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]

Core Viewpoint - Data Storage Corporation (DSC) has announced a strategic partnership between its subsidiary CloudFirst Europe and Pulsant, aimed at enhancing its global presence and addressing the cloud hosting and disaster recovery needs of IBM customers [1][2][3] 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][8][10] - CloudFirst currently operates in six data centers across three countries, serving over 400 clients [2] Partnership Details - The partnership with Pulsant will extend CloudFirst's platform across Pulsant's facilities in the UK, leveraging Pulsant's local infrastructure to reach new markets [2][3] - This collaboration aims to provide specialized expertise to IBM customers, addressing challenges faced in IBM environments [3][4] - The combined expertise of CloudFirst and Pulsant is expected to deliver seamless service and exceptional value to customers, particularly in the UK and Ireland [4][5] Market Context - The UK and Ireland are strategically important markets for IBM, with increasing demand for modernizing legacy systems [4] - The partnership is positioned to help organizations evolve their IBM environments, simplifying complexities and enhancing return on investment [4][5] Infrastructure and Services - Pulsant operates a low-latency network fabric connecting 12 strategically located data centers, enabling businesses to leverage edge computing for improved application performance [6][7] - The partnership allows clients to optimize costs with local infrastructure while ensuring continuous availability of data and applications [7]

Core Insights - Data Storage Corporation (DSC) has expanded its partnership with Megaport into the UK through its subsidiary CloudFirst Europe, marking a significant step in its global expansion strategy [1][2] - The partnership allows CloudFirst to utilize Megaport's "Direct Connect" platform, enhancing access to major cloud providers like AWS while ensuring secure and high-performance connectivity [2][3] - This collaboration positions CloudFirst as a trusted partner for enterprises modernizing their IT infrastructure, aligning with the increasing demand for hybrid and multi-cloud solutions [2][3] 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 data transfer from on-premises systems to the cloud, minimizing downtime and optimizing performance [4] - With 11 data centers across the United States, Canada, and the UK, DSC serves a diverse clientele, including Fortune 500 companies and government agencies [6][7] Market Position - DSC operates in the multi-billion-dollar cloud hosting and business continuity market, recognized for its expertise in cloud infrastructure and IT modernization [7] - The demand for hybrid and multi-cloud infrastructure solutions is at an all-time high, providing DSC with opportunities to deliver innovative services [3][7]

Sales Performance - Total sales for Q3 2024 were $5,808,834, a decrease of $177,791 or 3% compared to $5,986,625 in Q3 2023, primarily due to lower one-time equipment and software sales [136]. - Infrastructure & Disaster Recovery/Cloud Services increased by $706,978 or 27% to $3,329,629 in Q3 2024, while Equipment and Software sales decreased by $780,927 or 36% to $1,404,134 [137]. - For the nine months ended September 30, 2024, total sales were $18,955,074, an increase of $184,335 or 1% compared to $18,770,739 in the same period of 2023, driven by a $2,146,623 or 29% increase in Infrastructure & Disaster Recovery/Cloud Services [144]. - Total sales for the nine months ended September 30, 2024, were $18,955,074, an increase of $184,335 or 1% compared to $18,770,739 for the same period in 2023 [146]. - Infrastructure & Disaster Recovery/Cloud Service sales increased by $2,146,623 or 29% to $9,448,240, while Equipment and Software sales decreased by $1,816,358 or 22% to $6,271,084 [146]. Cost and Expenses - Cost of sales for Q3 2024 was $3,297,164, a decrease of $359,107 or 10% compared to $3,656,271 in Q3 2023, mainly due to lower costs associated with one-time equipment and managed services [138]. - Selling, general and administrative expenses increased by $221,288 or 10% to $2,537,501 in Q3 2024, with notable increases in salaries and professional fees [139]. - Selling, general and administrative expenses rose to $8,086,857, an increase of $1,167,875 or 17% compared to $6,918,982 for the same period in 2023 [147]. Cash Flow and Investments - Cash provided by operating activities decreased to $552,590 for the nine months ended September 30, 2024, down $1,608,834 from $2,161,424 in the same period of 2023 [160]. - Net cash used in investing activities totaled $1,172,581, a decrease of $1,595,368 compared to $2,767,949 for the nine months ended September 30, 2023 [162]. - Other income increased by $104,678 to $423,646 for the nine months ended September 30, 2024, primarily due to increased interest income from marketable securities [152]. Income and EBITDA - Income before provision for income taxes decreased by $176,014 to $222,825 for the nine months ended September 30, 2024, compared to $398,839 for the same period in 2023 [153]. - Adjusted EBITDA for the three months ended September 30, 2024, was $515,462, reflecting the company's operating performance [171]. - Net income for the nine months ended September 30, 2024, was $222,825, compared to a net loss of $1,923,944 for Nexxis Inc. during the same period [173]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $1,352,492, a significant increase from an adjusted EBITDA loss of $2,056,969 in the previous year [173]. - The company reported an adjusted EBITDA of $3,092,429 for the nine months ended September 30, 2023, compared to an adjusted EBITDA of $1,351,197 for the same period in 2024 [174]. Corporate Developments - The company is expanding into Europe, focusing on the UK, with plans for three data center locations to be operational by January 2025, targeting over 50,000 businesses in the UK and EU markets [128]. - The merger of CloudFirst Technologies and Flagship Solutions LLC on January 1, 2024, aims to enhance strategic initiatives and operational efficiency [127]. - The company maintains a solid cash position and forecasts continued positive EBITDA from subsidiary operations despite unpredictable market conditions [130]. - The company has established an executive presence in London for its European expansion, appointing Colin Freeman as Managing Director [128]. - An Equity Distribution Agreement with Maxim Group LLC allows the company to offer and sell up to $10,600,000 shares of common stock, with a commission of 2.5% on sales [135]. Working Capital and Financial Position - The company's working capital increased by $571,872 to $11,583,279 on September 30, 2024, from $11,011,407 at December 31, 2023 [165]. - Depreciation and amortization for the nine months ended September 30, 2024, totaled $991,773, compared to $928,180 in the same period of 2023 [174]. - Stock-based compensation for the nine months ended September 30, 2024, was $563,139, up from $338,146 in the previous year [173]. - Interest expense for the nine months ended September 30, 2024, was $31,335, while interest income was reported as a loss of $456,580 [173]. - The total net income (loss) for CloudFirst Technologies for the nine months ended September 30, 2024, was $1,980,917, compared to a net loss of $167,450 for Nexxis Inc. in the same period [174]. - The total net loss for the corporate segment for the nine months ended September 30, 2024, was $1,414,628 [174]. - Interest expense for the nine months ended September 30, 2023, was $56,985, with no interest income reported [174]. - The company experienced a significant increase in stock-based compensation from $199,623 in 2023 to $322,974 in 2024 [173].

