N-able, Inc.

One thank you for your patience. The enabled first quarter 2025 earnings call will begin shortly. During the presentation, you will have the opportunity to ask a question by pressing star followed by one on your telephone keypad. Thank you. Good morning, everyone, and welcome to the Enable First Quarter 2025 Earnings Call. My name is Angela, and I'll be coordinating your call today. During the presentation, you can register to ask a question by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by T. I will now hand you over to your host, Griffin Gere, Investor Relations Senior Manager, to begin. Griffin, please go ahead.

Thanks, Operator. And welcome everyone to Enable's first quarter 2025 earnings call. With me today are John Pagliuca, Enable's president and CEO, and Tim O'Brien, EVP and CFO. Following our prepared remarks, we will open the line for a question and answer session. This call is being simultaneously webcast on our investor relations website at investors.enable.com. There you can also find our earnings press release, which is intended to supplement our prepared remarks during today's call. Certain statements made during this call are forward-looking statements, including those concerning our financial outlook, our market opportunities, and the impact of the global economic environment on our business. These statements are based on currently available information and assumptions, and we undertake no duty to update this information except as required by law. These statements are also subject to a number of risks and uncertainties, including those highlighted in today's earnings release and our filings with the SEC. Additional information concerning these statements and the risks and uncertainties associated with them is highlighted in today's earnings release and in our filings with the SEC. Copies are available from the SEC or on our investor relations website. Furthermore, we will discuss various non-GAAP financial measures on today's call. Unless otherwise specified, when we refer to financial measures, we will be referring to non-GAAP financial measures. A reconciliation of certain gap and non-gap financial measures discussed on today's call is available in our earnings press release on our investor relations website. And now, I will send the call over to John.

