Fourth quarter subscription revenue grew 19 percent year-over-year to $153.2 million

ARR grew 21 percent year-over-year to $658.4 million

NORWALK, Conn. – February 23, 2022 — / BackupReview.info / — 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 fourth quarter and full year ended December 31, 2021.

“We finished 2021 on a strong note with another quarter of accelerating growth,” said Tim Weller, Datto’s Chief Executive Officer. “The fourth quarter capped an exceptional year for Datto and our MSP partners. We exceeded all of our targets in our first full year as a public company and launched several new, highly differentiated products that help our MSP partners better secure digital assets on behalf of their SMB clients. MSPs now find themselves squarely in the security business, and Datto is right there with them. We further solidified Datto’s leading position in security solutions with the early 2022 acquisition of cybersecurity firm Infocyte. 2022 is shaping up to be another exciting year for Datto as we continue to help our MSP partners on their security journey with our new products ramping and more on the way.”

Fourth Quarter and Full Year 2021 Financial Results

(In Millions)

Q4 2021

Q4 2020

Y/Y Change

FY 2021

FY 2020

Y/Y Change

Subscription Revenue(1)

$153.2

$129.0

19%

$577.3

$485.3

19%

Total Revenue(1)

$164.3

$139.0

18%

$618.7

$518.8

19%

ARR(2)

$658.4

$542.8

21%

$658.4

$542.8

21%

Gross Margin

70%

69%

88 bps

71%

71%

45 bps

Non-GAAP Gross Margin(3)

72%

74%

(108 bps)

74%

73%

74 bps

Net Income

$5.7

$(7.2)

N/M

$51.4

$22.5

129%

Adjusted EBITDA(3)

$39.8

$40.8

(3)%

$175.4

$150.5

17%

Net Cash Provided by Operating Activities

$26.3

$34.6

(24)%

$125.4

$108.7

15%

Free Cash Flow(3)

$11.2

$22.7

(51)%

$78.1

$68.2

15%

1

Subscription and Total Revenue Y/Y percentage change includes benefits from favorable foreign exchange rates of approximately 25 basis points for the fourth quarter and 200 basis points for the full year.

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

  • Ended the quarter with more than 18,500 MSP partners, a net increase of 1,500 (+9%) from the previous year.
  • Ended the quarter with average ARR per MSP of approximately $35,600, an increase of approximately $3,600 (+11%) from the previous year.
  • Expanded the number of MSPs contributing over $100,000 ARR to 1,400, a 27% increase from 1,100 at December 31, 2020.
  • Acquired cybersecurity company Infocyte, an innovator in Endpoint Detection and Response (EDR) technologies and Managed Detection and Response (MDR) services. The Infocyte team and technology augment Datto’s capabilities within the critical Protect, Detect, and Respond stages of the NIST security framework, and add to the Company’s rapidly expanding set of MSP-delivered security offerings.
  • Released a tool for MSPs to combat the Apache Log4j vulnerability. This endpoint assessment software works with any Remote Monitoring and Management (RMM) solution and can uniquely enumerate potentially vulnerable systems, detect intrusion attempts, and inoculate Windows systems against Log4j attacks.
  • In support of Datto’s growth strategy and commitment to the DACH region (Germany, Austria, and Switzerland), the Company announced a partnership with Infinigate, a leading Value-Added Distributor of cybersecurity solutions in Europe. Infinigate has a large customer base in DACH and will strengthen our sales efforts in the region and help attract new MSPs to Datto through a proven selling model.
  • Announced that Brooke Cunningham has joined the Company as Datto’s Chief Marketing Officer and Emily Tabak Epstein has joined as General Counsel.

First Quarter and Full Year 2022 Financial Outlook

Datto is providing the following guidance for the first quarter and full-year 2022:

(In Millions)

Q1 2022 Outlook

FY 2022 Outlook

Total Revenue (1)

$168 – $169

$720 – $726

Y/Y growth as reported

16% – 17%

16% – 17%

Y/Y growth constant currency

17% – 18%

18% – 19%

Subscription Revenue (1)

$158 – $159

$676 – $682

Y/Y growth as reported

17% – 17%

17% – 18%

Y/Y growth constant currency

18% – 19%

18% – 19%

Adjusted EBITDA

$37 – $38

$163 – $168

Adjusted EBITDA margin

22%

23%

1

Subscription and Total Revenue guidance include foreign exchange rate assumptions which reduce Y/Y growth rates by approximately 150 basis points for the first quarter and 130 basis points for the full year and which are excluded in the constant currency growth rates.

