $ 26,788 Value-added and other tax 8,128 8,976 Purchasing accruals 3,685 3,330 Accrued royalties 2,222 2,550 Accrued contingent consideration liability 1,013 1,800 Accrued other liabilities 7,019 5,922 Total accrued liabilities and other $ 36,421 $ 49,366

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Summary of debt	The following table summarizes information relating to our outstanding debt as of March 31, 2024: Amount Outstanding Effective Rate (in thousands, except interest rates) Term loan facility $ 341,250 8.35 % Revolving credit facility — — % Total principal amount 341,250 Unamortized discount and debt issuance costs (6,718) Total debt, net 334,532 Less: Current debt obligation (3,500) Long-term debt, net of current portion $ 331,032
Schedule of maturities of long-term debt	The following table summarizes the remaining future minimum principal payments under the Credit Agreement as of March 31, 2024: (in thousands) 2024 $ 2,625 2025 3,500 2026 3,500 2027 3,500 2028 328,125 Total minimum principal payments $ 341,250

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Reconciliation of shares in basic and diluted earnings per share calculation	A reconciliation of the number of shares in the calculation of basic and diluted earnings per share follows: Three Months Ended March 31, 2024 2023 (in thousands) Basic earnings per share: Numerator: Net income $ 7,456 $ 3,539 Denominator: Weighted-average common shares outstanding used in computing basic earnings per share 184,015 181,435 Basic earnings per share $ 0.04 $ 0.02 Diluted earnings per share: Numerator: Net income $ 7,456 $ 3,539 Denominator: Weighted-average shares used in computing basic earnings per share 184,015 181,435 Add dilutive impact of employee equity plans 3,159 1,756 Weighted-average shares used in computing diluted earnings per share 187,174 183,191 Diluted earnings per share $ 0.04 $ 0.02
Weighted average shares excluded from earnings per share computation	The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of the diluted net income per share attributable to common stockholders for the three months ended March 31, 2024 and 2023 because their effect would have been anti-dilutive or for which the performance condition had not been met at the end of the period: Three Months Ended March 31, 2024 2023 (in thousands) Restricted stock units 1,653 1,219 Total anti-dilutive shares 1,653 1,219

Organization and Nature of Op_2

Organization and Nature of Operations (Details)	3 Months Ended
	Mar. 31, 2024 employee
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Maximum threshold of number of employees for consideration of a small and medium-sized enterprise	1,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value disclosure	$ 99.4	$ 98.6

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 711,360	$ 642,071
Other comprehensive loss before reclassification	(10,395)
Other comprehensive (loss) income	(10,395)	5,703
Balance at end of period	709,062	656,195
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	4,409
Other comprehensive loss before reclassification	(10,395)
Other comprehensive (loss) income	(10,395)
Balance at end of period	(5,986)
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	4,409	(7,815)
Balance at end of period	$ (5,986)	$ (2,112)

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Revenue Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 113,749	$ 99,818
Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenue	16,688	15,279
Revenue recognized over time
Disaggregation of Revenue [Line Items]
Total revenue	97,061	84,539
Subscription revenue
Disaggregation of Revenue [Line Items]
Total revenue	111,517	97,442
Other Revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 2,232	$ 2,376

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Changes in Deferred Revenue (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Movement in Deferred Revenue [Roll Forward]
Balance as of December 31, 2023	$ 12,813
Deferred revenue recognized	(5,496)
Additional amounts deferred	5,784
Balance as of March 31, 2024	$ 13,101

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Expected Recognition of Deferred Revenue (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected recognition of remaining performance obligations	$ 85,523
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected recognition of remaining performance obligations	$ 51,221
Revenue Recognition Expected by Period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected recognition of remaining performance obligations	$ 34,301
Revenue Recognition Expected by Period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected recognition of remaining performance obligations	$ 1
Revenue Recognition Expected by Period

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Cost of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Product Information [Line Items]
Amortization of acquired technologies	$ 461	$ 456
Subscription and other revenue
Product Information [Line Items]
Amortization of acquired technologies	$ 461	$ 456

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended
	Jul. 01, 2022	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill, purchase accounting adjustments			$ (1,600)
(Gain) loss on contingent consideration		$ (1,407)		$ 240
Accrued contingent consideration liability (less than)		1,013	1,800
Spinpanel BV
Business Acquisition [Line Items]
Payments to acquire businesses, gross	$ 20,000
Contingent consideration maximum	10,000
Contingent consideration	$ 5,160	2,200	$ 3,700	5,300	$ 5,100
(Gain) loss on contingent consideration		(1,400)		$ 200
Accrued contingent consideration liability (less than)		100
Contingent consideration non-current		$ 2,200

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands	Jul. 01, 2022	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill		$ 829,790	$ 838,497
Spinpanel BV
Business Acquisition [Line Items]
Current assets, including cash acquired of $6	$ 128
Cash acquired	6
Property and equipment, net	48
Current liabilities	(1,199)
Non-current deferred tax liabilities	(764)
Identifiable intangible assets	8,970
Goodwill	7,176
Total assets acquired, net	14,359
Acquisitions, net of cash acquired	9,199
Contingent consideration	5,160	$ 2,200	$ 3,700	$ 5,300	$ 5,100
Consideration transferred	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 (Details)

Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Goodwill [Roll Forward]
Balance at beginning of period	$ 838,497
Acquisitions		$ (1,600)
Foreign currency translation	(8,707)
Balance at end of period	$ 829,790	$ 838,497

