{"id":387162,"date":"2020-11-23T16:18:08","date_gmt":"2020-11-23T21:18:08","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=387162"},"modified":"2020-11-23T16:18:08","modified_gmt":"2020-11-23T21:18:08","slug":"datto-announces-third-quarter-2020-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/datto-announces-third-quarter-2020-financial-results\/","title":{"rendered":"Datto Announces Third Quarter 2020 Financial Results"},"content":{"rendered":"

<\/p>\n

Datto Announces Third Quarter 2020 Financial Results<\/b><\/p>\n

\nSubscription revenue grew 17 percent year-over-year to $122.8 million\n<\/p>\n

\nARR grew 17 percent year-over-year to $522.8 million\n<\/p>\n

NORWALK, Conn.–(BUSINESS WIRE<\/a>)–Datto Holding Corp.<\/a> (\u201cDatto\u201d) (NYSE: MSP), the leading global provider of cloud-based software and technology solutions purpose-built for delivery by managed service providers (MSPs), today announced its financial results for the third-quarter ended September 30, 2020.\n<\/p>\n

\n\u201cWe are pleased to report strong third-quarter 2020 results as a newly public company. Both subscription revenue and ARR grew 17 percent year-over-year driven by expansion from existing managed service provider partners as they deployed more Datto solutions to more of their end clients, and by the addition of new partners,\u201d said Tim Weller, Datto\u2019s Chief Executive Officer. \u201cOur sequential ARR growth of $16 million is evidence of the reacceleration of our business and the tailwinds from the digital transformation of small and medium businesses (SMBs). We continue to create enterprise-grade technology for SMBs delivered through our growing, global network of managed service provider partners. Our commitment to the MSP ecosystem is what makes Datto unique – it is the foundation of our strategy and culture.\u201d\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Third Quarter 2020 Financial Results <\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n(In Millions)\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Q3 2020<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Q3 2019<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Y\/Y Change<\/b><\/p>\n<\/td>\n<\/tr>\n

Subscription Revenue<\/td>\n\n

\n$122.8\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$105.2\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n17%\n<\/p>\n<\/td>\n<\/tr>\n

Total Revenue<\/td>\n\n

\n$130.7\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$117.7\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n11%\n<\/p>\n<\/td>\n<\/tr>\n

ARR(1)<\/sup><\/td>\n\n

\n$522.8\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$445.4\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n17%\n<\/p>\n<\/td>\n<\/tr>\n

Gross Margin<\/td>\n\n

\n73%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n66%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n691 bps\n<\/p>\n<\/td>\n<\/tr>\n

Net Income<\/td>\n\n

\n$19.5\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$2.7\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n617%\n<\/p>\n<\/td>\n<\/tr>\n

Adjusted EBITDA(2)<\/sup><\/td>\n\n

\n$45.8\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$25.8\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n78%\n<\/p>\n<\/td>\n<\/tr>\n

Free Cash Flow(2)<\/sup><\/td>\n\n

\n$43.6\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n-$2.8\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\nNA\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

1 <\/sup>Annual run-rate revenue (ARR) is the annualized value of all subscription agreements as of the end of a period. We calculate ARR by multiplying the monthly run-rate revenue for the last month of a period by 12.
\n
2 <\/sup>A reconciliation of GAAP to non-GAAP financial measures is provided in the financial statement tables included in this press release. An explanation of these measures is also included under the heading \u201cNon-GAAP Financial Measures.\u201d\n<\/p>\n

Recent Highlights<\/b><\/p>\n