Datto Fourth Quarter and Full-Year 2021 Results Conference Call
When:
 Wednesday, February 23, 2022
Time: 5:00 pm ET
Conference ID: 8751783
Live Call: 1-888-660-6179 (US/Canada Toll-Free) or 1-929-203-1946 (International)
Replay: 1-800-770-2030 (US/Canada Toll-Free) or 1-647-362-9199 (International)
(The replay will be available approximately two hours after the completion of the live call)
Webcast: https://investors.datto.com

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, its 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. Further information on potential factors that could affect our results is included in our Annual Report on Form 10-K.

Forward-looking statements include all statements that are not historical facts. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements.

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 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, and Free Cash Flow are useful in evaluating our operating performance. 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. 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.

Datto is not providing a quantitative reconciliation of forward-looking guidance of Adjusted EBITDA to its most directly comparable GAAP measure because certain items are out of Datto’s control or cannot be reasonably predicted, as the items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. Accordingly, a reconciliation for forward-looking Adjusted EBITDA is not available without unreasonable effort.

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 December 31,

Year Ended December 31,

2021

2020

2021

2020

Revenue:

Subscription

$

153,224

$

128,978

$

577,321

$

485,326

Device

10,180

9,104

37,832

30,202

Professional services and other

850

910

3,504

3,257

Total revenue

164,254

138,992

618,657

518,785

Cost of revenue:

Subscription

24,818

23,677

90,162

84,463

Device

13,863

11,143

47,415

37,607

Professional services and other

1,538

1,845

6,059

6,244

Depreciation and amortization

8,917

6,144

32,712

21,890

Total cost of revenue

49,136

42,809

176,348

150,204

Gross profit

115,118

96,183

442,309

368,581

Operating expenses:

Sales and marketing

40,023

31,962

139,257

115,790

Research and development

31,209

30,932

107,899

78,932

General and administrative

27,570

26,279

106,478

85,668

Depreciation and amortization

6,917

6,623

26,471

27,223

Total operating expenses

105,719

95,796

380,105

307,613

Income from operations

9,399

387

62,204

60,968

Other expense:

Interest expense

22

1,758

455

25,348

Loss on extinguishment of debt

8,488

8,488

Other expense (income), net

163

(2,026

)

387

(3,428

)

Total other expense

185

8,220

842

30,408

Income (loss) before income taxes

9,214

(7,833

)

61,362

30,560

Provision for income taxes

(3,467

)

665

(9,928

)

(8,062

)

Net income (loss)

$

5,747

$

(7,168

)

$

51,434

$

22,498

Net income per share attributable to common stockholders:

Basic

$

0.04

$

(0.05

)

$

0.32

$

0.16

Diluted

$

0.03

$

(0.05

)

$

0.31

$

0.16

Weighted-average shares used in computing net income per share:

Basic

163,210,116

154,968,918

162,048,828

140,404,763

Diluted

166,574,607

154,968,918

165,759,624

142,514,848

DATTO HOLDING CORP.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

December 31,

2021

2020

ASSETS

Current assets

Cash and cash equivalents

$

221,421

$

168,877

Restricted cash

1,319

1,536

Accounts receivable, net

12,870

13,946

Inventory

34,901

13,811

Prepaid expenses and other current assets

39,456

28,316

Total current assets

309,967

226,486

Property and equipment, net

106,577

91,876

Operating lease assets

31,003

Goodwill

1,141,726

1,120,954

Intangible assets, net

287,605

287,395

Other assets

85,313

66,560

Total assets

$

1,962,191

$

1,793,271

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable

$

9,997

$

7,574

Accrued expenses and other current liabilities

59,553

39,461

Deferred revenue

20,356

23,763

Total current liabilities

89,906

70,798

Deferred revenue, noncurrent

3,341

3,322

Deferred income taxes

24,955

18,947

Operating lease liabilities, noncurrent

31,332

Other long-term liabilities

715

11,736

Total liabilities

150,249

104,803

Commitments and contingencies

STOCKHOLDERS’ EQUITY

Common stock

164

161

Additional paid-in capital

1,829,957

1,755,387

Treasury stock

(3,621

)

