DAtto: Fiscal 3Q21 Financial Results

DAtto Holding Corp. announced its financial results for the third quarter ended September 30, 2021.

“The third quarter was another record quarter for DAtto,” said Tim Weller, CEO. “Our revenue growth exceeded 20% for a second consecutive quarter and our subscription revenue growth continued to accelerate. We grew our MSP partners to over 18,200, and ARR per MSP continued to expand. In addition, we launched 2 significant new products in security and cloud – SaaS Defense, and DAtto Continuity for Microsoft Azure – that both meet the critical need of securing digital assets for our MSP partners and their SMB clients. These new products solidify our leading position in providing cyber resilience to our MSP partners, expand our addressable market, and will contribute to our continued growth in years to come. Looking ahead, I’m as optimistic as ever about the large opportunity in front of us to empower our MSP partners to help their SMB clients thrive in an increasingly complex IT world.”

(1) Subscription and total revenue Y/Y percentage change includes benefits from favorable foreign exchange rates of approximately 1.5%.
(2) Annual run-rate revenue (ARR) is the annualized value of all subscription agreements as of the end of a period. It is calculated 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.

Recent Highlights
• Ended the quarter with more than 18,200 MSP partners, a net increase of 400 from the previous quarter.
• Expanded the number of MSPs contributing over $100,000 ARR to 1,300, a 24% increase from 1,050 at September 30, 2020.
• Launched DAtto Continuity for Microsoft Azure (DCMA). DCMA is a BC and DR solution that protects MSPs and their clients’ data in the public cloud in the event of malicious ransomware attacks, security breaches, and vendor outages.
• Launched SaaS Defense security product. It is an threat protection and spam-filtering solution that provides MSPs with patented technology to proactively detect and prevent malicious malware, phishing, and Business Email Compromise (BEC) attacks that target Exchange, OneDrive, SharePoint, and Teams. The product is based on patented technology obtained in DAtto’s acquisition of Israel-based cyber threat-detection company BitDam earlier this year.
• Hosted DAttoCon NOW, DAtto’s largest event in its history, attracting more than 4,700 virtual attendees from 50 countries. The overarching theme was security and the event featured keynote addresses and other presentations covering everything from technology trends and new product launches to security best practices. MSPs were able to learn from peers, industry thought firms like Microsoft, and top vendors from across the channel.
• Achieved notably high marks for the security of DAtto RMM in an independent third-party assessment of software applications by Synopsis. The assessment was based on the industry-standard Building Security in Maturity Model (BSIMM). DAtto is the only MSP-focused company that participates in the assessment, and RMM is the only channel RMM that has been evaluated under the BSIMM framework. Other participants include enterprises such as Microsoft, Cisco, Verizon, Aetna, Johnson & Johnson, TD Ameritrade, US Bank, Bank of America, and other large institutions.
 
4Q21 outlook revenue: $161 to $163 million
FY21 outlook revenue: $615 to $617 million