Ladies and gentlemen, thank you for standing by. Welcome to the N-able First Quarter 2024 Earnings Call. All lines have been placed on mute during the presentation portion of the call, with an opportunity for question and answer at the end. If you'd like to ask a question, please press star followed by one on your telephone keypad. I would now like to hand the conference call over to our host, Griffin Gyr, Investor Relations Manager. Please go ahead. Thanks, operator, and welcome everyone to N-able's First Quarter 2024 Earnings Call. With me today are John Pagliuca, N-able's President and CEO, and Tim O'Brien, EVP and CFO. Following our prepared remarks, we will open the line for a question and answer session. This call is being simultaneously webcast on our investor relations website at investors.n-able.com. There, you can also find our earnings press release, which is intended to supplement our prepared remarks during today's call. Certain statements made during this call are forward-looking statements, including those concerning our financial outlook, our market opportunities, and the impact of the global economic environment on our business. These statements are based on currently available information and assumptions, and we undertake no duty to update this information except as required by law. These statements are also subject to a number of risks and uncertainties, including those highlighted in today's earnings release and our filings with the SEC. Additional information concerning these statements and the risks and uncertainties associated with them is highlighted in today's earnings release and in our filings with the SEC. Copies are available from the SEC or on our investor relations website. Furthermore, we will discuss various non-GAAP financial measures on today's call. Unless otherwise specified, when we refer to financial measures, we will be referring to non-GAAP financial measures. A reconciliation of certain GAAP to non-GAAP financial measures discussed on today's call is available in our earnings press release on our investor relations website. Now, I will turn the call over to John. Thanks, Griffin. Today, I will discuss our strong first quarter performance, share observations and takeaways from Empower, our annual customer conference, and provide an update on the key 2024 company objectives we outlined in our previous call. Let's start with our first quarter performance. We delivered robust results amid a steady macroeconomic backdrop. Revenue was $113.7 million, growing approximately 14% year-over-year on a reported and constant currency basis. Adjusted EBITDA was $39.6 million, representing an adjusted EBITDA margin of 35%. Once again, we exceeded the high end of our top and bottom line guidance. These results establish two critical points. First, we believe this shows that our product strategy is hitting the mark. Over the past 18 months, we have strategically expanded the depth and breadth of our product portfolio, driving our monthly per device opportunity to over $30. First quarter results show that these expanded options and capabilities resonate with our customers. Cove Data Protection, where we have made significant investments to deepen our capabilities, was our fastest grower. The security product group, where we added new SKUs and considerably expanded our breadth, followed as our second fastest grower. Lastly, our IT monitoring and management platform saw steady demand and continues to serve as the primary entryway to N-able. Growing the depth and breadth of our product portfolio is key to our strategy. Why? Well, small and medium enterprises are becoming increasingly digital, and the technology landscape is getting more complex. MSPs are relying on a more extensive set of advanced software tools to keep pace. Broad-based demand across our growing software stack gives us confidence that we're meeting these market needs. Second, we are delivering this innovation profitably, simultaneously growing our bottom line and our product portfolio, and we believe this quarter is proof of our model's capability to deliver customer value in a profitable manner. Switching gears, let's now discuss notable takeaways from our annual customer conference, Empower. With hundreds of MSPs, vendors, distributors, and industry leaders in attendance, Empower is an opportunity for the MSP community to share best practices and an unparalleled forum for us to get direct insight and learn from our customers and industry peers. One resounding takeaway from the event is that MSPs are optimistic about their prospects. MSPs told us that while elements of SME spend remain measured, they feel industry tailwinds continue to blow in their favor. These discussions reinforce our belief in the economic resiliency of our customer base and the vital nature of our data protection, security, and IT management software solutions. Analysts echo the durability of the MSP industry, with Canalys forecasting total managed service revenue to grow by 12% in 2024. This collective sentiment gives us a continued confidence in our strategy as we invest across our product set and scale our operations to capture the attractive industry TAM. Another consistent theme we heard was that managing the cloud is an enormous opportunity and a daunting challenge. Small and medium enterprises