(3,621

)

Accumulated deficit

(13,792

)

(65,226

)

Accumulated other comprehensive income

(766

)

1,767

Total stockholders’ equity

1,811,942

1,688,468

Total liabilities and stockholders’ equity

$

1,962,191

$

1,793,271

DATTO HOLDING CORP.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Year Ended December 31,

2021

2020

OPERATING ACTIVITIES

Net income

$

51,434

$

22,498

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

32,044

26,434

Amortization of acquired intangible assets

27,139

22,679

Loss on extinguishment of debt

8,488

Amortization of debt issuance costs

341

1,428

Reserve for inventory obsolescence

57

1,517

Non-cash operating lease expense

7,292

Stock-based compensation

48,909

33,460

Allowance for expected credit losses

367

6,217

Deferred income taxes

4,922

7,770

Unrealized foreign exchange

(1,303

)

(1,204

)

Changes in operating assets and liabilities:

Accounts receivable

1,598

769

Inventory

(21,186

)

(2,826

)

Prepaid expenses and other current assets

(11,487

)

(7,498

)

Other assets

(19,641

)

(12,952

)

Accounts payable, accrued expenses and other

8,391

3,073

Deferred revenue

(3,511

)

(1,155

)

Net cash provided by operating activities

125,366

108,698

INVESTING ACTIVITIES

Purchase of property and equipment

(47,237

)

(40,466

)

Acquisition of business, net of cash acquired

(45,486

)

(4,371

)

Net cash used in investing activities

(92,723

)

(44,837

)

FINANCING ACTIVITIES

Proceeds from debt

32,100

Repayments of debt and capital leases

(101

)

(594,727

)

Debt issuance costs

(1,178

)

Proceeds from initial public offering, net of underwriting costs

641,643

Capitalized transaction costs

(684

)

(5,256

)

Proceeds from stock option exercises

22,510

3,150

Repurchase of common stock and settlement of stock-based payment awards

(53

)

Net cash provided by financing activities

21,725

75,679

Effect of exchange rate changes on cash and cash equivalents

(2,041

)

1,807

Net increase in cash and cash equivalents

52,327

141,347

Cash and cash equivalents and restricted cash, beginning of year

170,413

29,066

Cash and cash equivalents and restricted cash, end of period

$

222,740

$

170,413

Reconciliation of cash and cash equivalents and restricted cash:

Cash and cash equivalents

$

221,421

$

168,877

Restricted cash

$

1,319

$

1,536

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Cash paid for income taxes

$

6,380

$

890

Cash paid for interest

$

133

$

24,037

NON-CASH INVESTING AND FINANCING ACTIVITIES

Purchase of property and equipment included in accounts payable

$

$

17

Unpaid initial public offering costs in total current liabilities

$

$

684

DATTO HOLDING CORP.

Non-GAAP Condensed Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(unaudited)

Three Months Ended December 31,

Year Ended December 31,

2021

2020

2021

2020

Revenue:

Subscription

$

153,224

$

128,978

$

577,321

$

485,326

Device

10,180

9,104

37,832

30,202

Professional services and other

850

910

3,504

3,257

Total revenue

164,254

138,992

618,657

518,785

Cost of revenue:

Subscription

23,681

19,703

85,860

79,909

Device

13,820

10,940

47,222

37,404

Professional services and other

1,489

1,427

5,859

5,687

Depreciation and amortization

6,180

4,646

23,261

16,867

Total cost of revenue

45,170

36,716

162,202

139,867

Gross profit

119,084

102,276

456,455

378,918

Operating expenses:

Sales and marketing

37,047

27,151

129,790

107,255

Research and development

25,047

18,457

84,480

64,393

General and administrative

23,367

20,478

89,997

73,649

Depreciation and amortization

2,496

2,173

8,783

9,567

Total operating expenses

87,957

68,259

313,050

254,864

Income from operations

31,127

34,017

143,405

124,054

Other expense:

Interest expense

22

1,758

455

25,348

Other expense (income), net

163

(2,026

)

387

(3,428

)

Total other expense (income)

185

(268

)

842

21,920

Income before income taxes

30,942

34,285

142,563

102,134

Provision for income taxes

(7,736

)

(8,571

)

(35,641

)

(25,534

)

