N-able (NABL) risk factors, FY2025 10-K

Risks Related to Our Business and Industry

1. 01Our operating results may be negatively affected by a number of factors, certain of which are beyond our control, and any of which could cause our operating results or the guidance we provide to fall below expectationsNew
2. 02Because we recognize revenue from our longer-term subscriptions and term licenses over the subscription or license term, downturns or upturns in new sales and renewals may not be immediately reflected in our operating results and may be difficult to discern
3. 03We report certain market opportunity estimates, forecasts of market growth, and other metrics, which could prove to be inaccurate, and any real or perceived inaccuracies may negatively affect our reputation and our business
4. 04If we are unable to sell subscriptions to new customers, to sell additional solutions to our existing customers or to increase the usage of our solutions by our existing customers, our revenue growth and operating results may be adversely effected
5. 05If we do not effectively hire, integrate, train, manage, and retain additional sales personnel, and expand our sales and marketing capabilities, we may be unable to increase our customer base and increase sales to our existing customers
6. 06Our business depends on customers renewing their subscription agreements. If our subscription-based business model fails to yield the benefits that we expect, our results of operations could be negatively impacted
7. 07We may not have visibility into a portion of our revenue that is consumption-based, which may result in our financial position and results of operations falling below internal or external expectations, which could negatively impact the price of our common stock
8. 08We operate in highly competitive markets, which could make it difficult for us to acquire and retain customers at our historic rates43% rewritten
9. 09Our success depends on our ability to adapt to the rapidly changing needs of our customers and their customers
10. 10If we fail to integrate our solutions with a variety of operating systems, software applications, platforms and hardware that are developed by others or ourselves, our solutions may become less competitive or obsolete and our results of operations would be harmed
11. 11Acquisitions present many risks that could have an adverse effect on our business and results of operations
12. 12We may expand our business in part through future acquisitions, but we may not be able to identify or complete suitable acquisitions, which could harm our financial performance
13. 13If our goodwill or intangible assets become impaired, then we could be required to record a significant non-cash charge to earnings, which could adversely affect our results of operationsNew
14. 14We may not be able to achieve or sustain the same level of cash flows in the future
15. 15Our operating income could fluctuate as we make future expenditures to expand our operations in order to support growth in our business, or if we fail to see the expected benefits of prior expenditures
16. 16Because our long-term success depends on our ability to operate our business internationally and increase sales of our solutions to our customers located outside of the United States, our business is susceptible to risks associated with international operations
17. 17We have faced, and may continue to face, exposure to foreign currency exchange rate fluctuations
18. 18We resell third-party software and integrate third-party software into our solutions that may be difficult to replace or that have caused in the past, or could cause in the future, errors or failures of our solutions, which could lead to a loss of customers or harm to our reputation and our operating results
19. 19Interruptions or performance problems associated with our internal infrastructure and its reliance on third-party technologies may adversely affect our ability to manage our business and meet reporting obligations
20. 20Interruptions or performance problems associated with third-party cloud-based systems that we depend on for development or distribution of our solutions may adversely affect our business, operating results, and financial condition
21. 21Interruptions or performance problems associated with our solutions, including disruptions at any third-party data centers upon which we rely, may impair our ability to support our IT services provider customers
22. 22Material defects, errors or vulnerabilities in our solutions, the failure of our solutions to block malware or prevent a security breach, misuse of our solutions, or risks of product liability claims could harm our reputation, result in significant costs to us and impair our ability to sell our solutions61% rewritten
23. 23Any inability to maintain a high-quality customer support organization could lead to a lack of customer satisfaction, which could hurt our customer relationships and adversely affect our business, operating results, and financial condition
24. 24If we fail to maintain or grow our brands, our financial condition and operating results might suffer22% rewritten
25. 25If we are unable to capture significant volumes of high quality sales opportunities from our digital marketing initiatives, it could adversely affect our revenue growth and operating results
26. 26We may need to reduce or change our pricing model to remain competitive
27. 27We have benefited from growth in the market for IT and cybersecurity spending, and lack of continued growth or contraction in this market could have an adverse effect on our results of operations and financial condition32% rewritten
28. 28The ability to recruit, retain and develop key employees and management personnel is critical to our success and growth, and our inability to attract and retain qualified personnel could harm our business
29. 29Our results of operations can be adversely affected by labor shortages, turnover and labor cost increases
30. 30If we cannot maintain our corporate culture as we grow, our business may be harmed
31. 31Adverse economic conditions may negatively affect our business26% rewritten
32. 32Climate change may have a long-term negative impact on our business
33. 33Exposure related to any future litigation could adversely affect our results of operations, profitability and cash flows46% rewritten
34. 34more difficult for us to defend our intellectual property in any subsequent litigation in which we are named as a party. Any of these results would have a negative effect on our business and operating resultsNew
35. 35Our actual operating results may differ significantly from information we may provide regarding our financial outlook
36. 36A pandemic, epidemic or outbreak of an infectious disease may materially affect how we and our customers are operating our businesses and our financial results