are moving operations to the cloud while maintaining on-premise capabilities. MSPs expressed excitement over this trend because it means the pie is growing. The cloud is another vector MSPs can manage and monetize. However, technicians must have the necessary purpose-built software tools and expertise to manage hybrid IT environments.... This customer feedback validates the bet we placed by developing Cloud Commander. Our cloud management solution empowers MSPs to manage cloud workloads, cementing them as a trusted modern IT provider. At the same time, we maintain the ability for our partners to operate within on-premise environments. This dual approach gives them the confidence to capitalize on the future of the cloud, while meeting their customers where they are in their digital journey. We serve both on-premises and cloud needs. MSPs also clearly spoke about the ongoing changes in the security space. Both threat levels and regulatory and compliance requirements are rising, and the SME is squarely in the crosshairs. The question is no longer, "Am I safe?" The question is now, "Am I safe, and am I compliant?" This has a massive implication for both MSPs and SME operations. We eagerly discussed with and educated MSPs about why we believe adding N-able Managed Detection and Response to our already broad security stack uniquely positions N-able as the answer to this urgent question, giving them layers of software and human services available in a single motion. All said, our dialogue at the event gave us confidence in our product development strategy in the mission-critical security sector. A final update from Empower was the progression of the N-able Ecoverse. The Ecoverse is our ongoing transformation to an open ecosystem, with integrations extending across the broad universe of technician workflows. Over the long term, the Ecoverse aims to make every single action and IT technician workflow available via trusted APIs. This will help tame the inefficiency of tool sprawl for MSPs, driving more efficient use of both the N-able tech stack and their other software solutions. The strategic rationale is simple: MSPs want to efficiently deliver a broad range of IT services to their SME customers. The Ecoverse positions us to meet this need. And while we're in the early stages of this journey, we believe the potential of our Ecoverse vision is substantial. With network effects driving customer value, we believe the Ecoverse can establish the N-able software platform as the control hub for MSPs everywhere, and that it will drive N-able as a long-term MSP market share consolidator. We have made recent progress on this journey. Powerful new integrations with leading PSA and MSP automation vendors create immediate customer value. These partnerships significantly streamline MSP technicians' workflows, allowing them to ticket and bill more efficiently, connect applications, and operate complex IT environments better. We look forward to further advancing our Ecoverse vision and providing updates along the way. Reflecting on the many takeaways from Empower, we continue to have confidence in the MSP market and N-able's positioning for short and long-term success. Let's now discuss key quarterly highlights and updates on the three 2024 focus areas. As a reminder, our immediate focus is on the following objectives: First, empowering MSPs with leading security and data protection solutions that give themselves and their SME customers the peace of mind they deserve. Second, driving rapid innovation into our RMM platforms, enabling MSPs to better manage hybrid digital environments at scale. And third, doubling down on our customer engagement model and delivering a differentiated level of service to the MSP community. Looking first at our customer engagement model, we delivered exceptional progress along several dimensions. We leaned in in our in-market presence, hosting 30 events across multiple continents. This in-person interaction is core to our DNA. We also launched our MSP Horizons research, helping MSPs across the spectrum assess market trends and the best practices to drive their businesses forward. Our efforts to give customers improved contract flexibility and pricing predictability are seeing traction as customers adopt long-term contracts at a solid pace. As a testament to these customer engagement efforts, we were recognized with a premier 5-star rating in the 2024 CRN Partner Program Guide and a Gold Stevie Award for Best Customer Service Team. These are welcome acknowledgments of our deeply held belief that our MSP's success is our success. We also continue to execute on our initiative to drive innovation in our platforms. We bolstered our powerful patch engine and made meaningful improvements to the platform user experience. These efforts advance our strategy of delivering features that solve MSP use cases, all with an improved technician experience. Past investments in the platform are also bearing fruit. We continue to hear strong, positive feedback about our new analytics feature, and new customer acquisition on our flagship and N-central platform has increased in the past two quarters. We are excited to continue to invest in and further develop our powerful management platform. We also made considerable progress on our initiative to give our MSPs the peace of mind