Net income

$

23,206

$

25,714

$

106,922

$

76,600

Net income per share attributable to common stockholders:

Basic

$

0.14

$

0.17

$

0.66

$

0.55

Diluted

$

0.14

$

0.16

$

0.65

$

0.54

Weighted-average shares used in computing net income per share:

Basic

163,210,116

154,968,918

162,048,828

140,404,763

Diluted

166,574,607

158,856,958

165,759,624

142,514,848

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 December 31,

Year Ended December 31,

2021

2020

2021

2020

Non-GAAP Subscription Cost of Revenue

GAAP subscription cost of revenue

$

24,818

$

23,677

$

90,162

$

84,463

Stock-based compensation expense

(1,137

)

(3,974

)

(4,302

)

(4,092

)

Restructuring expense

(462

)

Non-GAAP subscription cost of revenue

$

23,681

$

19,703

$

85,860

$

79,909

Non-GAAP Device Cost of Revenue

GAAP device cost of revenue

$

13,863

$

11,143

$

47,415

$

37,607

Stock-based compensation expense

(43

)

(203

)

(193

)

(203

)

Non-GAAP device gross cost of revenue

$

13,820

$

10,940

$

47,222

$

37,404

Non-GAAP Professional Services and Other Cost of Revenue

GAAP professional services and other cost of revenue

$

1,538

$

1,845

$

6,059

$

6,244

Stock-based compensation expense

(49

)

(418

)

(200

)

(418

)

Restructuring expense

(139

)

Non-GAAP professional services and other cost of revenue

$

1,489

$

1,427

$

5,859

$

5,687

Non-GAAP Depreciation and Amortization in Cost of Revenue

GAAP depreciation and amortization in cost of revenue

$

8,917

$

6,144

$

32,712

$

21,890

Amortization of acquired intangible assets

(2,737

)

(1,498

)

(9,451

)

(5,023

)

Non-GAAP depreciation and amortization in cost of revenue

$

6,180

$

4,646

$

23,261

$

16,867

Non-GAAP Cost of Revenue

GAAP cost of revenue

$

49,136

$

42,809

$

176,348

$

150,204

Amortization of acquired intangible assets

(2,737

)

(1,498

)

(9,451

)

(5,023

)

Stock-based compensation expense

(1,229

)

(4,595

)

(4,695

)

(4,713

)

Restructuring expense

(601

)

Non-GAAP cost of revenue

$

45,170

$

36,716

$

162,202

$

139,867

Non-GAAP Gross Profit

GAAP gross profit

$

115,118

$

96,183

$

442,309

$

368,581

Amortization of acquired intangible assets

2,737

1,498

9,451

5,023

Stock-based compensation expense

1,229

4,595

4,695

4,713

Restructuring expense

601

Non-GAAP gross profit

$

119,084

$

102,276

$

456,455

$

378,918

Non-GAAP gross margin

72.5

%

73.6

%

73.8

%

73.0

%

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 December 31,

Year Ended December 31,

2021

2020

2021

2020

Non-GAAP Sales and Marketing

GAAP sales and marketing expense

$

40,023

$

31,962

$

139,257

$

115,790

Stock-based compensation expense

(2,976

)

(4,811

)

(9,467

)

(6,614

)

Restructuring expense

(1,921

)

Non-GAAP sales and marketing expense

$

37,047

$

27,151

$

129,790

$

107,255

Non-GAAP sales and marketing as a % of revenue

22.6

%

19.5

%

21.0

%

20.7

%

Non-GAAP Research and Development

GAAP research and development expense

$

31,209

$

30,932

$

107,899

$

78,932

Stock-based compensation expense

(6,162

)

(12,475

)

(23,419

)

(13,590

)

Restructuring expense

(949

)

Non-GAAP research and development expense

$

25,047

$

18,457

$

84,480

$

64,393

Non-GAAP research and development as a % of revenue

15.2

%

13.3

%

13.7

%

12.4

%

Non-GAAP General and Administrative

GAAP general and administrative expense

$

27,570

$

26,279

$

106,478

$

85,668

Stock-based compensation expense

(3,187

)

(5,018

)

(11,328

)

(8,543

)

Restructuring expense

(364

)

Transaction related and other expense

(1,016

)

(783

)

(5,153

)

(3,112

)

