Datto Growth and Market Expansion Strategy slide image

Datto Growth and Market Expansion Strategy

Long-Term Target Financial Model Q4'2021 Target How We Get There Gross Margin % 72% ~75% . Lower product costs Subscription mix S&M % of Revenue 23% -20% • Optimize support Partner self-service Leverage from MSP channel model Innovation investment R&D % of Revenue 15% -15% · Security and cloud • Automation G&A % of Revenue 14% ~10% Operating leverage Adj. EBITDA Margin % 24% 30%+ CapEx % Revenue 9% ~5% Optimize cloud architecture Lower terabyte costs datto Non-GAAP Gross Margin, S&M % of Revenue, R&D % of Revenue, G&A % of Revenue and Adjusted EBITDA margin for Q4 2021 are all non-GAAP metrics. See appendix for reconciliation of Non-GAAP Gross Margin, S&M % of Revenue, R&D % of Revenue, G&A % of Revenue and Adjusted EBITDA margin to the most comparable GAAP financial measures.. 40
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