MSP - Datto Announces First Quarter 2022 Financial Results
First quarter subscription revenue grew 18% year-over-year to $160.5 million and 20% in constant currency
ARR grew 20% year-over-year to $689.3 million
Datto Holding Corp. (Datto) (NYSE: MSP), the leading global provider of security and cloud-based software solutions purpose-built for Managed Service Providers (MSPs), today announced its financial results for the first quarter ended March 31, 2022.
“We had a strong start to 2022, achieving 20% subscription revenue growth in constant currency terms for the first time since going public,” said Tim Weller, Datto’s Chief Executive Officer. “We added 700 net new MSP partners during the quarter, our best quarter of partner additions in over two years, and we continued to expand ARR per MSP. Our security-first product offerings are clearly resonating in today’s market. Finally, we entered into a definitive agreement for Kaseya to acquire Datto, in an all-cash transaction in which Datto stockholders will receive $35.50 per share, valuing Datto at approximately $6.2 billion, validating Datto’s leading position and the large opportunity in the MSP channel.”
First Quarter 2022 Financial Results
| (In Millions) |
|
|
| Q1 2022 |
|
|
| Q1 2021 |
|
|
| Y/Y Change |
| Subscription Revenue (1) |
|
|
| $160.5 |
|
|
| $135.6 |
|
|
| 18% |
| Total Revenue (1) |
|
|
| $170.8 |
|
|
| $144.9 |
|
|
| 18% |
| ARR (2) |
|
|
| $689.3 |
|
|
| $572.5 |
|
|
| 20% |
| Gross Margin |
|
|
| 71% |
|
|
| 73% |
|
|
| (235 bps) |
| Non-GAAP Gross Margin (3) |
|
|
| 74% |
|
|
| 75% |
|
|
| (172 bps) |
| Net Income |
|
|
| $7.9 |
|
|
| $15.3 |
|
|
| (48)% |
| Adjusted EBITDA (3) |
|
|
| $39.5 |
|
|
| $46.9 |
|
|
| (16)% |
| Net Cash Provided by Operating Activities |
|
|
| $15.1 |
|
|
| $35.2 |
|
|
| (57)% |
| Free Cash Flow (3) |
|
|
| $4.6 |
|
|
| $24.5 |
|
|
| (81)% |
| 1 |
| Subscription and Total Revenues Y/Y percentage change includes the negative impact of foreign exchange rates of approximately 1.3%. |
| 2 |
| 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. |
| 3 |
| 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 “Non-GAAP Financial Measures.” |
Recent Highlights
- Announced that the company entered into a definitive agreement for Kaseya to acquire Datto in an all-cash transaction in which Datto stockholders will receive $35.50 per share, valuing Datto at approximately $6.2 billion. The acquisition is subject to regulatory approvals in addition to the satisfaction of customary closing conditions and is expected to close in the second half of 2022.
- Ended the quarter with more than 19,200 MSP partners, a net increase of 700 from the previous quarter.
- Expanded the number of MSPs contributing over $100,000 ARR to 1,500, a 30% increase from 1,150 at March 31, 2021.
- Launched two continuity solutions: i) the next generation SIRIS 5 product featuring up to 4X the performance, and ii) Cloud Continuity for PCs, improved for today’s dynamic, hybrid workforce. Both all-in-one backup and recovery solutions empower MSPs with best-in-class continuity for their small and medium business (SMB) clients.
- Hosted an MSP Technology Day focused on addressing security for SaaS applications. The virtual event attracted more than 3,800 registrants.
- Announced that DattoCon, the largest open-ecosystem MSP-centric event, will take place in person September 11-13, 2022, in Washington, DC.
Second Quarter and Full Year 2022 Financial Outlook
Given the pending acquisition by Kaseya, which is subject to regulatory approvals in addition to the satisfaction of customary closing conditions, Datto is withdrawing its prior guidance for full year 2022 and will not be providing guidance going forward.
Datto Will Not Host a First Quarter 2022 Results Conference Call
Given the pending acquisition by Kaseya, Datto will not be hosting a results conference call this quarter. For more information about Datto’s first quarter 2022 results, please see Datto’s Quarterly Report on Form 10-Q for the first quarter ended March 31, 2022, which is posted on the Company’s website at www.datto.com under the “Investors” section of the site.
