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

But now that the industry has matured, they have matured. The consolidation has forced a little bit more maturity. Our tech has allowed them to go up the stack. And now they’re selling into mid-market. They’re selling in with a co-managed bit to the Fortune 1000. So actually, it’s somewhat counterintuitive, but as the consolidation happens, MSPs are going up the stack, raising that bar and potentially gaining them access to a bigger IT spend as they do that. Typically speaking, at N-able, the larger the MSP, the more our N-central product stands up and our win rate actually is better at the higher end because of the power that gives them the ability to orchestrate at scale. And so — and you asked for — I answered your second question first.

Your first question, do we continue to see consolidation. Yes. We continue to see that. Like your guess is as good as mine with rising interest rates, obviously, for MSPs and for everyone buying power somewhat gets degradated, right? And so I haven’t seen a slowdown yet, but it’s probably not crazy to assume that as — with rising interest rates, it will put a little bit more pressure or scrutiny on acquisition. But MSPs continue to be acquisitive, and they do so because they’re — sometimes they’re buying tech, sometimes they’re buying a customer base or geography. And there’s a bunch of goodness when these MSPs do that. It helps them drive scale and help them drive efficiency and ultimately drive their bottom line.

Brian Essex: Great. Super helpful. Fantastic color. Thank you very much. I appreciate it.

John Pagliuca: Thanks, Brian.

Operator: This concludes our Q&A. I’ll now hand back to John Pagliuca, CEO, for any closing remarks.

John Pagliuca: Thank you, operator, and thank you all for joining and listening in to the fourth quarter results. We look forward to providing an update in another quarter or so. Thank you, and have a great day.

Operator: This call has now concluded. We’d like to thank you for your participation. You may now disconnect your lines.