they deserve with our security and data protection solutions. On the data protection front, the Cove team continues to deliver world-class execution. Highlights in the quarter include the introduction of recovery to VMware, the development of Fortified Copies, and increased restore accuracy and speed through the use of AI. These technical advancements solve real-world problems for our partners. As Cove gains traction among larger MSPs and internal IT departments that often utilize VMware, we believe the ability for Cove to directly restore copies into a VMware environment broadens our appeal across the market... Our Fortified Copies functionality places data copies in locations inaccessible from Cove's management console, protecting data from a threat actor or malicious insider. The integration of new AI restore techniques into Cove drive significant time savings in core IT technician workflows. This effectively lowers our customers' cost of ownership while improving the experience. The value creation is borne by our results. Cove led our growth in the quarter, is moving up third-party rankings at industry publications such as G2, and is taking market share. On the security front, our business resilience strategy is resonating. We provide layers of security that allow our partners to increase resiliency across their businesses and their customers' businesses. This approach is driving a steady drumbeat of demand across our security suite. Our Managed Detection and Response solution is also generating interest across the spectrum. We are seeing greenfield demand at the low end and rip-outs at the high end, with MDR also leading to multi-SKU deals. A rip and replace of a well-known competitor illustrates these dynamics well. A current Cove customer was dissatisfied with their existing platform provider and started a dialogue with us centered on their MDR needs. Impressed by our MDR offering, they also evaluated our N-central platform, and ultimately, they signed an over six-figure ARR deal composed of MDR, EDR, and N-central. Our 2024 plan calls for ambitious progress, and building on the great results we delivered in Q1, we believe we are on track to achieve the initiatives we laid out at the beginning of the year. With that, I would like to turn the call over to Tim to discuss our financial results and outlook. Then I'll circle back to some closing remarks. Tim? Thank you, John, and thank you all for joining us today. We delivered another strong quarter, again, exceeding our guidance on the top and bottom lines. There are encouraging indicators that our expanded product portfolio is resonating with customers, and we continue to innovate while delivering robust profitability. For our first quarter results, total revenue was $113.7 million, representing approximately 14% year-over-year growth on a reported and constant currency basis. Subscription revenue was $111.5 million, also representing approximately 14% year-over-year growth on a reported and constant currency basis. Other revenue, which consists primarily of revenue from the sale of maintenance services associated with the historical sales of perpetual licenses and revenue from professional services, was $2.2 million, declining approximately 6% year-over-year. We ended the quarter with 2,087 partners that contribute $50,000 or more of ARR, which is up approximately 13% year-over-year. Partners with over $50,000 of ARR now represent approximately 56% of our total ARR, up from approximately 52% a year ago. Dollar-based net revenue retention, which is calculated on a trailing twelve-month basis, was approximately 111% or 110% on a constant currency basis. As a reminder, the impact of our pricing and packaging changes in 2023 will affect net revenue retention starting in Q2 this year. Turning to profit and margins, note that unless otherwise stated, all references to profit measures and expenses are calculated on a non-GAAP basis and exclude the items outlined in the GAAP to non-GAAP reconciliations provided in today's press release. First quarter gross margin was 84.7%, compared to 84.6% in the same period in 2023. First quarter adjusted EBITDA was $39.6 million, up approximately 21% year-over-year, representing approximately 35% adjusted EBITDA margin. Unlevered free cash flow was $7.3 million in the first quarter. As a reminder, due to the timing of cash outlays throughout the year, Q1 is generally our lowest free cash flow quarter. CapEx, inclusive of $1.7 million of capitalized software development costs, was $5.1 million or 4.5% of revenue. Non-GAAP earnings per share was $0.11 in the quarter, based on 187 million weighted average diluted shares. We ended the quarter with approximately $139 million of cash and an outstanding loan principal balance of approximately $341 million, representing net leverage of approximately 1.3 times. Approximately 46% of our revenue was outside of North America in the quarter. Before turning to our financial outlook, I will give commentary on our first quarter results. First quarter revenue was above the high end of our guidance range. This outperformance was attributable to strong demand led by Cove Data Protection and success with our long-term contract initiatives. Turning to our financial outlook, our guidance accounts for the following elements: First, we are assuming