Financial Data and Key Metrics Changes - The company generated $5.8 million in revenue for Q3 2024, reflecting a 3% decline from $6 million in Q3 2023, primarily due to lower one-time equipment and software sales [11][30] - Gross profit margin improved to 43.2% in Q3 2024, up from 38.9% in the same period last year, attributed to growth in cloud-based solutions [13] - Net income attributable to common shareholders for Q3 2024 was $122,000, compared to $179,000 in Q3 2023 [36] Business Line Data and Key Metrics Changes - Revenue for the nine months ended September 30, 2024, was $19 million, a 1% increase from $18.7 million in the same period last year, driven by a 29% increase in infrastructure and disaster recovery cloud services [31] - CloudFirst subsidiary achieved $5.5 million in revenue for Q3 2024 and positive net income, with a projected recurring revenue of over $20 million for 2025 [21][22] Market Data and Key Metrics Changes - The company expanded its presence in high-growth, regulated sectors such as insurance and healthcare, securing significant contracts that highlight its capabilities in data security and compliance [15][16] - The company is also expanding its infrastructure in the U.K. market, enhancing its global footprint and operational efficiency [23][24] Company Strategy and Development Direction - The primary objective remains securing ongoing service contracts with the enterprise infrastructure platform to create a stable revenue foundation [12] - The company is focused on nurturing a significant pipeline of potential clients globally, with an addressable market exceeding 50,000 companies [27][28] - The company is considering targeted acquisitions to complement and enhance operations, aiming to reflect its value in the share price [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of their initiatives and the execution of their business strategy since the NASDAQ uplisting [61] - The company is strategically expanding its technical and business development teams to support rising demand and maintain high client renewal rates [26] Other Important Information - The company ended the period with approximately $11.9 million in cash and marketable securities and no long-term debt, providing flexibility for future investments [30] Q&A Session Summary Question: Can you provide insight into the services renewal and expected revenue for 2025? - Management indicated that managed services average between $175,000 and $200,000 monthly, with software and hardware renewals generating between $5 million and $6 million annually, leading to a baseline revenue of over $20 million for 2025 [39][42][44] Question: How does the renewal rate impact future revenue? - The estimated renewal rate is around 92% for client revenue, with a strong likelihood of clients continuing to add services, indicating a stable revenue outlook despite potential churn [48][50] Question: Are cloud subscription renewals generally growing? - Management noted that clients migrating to cloud subscriptions have a renewal rate of approximately 95% to 96%, with many contracts growing in value as clients increase their service usage [54][56]