Revenue and Financial Performance - In 2024, the Company reported total revenue of $25.4 million, with over 80% derived from recurring sources such as cloud-based hosting and disaster recovery solutions[36]. - Revenue for the year ended December 31, 2024, increased by approximately 2% to $25,371,303 compared to $24,959,576 for the year ended December 31, 2023[166]. - The Company derived approximately 51% of revenue from infrastructure & disaster recovery/cloud services, 31% from equipment and software sales, 12% from managed services, and 5% from Nexxis VoIP services for the year ended December 31, 2024[166]. - The Company reported net income attributable to common shareholders of $523,214 for the year ended December 31, 2024, compared to $381,575 for 2023, indicating a year-over-year increase of approximately 37%[52]. - Adjusted EBITDA for the year ended December 31, 2024, was $2,365,238, compared to $1,639,388 for 2023, reflecting an increase in operational performance[191]. - Cash provided by operating activities for the year ended December 31, 2024, was $1,740,089, a decrease from $3,873,047 in 2023, primarily due to an increase in accounts receivable of $1,010,880[185]. - The company's working capital increased to $11,869,914 on December 31, 2024, up by $858,507 from $11,011,407 at the end of 2023[182]. Customer Base and Retention - The Company has a contract renewal rate exceeding 90%, positioning it to maintain and expand its customer base[36]. - The Company ended the year with a $21.5 million Annual Recurring Revenue (ARR) run rate[36]. - The Company has historically maintained over 90% annual subscription renewal rates, reflecting strong customer retention[164]. - For the year ended December 31, 2024, two customers each accounted for 12% of the Company's revenue, while in 2023, two customers accounted for 12% and 10% respectively, highlighting dependency on a limited customer base[69]. - The Company’s client base exceeds 425 organizations across diverse sectors, indicating broad market demand for its services[164]. Operational and Strategic Developments - The integration of Flagship Solutions into CloudFirst was completed in January 2024, enhancing operational synergies and cross-selling opportunities[23]. - The Company is focused on expanding its cloud footprint and cross-selling its full suite of solutions to meet evolving client needs[34]. - The Company plans to continue acquiring complementary solutions and services, which may divert management's attention and increase operating costs[58]. - The Company anticipates ongoing international expansion, which will require substantial investment in marketing and localized services[106]. Risks and Challenges - The competitive landscape for cloud solutions is intense, with significant competition from established players like IBM, Microsoft, Google, and AWS, which may impact the Company's market position[70]. - The Company is exposed to risks related to cybersecurity, as breaches could disrupt its data protection services and harm its reputation[76]. - The Company faces challenges in retaining existing customers, and a significant decrease in retention rates could necessitate higher marketing expenses to maintain revenue[89]. - The Company must maintain effective advertising and marketing strategies to attract new customers, as failure to do so could lead to increased expenses and reduced operating results[55]. - The Company is subject to evolving privacy regulations, and any failure to comply could result in legal actions and loss of customer trust[97]. - The Company faces risks associated with international operations, including economic and political instability, currency fluctuations, and differing legal environments[107]. - The Company is exposed to risks from fluctuations in foreign currency exchange rates, which could adversely affect reported earnings[109]. Financial Position and Capital Management - As of December 31, 2024, the Company had cash of $1,070,097 and marketable securities totaling $11,261,006, with working capital amounting to $11,869,914[52]. - The Company does not expect to declare any cash dividends in the foreseeable future, meaning shareholders may need to rely on share price appreciation for returns[138]. - The Company may face challenges in raising additional capital due to market conditions and the potential dilution from outstanding securities[136]. - The Company has received a Notification Letter from Nasdaq confirming compliance with audit committee requirements, thus maintaining its listing on The Nasdaq Capital Market[134]. Compliance and Regulatory Matters - The Company must comply with HIPAA and HITECH regulations, which include privacy standards that protect individual health information[99]. - The Company may face penalties for non-compliance with federal and state standards regarding patient privacy, which could adversely affect its business[100]. - The Company maintains a cyber risk management program that includes annual risk assessments to identify and mitigate cybersecurity threats[142]. Market and Economic Conditions - The Company's revenue is heavily concentrated in the U.S., making it vulnerable to fluctuations in demand within this market[91]. - The Company's operations could be negatively impacted by changes in trade policies and economic conditions, affecting its financial results[119].