Non-GAAP general and administrative expense

$

23,367

$

20,478

$

89,997

$

73,649

Non-GAAP general and administrative as a % of revenue

14.2

%

14.7

%

14.5

%

14.2

%

Non-GAAP Depreciation and Amortization in Operating Expenses

GAAP depreciation and amortization in operating expenses

$

6,917

$

6,623

$

26,471

$

27,223

Amortization of acquired intangible assets

(4,421

)

(4,450

)

(17,688

)

(17,656

)

Non-GAAP depreciation and amortization in operating expense

$

2,496

$

2,173

$

8,783

$

9,567

Non-GAAP depreciation and amortization in operating expense as a % of revenue

1.5

%

1.6

%

1.4

%

1.8

%

Non-GAAP Operating Expenses

GAAP operating expenses

$

105,719

$

95,796

$

380,105

$

307,613

Amortization of acquired intangible assets

(4,421

)

(4,450

)

(17,688

)

(17,656

)

Stock-based compensation expense

(12,325

)

(22,304

)

(44,214

)

(28,747

)

Restructuring expense

(3,234

)

Transaction related and other expense

(1,016

)

(783

)

(5,153

)

(3,112

)

Non-GAAP operating expenses

$

87,957

$

68,259

$

313,050

$

254,864

Non-GAAP operating expenses as a % of revenue

53.5

%

49.1

%

50.6

%

49.1

%

Non-GAAP Income From Operations

GAAP income from operations

$

9,399

$

387

$

62,204

$

60,968

Amortization of acquired intangible assets

7,158

5,948

27,139

22,679

Stock-based compensation expense

13,554

26,899

48,909

33,460

Restructuring expense

3,835

Transaction related and other expense

1,016

783

5,153

3,112

Non-GAAP income from operations

$

31,127

$

34,017

$

143,405

$

124,054

Non-GAAP operating margin

19.0

%

24.5

%

23.2

%

23.9

%

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 December 31,

Year Ended December 31,

2021

2020

2021

2020

Non-GAAP Net Income and Net Income Per Share

GAAP net income

$

5,747

$

(7,168

)

$

51,434

$

22,498

GAAP provision for income taxes

3,467

(665

)

9,928

8,062

GAAP income before income taxes

9,214

(7,833

)

61,362

30,560

Loss on extinguishment of debt

8,488

8,488

Amortization of acquired intangible assets

7,158

5,948

27,139

22,679

Stock-based compensation expense

13,554

26,899

48,909

33,460

Restructuring expense

3,835

Transaction related and other expense

1,016

783

5,153

3,112

Non-GAAP provision for income taxes

(7,736

)

(8,571

)

(35,641

)

(25,534

)

Non-GAAP net income

$

23,206

$

25,714

$

106,922

$

76,600

Non-GAAP net income per share attributable to common shareholders:

Basic

$

0.14

$

0.17

$

0.66

$

0.55

Diluted

$

0.14

$

0.16

$

0.65

$

0.54

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

163,210,116

154,968,918

162,048,828

140,404,763

Non-GAAP weighted-average shares used in computing net income per share, diluted

166,574,607

158,856,958

165,759,624

142,514,848

Adjusted EBITDA

GAAP net income

$

5,747

$

(7,168

)

$

51,434

$

22,498

Interest and other expense, net

185

(268

)

842

21,920

Loss on extinguishment of debt

8,488

8,488

Depreciation and amortization

15,834

12,767

59,183

49,113

Provision for income tax

3,467

(665

)

9,928

8,062

Stock-based compensation expense

13,554

26,899

48,909

33,460

Restructuring expense

3,835

Transaction related and other expense

1,016

783

5,153

3,112

Adjusted EBITDA

$

39,803

$

40,836

$

175,449

$

150,488

Adjusted EBITDA margin

24.2

%

29.4

%

28.4

%

29.0

%

Free Cash Flow

GAAP net cash provided by operating activities

$

26,257

$

34,643

$

125,366

$

108,698

Less: Purchases of property and equipment

(15,067

)

(11,947

)

(47,237

)

(40,466

)

Free cash flow

$

11,190

$

22,696

$

78,129

$

68,232

Media Contact:
Shoba V. Lemoine
communications@datto.com

Investor Contact:
Ryan Burkart
ir@datto.com

Source: Datto, Inc.

 

 

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