N-able, Inc. (NYSE:NABL) Q3 2023 Earnings Call Transcript

John Pagliuca: Sure, it’s — we know from talking to our customers, and we hit this a little bit on the prepared remarks. So we did a pretty sizable customer survey where we asked them what their bigger focus areas were for 2023 and 2024. And cybersecurity services was very much top of mind. And from talking to our customers and even looking at the survey results, we believe that there’s a good amount of opportunity. And the good news here, Brian is that they’re for both our small MSPs and our large MSPs. So on your adoption, I believe that it’ll cover the broader install base. And so that the double click into that is, what type of uptick will the MSPs have as they roll this out to their small and medium enterprise. And so we believe, as there’s more of a driver from a compliance point of view, and by the way, if we back up there’s two things that are really driving this; one, when companies are looking to get cyber insurance, there’s a much more focus overall on the stack and being able to be able to not just protect, but also to detect and respond across the base.

This is helping MSPs. And the second thing there’s a big push from a compliance point of view. So security, really before was a decision how — what is the level of risk, I’m willing to take as a small medium enterprise or as an MSP. And now with compliance, what used to be maybe a sliding scale from a risk aversion, or a range of gray is now more black and white and binary. If you want to be compliant, whether you’re in the healthcare industry, or FinTech, whether you’re in a certain geography like in the UK with cyber essentials, if you want to play in that market, as a small medium enterprise, you need to be compliant. And they’re pretty specific as to what that need is and what those requirements are. So that’s driving a lot of the need for the cybersecurity services to pop up at the small medium enterprise.

And we’re seeing it across the geographies and across the verticals that our MSPs participate in and across the different sizes. So we’re quite bullish on the opportunity. It’ll take some time as the MSPs roll this out and get comfortable with the motion themselves. But we’re quite bullish, that it will have a broad appeal to our install base.

Brian Essex: Great, great color. Thank you.

Operator: Thank you. At this time, we currently have no further questions. So I’ll hand back to John Pagliuca for any further remarks.

John Pagliuca: Thank you all for participating in our quarterly call and for the questions and looking forward to talking to you all at the beginning of 2024. Take care.

Operator: Thank you for joining today’s call. You may now disconnect your lines.