Financial Performance - Total revenue for the fiscal year 2024 was $25.4 million, a 2% increase from $25 million in 2023, reflecting a transition towards subscription-based recurring revenue [10][28] - Net income improved significantly to $513,000, up nearly 71% from $299,000 in 2023, indicating margin expansion and a more efficient cost structure [12][32] - Adjusted EBITDA reached $2.37 million, compared to $1.64 million last year, showcasing the ability to scale while maintaining profitability [12][31] - Cash and marketable securities at year-end were approximately $12.3 million, compared to $12.75 million at the end of 2023, with no debt [13][32] Business Segment Performance - The Cloud Infrastructure and Disaster Recovery Service segment saw revenue climb 27% year-over-year to $12.3 million, making up 51% of total revenue [11] - A decline in one-time hardware and a slight decrease in managed service revenue were noted, aligning with the strategy to prioritize sustainable recurring revenue streams [14] Market and Strategic Developments - The company expanded internationally into the U.K. with the launch of CloudFirst Europe Limited, establishing a regional presence and deploying three Tier 3 data centers [17][18] - Partnerships with Brightsolid and Pulsant facilitated this expansion, allowing compliance with strict regulatory requirements [18] - The merger of Flagship and CloudFirst in January 2024 enhanced internal efficiency and created a stronger go-to-market engine [20] Management Commentary - Management expressed confidence in the company's strategic direction, emphasizing the importance of cybersecurity and compliance in attracting clients from regulated markets [52][54] - The company aims to leverage its strong financial foundation and high-retention recurring revenue model to capitalize on growing demand in regulated and global enterprise markets [26] Other Important Information - Selling, general, and administrative expenses increased by 13% to $11 million, primarily due to professional fees and international expansion efforts [27][30] - The company reported a compounded annual growth rate of 18% for organic growth in its cloud services, with a higher rate of 30% when including the merger with Flagship [15][58] Q&A Summary Question: What are the spending plans for 2025? - Management indicated that they expect some CapEx spending but do not anticipate significant increases, with $575,000 invested in the U.K. and $1.2 million in the U.S. for 2024 [36][41] Question: How comprehensive is the coverage of cloud migration opportunities in the U.K. and Europe? - Management acknowledged that while they are making progress, there is always room for improvement in capturing migration opportunities [45][46] Question: What is driving success in regulated markets? - Management highlighted the importance of cybersecurity and compliance, noting that their reputation in data migration is a key factor in attracting large accounts [54][52] Question: What is the organic growth rate excluding hardware sales? - Management reported an organic growth rate of 17.8% for subscription-based services, with a higher rate of 30% when including the Flagship merger [58][59] Question: Is the company comfortable being free cash flow neutral or positive in 2025? - Management expressed confidence in achieving free cash flow neutrality or positivity in 2025 without relying on equipment sales, supported by a strong recurring revenue model [73][72]

