Datto appeared to have good financial momentum ahead of the MSP technology company's pending $6.2 billion sale to Kaseya. The latest evidence involves Datto's Q1 financial results for the quarter ended March 31, 2022.
Among the key takeaways, Datto on May 9, 2022 said:
- Total revenue was $170.8 million for Q1 of 2022, up 18% from Q1 of 2021, though net income dipped 48% to $7.9 million.
- The company now served more than 19,200 MSP partners, a net increase of 700 MSPs compared to the previous quarter.
- Roughly 1,500 MSPs now spend over $100,000 annually with Datto, up 30% compared to 1,150 in Q1 of 2021.
The figures appear to show that demand remains solid for Datto's data protection, IT monitoring and business automation software.
Still, it's difficult to provide a deeper context about the financial results. The reasons:
- Datto will not hold an earnings call with Wall Street analysts because of the pending sale to Kaseya, which is backed by private equity firm Insight Partners.
- Also, these Datto financial results represent a quarter that closed roughly a week or so before Kaseya announced plans to buy the company.
In a prepared statement about the Q1 2022 earnings, Datto CEO Tim Weller said:
“We had a strong start to 2022, achieving 20% subscription revenue growth in constant currency terms for the first time since going public. 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.”
What's next for the Kaseya-Datto deal? See the timeline of next moves here.