About Datto
As the leading global provider of security and cloud-based software solutions purpose-built for Managed Service Providers (MSPs), Datto believes there is no limit to what small and medium businesses (SMBs) can achieve with the right technology. Datto’s proven Unified Continuity, Networking, Endpoint Management, and Business Management solutions drive cyber resilience, efficiency, and growth for MSPs. Delivered via an integrated platform, Datto’s solutions help its global ecosystem of MSP partners serve over one million businesses around the world. From proactive dynamic detection and prevention to fast, flexible recovery from cyber incidents, Datto’s solutions defend against costly downtime and data loss in servers, virtual machines, cloud applications, or anywhere data resides. Since its founding in 2007, Datto has won numerous awards for its product excellence, superior technical support, rapid growth, and for fostering an outstanding workplace. With headquarters in Norwalk, Connecticut, Datto has global offices in Australia, Canada, China, Denmark, Germany, Israel, the Netherlands, Singapore, and the United Kingdom.
Learn more at datto.com .
Forward-Looking Statements
This press release contains forward-looking statements that reflect Datto’s current expectations and projections with respect to, among other things, the proposed acquisition of Datto by Kaseya, Datto’s financial condition, results of operations, plans, objectives, future performance, and business. These statements may be preceded by, followed by or include the words ‘‘anticipate,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘project,’’ ‘‘plan,’’ ‘‘intend,’’ ‘‘believe,’’ ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘can have,’’ ‘‘likely’’ and the negatives thereof and other words and terms of similar meaning. Forward-looking statements include all statements that are not historical facts. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements, including: uncertainties associated with the proposed acquisition of Datto by Kaseya; the occurrence of any event, change or other circumstances that could give rise to the termination of the related Merger Agreement; the inability to complete the proposed acquisition due to the failure to satisfy conditions to completion of the proposed acquisition, including the receipt of applicable approvals and clearances by government authorities; risks related to disruption of management’s attention from our ongoing business operations due to the proposed acquisition; the effect of the announcement of the proposed acquisition on our relationships with our customers, operating results and business generally; the risk that the proposed acquisition will not be consummated in a timely manner or at all; the costs of the proposed acquisition if the proposed acquisition is not consummated; restrictions imposed on our business during the pendency of the proposed acquisition; our ability to recruit, retain and develop key employees and management personnel, including in light of the proposed acquisition; the continuing impacts on our operations and financial condition from the effects of the COVID-19 pandemic; our ability to effectively compete; fluctuations in our operating results; our ability to sustain cash flows and profitability; our ability to attract new managed service provider (“MSP”) partners; our ability to sell additional products and subscriptions to our MSP partners; the recognition of revenue from our subscription offerings; the strength of the small and medium businesses (“SMB”) information technology (“IT”) market; our ability to manage the ongoing growth of our business; the risks associated with our current and future international operations, including the risks of expansion into new international markets; the impact of volatility in the global economy; including heightened inflation, rising interest rates and the effects from the war in Ukraine; the ability of our MSP partners to sell our products; possible data losses or breaches experienced by MSP partners or their SMB customers using our products or solutions; the risks associated with defects or vulnerabilities in our or our third-parties’ software, solutions, infrastructure and hardware; the impact of natural disasters, health pandemics, terrorism or other catastrophic events; and other factors disclosed in the section entitled “Risk Factors” of our most recent Annual Report on Form 10-K and subsequent filings with the SEC.