Financial Performance - Total revenue for fiscal year 2024 was $25.4 million, a 2% increase from $25 million in 2023, reflecting a transition towards subscription-based recurring revenue [10][28] - Net income improved significantly to $513,000, up nearly 71% from $299,000 in 2023, indicating margin expansion and a more efficient cost structure [12][32] - Adjusted EBITDA reached $2.37 million, compared to $1.64 million last year, showcasing the ability to scale while maintaining profitability [12][31] - Cash and marketable securities stood at $12.3 million, with no debt, providing operational flexibility for future growth [13][32] Business Segment Performance - Cloud Infrastructure and Disaster Recovery Service segment revenue grew 27% year-over-year to $12.3 million, constituting 51% of total revenue [11] - The annual recurring revenue run rate was $21.5 million, indicating a shift towards a more stable and scalable business model [11] Market and Geographic Expansion - The company launched CloudFirst Europe Limited, establishing a presence in the U.K. and deploying three Tier 3 data centers to comply with regulatory requirements [17][18] - The total addressable market in Europe for IBM organizations exceeds 50,000 companies, indicating significant growth potential [25] Strategic Direction and Industry Position - The company aims to become a global leader in cloud infrastructure services, focusing on core strengths and targeted geographic expansion [9] - The merger of Flagship and CloudFirst in January 2024 is expected to enhance internal efficiency and create a stronger go-to-market strategy [20] Management Commentary on Future Outlook - Management expressed confidence in the company's ability to maintain a high-retention recurring revenue model and capitalize on growing demand in regulated markets [26] - The focus remains on organic growth, with a disciplined approach to capital allocation and potential for free cash flow positivity in 2025 [73][76] Other Important Information - Selling, general and administrative expenses increased by 13% to $11 million, primarily due to professional fees and international expansion efforts [27][30] - The company is exploring stock buybacks as a means to address undervaluation in the market, while prioritizing cash for organic growth [75][78] Q&A Session Summary Question: What are the spending plans for 2025? - Management indicated that they expect some CapEx spending but do not foresee significant increases in operational expenses [35][42] Question: How comprehensive is the U.K. expansion in covering cloud migration opportunities? - Management acknowledged the need for continuous improvement in lead generation and conversion, emphasizing ongoing efforts in marketing [45][48] Question: What is driving success in regulated markets? - Management highlighted the importance of compliance, cybersecurity, and their reputation in data migration as key factors driving wins in regulated sectors [49][53]

Financial Performance - Total revenue for 2024 increased to $25.4 million, a 2% gain from 2023, with over 80% of revenue being recurring[3] - Net income rose approximately 71% to $513 thousand, while Adjusted EBITDA increased to $2.37 million, indicating improved margins and operational efficiency[3][4] - Net income attributable to common stockholders was $523,214, with earnings per share increasing to $0.08 for basic and $0.07 for diluted[19] - Net income for the year ended December 31, 2024, increased to $513,072 from $299,316 in 2023, representing a growth of 71.5%[21] - Adjusted EBITDA for 2024 was $2,365,238, compared to $1,639,388 in 2023, reflecting an increase of 44.3%[23][25] Cash Flow and Investments - Cash flows from operating activities decreased to $1,740,089 in 2024 from $3,873,047 in 2023, a decline of 55.1%[21] - The company reported a net cash used in investing activities of $1,743,174 in 2024, compared to $3,852,245 in 2023, a reduction of 54.8%[21] - The company experienced a decrease in cash of $358,633 in 2024, compared to a decrease of $857,992 in 2023, showing an improvement of 58.3%[21] - Cash and marketable securities totaled $12.3 million with no long-term debt, positioning the company well for future growth investments[4] Operational Developments - The CloudFirst platform expanded with 4 new Tier III data centers, bringing the total to 10 globally, enhancing services across North America and Europe[4][5] - The integration of Flagship Solutions Group into CloudFirst improved operational efficiency and cross-sell potential, securing major contracts in various sectors[4][5] - The company launched CloudFirst Europe Ltd. with three Tier III data centers in the UK, aiming to serve clients across the U.S., Canada, and the UK[5] - Key new contracts in 2024 included engagements with a major motorsports manufacturer, a billion-dollar insurance provider, and a U.S. medical center[5] Asset Management - The total assets increased to $25.28 million in 2024, up from $23.30 million in 2023[17] - Accounts receivable showed a significant change, with a decrease of $1,010,880 in 2024 compared to an increase of $2,123,340 in 2023[21] Expenditures and Compensation - Capital expenditures rose to $1,800,364 in 2024, up from $1,545,017 in 2023, indicating an increase of 16.5%[21] - Stock-based compensation increased significantly to $794,687 in 2024 from $506,205 in 2023, a rise of 56.8%[21] - The company reported cash paid for interest of $23,549 in 2024, down from $65,057 in 2023, a decrease of 63.8%[21] Other Financial Metrics - The company ended 2024 with an estimated $22 million Annual Recurring Revenue run rate, reflecting the scalability of its subscription-based model[3] - Non-cash investing and financing activities included assets acquired by operating lease valued at $647,958 in 2024[21]

