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..
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