Software provider Datto Holding Corp. ($MSP) went public on the New York Stock Exchange Wednesday at $27 per share, the top-end of its target IPO range.
The stock popped out of the gate but has since leveled off throughout the afternoon.
The Norwalk, Connecticut-based company's unusual ticker symbol is meant to stand for "managed service providers," which make up Datto's main clients and partners.
"These are the first responders of any IT disaster, and they're the ones that make all the technology work for the engine that powers America's economy," founder Austin McChord told Cheddar.
Datto offers cloud-based and cybersecurity solutions to managed service providers, who in turn provide for the technology needs of most small and midsize companies.
These providers pay Datto a subscription fee of, on average, $30,000 per year.
"Small-medium businesses want the same mission-critical technology that enterprises do," CEO Tim Weller said. "So the themes you see in tech every day — the shift to cloud, remote work, security — all of these things are coming rapidly to small and medium businesses, and we believe will be delivered by managed service providers."
He added that the IPO will not change the company's basic business model.
"The amazing thing is we're still doing what we've done for the last 10 years," Weller said. "We create technology for small-medium business. We partner with this large global community of managed service providers, and we put it out into the field as subscription revenue."
McCord noted that if anything the offering will help raise awareness of the technology needs of small and midsize businesses, which have been devastated by the coronavirus pandemic.
Michael Harris, NYSE global head of capital markets shares what to expect from IPOs in 2024, including A.I. excitement and why interest rate cuts are always helpful.
Lacy Garcia, Founder & CEO of Willow, shares why women, traditionally underserved by fintech, are looking for trust and a personal relationship from their financial advisor.
Alexander Reed, CFA and CIO for Envisage Wealth, breaks down why he thinks rates could stay higher for longer and why real estate, utilities, and regional banks are sectors to avoid.
Big brands that have relied on TikTok videos to reach younger consumers do not appear to be panicking as they wait to see what happens. But they have started planning.
It's been 15 years since the last fatal crash of a U.S. airliner, but you wouldn't know that from a torrent of flight problems that made news in the last three months.
Abortion opponents want the high court to ratify a ruling from a conservative federal appeals court that would limit access to a medication called mifepristone, which was used in nearly two-thirds of abortions last year.
Annie Chechitelli, chief product officer at Turnitin, breaks down how students and teachers alike can learn from artificial intelligence – while still maintaining academic integrity.
Neiman Marcus Group CEO Geoffroy van Raemdonck talks luxury shopping and TikTok, why the company prefers to be private for now, and the benefits of flexible work arrangements.