Thank you, Griffin, and welcome everyone to our call this morning. As cyber threats continue and uncertainty pervades the economic conversation, small and mid-market businesses face mounting pressure to stay secure and efficient. And with a cyber resiliency platform purpose-built for their needs, Enable delivers the protection and performance required to move forward. Our value and approach are resonating. At our recent Empower conference in Berlin, more than 500 international attendees responded to the Enable vision with enthusiasm, underscoring the growing urgency around security and the confidence customers place in our platform. This confidence was echoed at our investor day. We laid out our target to reach $750 million in ARR by 2028. Three growth drivers underpin our path to this target. First, driving security success. Second, scaling our go-to-market. And third, boosting customer expansion. Today, we will walk through updates on each and discuss why we believe Enable is ready for both the challenges of today and the opportunities ahead. Let's begin with our quarterly results. First quarter ARR grew 11% year over year in constant currency. First quarter revenue was $118.2 million. And adjusted EBITDA was $31.6 million, reflecting a 27% margin. We once again exceeded our top and bottom line guidance as we executed against our strategy and set ourselves to gain share in our large and growing TAM. Turning to our growth pillars, Let's first look at our security initiatives. We made excellent progress on our product roadmap, highlighted by the release of breach prevention from Microsoft 365. We believe this offering solves a deep customer pain point. Microsoft serves as a core technology provider to a large portion of our customer base. And attackers are increasingly bypassing traditional endpoints, targeting digital identities to infiltrate organizations. Our solution? ingests microsoft 365 user telemetry to proactively detect and remediate threats securing this critical identity attack vector this is a compelling way for customers to enhance their microsoft security posture while positioning us to meet strong demand and drive growth we also launched vulnerability management as a new built-in feature in our unified endpoint management or uem solution This is a major step for the industry. Customers looking to identify and remediate vulnerabilities in their environments have historically needed to purchase and deploy two separate tools, one to identify vulnerabilities and another to patch and remediate those endpoints. Enable now delivers the capability to accomplish these workflows with a single solution. This is a differentiator for Enable and a better way to do business for our customers. We are reducing software sprawl reducing fragmentation and closing security gaps while making the technicians we serve more efficient. We have already discovered millions of vulnerabilities and early positive customer reception gives us confidence that our solution hits the mark. In addition to launching new defensive capabilities, we also advanced our efforts to help customers operate more efficiently. Cove data protection shines particularly bright. The team improved Microsoft domain backup speeds up to 20%, extending Cove's value proposition as a trusted, cost-effective protector of data. Efficiency matters, especially in an uncertain macro environment, and Cove's clear ROI positions enable to win. When you deliver value, awards and recognition follow. We were proud for Cove to be named a champion in managed BDR by Canalys for the second consecutive year. reinforcing our technical capabilities and continued market strength. Not to be outdone, our Lumen security operation solution was recently named market leader for MDR in the 2025 Cyber Defense Magazine Global InfoSec Awards. This award and our market trajectory validate our approach, which we discussed in our recent 2025 State of the SOC publication. I'll give you some takeaways from the report. The volume, velocity, and cost of cybersecurity attacks and breaches remain at all-time highs. Security teams are overwhelmed. They can't process an unending number of alerts, and they also don't have the budget or expertise to hire the multiple security analysts needed to properly reduce their risk profile. Old paradigms simply don't work in the age of AI-driven threats. A customer example brings this to life. A security professional at a regional healthcare organization was single-handedly managing over 1,500 devices. This is a significant workload and involves substantial risk. He and his organization needed help. Recognizing the business risk, he decided to trial our AdLumen security operation solution. And during the trial period, we stopped three different security breaches. The thwarting of these threats immediately proved the ROI of our solution, leading to a six-figure ARR deal. We are winning because we were built differently. Our AI-powered solutions cut through the noise while our experts provide eyes on glass, contextualizing and remediating priority events. Technology is the mode for our AI-powered SOC. We are automating 70% of incident and threat remediation activities across thousands of end customers. This gives us a competitive edge against legacy approaches and empowers us to drive better outcomes for our customers. Our automated SOC The development of breach prevention for M365 and vulnerability management highlights that we are building on our technical differentiation. We are bullish on AI and security, and we are just getting started. A second pillar of our growth strategy is expanding our go-to-market. We are broadening our approach to capture the full spectrum of channel providers that small and mid-market companies rely on to protect their digital operations. Our leading position in the MSP community is driven by a simple formula, quality partnership, coupled with purpose-built software. Resellers, system innovators, and distributors share similar needs and represent approximately twice the market opportunity of the MSP market. We are applying our proven channel formula to partner with these providers, positioning us to deliver cyber resilience to more businesses, regardless of which channel partner they choose. This expansion is already taking shape In the first quarter, we added resellers across the globe to our program, revamped our partner portal to better facilitate reseller transactions, and hosted a series of high impact events with well-established resellers, including trade shows, roundtables, and executive briefings. And at our Empower Conference, we boldly showcased our commitment to delivering cyber resilience to businesses everywhere. We're executing on a robust playbook, and that work is resonating. We were awarded a five-star rating in the CRN Partner Program Guide for the fourth straight year, underscoring our commitment to providing exceptional support and resources that help our customers thrive in a constantly evolving cybersecurity landscape. Scaling our go-to-market goes beyond our sales and marketing motion. Technical considerations are also a key factor. This is why we were thrilled to announce our commitment to CMMC 2.0 readiness, which will enhance our go-to-market strategy, by widening our appeal to deals across more regulated sectors, including our customers who support defense and critical infrastructure. A recent customer example validates the progress we're making in scaling our go-to-market efforts. A consortium of school systems serving thousands of users was evaluating the best way to protect their members. Working alongside a value-added reseller, we educated the customer about our next-gen security capabilities, ease of deployment, high number of out-of-the-box integrations, and commitment to partnership. They saw the power of our approach, signing a large six-figure ARR deal, stealing an enabled win against the competition. This was our largest new deal ever. Make no mistake, our channel expansion isn't just plans, it's in progress. A third pillar is boosting customer expansion. Our multi-category, multi-product software suite underpins an approximately $2.5 billion cross-sell opportunity, that we believe exists within our existing base. Helping customers realize the technical and service benefit of standardizing on a cyber resilience platform and executing this cross opportunity is key to our growth algorithm and strategy. A customer win brings our platformization strategy to life. A roughly 300 person organization was frustrated with the patchwork of multi-vendor solutions and recognized the need for a more reliable and efficient security approach. Realizing the criticality of secure streamlined operation, they turned to Enable as a trusted partner and adopted our unified endpoint management, security, and data protection solutions. The result? A high five-figure ARR deal. Wins like this are a testament to the impact of our approach. Our cyber resiliency platform addresses SMB and mid-market core security needs, and our customer success model is dedicated to their outcomes. Without us, These businesses are left to stitch together disparate tools and are often last in line for customer support from larger enterprise-focused vendors. We believe our ability to profitably serve the SMB and mid-market is a competitive moat for Enable. We help them step off the IT treadmill, stay safe, and focus on what matters most, running their business. And with that, I will turn it over to our CFO, Tim O'Brien. Then I will circle back for closing remarks. Tim?