There is no assurance that any forward-looking statements will materialize. You are cautioned not to place undue reliance on forward-looking statements, which reflect expectations only as of this date. Datto undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
Non-GAAP Financial Measures
In addition to our results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), we believe that the non-GAAP financial measures of Non-GAAP Subscription Cost of Revenue, Non-GAAP Device Cost of Revenue, Non-GAAP Professional Services and Other Cost of Revenue, Non-GAAP Depreciation and Amortization in Cost of Revenue, Non-GAAP Cost of Revenue, Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Sales and Marketing expense, Non-GAAP Research and Development expense, Non-GAAP General and Administrative expense, Non-GAAP Depreciation and Amortization in Operating Expenses, Non-GAAP Operating Expenses, Non-GAAP Income from Operations, Non-GAAP Net Income and Non-GAAP Net Income Per Share, Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow are useful in evaluating our operating performance and liquidity, as applicable. Certain of these measures exclude interest and other (income) expense, net, loss on extinguishment of debt, depreciation and amortization, stock-based compensation expense, restructuring expense and transaction related and other expense. In addition, for Non-GAAP Net Income we utilize a non-GAAP tax rate of 25%, which we believe reflects our normalized effective tax rate. Non-GAAP Gross Margin and Adjusted EBITDA Margin are calculated by dividing Non-GAAP Gross Profit and Adjusted EBITDA, as applicable, by revenues. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies.
Reconciliation tables of the most directly comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this press release.
For more information about Datto, including supplemental financial information, please visit the investor relations website at investors.datto.com .
| DATTO HOLDING CORP. |
| Condensed Consolidated Statements of Operations |
| (in thousands, except share and per share amounts) |
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
|
|
|
|
| 2022 |
|
|
|
|
|
|
| 2021 |
|
|
| Revenue: |
|
|
|
|
|
|
| Subscription |
| $ |
| 160,513 |
|
|
|
|
| $ |
| 135,590 |
|
|
| Device |
|
|
| 9,516 |
|
|
|
|
|
|
| 8,385 |
|
|
| Professional services and other |
|
|
| 752 |
|
|
|
|
|
|
| 934 |
|
|
| Total revenue |
|
|
| 170,781 |
|
|
|
|
|
|
| 144,909 |
|
|
| Cost of revenue: |
|
|
|
|
|
|
| Subscription |
|
|
| 25,660 |
|
|
|
|
|
|
| 20,930 |
|
|
| Device |
|
|
| 12,608 |
|
|
|
|
|
|
| 9,498 |
|
|
| Professional services and other |
|
|
| 1,783 |
|
|
|
|
|
|
| 1,502 |
|
|
| Depreciation and amortization |
|
|
| 9,399 |
|
|
|
|
|
|
| 6,625 |
|
|
| Total cost of revenue |
|
|
| 49,450 |
|
|
|
|
|
|
| 38,555 |
|
|
| Gross profit |
|
|
| 121,331 |
|
|
|
|
|
|
| 106,354 |
|
|
| Operating expenses: |
|
|
|
|
|
|
| Sales and marketing |
|
|
| 39,862 |
