Datto Outlines Plans for Putting its IPO Bounty to Work

Though few would dispute its status as one of the worst years in modern times, 2020 is looking significantly better in its final days than it did in its early months, when the rapid spread of a novel coronavirus and a severely disrupted economy had MSPs and the vendors that serve them reeling.

For evidence, one need only look at the financial results managed services vendor Datto recently posted for its third fiscal quarter, which concluded September 30th. Overall revenue was up 11% year over year and subscription revenue climbed an even healthier 17%. What’s more, “annual run-rate revenue,” which Datto calculates by multiplying subscription billings in the last month of a quarter by 12, rose $16 million on a quarter over quarter basis.

“Every product we have did better in Q3 than Q2,” said Datto CEO Tim Weller yesterday during the company’s MSP Technology Day event, its first online conference since going public in October. “I think the data is pretty clear that the industry’s recovering and is more mission-critical than ever.”

That’s good news for channel pros too, of course, but what most Datto partners really want to know these days is what’s ahead for the company in 2021, especially now that Wall Street analysts are scrutinizing its every move. Speakers during yesterday’s event outlined a variety of current and forthcoming changes to Datto’s RMM and PSA products, but Weller shared more general thoughts on the future as well. Here are highlights of his remarks.

Photo: New York Stock Exchange