FX rates of 1.07 for the euro and 1.24 for the pound for the remainder of 2024, along with updates to other currencies to more closely reflect the current rate environment. These updated rates drive approximately $800,000 of negative revenue impact for the remainder of 2024 relative to our FX assumptions during our February call. Second, our guidance accounts for the negative impact from the larger-than-normal 2023 pricing and packaging changes, as our pricing and packaging changes are effective annually starting in April. The second quarter is when this impact will start to be realized. Third, while we have previously touched on slower device growth due to the macro environment and some price sensitivity following our pricing changes in 2023, several indicators across our business and market give us the confidence to raise the midpoint of our constant currency revenue and adjusted EBITDA full-year guidance. With that in mind, for the second quarter of 2024, we expect total revenue in the range of $116.5 million-$117 million, representing approximately 10% year-over-year growth, or approximately 10%-11% on a constant currency basis. We expect second quarter adjusted EBITDA in the range of $41 million-$41.5 million, representing an adjusted EBITDA margin of approximately 35%. For the full year, 2024, we now expect total revenue of $462 million-$465 million, representing approximately 10% year-over-year growth, or approximately 10%-11% on a constant currency basis. We are raising our adjusted EBITDA outlook and now expect full-year adjusted EBITDA of $162 million-$165 million, up approximately 14% year-over-year at the midpoint and representing an approximately 35% adjusted EBITDA margin. We reiterate that we expect CapEx, which includes capitalized software development costs, will be approximately 5% of total revenue for 2024. We also expect adjusted EBITDA conversion to unlevered free cash flow to be approximately 67% for the full year. We expect total weighted average diluted shares outstanding of approximately 187-188 million for the second quarter and 188-189 million for the full year. Finally, we expect our non-GAAP tax rate to be approximately 26% in the second quarter and for the full year. Now, I will turn it over to John for closing remarks. Thank you, Tim. It was a strong start to the year. We delivered strong performance and advanced important initiatives across the business. I would like to thank our 1,600 N-able employees for their ongoing dedication to serving the approximately 25,000 MSPs we partner with globally. With a focused operating plan, a clear long-term vision, and a resilient market, we are excited for the rest of the year. With that, operator, we'll open the line for questions. Thank you. If you would like to register a question, please press star followed by one on your telephone keypad, ensuring you are unmuted locally. If you'd like to withdraw your question at any time, you can do so by pressing star followed by two. Our first question comes from the line of Mike Cikos of Needham. Your line is now open. Please go ahead. Hey, guys. Thanks for taking the questions here, and great quarter. Just wanted to circle up. I know we're in this – the macro remains challenging out there, right? And I think you guys even acknowledge, hey, the SMEs and device count is still constrained, but you guys are obviously executing strongly and do have that confidence to take up the guide here. Can you provide a little bit more color as far as what are some of those early indicators you're seeing? I know you spoke about Empower and what you're seeing on Cove, but some incremental color there would be beneficial as far as what you're seeing from a boots-on-the-ground perspective. Good morning, Mike. This is John. Thanks for the question. Look, we do, as Tim mentioned, with the confidence in our guide and for the rest of the year, we continue to see strong indicators. Most notably, our new customer acquisition, bookings and customer lands have been up. They're, you know, they're up year over year. That's if I think about the almost somewhat to be the future enterprise value of the business. As we bring on these MSPs and we keep winning in the market, that's when we can get in and begin to start landing and expanding and helping them expand at their SME base. So I'd say that's probably the primary, most solid indicator, is this new customer acquisition uptick, in particular in our N-central platform, which, for a reminder for the group, is the platform where more of our larger MSPs tend to deploy their other software on. So the fact that we're winning at that end of the market, at a pace that's better than historically, especially year over year, is probably the best indicator. Terrific. Thank, thanks for that, John. And then, O'Brien, just a quick follow-up here. I know we, we talked about some of the fluctuations from, from a cash flow perspective. It looks like, cash flow from ops was down year-on-year, primarily, related to accrued liabilities. Is that just- is that a timing thing? Is there anything else to call out there? And then the, the second piece is on the sequential decline to MSPs, with ARR over 50,000. I think we've run into that before, but is that entirely FX related? I guess those are the two cleanup questions I had, but I'd appreciate