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01/10 16:58
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary shows mixed signals: strong revenue growth and optimistic guidance, yet declining gross margins and integration risks. The Q&A reveals potential headwinds and lack of clarity on key initiatives, which may cause investor caution. The company's market cap suggests moderate stock price sensitivity. Overall, the sentiment is neutral, with no strong catalysts to drive significant price movement.
Fourth Quarter Revenue $116,500,000, representing 7% year-over-year growth on a reported and constant currency basis.
Subscription Revenue $115,000,000, representing approximately 8% year-over-year growth on a reported and constant currency basis.
Full Year Revenue $466,000,000, representing year-over-year growth of 10% on both a reported and constant currency basis.
Fourth Quarter Adjusted EBITDA $38,100,000, representing a 32.7% adjusted EBITDA margin.
Full Year Adjusted EBITDA $169,400,000, representing an adjusted EBITDA margin of 36.3%.
Fourth Quarter Gross Margin 82.3%, compared to 84.5% in the fourth quarter of 2023.
Full Year Gross Margin 83.8%, compared to 84.6% in 2023.
Unlevered Free Cash Flow $98,700,000 for the full year 2024.
Fourth Quarter Cash Flow $29,000,000.
Non-GAAP Earnings Per Share (Q4) $0.10 based on 188,000,000 weighted average diluted shares.
Non-GAAP Earnings Per Share (Full Year) $0.48 based on 188,000,000 weighted average diluted shares.
Cash and Equivalents $85,000,000 at year-end.
Outstanding Loan Principal Balance $339,000,000, representing net leverage of approximately 1.5 times based on trailing twelve month EBITDA.
Customers with over $50,000 of ARR 2,349 customers, up approximately 7% year-over-year.
Dollar Based Net Revenue Retention Approximately 103% on both a reported and constant currency basis.
Annual Recurring Revenue (ARR) $482,000,000, growing at 9% year-over-year on a reported basis and 10% on a constant currency basis.
CapEx (Full Year) $23,700,000, inclusive of $6,200,000 of capitalized software development costs.
CapEx (Q4) $8,100,000, inclusive of $1,000,000 of capitalized software development costs.
XDR Launch: The successful launch of XDR, initially through a partnership with Aloomin, became Enable's fastest growing SKU and largest pipeline generator in FY 2024.
Cove Data Protection: Cove protects over 180,000 businesses and is the largest revenue-generating product, with significant innovations like immutable backups and AI-enhanced restore accuracy.
AI-Powered Developer Portal: The launch of an AI-powered developer portal accelerates API integrations for faster IT and security service delivery.
AdLumen Acquisition: The acquisition of AdLumen expands Enable's market reach beyond MSPs to the reseller channel, enhancing their product offerings and customer base.
Reseller Channel Expansion: Enable plans to leverage AdLumen's established reseller relationships to expand their data protection and UEM products in North America and internationally.
Annual Contracts Transition: Transitioned from less than 10% to over 50% of revenue from annual contracts, enhancing customer relationships and retention.
Operational Efficiency: Improvements in API integrations and device management have increased operational efficiency for technicians.
Growth Strategy for 2025: Focus on expanding security leadership, scaling go-to-market efforts with resellers, and elevating customer experience through tailored support.
Cyber Resilience Focus: Investing in security and data protection to meet the evolving needs of SMB and mid-market organizations.
Competitive Pressures: Enable faces significant competition in the cybersecurity market, particularly in the XDR and MDR segments. Competitors like CrowdStrike and Arctic Wolf provide similar services, which may impact Enable's market share and pricing strategies.
Regulatory Issues: The company is subject to various regulatory requirements, particularly in the cybersecurity domain, which could affect operational flexibility and compliance costs.
Supply Chain Challenges: The integration of the AdLumen acquisition may present supply chain challenges, particularly in aligning product offerings and operational processes.
Economic Factors: Global economic conditions, including currency fluctuations, may impact revenue growth. The company anticipates a 5% year-over-year revenue growth rate headwind due to revenue recognition timing related to long-term contracts.
