MSP backup service supplier N-able has bought Spinpanel and posted its earnings.
N-able was was spun out of malware-stricken SolarWinds last year and has around 25,000 MSP and Cloud Service Provider (CSP) partners. Spinpanel is based in the Netherlands, with offices in Atlanta and Toronto. It was was started up on 2015 as a spin-off from a CSP and produces software providing a multi-tenant Microsoft 365 management and automation platform for more than 150 Microsoft CSPs.
John Pagliuca, President and CEO of N-able, issued a quote: ”We believe the addition of Spinpanel to our team will help our partners optimize the value of their Microsoft Cloud products and, in turn, give Spinpanel customers access to a wider array of IT management and security solutions. We are excited to welcome Spinpanel to the N-able family.”
Likewise Bendert Post, Spinpanel CEO, said: “We are thrilled to be joining the N-able team so we can extend the vision we’ve had for our Microsoft Cloud enablement technology and get it into the hands of an even greater pool of CSPs and IT professionals.” Post joined Spinpanel as its chief commercial officer in June 2021. He now become’s N-able’s GTM lead for the Cloud User Hub.
Prior CEO and co-founder of Spinpane, Karel Saurwalt, resigned in April 2022. The other co-founder, CTO Vincent Mejan, is now a senior manager and architect at N-able.
The purchase price was not revealed and the addition of the Spinpanel technology into the N-able product portfolio is anticipated to occur during the third quarter.
N-able second quarter results
N-able’s revenues for the second 202 quarter were $91.6 million, up 7 percent year-on-year, with a profit of $4.3 million, which is a great big fat increase, 831 percent in fact, on the $462,000 reported a year ago.
CFO Tim O’Brien said: “Our results for the second quarter reflect the success of our multi-product sales approach, with particularly strong growth in our security and data protection offerings.” We now get to see the revenue and profit numbers for 7 consecutive quarters and the chart shows a conservative business which is growing steadily, albeit slowly:
It has swung around from losses in the first two quarters of the seven and now makes a profit.
There was $89.4 million in subscription revenues, up 8 percent on the year, and the gross margin was 84.5 percent – software is a nice business from that point of view.
Its third quarter outlook is for revenues between $92.5 million and $93 million, a narrow range, which compares to the $88.4 million reported in the year-ago Q3 and is a 4.9 percent rise at the midpoint. This is not a spectacular growth company.
N-able launched Cove Data Protection for Microsoft 365 in May. More than 4,600 N-able partners are using it and the prospects for upselling Spinpanel’s SW into this partner base are obvious. Expect N-able to grow more strongly in the coming quarters.