it. Yeah, thanks for the question, Mike. On the cash flow bit, it's timing. The primary drivers there are just timing of some prepaid taxes, as well as just timing of the year of cash outlays for bonuses and things like that within the model. But no change to the outlook on cash flow conversion from EBITDA that we stated back in February, really just timing throughout the year on the cash flow front. And then on your second question, on the customers over 50K of ARR, primarily FX driven. We would have been up slightly, FX neutral. And then another part of the equation is that John touched on, we're succeeding with new customer acquisition. Generally, our new customers, the vast majority of our new customers are coming in below that $50K threshold, and then we worked across all the portfolio and bring them up above that. But those are kind of the two contributing factors of, you know, we're seeing stronger mix of new coming in, new coming in the door, and there was some negative FX impact on that metric in the quarter. Got it. Thanks for helping improve my understanding on this two dynamics. I'll turn it over to my colleagues. Thank you, guys. Thanks, Mike. The next question comes from the line of Jason Ader of William Blair. Your line is now open. Please go ahead. Yeah, thank you. Good morning, guys. A couple of things. First, you talked about the new customer acquisition uptick with N-central. Can you just talk about, you know, when you're winning those deals, is it a displacement? Is this, you know, customers where you maybe were selling certain things in, and then you've added more, you know, added more elements to the, to the package that you're selling them? Just a little more background on, on those types of deals, and when you're winning, and, and, and who you're displacing, and why you're winning. That'd be helpful. Thanks. Sure. Good morning, Jason. Thanks for the question. This is John again. So a couple of things. You know, historically, and I know you know this from following the space, we were known as an RMM offering with two solutions for the lower end and the high end, and that was the primary on-ramp onto the business, right? With Cove, and with that platform, and the fact that that's really just a disruptive technology at a disruptive price, we're now bringing customers in there. And so we're getting Cove customers to walk in the door. So now people are on-ramping into N-able with Cove. How that's manifesting itself in our RMM category is, you know, a significant amount of our Cove customers are now being cross-sold into the N-central or even into the N-sight platform. So that, that cross-sell and that pattern is somewhat new for us, but it's accretive. So we're, we're getting that combination, where historically, backup was more of a, or data protection was more of a, of a cross-sell. We're now landing with, with, with Cove and going from there. You asked a question about, like, rip and replace. Look, primarily, at the high end, it is a rip and replace. I would say, I would say the vast majority at the high end. On the low end, you have some greenfield, and you also have some ancillary folks getting involved, so MSSPs. So security providers now need a monitoring and management platform as well. We're seeing a good amount of internal IT departments now needing a platform that, you know, looks and behaves a lot like our RMM. It has the patching, and take control, and monitoring capabilities. So in the classic high-end MSP, it's rip and replace. In the internal IT department, it's actually a little bit more of a greenfield because the combination of these offerings are new to an internal IT department, and the collection of them are new. Not that the individual solutions are different, but just the collection, and at the low end, they're new. And then lastly, we are having a progress with right out of the gate, especially with some of our, actually, across the spectrum, small customers and large customers, where we're coming to them. Now that the line between monitoring and security is effectively gone for the MSP, what's an enticing package is we're walking in the door and saying, "Hey, we have this powerful, you know, world-class EDR technology coupled with the RMM that's integrated," that's also helping to land. So we are getting, you know, that one-two punch of monitoring and security right out of the gate in NCA. So it's a collection of all those bits that, that's really driving it. Great. Thank you. And then, Tim, just on the model and the guidance that you gave for the full year, trying to understand the second half, because it looks like, at least in my model, sequentially, revenue would be flat from Q2 into Q3 and Q4 as well, just if I use the midpoint of your annual guidance. So can you talk about why there would not be sequential growth in the second half relative to where you guided things from Q2? Yeah, absolutely, Jason. When we think about the second half, I would say we're continuing to be prudent just with the outlook, mostly due to the macro environment that we're kind of hearing and seeing across the board. And then the other part of our equation is related to our long-term contract strategy that we put in place here for 2024, as it relates to that strategy for our pricing and packaging changes for 2024 versus 2023. That's where we'll