Datto Monday unveiled what could be its last quarterly financials before it goes private as part of the US$6.2 billion plan by rival Kaseya to acquire the company.
Because of the acquisition, Datto is breaking with tradition and not hosting a financial analyst conference call. The company is also withdrawing its prior guidance for the quarter, and earlier had said it would “postpone” its 2022 annual shareholders meeting originally scheduled for May 5.
Kaseya and Datto last month said Kaseya would acquire Datto in a US$6.2 billion deal that would reinforce Kaseya’s position as the leading provider of technology that both gave MSPs the RMM (remote monitoring and management) and PSA (professional services automation) platforms on which to run their practices as well as applications that MSPs can provide to clients as a service.
Since the acquisition was unveiled, Datto has been fairly quiet with the information it has provided giving SEC rules about around mergers and acquisitions of public companies. Datto went public in October, 2020 with the stock ticker “MSP” in a move that reflects the fact that its customers are exclusively MSPs.
However, Kaseya CEO Fred Voccola talked with CRN US about plans for Datto after the acquisition and how it will impact Datto’s MSPs. Several Datto MSPs told CRN US that they are concerned about how the acquisition by Kaseya might impact their business given that Kaseya has some direct business, and that the two companies’ corporate cultures are different.
Datto’s first fiscal quarter 2022 ended March 31, less than two weeks before Kaseya unveiled its plan to acquire Datto, which means that financial results for the do not reflect any changes that might come from the acquisition.
For its first fiscal quarter 2022, Datto reported revenue of US$170.8 million, up nearly 18 percent from the US$144.9 million the company reported for its first fiscal quarter 2021.
Included in that amount is subscription revenue of US$160.5 million, up from US$135.6 million; device revenue of US$9.5 million, up from US$8.4 million; and professionals services and other revenue of US$752 million, down from US$934 million.
Datto’s device sales include data protection appliances and networking gear targeting MSPs’ clients.
For the quarter, Datto reported GAAP net income of US$7.9 million, or 5 cents per share, down from last year’s US$15.3 million, or 9 cents per share. On a non-GAAP basis, Datto reported net income of US$23.4 million, or 14 cents per share, down from last year’s US$29.5 million, or 18 cents per share.
Datto also said it ended its first fiscal quarter 2022 with over 19,200 MSP partners, which was up by 700 over its previous quarter, and that the number of MSPs contributing over US$100,000 in annual recurring revenue reached 1,500, up 30 percent over last year.