|
|
|
|
|
|
| 31,926 |
|
|
| Research and development |
|
|
| 33,582 |
|
|
|
|
|
|
| 22,474 |
|
|
| General and administrative |
|
|
| 32,569 |
|
|
|
|
|
|
| 24,621 |
|
|
| Depreciation and amortization |
|
|
| 7,269 |
|
|
|
|
|
|
| 6,570 |
|
|
| Total operating expenses |
|
|
| 113,282 |
|
|
|
|
|
|
| 85,591 |
|
|
| Income from operations |
|
|
| 8,049 |
|
|
|
|
|
|
| 20,763 |
|
|
| Other (income) expense: |
|
|
|
|
|
|
| Interest expense |
|
|
| 122 |
|
|
|
|
|
|
| 102 |
|
|
| Other income, net |
|
|
| (672 |
| ) |
|
|
|
|
| (19 |
| ) |
| Total other (income) expense |
|
|
| (550 |
| ) |
|
|
|
|
| 83 |
|
|
| Income before income taxes |
|
|
| 8,599 |
|
|
|
|
|
|
| 20,680 |
|
|
| Provision for income taxes |
|
|
| (652 |
| ) |
|
|
|
|
| (5,394 |
| ) |
| Net income |
| $ |
| 7,947 |
|
|
|
|
| $ |
| 15,286 |
|
|
|
|
|
|
|
|
|
|
| Net income per share attributable to common stockholders: |
|
|
|
|
|
|
| Basic |
| $ |
| 0.05 |
|
|
|
|
| $ |
| 0.09 |
|
|
| Diluted |
| $ |
| 0.05 |
|
|
|
|
| $ |
| 0.09 |
|
|
| Weighted-average shares used in computing net income per share: |
|
|
|
|
|
|
| Basic |
|
|
| 164,081,628 |
|
|
|
|
|
|
| 161,066,404 |
|
|
| Diluted |
|
|
| 167,535,063 |
|
|
|
|
|
|
| 164,734,402 |
|
|
| DATTO HOLDING CORP. |
| Condensed Consolidated Balance Sheets |
| (in thousands) |
| (unaudited) |
|
|
| March 31, |
|
|
| December 31, |
|
|
|
|
| 2022 |
|
|
|
|
|
|
| 2021 |
|
|
| ASSETS |
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
| Cash and cash equivalents |
| $ |
| 191,188 |
|
|
|
|
| $ |
| 221,421 |
|
|
| Restricted cash |
|
|
| 1,637 |
|
|
|
|
|
|
| 1,319 |
|
|
| Accounts receivable, net |
|
|
| 13,419 |
|
|
|
|
|
|
| 12,870 |
|
|
| Inventory |
|
|
| 43,913 |
|
|
|
|
|
|
| 34,901 |
|
|
| Prepaid expenses and other current assets |
|
|
| 44,490 |
|
|
|
|
|
|
| 39,456 |
|
|
| Total current assets |
|
|
| 294,647 |
|
|
|
|
|
|
| 309,967 |
|
|
| Property and equipment, net |
|
|
| 108,475 |
|
|
|
|
|
|
| 106,577 |
|
|
| Operating lease assets |
|
|
| 31,994 |
|
|
|
|
|
|
| 31,003 |
|
|
| Goodwill |
|
|
| 1,172,860 |
|
|
|
|
|
|
| 1,141,726 |
|
|
| Intangible assets, net |
|
|
| 292,568 |
|
|
|
|
|
|
| 287,605 |
|
|
| Other assets |
|
|
| 89,901 |
|
|
|
|
|
|
| 85,313 |
|
|
| Total assets |
| $ |
| 1,990,445 |
|
|
|
|
| $ |
| 1,962,191 |
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
| Accounts payable |
| $ |
| 15,227 |
|
|
|
|
| $ |
| 9,997 |
|
|
| Accrued expenses and other current liabilities |
|
|
| 56,125 |
|
|
|
|
|
|
| 59,553 |
|
|
| Deferred revenue |
|
|
| 20,274 |
|
|
|
|
|
|
| 20,356 |
|
|
| Total current liabilities |
|
|
| 91,626 |
|
|
|
|
|
|
| 89,906 |
|
|
| Deferred revenue, noncurrent |
|
|
| 3,293 |
|
|
|
|
|
|
| 3,341 |
|
|
| Deferred income taxes |
|
|
| 22,725 |
|
|
|
|
|
|
| 24,955 |
|
|
| Operating lease liabilities, noncurrent |
|
|
| 30,761 |
|
|
|
|
|
|
| 31,332 |
|
|
| Other long-term liabilities |
|
|
| 762 |
|
|
|
|
|
|
| 715 |
|
|
| Total liabilities |
|
|
| 149,167 |