Core Viewpoint - Data Storage Corporation (DSC) reported a modest revenue increase of 2% in 2024, transitioning towards a recurring subscription revenue model, which now constitutes over 80% of its revenue [2][5]. Financial Performance - Total revenue for 2024 reached $25.4 million, up from $24.9 million in 2023 [15]. - Net income rose approximately 71% to $513 thousand, compared to $299 thousand in 2023 [15][17]. - Adjusted EBITDA increased to $2.37 million, indicating improved margins and operational efficiency [2][11]. - The company ended 2024 with $12.3 million in cash and marketable securities and no long-term debt, positioning itself well for future growth [2][5]. Strategic Developments - DSC launched CloudFirst Europe Ltd. and established three Tier III data centers in the UK, enhancing its international presence [2][5]. - The company integrated its Flagship Solutions Group into CloudFirst Technologies, streamlining operations and improving service delivery [2][5]. - Key contracts secured in 2024 included partnerships with a major motorsports manufacturer, a billion-dollar insurance provider, and a U.S. medical center, showcasing DSC's capability in delivering compliant, high-processing infrastructure solutions [2][5]. Infrastructure Expansion - The company expanded its data center footprint to ten global sites, including a new Tier III data center in Chicago, enhancing redundancy and performance across North America [2][5]. - The CloudFirst platform was expanded with four new Tier III data centers, supporting multi-cloud and continuity services [5]. Market Position - DSC is recognized as a leader in the multi-billion-dollar cloud hosting and business continuity market, providing high-performance, scalable, and secure cloud solutions [10]. - The company serves a diverse clientele, including Fortune 500 companies, government agencies, educational institutions, and healthcare organizations [9].

Core Viewpoint - Data Storage Corporation (DSC) is set to host a conference call on March 31, 2025, to discuss its financial results for the 2024 fiscal year, corporate progress, and other developments [1]. Company Overview - Data Storage Corporation is a leading provider of multi-cloud hosting, managed cloud services, disaster recovery, cybersecurity, and IT automation, integrating with major cloud platforms such as AWS, Microsoft Azure, and Google Cloud [1][4]. - The company offers comprehensive migration services to facilitate seamless and secure data transfer from on-premises systems to the cloud, minimizing downtime and optimizing performance [4]. - DSC operates a cloud platform built on IBM Power Cloud infrastructure, delivering high-performance, scalable, and secure cloud solutions with interoperability across its infrastructure partners [5]. - The company supports its CloudFirst platform with data centers across the United States, Canada, and the United Kingdom, serving a diverse clientele that includes Fortune 500 companies, government agencies, educational institutions, and healthcare organizations [6]. Market Position - As a leader in the multi-billion-dollar cloud hosting and business continuity market, DSC is recognized for its expertise in cloud infrastructure, IT modernization, and data migration, enabling clients to transition to the cloud with confidence [7].

Core Insights - Data Storage Corporation (DSC) is participating in the iAccess Alpha Virtual Best Ideas Spring Investment Conference 2025 on March 25 and 26, where management will discuss the company's business strategy and growth opportunities [1][2]. Company Overview - Data Storage Corporation is a leading provider of multi-cloud hosting, managed cloud services, disaster recovery, cybersecurity, and IT automation, integrating with major cloud platforms like AWS, Microsoft Azure, and Google Cloud [1][4]. - The company offers comprehensive migration services to facilitate the transition from on-premises systems to the cloud, ensuring secure and efficient data transfer [4]. - DSC's CloudFirst platform, built on IBM Power Cloud infrastructure, provides high-performance, scalable, and secure cloud solutions [5]. Market Position - DSC operates data centers across the United States, Canada, and the United Kingdom, serving a diverse clientele that includes Fortune 500 companies, government agencies, educational institutions, and healthcare organizations [6]. - The company is recognized as a leader in the multi-billion-dollar cloud hosting and business continuity market, specializing in cloud infrastructure, IT modernization, and data migration [7]. Strategic Initiatives - The upcoming conference will feature presentations by CEO Chuck Piluso and CFO Chris Panagiotakos, who will share insights into DSC's growth trajectory and market opportunities [2][9]. - Management will also engage in one-on-one meetings with investors to discuss the company's strategies in detail [2].

