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.
Walmart Inc. is raising the starting base pay for store managers, while redesigning its bonus plan that will put more of an emphasis on profits for these leaders.
Despite concerns about shipping delays in the Red Sea, RSM Chief Economist Joe Brusuelas says there are still reasons to be optimistic about the state of the U.S. economy.
Dan Ives, Managing Director and Senior Equity Analyst at Wedbush Securities dives deeper into a report by the International Data Corporation (IDC) that Apple has ended Samsung's 12-year reign as the world's largest smartphone seller.
Artificial intelligence is the biggest buzzword at the World Economic Forum’s annual meeting in Davos. Advances in generative AI stunned the world last year, and the elite crowd is angling to take advantage of its promise and minimize its risks.
Smartphones could get much smarter this year as the next wave of artificial intelligence seeps into the devices that accompany people almost everywhere they go.
In an annual assessment of global inequalities, Oxfam International said the first trillionaire could emerge within the next decade — as the anti-poverty organization pointed to the growing wealth gap that skyrocketed globally during the pandemic.
The Biden administration proposed a cost drop for overdrawing bank accounts, which it says could particularly relieve Americans living paycheck to paycheck.