|
|
|
|
|
|
| 150,249 |
|
|
| Commitments and contingencies |
|
|
|
|
|
|
| STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
| Common stock |
|
|
| 165 |
|
|
|
|
|
|
| 164 |
|
|
| Additional paid-in capital |
|
|
| 1,852,073 |
|
|
|
|
|
|
| 1,829,957 |
|
|
| Treasury stock |
|
|
| (3,621 |
| ) |
|
|
|
|
| (3,621 |
| ) |
| Accumulated deficit |
|
|
| (5,845 |
| ) |
|
|
|
|
| (13,792 |
| ) |
| Accumulated other comprehensive income (loss) |
|
|
| (1,494 |
| ) |
|
|
|
|
| (766 |
| ) |
| Total stockholders’ equity |
|
|
| 1,841,278 |
|
|
|
|
|
|
| 1,811,942 |
|
|
| Total liabilities and stockholders’ equity |
| $ |
| 1,990,445 |
|
|
|
|
| $ |
| 1,962,191 |
|
|
| DATTO HOLDING CORP. |
| Condensed Consolidated Statements of Cash Flows |
| (in thousands) |
| (unaudited) |
|
|
| Three Months Ended |
|
|
|
|
| 2022 |
|
|
|
|
|
|
| 2021 |
|
|
| OPERATING ACTIVITIES |
|
|
|
|
|
|
| Net income |
| $ |
| 7,947 |
|
|
|
|
| $ |
| 15,286 |
|
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
| Depreciation |
|
|
| 8,862 |
|
|
|
|
|
|
| 7,461 |
|
|
| Amortization of acquired intangible assets |
|
|
| 7,806 |
|
|
|
|
|
|
| 5,734 |
|
|
| Amortization of debt issuance costs |
|
|
| 84 |
|
|
|
|
|
|
| 84 |
|
|
| Reserve for inventory obsolescence |
|
|
| 375 |
|
|
|
|
|
|
| 36 |
|
|
| Non-cash operating lease expense |
|
|
| 1,926 |
|
|
|
|
|
|
| 1,870 |
|
|
| Stock-based compensation |
|
|
| 12,613 |
|
|
|
|
|
|
| 11,511 |
|
|
| Provision for bad debt |
|
|
| 485 |
|
|
|
|
|
|
| 1,211 |
|
|
| Deferred income taxes |
|
|
| (2,607 |
| ) |
|
|
|
|
| 4,717 |
|
|
| Unrealized foreign exchange |
|
|
| (298 |
| ) |
|
|
|
|
| (626 |
| ) |
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
| Accounts receivable |
|
|
| (760 |
| ) |
|
|
|
|
| (160 |
| ) |
| Inventory |
|
|
| (9,399 |
| ) |
|
|
|
|
| (5,559 |
| ) |
| Prepaid expenses and other current assets |
|
|
| (4,951 |
| ) |
|
|
|
|
| (3,820 |
| ) |
| Other assets |
|
|
| (4,253 |
| ) |
|
|
|
|
| (4,083 |
| ) |
| Accounts payable, accrued expenses and other |
|
|
| (2,158 |
| ) |
|
|
|
|
| 3,535 |
|
|
| Deferred revenue |
|
|
| (602 |
| ) |
|
|
|
|
| (2,030 |
| ) |
| Net cash provided by operating activities |
|
|
| 15,070 |
|
|
|
|
|
|
| 35,167 |
|
|
| INVESTING ACTIVITIES |
|
|
|
|
|
|
| Purchase of property and equipment |
|
|
| (10,511 |
| ) |
|
|
|
|
| (10,681 |
| ) |
| Acquisition of business, net of cash acquired |
|
|
| (43,521 |
| ) |
|
|
|
|
| (45,486 |
| ) |
| Net cash used in investing activities |
|
|
| (54,032 |
| ) |
|
|
|
|
| (56,167 |
| ) |
| FINANCING ACTIVITIES |
|
|
|
|
|
|
| Repayments of debt and capital leases |
|
|
| (28 |
| ) |
|
|
|
|
| (28 |
| ) |
| Capitalized transaction costs |
|
|
| — |
|
|
|
|
|
|
| (414 |
| ) |
| Proceeds from stock option exercises |
|
|
| 6,239 |
|
|
|
|
|
|
| 177 |
|
|
| Proceeds from employee stock purchase plan share purchases |
|
|
| 3,261 |
|
|
|
|
|
|
| — |
|
|
| Net cash provided by (used in) financing activities |
|
|