start to feel that impact on the year-over-year spectrum, starting here in Q2. So it's a combination of those things. That's kind of how we've set kind of the rest of the full year guide. We did bring up the midpoint slightly, but I would say just continuing to be prudent, until we kind of see how kind of the macro plays out over the course of the rest of the year. ... What's the quantification of those mechanics around the pricing and packaging change? Like, what, how much impact did it have in Q1 and Q2? It sounds like in second half, it's not gonna have a year-over-year positive impact. But what, I guess I'm not super familiar with, you know, how to think about those mechanics. Yeah, we touched on the impact in last call, probably in the range of 2-2.5 points for the full year. No real impact in Q1. The impact is really centered in Q2, Q3, and Q4 from a year-over-year perspective. So it's probably more in that 2.5-3% range for those three quarters, specifically in that 2-2.5% range for the full year. Just from the timing, it was effective as of April 2023. And that's when that grow over impact is starting to be felt on a year-over-year perspective. Gotcha. Gotcha. So you get the step up in Q2, and then it sorta, you know, the way you're thinking about it is sort of it steps up, and then it doesn't go up a lot once it steps up, at least in the second half? Right. Thank you. Thanks, Jason. The next question comes from the line of Brian Essex of J.P. Morgan Chase & Co. Your line is now open. Please go ahead. Hi, good morning. Thank you for taking the question. And, nice set of results this quarter. John, I had a follow-up. You noted a nice rip out of a competitor, you know, in your prepared remarks. And just kind of curious, you know, particularly in your over 50,000 customers, can you quantify or give us a sense of the Cove penetration? And is this a, is this a consistent theme where, you know, that-that's leading to a lot of expansion within your customer base once they get a sense of, of the, the platform and what it can do? So, I think we mentioned this on a call or two, but we have about 10,000 or so customers using our Cove offering. The one thing I'll caution folks on is, when we think about penetration, it's in our business, again, because of the sell-through nature of our business, there's two levels of adoption. First, it's the MSPs, and that's that 10,000 number, but then it's what level of penetration do those MSPs are using at their SME level? And we believe with Cove, we're very much in early, early innings and early levels of penetration there, because unlike RMM, the RMM is effectively an enterprise-wide decision for the MSP. They really just usually have one RMM. With the data protection offering, they might inherit one, two, seven, 11 different backup offerings. And so, we're happy that we have, you know, 10,000 MSPs using Cove. We're not satisfied with the level of penetration we have at the SME. And the fact that we've made all these improvements in the offerings, in particular with our recovery set, and in particular with our disaster recovery and our M365, now we can really go to the MSPs and win that entire estate. It, it's a huge white space opportunity inside of our, our base. I'd say data protection and security are, you know, one and two as far as the white space opportunity within the base. So that's how we think about it. And, and now with our MDR offering, we, we actually can now expand that white space offering. We can also land those customers. The example I gave in the script is interesting, and, you know, we try to give you guys nuggets that show where the model and where the business strategy is heading, in that we won, and that customer, not a very big customer, is actually now using our MDR offering, which we believe to be best in class, our essential offering, and the EDR. And so it's that powerful combination of the monitoring and security that we think is a winning one. Obviously, data protection is a part of the NIST framework, it's a part of the security stack, and coupling those in is the right combination for our MSPs. So we continue to see good traction there. You might add... I'm sorry, you might add a second part of your question that I, that I'm not sure I addressed. If you could just remind me what that was. Yeah, I think I would, I would love to get your sense of is... So is, is Cove typically the tip of the spear of that expansion strategy, as opposed to maybe the other way around, where maybe they have EDR, and then they, they kind of back into Cove? You know what? It really depends on what, where the MSP is in their journey. I'd say it's either gonna be Cove or security. And- Mm-hmm ... and it's for us. It frankly really doesn't matter. You know, we want to show them the breadth and depth of our portfolio, and the fact that these are all integrated into our platform is really the compelling story for the MSPs because it drives that level of efficiency. So, in the example that we gave, that was actually a Cove customer, and we expanded them into these other bits. But to my previous statement to Jason, what we're doing now in a lot of our cases is we're bundling up an EDR offering along with our RMM offering, or we're bundling up our MDR and EDR together. And so, providing that type of benefit to the MSP right