SolarWinds Earnings: N-able Parent Boosts Recurring Revenue

SolarWinds (SWI), parent of N-able Technologies, yesterday disclosed strong Q4 2013 financial results — another sign that the SaaS and on-premises software provider is gaining more momentum with managed services providers (MSPs) and IT professionals seeking performance management and remote monitoring tools. Here’s the recap.

For its Q4 2013, revenues jumped 32 percent YoY to $97.1 million and net income dropped slightly to $21.9 million. Baird Equity Research, a financial analyst firm, said: “The bigger story was improved demand across the entire portfolio.”

In an earnings call with Wall Street analysts covered by SeekingAlpha, SolarWinds CEO Kevin Thompson said the N-able team — led by GM JP Jauvin — continues to execute under SolarWinds’ ownership. Thompson said:

“I think the N-able team has just done a really incredible job of not being distracted by the acquisition, continue to drive the growth of their business, continue to take market share, and really caused their competitors a lot of pain. And they were doing that before they bought — before they joined SolarWinds and they continue to do that and do that very well.

Looking ahead, Thompson said in a prepared statement: “We feel positive about the momentum we have created in our business exiting 2013 and we are focused on driving strong growth in new business, both license and subscription, in 2014.”

In addition to the N-able deal, SolarWinds last year also invested in application performance management (APM) vendor AppNeta and acquired database performance management specialist Confio. Each deal involved clear business plans. For instance, N-able President JP Jauvin now leads that group and former N-able CEO Gavin Garbutt exited when the deal was announced. Garbutt has since surfaced on the board of another tech company.

Follow CJ Arlotta on Twitter @cjarlotta for further updates on the story above.