N-able, Inc. (NYSE:NABL) Q4 2022 Earnings Call Transcript

John Pagliuca: Yes. We have a good working relationship with Microsoft, actually. And Intune is not in RMM and you can talk to any MSP, any technician actually, you can look at a redo-thread right now that’s going on. And Intune is not an RMM and Microsoft knows that. We work closely with Microsoft, because we believe we provide an experience with the MSP. We always emphasize, (ph), this concept of purpose built, right? That means it’s architected in a way that MSPs can look across, they can look at one particular user or one account, one small, medium business across their entire account or their entire estate. And the fact that we’re architected in a way that gives them a consolidated view and look across their entire environment and provide them with alerts and automation to help them run their businesses efficiently is where we stand up.

So we actually integrate with Intune. We actually pulled the Intune experience, the Microsoft 365 experience. And later this year, the Azure experience into our platform. Microsoft has many clouds, as you know. And our job is to help integrate that for one experience so that the MSPs, if you think about it, we’re this aggregator and whether they’re using Microsoft operating systems, a Linux operating system or Apple devices, we need to provide that single pane of glass that one standard. And more importantly, a bunch of automation so that they can roll out their rules and policies and alerting in one single manner. And so that’s where we differentiate. So our product teams and our dev teams work along with the Microsoft teams to help them. And in addition, as it relates to data protection and security, Microsoft right in their terms and conditions, suggests that customers use a third-party cloud-based backup offering to back up their data as well for an extra layer of security.

So we have a good working relationship with them. We look at the relationship in the way we can differentiate and help MSPs get more efficient is the reason why they continue to use us in concert with the Microsoft cloud offerings that they have.

Jason Ader: Okay, thanks. And then one quick one for Tim before I wrap up here. Tim, can you break down the product mix for us? I know you’ve done that in the past between RMM and security and backup and PSA.

Tim O’Brien: We’ve never broken down the mix, at least — what we’ve done is give color on just kind of the growth of those segments. And I would say the story is kind of unchanged there where both the data protection and security parts of the business are growing faster than overall revenue. And based on the demand we see, expect that trend to kind of continue into the beginning of the year here as well.

Jason Ader: Great, thanks. Good luck. John Pagliuca Thanks, (ph)

Operator: Our next question comes from Brian Essex from JPMorgan. Your line is open.

Brian Essex: Hi, good morning and thank you for taking our question. I was wondering if I could maybe ask about your over $50,000 MSPs. So I guess on the larger side, how should we think about the margin contribution from those MSPs as you grow? It looks like you’re adding them at a pretty good clip here, just maybe compared to the smaller ones that you service.