Last fall, Datto went public 13 years after it was founded.
While Datto has a clear strategy, targets a large market, and posted decent growth in the third quarter, the company is 72.2% owned by a private equity firm whose CEO Robert Smith has admitted serious crimes to tax in Avoid amount of around 2 billion US dollars. A source close to the company said Smith “isn’t busy with Datto.”
Should You Invest in Datto? The good news is that Datto is targeting a large market with a clearly focused strategy. Datto’s challenge is that the sales growth rate was solid – but well below the 20% to 30% rate characteristic of companies with rapid stock price growth.