DAtto: Fiscal 3Q20 Financial Results

(in $ million)	3Q19	3Q20	9 mo. 19	9 mo. 20
Revenue	117.7	130.7	322.6	379.8
*Growth*		11%		*18%*
Net income (loss)	2.7	19.5	(23.0)	29.7

DAtto Holding Corp. announced its financial results for the third-quarter ended September 30, 2020.

“We are pleased to report strong 3FQ20 results as a newly public company. Both subscription revenue and ARR grew 17% Y/Y driven by expansion from existing MSP partners as they deployed more DAtto solutions to more of their end clients, and by the addition of new partners,” said Tim Weller, CEO. “Our sequential ARR growth of $16 million is evidence of the reacceleration of our business and the tailwinds from the digital transformation of SMBs. We continue to create enterprise-grade technology for SMBs delivered through our growing, global network of MSP partners. Our commitment to the MSP ecosystem is what makes DAtto unique – it is the foundation of our strategy and culture.“

Datto Fiscal 3q20 Financial Results

Recent Highlights
• Priced its IPO of 22,000,000 shares of common stock at a price to the public of $27.00 per share. The underwriters exercised in full their option to purchase an additional 3,300,000 shares of common stock at $27.00 per share. Net proceeds from the IPO totaled $641.6 million. The firm is listed on the NYSE under the ticker MSP.
• Repaid all outstanding balances under its $550 million term loan facility and its $50 million revolving credit facility and entered into a new $200 million revolving credit facility which is undrawn.
• MSP partners grew to over 17,200, an increase of 1,000 Y/Y.
• Hosted its second Virtual MSP Technology Day dedicated to highlighting the tools and technologies that are driving adoption of MSP services through the Covid-19 pandemic.
• In July, acquired Gluh Pty Ltd, an Australia-based company with a real-time quoting platform that enables MSPs to simplify the procurement of IT products and services for their clients.
• Was named a winner of the 2020 CRN Annual Report Card Awards, recognizing DAtto as a best-in-class channel provider in the categories of Data Protection and Managed Services Software.

4FQ20 outlook: revenue between $133.0 and $135.0 million
FY20 outlook: revenue between $512.8 and $514.8 million