-
Total Revenue: $25.4 million, up 2% from $25 million in 2023.
-
Cloud Infrastructure and Disaster Recovery Service Revenue: $12.3 million, a 27% increase year-over-year.
-
Annual Recurring Revenue Run Rate: $21.5 million.
-
Net Income: $513,000, up 71% from $299,000 in 2023.
-
Adjusted EBITDA: $2.37 million, compared to $1.64 million last year.
-
Cash and Marketable Securities: $12.3 million, with no debt.
-
Cost of Sales: $14.3 million, a decrease of 7% from $15.4 million in 2023.
-
Selling, General and Administrative Expenses: $11 million, an increase of 13% from $9.7 million in 2023.
Release Date: March 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
-
Data Storage Corp (NASDAQ:DTST) achieved a 2% increase in total revenue for 2024, reaching $25.4 million, reflecting a strategic shift towards subscription-based recurring revenue.
-
The Cloud Infrastructure and Disaster Recovery Service segment saw a significant 27% year-over-year revenue increase, highlighting the growing importance of these services.
-
Net income improved by nearly 71% to $513,000, demonstrating effective cost management and margin expansion.
-
The company successfully expanded internationally by launching CloudFirst Europe Limited in the UK, establishing a regional presence to serve the broader European market.
-
Data Storage Corp (NASDAQ:DTST) maintained a healthy balance sheet with $12.3 million in cash and marketable securities and no debt, providing operational flexibility and capacity for future growth investments.
-
Total revenue growth was modest at 2%, indicating challenges in accelerating top-line growth.
-
There was a decline in one-time hardware sales and a slight decrease in managed service revenue, aligning with the strategic shift but impacting immediate revenue figures.
-
Selling, general, and administrative expenses increased by 13% to $11 million, driven by higher professional fees, stock-based compensation, and travel costs.
-
The company faces challenges in fully capitalizing on the IBM Cloud migration opportunities, indicating room for improvement in market penetration.
-
Despite strategic efforts, the stock price remains undervalued, trading at about 0.6 times the annual recurring revenue, reflecting market skepticism or lack of awareness.
Q: Can you provide insight into your spending plans for 2025, particularly regarding OpEx and CapEx? A: Charles Piluso, CEO, explained that the company invested approximately $575,000 in the UK in 2024 and expects minimal additional CapEx there. For the US, CapEx was $1.2 million. The company is in a good position and does not anticipate significant increases in spending for 2025.