- It has more than 17,800 MSP partners, a net sequential increase of 500 in the quarter, up from an increase of 300 in the previous quarter.
- Roughly 1,250 MSPs each contribute over $100,000 ARR (annual recurring revenue) to Datto, compared to 1,000 MSPs at that ARR level in June 2020.
- Revenue was $151.6 million in Q2 of fiscal 2021, up 22 percent from Q2 of fiscal 2020. The results generally beat Wall Street's expectations.
Datto and N-able: MSP and SMB Technology Spending Bellwethers
Datto's business and financial metrics reinforce the continued, growing popularity of MSP (managed IT services provider) business models in the SMB (small and midsize business) segment. Datto's portfolio of products and cloud-based services include backup and disaster recovery (BDR), data protection, IT management, business automation and cybersecurity tools that MSPs consume and/or manage on behalf of small business customers.Datto and rival N-able are both publicly held -- and therefore serve as bellwethers for the health of the MSP-SMB market. For its part, N-able announced 16 percent year-over-year quarterly revenue growth in July 2021. Other MSP software and technology rivals such as Barracuda, ConnectWise, Kaseya and NinjaRMM (among others) are privately held and backed by private equity and/or venture capital investors.Datto CEO Tim Weller: Next Moves
In a prepared comment about Datto's earnings, CEO Tim Weller said:“Our second quarter results mark one of the strongest quarters in our history and are a clear indication of the power of the MSP model. Our subscription revenue growth accelerated to 21% year-over-year and we added 500 net new partners in the quarter, both representing new highs since the onset of the pandemic in early 2020. Looking ahead, we continue to see strong momentum across our business and are excited about the new product launches in cloud and security planned for the second half of 2021. We remain well positioned to capitalize on the large opportunity to help our MSP partners manage, protect, and connect their SMB clients’ data in an increasingly digital world.”