out of the gate, is resonating with customers, both on the low end and the high end of the spectrum. Got it. Super helpful. Maybe just one quick follow-up for Tim. Just, you know, looking at some quick math in terms of OpEx seems to have, you know, moderated pretty well in the quarter, helping with the performance on a, on a operating margin, EBITDA side, and it looks like a lot of it came from G&A. How do we think about that as we kind of like model this out for the rest of the year and, and try and assess what kind of operating leverage you have in the business? ... Yeah, absolutely. We've continued to get leverage on the G&A front. I would expect us to continue to get leverage there, as we move forward. We really built out the G&A functions for scale when we spun the business off a couple of years ago, and continue to optimize our spend there and making sure it's pointed at, you know, higher ROI type areas, whether it be engineering or sales and marketing. You know, we've continued to kinda operate with that balanced approach between growth and profit, as we kinda march towards that sustained rule of fifty as our kinda medium to long-term goal here as an operating model. There's additional leverage to get, I would say, in all parts of the business. We'll take that in a very measured fashion. Our path to 50 desire is to get there via revenue growth acceleration. That being said, there's leverage in the model to get there different ways, if we need to. Kinda stack ranking, I think I've gone through this before, but kinda stack ranking where that opportunity lies, it's probably number 1 in G&A, 2 in sales and marketing, and 3 in R&D. Just as we'll continue to wanna, you know, innovate over the years and continue to drive innovation to kinda feed that top line. Got it. I guess maybe just real quick, it looks like... I don't know if my math is right, 'cause I'm remote today, but, you know, did it go down sequentially? And if so, where did some of the cost rationalization come from? Looking at it- Did overall spend go down? Yeah. Yeah, on a non-GAAP basis, it was about flat quarter-over-quarter. Looking at Q4 versus Q1, it was up year-over-year. But no, I would say general spend overall and from a non-GAAP OpEx perspective was flat sequentially. All right. Okay, great. Thank you. As a reminder, if you'd like to ask a question, please press star followed by one on your telephone keypad. The next question comes from the line of Matthew Hedberg of RBC Capital Markets. Your line is now open. Please go ahead. Hey, good morning, guys. It's Mike Richards on for Matt. You know, maybe just going back to MDR, I was just wondering, you know, how that's tracked relative to your expectations, you know, now that we have over a quarter under our belt, and sort of what you're seeing on the top end of the market versus the lower end of the market, and any competitive dynamics there that were maybe different from what you expected? Thanks for the question, Mike. So MDR, it's early days. We really kicked this off in the US in Jan. We had, you know, some pre-activity a little bit in Q4, and then we went worldwide later on in the first quarter. And it's been exceeding expectations, both on the level of bookings, and even more so on the number of lands. And it's been encouraging. On the low end, we're finding a lot of greenfield, right? And we're really allowing a smaller MSP to now provide security services that are required at the SME. And so if you're a small shop, a 5- or 10-person managed service provider, and you're trying to stay up with larger MSPs, or really even just trying to service your existing customer base, you need a level of security offering and someone that can help you with the 24/7 and keeping an eye on and all, and all the threats that are out there. And so we're finding it to be a welcome new offering, combining, you know, technology and human services at the low end that allows them to keep their customers safe, but also, frankly, present as a much larger capability of an organization. At the high end, we're finding greenfield, we're also finding some rip and replace. There are some legacy vendors in there that are not necessarily bespoke for an MSP. And what I mean by that is, our offering is unique in that we provide eyes on glass for MSPs. Some MDR services, it's like a black box service, right? The MSP just kinda gets the output of that. We provide a level of transparency for our managed service providers, which they love, because now they can see the same thing that our SOC analysts are looking at, and as a result, it's more transparency, they can better inform their customers. So it's-- I'll call it a rip and replace, but I actually believe it's more of a next-gen offering that we're providing at the high end, and that's why it's been resonating. So we're quite bullish on it. Again, it's early days, but it's an offering that it's being well received at the low end and the high end. Great. Thanks, guys. As there are no additional questions waiting at this time, I'd like to hand the conference back over to John Pagliuca for closing remarks. Thank you all for joining us today and your continued interest in N-able, and look forward to seeing you again in the future. Ladies and gentlemen, thank you for joining today's call. You may now disconnect your lines.