| 9,472 |
|
|
|
|
|
|
| (265 |
| ) |
| Effect of exchange rate changes on cash and cash equivalents |
|
|
| (425 |
| ) |
|
|
|
|
| 46 |
|
|
| Net decrease in cash and cash equivalents |
|
|
| (29,915 |
| ) |
|
|
|
|
| (21,219 |
| ) |
| Cash and cash equivalents and restricted cash, beginning of year |
|
|
| 222,740 |
|
|
|
|
|
|
| 170,413 |
|
|
| Cash and cash equivalents and restricted cash, end of period |
| $ |
| 192,825 |
|
|
|
|
| $ |
| 149,194 |
|
|
| Reconciliation of cash and cash equivalents and restricted cash: |
|
|
|
|
|
|
| Cash and cash equivalents |
| $ |
| 191,188 |
|
|
|
|
| $ |
| 147,819 |
|
|
| Restricted cash |
| $ |
| 1,637 |
|
|
|
|
| $ |
| 1,375 |
|
|
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
|
|
|
|
|
|
| Cash paid for income taxes |
| $ |
| 816 |
|
|
|
|
| $ |
| 226 |
|
|
| Cash paid for interest |
| $ |
| 93 |
|
|
|
|
| $ |
| — |
|
|
| NON-CASH INVESTING AND FINANCING ACTIVITIES |
|
|
|
|
|
|
| Purchase of property and equipment included in accounts payable |
| $ |
| 400 |
|
|
|
|
| $ |
| 271 |
|
|
| Unpaid initial public offering costs in total current liabilities |
| $ |
| — |
|
|
|
|
| $ |
| 270 |
|
|
| DATTO HOLDING CORP. |
| GAAP to Non-GAAP Reconciliations and Calculation of Other Key Metrics |
| (in thousands, except percentages and share and per share amounts) |
| (unaudited) |
|
|
| Three Months Ended |
|
|
|
|
| 2022 |
|
|
|
|
|
|
| 2021 |
|
|
| Non-GAAP Subscription Cost of Revenue |
|
|
|
|
|
|
| GAAP subscription cost of revenue |
| $ |
| 25,660 |
|
|
|
|
| $ |
| 20,930 |
|
|
| Stock-based compensation expense |
|
|
| (1,020 |
| ) |
|
|
|
|
| (1,228 |
| ) |
| Non-GAAP subscription cost of revenue |
| $ |
| 24,640 |
|
|
|
|
| $ |
| 19,702 |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Device Cost of Revenue |
|
|
|
|
|
|
| GAAP device cost of revenue |
| $ |
| 12,608 |
|
|
|
|
| $ |
| 9,498 |
|
|
| Stock-based compensation expense |
|
|
| (36 |
| ) |
|
|
|
|
| (62 |
| ) |
| Non-GAAP device gross cost of revenue |
| $ |
| 12,572 |
|
|
|
|
| $ |
| 9,436 |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Professional Services and Other Cost of Revenue |
|
|
|
|
|
|
| GAAP professional services and other cost of revenue |
| $ |
| 1,783 |
|
|
|
|
| $ |
| 1,502 |
|
|
| Stock-based compensation expense |
|
|
| (66 |
| ) |
|
|
|
|
| (103 |
| ) |
| Non-GAAP professional services and other cost of revenue |
| $ |
| 1,717 |
|
|
|
|
| $ |
| 1,399 |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Depreciation and Amortization in Cost of Revenue |
|
|
|
|
|
|
| GAAP depreciation and amortization in cost of revenue |
| $ |
| 9,399 |
|
|
|
|
| $ |
| 6,625 |
|
|
| Amortization of acquired intangible assets |
|
|
| (3,140 |
| ) |
|
|
|
|
| (1,312 |
| ) |
| Non-GAAP depreciation and amortization in cost of revenue |
| $ |
| 6,259 |
|
|
|
|
| $ |
| 5,313 |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Cost of Revenue |
|
|
|
|
|
|
| GAAP cost of revenue |
| $ |
| 49,450 |
