Adam Holets

Adam Holets, on behalf of Keith Bachman from BMO Capital Markets, asked N-able to quantify the monetization opportunity of AI, specifically whether it significantly enhances the '30 per device per month' revenue potential. He also inquired if increased AI adoption among MSPs and SMBs could create a future headwind for device-based revenue and how N-able plans to mitigate such a risk.

Answer

President and CEO John Pagliuca clarified that N-able monitors, manages, protects, and recovers more than just endpoints, including servers, virtual machines, SaaS applications, and data growth, which constitute a significant portion of revenue. He believes the SME market is better insulated from potential AI-driven device headwinds seen in larger enterprises, as MSPs service sectors like healthcare, finance, and education. John Pagliuca stated that AI-infused or AI-powered SKUs will increase the ASP per MSP and per user, expanding the economic stack and TAM. He expressed optimism that AI will expand revenue per MSP as they gain more from their customers and broaden their reach.

Adam Holets asked about quantifying the monetization opportunity of AI, specifically if it adds meaningfully to the '$30 per device per month' opportunity, and if AI use could create a headwind for device-based revenue.

Answer

President and CEO John Pagliuca clarified that N-able monitors and manages more than just endpoints, including servers, virtual machines, SaaS applications, and data growth. He believes the SME market is well-insulated from potential device-based headwinds. He expects AI-infused or AI-powered SKUs to increase the ASP per MSP and per user, expanding the TAM and adding to the '$30 economic stack' in the future, driven by delivering customer needs.