Risks Related to Our Indebtedness

1. 37We have substantial indebtedness, which could adversely affect our financial health and our ability to obtain financing in the future, react to changes in our business and meet our obligations with respect to our indebtedness
2. 38Despite our current indebtedness level, we and our restricted subsidiaries may be able to incur substantially more indebtedness, which could further exacerbate the risks associated with our substantial indebtedness
3. 39The credit agreement governing our indebtedness contains restrictions and limitations that may restrict our business and financing activities and expose us to risks that could adversely affect our liquidity and financial condition

Risks Related to Our Intellectual Property

1. 40The success of our business depends on our ability to obtain, maintain, protect and enforce our intellectual property rights59% rewritten
2. 41parties do not have blocking patents that could be used to prevent us from marketing or practicing our patented software or technologyNew
3. 42Our use of open source software could negatively affect our ability to sell our offerings and subject us to possible litigation

Risks Related to Cybersecurity and Artificial Intelligence (“AI”)

1. 43Our use of AI could adversely affect our business, reputation, or financial resultsNew

Risks Related to Accounting and Taxation

1. 44Failure to maintain proper and effective internal controls could have a material adverse effect on our business, operating results and stock price
2. 45Changes in financial accounting standards or practices may cause adverse, unexpected financial reporting fluctuations and affect our reported results of operations
3. 46Our revenue recognition policy and other factors may distort our financial results in any given period and make them difficult to predict
4. 47Our business and financial performance could be negatively impacted by changes in tax laws or regulations46% rewritten
5. 48decrease the capital we have available to operate our business. Any or all of these events could adversely impact our business and financial performanceNew
6. 49Additional liabilities related to taxes or potential tax adjustments could adversely impact our business and financial performance
7. 50Our corporate structure and intercompany arrangements are subject to the tax laws of various jurisdictions, and we could be obligated to pay additional taxes, which would harm our operating results
8. 51Our operating results may be negatively impacted by the loss of certain tax benefits provided to companies in our industry predominately by the governments of countries in which we have research and development personnel

Risks Related to Governmental Regulation

1. 52We are subject to various global data privacy and security regulations, which could result in additional costs and liabilities to us74% rewritten
2. 53We are subject to governmental export controls and economic sanctions laws that could impair our ability to compete in international markets and subject us to liability if we are not in full compliance with applicable laws
3. 54Government regulation of the Internet and e-commerce is evolving, and unfavorable changes or our failure to comply with regulations could harm our operating results

Risks Related to Ownership of Our Common Stock and Our Organizational Structure

1. 55The trading price of our common stock has been and may continue to be volatile, which could cause the value of your investment to decline
2. 56If securities or industry analysts were to downgrade our stock, publish misleading or unfavorable research about our business or fail to publish reports on our business, our stock price and trading volume could decline
3. 57Sales of substantial amounts of our common stock in the public markets, or the perception that such sales could occur, could reduce the market price of our common stock82% rewritten
4. 58Our issuance of additional capital stock in connection with financings, acquisitions, investments, our stock incentive plans or otherwise will dilute all other stockholders
5. 59We currently do not intend to pay dividends on our common stock, and consequently, stockholders’ ability to achieve a return on their investment will depend on appreciation in the price of our common stock
6. 60Our restated charter and restated bylaws contain anti-takeover provisions that could delay or discourage takeover attempts that stockholders may consider favorable
7. 61The Sponsors have a controlling influence over matters requiring stockholder approval
8. 62Certain of our directors have relationships with the Sponsors, which may cause conflicts of interest with respect to our business
9. 63The Sponsors and their affiliated funds may pursue corporate opportunities independent of us that could present conflicts with our and our stockholders’ interests
10. 64We may issue preferred stock whose terms could adversely affect the voting power or value of our common stock
11. 65We are a controlled company within the meaning of the NYSE rules and, as a result, qualify for and may rely on exemptions from certain corporate governance requirements