|
|
|
|
| $ |
| 38,555 |
|
|
| Amortization of acquired intangible assets |
|
|
| (3,140 |
| ) |
|
|
|
|
| (1,312 |
| ) |
| Stock-based compensation expense |
|
|
| (1,122 |
| ) |
|
|
|
|
| (1,393 |
| ) |
| Non-GAAP cost of revenue |
| $ |
| 45,188 |
|
|
|
|
| $ |
| 35,850 |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Gross Profit |
|
|
|
|
|
|
| GAAP gross profit |
| $ |
| 121,331 |
|
|
|
|
| $ |
| 106,354 |
|
|
| Amortization of acquired intangible assets |
|
|
| 3,140 |
|
|
|
|
|
|
| 1,312 |
|
|
| Stock-based compensation expense |
|
|
| 1,122 |
|
|
|
|
|
|
| 1,393 |
|
|
| Non-GAAP gross profit |
| $ |
| 125,593 |
|
|
|
|
| $ |
| 109,059 |
|
|
| DATTO HOLDING CORP. |
| GAAP to Non-GAAP Reconciliations and Calculation of Other Key Metrics |
| (in thousands, except percentages and share and per share amounts) |
| (unaudited) |
|
|
| Three Months Ended March 31, |
|
|
|
|
| 2022 |
|
|
|
|
|
|
| 2021 |
|
|
| Non-GAAP Sales and Marketing |
|
|
|
|
|
|
| GAAP sales and marketing expense |
| $ |
| 39,862 |
|
|
|
|
| $ |
| 31,926 |
|
|
| Stock-based compensation expense |
|
|
| (2,588 |
| ) |
|
|
|
|
| (2,295 |
| ) |
| Non-GAAP sales and marketing expense |
| $ |
| 37,274 |
|
|
|
|
| $ |
| 29,631 |
|
|
| Non-GAAP Research and Development |
|
|
|
|
|
|
| GAAP research and development expense |
| $ |
| 33,582 |
|
|
|
|
| $ |
| 22,474 |
|
|
| Stock-based compensation expense |
|
|
| (6,174 |
| ) |
|
|
|
|
| (4,874 |
| ) |
| Non-GAAP research and development expense |
| $ |
| 27,408 |
|
|
|
|
| $ |
| 17,600 |
|
|
| Non-GAAP General and Administrative |
|
|
|
|
|
|
| GAAP general and administrative expense |
| $ |
| 32,569 |
|
|
|
|
| $ |
| 24,621 |
|
|
| Stock-based compensation expense |
|
|
| (2,729 |
| ) |
|
|
|
|
| (2,949 |
| ) |
| Transaction related and other expense |
|
|
| (2,210 |
| ) |
|
|
|
|
| (1,439 |
| ) |
| Non-GAAP general and administrative expense |
| $ |
| 27,630 |
|
|
|
|
| $ |
| 20,233 |
|
|
| Non-GAAP Depreciation and Amortization in Operating Expenses |
|
|
|
|
|
|
| GAAP depreciation and amortization in operating expenses |
| $ |
| 7,269 |
|
|
|
|
| $ |
| 6,570 |
|
|
| Amortization of acquired intangible assets |
|
|
| (4,666 |
| ) |
|
|
|
|
| (4,422 |
| ) |
| Non-GAAP depreciation and amortization in operating expenses |
| $ |
| 2,603 |
|
|
|
|
| $ |
| 2,148 |
|
|
| Non-GAAP Operating Expenses |
|
|
|
|
|
|
| GAAP operating expenses |
| $ |
| 113,282 |
|
|
|
|
| $ |
| 85,591 |
|
|
| Amortization of acquired intangible assets |
|
|
| (4,666 |
| ) |
|
|
|
|
| (4,422 |
| ) |
| Stock-based compensation expense |
|
|
| (11,491 |
| ) |
|
|
|
|
| (10,118 |
| ) |
| Transaction related and other expense |
|
|
| (2,210 |
| ) |
|
|
|
|
| (1,439 |
| ) |
| Non-GAAP operating expenses |
| $ |
| 94,915 |
|
|
|
|
| $ |
| 69,612 |
|
|
| Non-GAAP Income From Operations |
|
|
|
|
|
|
| GAAP income from operations |
| $ |
| 8,049 |
|
|
|
|
| $ |
| 20,763 |
|
|
| Amortization of acquired intangible assets |
|
|