Core Insights - Data Storage Corporation (DSC) is participating in the iAccess Alpha Virtual Best Ideas Spring Investment Conference 2025 on March 25 and 26, where management will discuss the company's business strategy and growth opportunities [1][2]. Company Overview - Data Storage Corporation is a leading provider of multi-cloud hosting, managed cloud services, disaster recovery, cybersecurity, and IT automation, integrating with major cloud platforms such as AWS, Microsoft Azure, and Google Cloud [1][4]. - The company offers comprehensive migration services to facilitate the transition from on-premises systems to the cloud, ensuring secure and efficient data transfer [4]. - DSC's CloudFirst platform, built on IBM Power Cloud infrastructure, provides high-performance, scalable, and secure cloud solutions [5]. Market Position - DSC operates in the multi-billion-dollar cloud hosting and business continuity market, recognized for its expertise in cloud infrastructure, IT modernization, and data migration [7]. - The company serves a diverse clientele, including Fortune 500 companies, government agencies, educational institutions, and healthcare organizations, with data centers across the United States, Canada, and the United Kingdom [6]. Event Participation - Chuck Piluso, CEO, and Chris Panagiotakos, CFO, will present insights into DSC's growth trajectory and market opportunities during the conference [2]. - The live webcast of the presentation will be available, along with a replay on the company's website [2].

Core Insights - Data Storage Corporation (DSC) has successfully completed a significant on-premise infrastructure upgrade for a major food distributor, enhancing its reputation as a trusted partner for complex IT transformations [1][3] - The upgrade involved migrating the customer to advanced processors, improving performance, reliability, and scalability to meet enterprise-scale operational demands [2][3] - CloudFirst's execution of the project minimized disruption, ensuring continuous business operations while enhancing backup and disaster recovery capabilities [4][5] Company Overview - Data Storage Corporation is a leading provider of multi-cloud hosting, managed cloud services, disaster recovery, cybersecurity, and IT automation, integrating with major cloud providers like AWS, Microsoft Azure, and Google Cloud [1][8] - The company offers comprehensive migration services to facilitate seamless and secure data transfer from on-premises systems to the cloud, optimizing performance and minimizing downtime [5][8] - Through its CloudFirst platform, built on IBM Power Cloud infrastructure, DSC delivers high-performance, scalable, and secure cloud solutions with interoperability across its infrastructure partners [6][8] Market Position - DSC operates in the multi-billion-dollar cloud hosting and business continuity market, recognized for its expertise in cloud infrastructure, IT modernization, and data migration [8] - The company serves a diverse clientele, including Fortune 500 companies, government agencies, educational institutions, and healthcare organizations, with data centers across the United States, Canada, and the United Kingdom [7][8]

Core Insights - Data Storage Corporation (DSC) has announced a strategic partnership between its subsidiary CloudFirst Europe and Pulsant, enhancing its multi-cloud hosting and disaster recovery services [1][2][3] Group 1: Partnership Details - The partnership aims to strengthen CloudFirst's global footprint by extending its platform across Pulsant's facilities in the UK, which currently operates in six data centers across three countries serving over 400 clients [2][3] - This collaboration is designed to address the specific cloud-based hosting and disaster recovery needs of IBM customers, leveraging Pulsant's local infrastructure and relationships to reach new markets [3][4] Group 2: Market Strategy - The UK and Ireland are identified as strategically important markets for IBM, with increasing demand for modernizing legacy systems, which the partnership aims to fulfill by providing specialized IBM expertise [4][5] - The combined expertise of CloudFirst and Pulsant is expected to deliver seamless service and exceptional value to customers, particularly mid-market and enterprise clients [4][5] Group 3: Company Background - Data Storage Corporation is recognized as a leader in the multi-billion-dollar cloud hosting and business continuity market, providing a range of services including multi-cloud hosting, managed cloud services, and disaster recovery [8][11] - The company operates data centers across the United States, Canada, and the United Kingdom, serving a diverse clientele including Fortune 500 companies and government agencies [10][11]