Relationship with Parent and _2

Relationship with Parent and Related Entities - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Related Party Transaction [Line Items]
Related party transaction, term	2 years		2 years
Total revenue	$ 113,749	$ 99,818
Operating expenses	$ 74,961	69,285
Related Party | Minimum | Equity-based incentive plan
Related Party Transaction [Line Items]
Award vesting period	1 year
Related Party | Maximum | Equity-based incentive plan
Related Party Transaction [Line Items]
Award vesting period	5 years
Related Party | SolarWinds Holdings, Inc. | Software OEM agreements
Related Party Transaction [Line Items]
Total revenue	$ 400	400
Operating expenses	100	100
Related Party | SolarWinds Holdings, Inc. | Software cross license agreement
Related Party Transaction [Line Items]
Total revenue	100	100
Operating expenses	100	100
Related Party | SolarWinds Holdings, Inc. | Equity-based incentive plan
Related Party Transaction [Line Items]
Conversion incremental compensation expense	$ 100	$ 300

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	$ 2,220	$ 3,650
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	2,220	3,650
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value disclosure	99,400	98,600
Money market funds | Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value disclosure	99,868	98,560
Money market funds | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value disclosure	99,868	98,560
Money market funds | Recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value disclosure	0	0
Money market funds | Recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value disclosure	$ 0	$ 0

Accrued Liabilities and Other_2

Accrued Liabilities and Other (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Payroll-related accruals	$ 14,354	$ 26,788
Value-added and other tax	8,128	8,976
Purchasing accruals	3,685	3,330
Accrued royalties	2,222	2,550
Accrued contingent consideration liability	1,013	1,800
Accrued other liabilities	7,019	5,922
Accrued liabilities and other	$ 36,421	$ 49,366

Debt - Narrative (Details)

Debt - Narrative (Details) - Credit agreement - USD ($)		3 Months Ended
	Jul. 19, 2021	Mar. 31, 2024
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%
LIBOR | Secured debt
Debt Instrument [Line Items]
Variable rate floor		0.50%
SOFR | Secured debt
Debt Instrument [Line Items]
Effective Rate		8.35%
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%
Effective Rate		0%
Revolving credit facility | Eurodollar | Line of credit
Debt Instrument [Line Items]
Variable rate floor		0%
Basis spread on variable rate		3%
Revolving credit facility | LIBOR | Line of credit
Debt Instrument [Line Items]
Basis spread on variable rate		3%
Revolving credit facility | LIBOR | Line of credit | US dollars
Debt Instrument [Line Items]
Variable rate floor		0%

Debt - Schedule of Debt (Detail

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total principal amount	$ 341,250
Unamortized discount and debt issuance costs	(6,718)
Total debt, net	334,532
Less: Current debt obligation	(3,500)	$ (3,500)
Long-term debt, net of current portion	331,032	$ 331,509
Secured debt | Credit agreement
Debt Instrument [Line Items]
Total principal amount	341,250
Total debt, net	$ 341,250
Secured debt | Credit agreement | SOFR
Debt Instrument [Line Items]
Effective Rate	8.35%
Line of credit | Revolving credit facility | Credit agreement
Debt Instrument [Line Items]
Total principal amount	$ 0
Effective Rate	0%

Debt - Summary of Future Minimu

Debt - Summary of Future Minimum Principal Payments of Debt (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Debt Instrument [Line Items]
Total debt, net	$ 334,532
Credit agreement | Secured debt
Debt Instrument [Line Items]
2024	2,625
2025	3,500
2026	3,500
2027	3,500
2028	328,125
Total debt, net	$ 341,250

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation of Shares in the Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net income	$ 7,456	$ 3,539
Shares used in computation of basic earnings per share (in shares)	184,015	181,435
Basic earnings per share (in dollars per share)	$ 0.04	$ 0.02
Denominator:
Net income	$ 7,456	$ 3,539
Weighted-average shares used in computing basic earnings per share (in shares)	184,015	181,435
Add dilutive impact of employee equity plans (in shares)	3,159	1,756
Weighted-average shares used in computing diluted earnings per share (in shares)	187,174	183,191
Diluted earnings per share (in dollars per share)	$ 0.04	$ 0.02

Earnings Per Share - Weighted A

Earnings Per Share - Weighted Average Outstanding Shares of Common Stock Equivalents Excluded (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	1,653	1,219
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	1,653	1,219

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 5,699	$ 4,573
Effective income tax rate	43.30%	56.40%

Commitment and Contingencies (D

Commitment and Contingencies (Details)			3 Months Ended		12 Months Ended
	Dec. 14, 2022 USD ($)	Jul. 01, 2022 USD ($)	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($) milestone	Dec. 31, 2022 USD ($)
Business Acquisition [Line Items]
(Gain) loss on contingent consideration			$ (1,407,000)	$ 240,000
Accrued contingent consideration liability			1,013,000		$ 1,800,000
Number of milestones achieved | milestone					2
Intellectual Property Acquisition
Business 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
Spinpanel BV
Business Acquisition [Line Items]
Payments to acquire businesses, gross		$ 20,000,000
Contingent consideration maximum		10,000,000
Contingent consideration		$ 5,160,000	2,200,000	5,300,000	$ 3,700,000	$ 5,100,000
(Gain) loss on contingent consideration			(1,400,000)	$ 200,000
Accrued contingent consideration liability			$ 100,000