| 7,806 |
|
|
|
|
|
|
| 5,734 |
|
|
| Stock-based compensation expense |
|
|
| 12,613 |
|
|
|
|
|
|
| 11,511 |
|
|
| Transaction related and other expense |
|
|
| 2,210 |
|
|
|
|
|
|
| 1,439 |
|
|
| Non-GAAP income from operations |
| $ |
| 30,678 |
|
|
|
|
| $ |
| 39,447 |
|
|
| DATTO HOLDING CORP. |
| GAAP to Non-GAAP Reconciliations and Calculation of Other Key Metrics |
| (in thousands, except percentages and share and per share amounts) |
| (unaudited) |
|
|
| Three Months Ended March 31, |
|
|
|
|
| 2022 |
|
|
|
|
|
|
| 2021 |
|
|
| Non-GAAP Net Income and Net Income Per Share |
|
|
|
|
|
|
| GAAP net income |
| $ |
| 7,947 |
|
|
|
|
| $ |
| 15,286 |
|
|
| GAAP provision for income taxes |
|
|
| 652 |
|
|
|
|
|
|
| 5,394 |
|
|
| GAAP income before income taxes |
|
|
| 8,599 |
|
|
|
|
|
|
| 20,680 |
|
|
| Amortization of acquired intangible assets |
|
|
| 7,806 |
|
|
|
|
|
|
| 5,734 |
|
|
| Stock-based compensation expense |
|
|
| 12,613 |
|
|
|
|
|
|
| 11,511 |
|
|
| Transaction related and other expense |
|
|
| 2,210 |
|
|
|
|
|
|
| 1,439 |
|
|
| Non-GAAP provision for income taxes |
|
|
| (7,807 |
| ) |
|
|
|
|
| (9,841 |
| ) |
| Non-GAAP net income |
| $ |
| 23,421 |
|
|
|
|
| $ |
| 29,523 |
|
|
| Non-GAAP net income per share attributable to common shareholders: |
|
|
|
|
|
|
| Basic |
| $ |
| 0.14 |
|
|
|
|
| $ |
| 0.18 |
|
|
| Diluted |
| $ |
| 0.14 |
|
|
|
|
| $ |
| 0.18 |
|
|
| Weighted-Average Shares used in computing Non-GAAP Net Income per Share: |
|
|
|
|
|
|
| Non-GAAP weighted-average shares used in computing net income per share, basic |
|
|
| 164,081,628 |
|
|
|
|
|
|
| 161,066,404 |
|
|
| Non-GAAP weighted-average shares used in computing net income per share, diluted |
|
|
| 167,535,063 |
|
|
|
|
|
|
| 164,734,402 |
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
|
|
|
|
|
| GAAP net income |
| $ |
| 7,947 |
|
|
|
|
| $ |
| 15,286 |
|
|
| Interest and other (income) expense, net |
|
|
| (550 |
| ) |
|
|
|
|
| 83 |
|
|
| Depreciation and amortization |
|
|
| 16,668 |
|
|
|
|
|
|
| 13,195 |
|
|
| Provision for income tax |
|
|
| 652 |
|
|
|
|
|
|
| 5,394 |
|
|
| Stock-based compensation expense |
|
|
| 12,613 |
|
|
|
|
|
|
| 11,511 |
|
|
| Transaction related and other expense |
|
|
| 2,210 |
|
|
|
|
|
|
| 1,439 |
|
|
| Adjusted EBITDA |
| $ |
| 39,540 |
|
|
|
|
| $ |
| 46,908 |
|
|
| Adjusted EBITDA margin |
|
|
| 23.2 |
| % |
|
|
|
|
| 32.4 |
| % |
|
|
|
|
|
|
|
|
| Free Cash Flow |
|
|
|
|
|
|
| GAAP net cash provided by operating activities |
| $ |
| 15,070 |
|
|
|
|
| $ |
| 35,167 |
|
|
| Less: Purchases of property and equipment |
|
|
| (10,511 |
| ) |
|
|
|
|
| (10,681 |
| ) |
| Free cash flow |
| $ |
| 4,559 |
|
|
|
|
| $ |
| 24,486 |
|
|
MSP-F
View source version on businesswire.com: https://www.businesswire.com/news/home/20220509005724/en/
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Shoba V. Lemoine
communications@datto.com
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