MSP, Sales and marketing, Content

N-able Financial Results Show MSP Software Market Momentum

N-able expects revenue of $84.8 million to $85.0 million for the company's Q2 of 2021, up 16 percent from Q2 of 2020, the MSP software provider disclosed today.

The preliminary financial results signal continued top-line momentum in the MSP software market -- though I don't believe N-able mentioned net income estimates.

N-able is a bellwether of sorts in the MSP software market, where the company competes on various fronts vs. such companies as

Meanwhile, Datto is expected to announce Q2 2021 financial results sometime in August 2021, ChannelE2E estimates. The other companies listed above are privately held.

N-able Financing, Spin-Out From SolarWinds

John Pagliuca, CEO, N-able
John Pagliuca, president, N-able

The N-able revenue estimate surfaces amid the company's spin-out from SolarWinds, which is expected to be completed this month (July 2021). Private equity firm Thoma Bravo, among other investors, will continue to own big stakes in both SolarWinds and N-able, post spin-out.

N-able President John Pagliuca shifts to CEO of the MSP software company amid the spin-out. Plus, the company has hired multiple executives to round out its executive team.

As part of that spin-out, N-able has secured private placement financing of $225 million, the company also disclosed today. N-able will distribute the net proceeds of the financing -- roughly $216 million -- to SolarWinds, which expects to use the funds to make a distribution to its stockholders and/or pay down its existing third-party indebtedness, the companies say.

MSP Software Under the Microscope

Meanwhile, the U.S. federal government is paying close attention to the MSP software market, and potential cybersecurity risks associated with MSPs running RMM (remote monitoring and management) software.

Even before the REvil Ransomware group attacked N-able rival Kaseya on July 2, 2021, United States President Joe Biden issued an executive order focused on cybersecurity. That executive order specifically mentioned the need for IT service providers to raise their cyber defenses.

N-able, meanwhile, reviewed and enhanced its own cybersecurity and software development practices and hired a chief security officer after parent SolarWinds disclosed the high-profile Orion cyberattack in December 2020.

N-able’s software was not targeted or associated with the SolarWinds Orion attack, according to forensic analysis by KPMG and CrowdStrike, N-able has stated.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.