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Datto: Long Undervalued, It's Time For This Stock To Step Into The Spotlight

Apr. 05, 2022 2:06 AM ETDatto Holding Corp. (MSP)2 Comments
Gary Alexander profile picture
Gary Alexander


  • Business continuity software company Datto has flailed since its IPO at $27 per share.
  • It is one of the few software stocks to be in positive YTD territory, a function of its constant undervaluation.
  • Recent results have continued to show Datto growing in all key metrics while producing strong adjusted EBITDA and free cash flow.
  • Potential acquisition chatter is unsurprising given Datto's merits, and could yield substantial gains.
  • Looking for a helping hand in the market? Members of Daily Tech Download get exclusive ideas and guidance to navigate any climate. Learn More »

Cloud Computing, Data Center, Server Rack, Connection In Neural Network, Technology

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Market shakeups like we've seen over the past few months have a way of illuminating some diamonds in the rough, and that's exactly how I feel about Datto (NYSE:MSP). Long overshadowed by its faster-growing

Data by YCharts

Datto FY22 outlook

Datto FY22 outlook (Datto Q4 earnings presentation)

Datto Q4 results

Datto Q4 results (Datto Q4 earnings release)

Datto key metrics

Datto key metrics (Datto Q4 earnings presentation)

Datto ARR growth over time

Datto ARR growth over time (Datto Q4 earnings presentation)

Datto adjusted EBITDA

Datto adjusted EBITDA (Datto Q4 earnings presentation)

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This article was written by

Gary Alexander profile picture
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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