The impact of the SolarWinds hack wasn’t significant in N-able’s 2020 financial results given how late in the fourth quarter the breach was publicly disclosed, the company said. The company’s loss deepened to $7.2 million in 2020, 185 percent higher than the $2.5 million loss it recorded in 2019.
N-able had experienced robust growth prior to the SolarWinds hack, according to its registration statement, with sales jumping to $302.9 million in 2020, up 14.9 percent from $263.5 million in 2019 and 32.3 percent from $228.3 million in 2018. N-able is set to launch this spring as an independent, publicly traded company focused on helping MSPs manage the IT environments of their SMB customers. “Based on trends in the later part of the first quarter of 2021, we believe that the adverse impacts of the cyber incident on our financial results will diminish over time in the absence of new discoveries or events,” N-able wrote in the 169-page SEC filing. N-able addressed the SolarWinds hack in a registration statement filed with the Securities and Exchange Commission Monday. The company said it’s seen consistent renewal rates among its larger MSP partners and hasn’t observed any decline in the actual usage of its products. The company also expects to face more expenses as it works to enhance the security, monitoring and authentication of its products.įollowing N-able’s resumption of regular demand generation activities in February, the company said it’s encouraged by recent engagements with both prospective and existing MSP partners.
N-able said it has incurred significant costs around the SolarWinds hack related to investigations and initiatives intended to address damage to the company’s reputation, with customers deferring purchases or choosing to cancel or not renew their agreements or subscriptions with N-able. “We believe the cyber incident has caused reputational harm to SolarWinds and also had an adverse impact on our reputation, new subscription sales and net retention rates.”
“As a part of SolarWinds and our prior branding as ‘SolarWinds MSP,’ the cyber incident has harmed, and is likely to continue to harm, our reputation, our MSP partner and employee relations and our operations and business,” N-able wrote.
No malicious code was found in any products offered by N-able, which is spinning off from SolarWinds. The Wakefield, Mass.-based remote monitoring and management (RMM) subsidiary of SolarWinds reduced investment in demand generation activities through January 2021 and saw some MSPs delay purchasing decisions after Russian hackers compromised 18,000 Orion clients through poisoned code. SolarWinds N-central stores deleted device recovery keys for 90 days.N-able saw a decline in new subscription sales and expansion rates in December and January following public disclosure of the colossal SolarWinds Orion hack. You can also refer to the Recovery Key Report to retrieve a recovery key. SolarWinds MSP does not save historical recovery keys for trials or paid contracts after moving on from SolarWinds N-central. There is no way to recover an encrypted hard disk if the recovery key is lost.