Customer Retention: The company has experienced a decline in gross retention rates, which may affect future revenue growth and customer loyalty.
Integration Risks: The integration of AdLumen poses risks, including potential disruptions in service delivery and the need for effective alignment of sales and marketing strategies.
Market Demand: There is a risk that the anticipated demand for cybersecurity solutions may not materialize as expected, impacting revenue projections.
Strategic Objectives: 1. Provide SMB and mid-market businesses with leading security and data protection solutions for cyber resilience. 2. Drive rapid innovation in unified endpoint management (UEM) technology. 3. Enhance engagement model to deliver differentiated service to the market.
Acquisition of AdLumen: The acquisition of AdLumen enhances Enable's product suite and expands its market reach, particularly in the mid-market and reseller channels.
Product Innovations: Introduction of immutable backups and AI-enhanced restore capabilities in data protection, and new APIs and integrations in UEM.
Market Expansion: Plans to leverage AdLumen's reseller relationships to expand the adoption of security solutions and data protection products.
2025 Revenue Guidance: Expected total revenue of $486,500,000 to $492,500,000, representing 4% to 6% year-over-year growth.
2025 ARR Guidance: Expected ARR in the range of $514,000,000 to $522,000,000, representing 7% to 8% year-over-year growth.
2025 Adjusted EBITDA Guidance: Expected adjusted EBITDA in the range of $132,000,000 to $138,000,000, representing approximately 27% to 28% margin.
CapEx Guidance: Expected CapEx to be approximately 6% of revenue for the full year 2025.
Q1 2025 Revenue Guidance: Expected total revenue in the range of $115,000,000 to $116,000,000, representing approximately 1% to 2% year-over-year growth.
Q1 2025 Adjusted EBITDA Guidance: Expected adjusted EBITDA in the range of $27,500,000 to $28,500,000, representing approximately 24% to 25% margin.
AdLumen Acquisition Contribution in Q4 2024: Approximately $2,500,000 from November 20 through the end of the year.
AdLumen ARR at Acquisition: $21,000,000.
2025 Revenue Guidance: Total revenue expected to be between $486,500,000 and $492,500,000, representing 4% to 6% year-over-year growth.
2025 ARR Guidance: Expected to be between $514,000,000 and $522,000,000, representing 7% to 8% year-over-year growth.
Adjusted EBITDA Margin for 2025: Expected to be approximately 27% to 28%.
Unlevered Free Cash Flow for 2024: $98,700,000.
CapEx for 2024: Approximately 6% of revenue.
The earnings call reflects positive sentiment with strong subscription revenue growth, increased customer base, and healthy cash flow. While gross margins declined slightly, the company is investing in AI and operations, indicating future growth potential. The Q&A section highlights confidence in ARR growth, successful acquisitions, and strategic product launches, all contributing to an optimistic outlook. The market cap suggests moderate stock price movement, leading to a positive prediction.
The earnings call indicates strong financial performance with a 14% ARR growth and a 10% revenue increase. Despite a slight decline in gross margin, the company maintains a high adjusted EBITDA margin and positive free cash flow. The Q&A section reveals positive market reception and strategic focus, with promising growth in MSP markets and new product bundles. The share repurchase program further boosts confidence. Given the market cap, the stock is expected to react positively, likely within the 2% to 8% range, reflecting the overall strong financial and strategic outlook.
The earnings call reflects a mixed sentiment. While financial performance shows solid growth with a 10% revenue increase and positive EBITDA margins, concerns arise from declining gross margins, regulatory challenges, and economic headwinds. The lack of a shareholder return plan and significant debt also weigh negatively. However, the optimistic guidance and positive reception of the Adlumin acquisition balance these concerns. Given the company's market cap, the stock is likely to remain stable, resulting in a neutral prediction for the next two weeks.
The earnings call summary shows mixed signals: strong revenue growth and optimistic guidance, yet declining gross margins and integration risks. The Q&A reveals potential headwinds and lack of clarity on key initiatives, which may cause investor caution. The company's market cap suggests moderate stock price sensitivity. Overall, the sentiment is neutral, with no strong catalysts to drive significant price movement.
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