Datto touts its 'reacceleration' following revenue rise

MSP Vendor posts first quarterly figures since going public last month

Datto CEO Tim Weller says the company's Q3 figures marks "a reacceleration of our business", after starting its financial year with a round of redundancies.

Total revenues for the MSP vendor were up 11 per cent to $137.7m year on year.

Subscription revenues made up the lion's share of that, bringing in $122.8m, which was a 17 per cent rise from Q3 2019.

Meanwhile, Datto's Q3 adjusted EBITDA rocketed 78 per cent to $45.8m.

The quarterly results are the first since Datto's IPO last month, which raked in $594m.

Weller said the vendor's Q3 success was driven by its existing MSP partners increasing the amount of Datto solutions deployed by their end-users.

"Our sequential ARR [annual run-rate revenue] growth of $16m is evidence of the reacceleration of our business and the tailwinds from the digital transformation of small and medium businesses (SMBs)," he said.

"We continue to create enterprise-grade technology for SMBs delivered through our growing, global network of managed service provider partners."

The latest financials are a far cry from Datto's Q1, which saw the US vendor confirming it was cutting its global headcount because of "the economic consequences of the global pandemic".

In a statement at the time, Datto also spoke of having to adjust to what will be a slower growth environment.

Six months on, Datto says it's grown its MSP global partners network to 17,200, an increase of 1,000 year on year.

It's now expcting FY2020 revenues to sit between $512.8m and $514.8m, with adjusted EBITDA of between $147.7 and $148.7m.

FY2019 revenues were $506.7m.