Financial Performance - Data Storage Corporation reported record revenue of $25 million for the fiscal year 2023, an increase from $23.87 million in 2022, representing a growth of approximately 4.7%[3] - The company's recurring subscription-based services increased by 17% compared to the previous year, contributing to a gross profit growth of 18.5%[3] - Gross profit margin improved to 38.4% in 2023 from 33.9% in 2022, indicating effective strategic initiatives[3] - The company achieved net income of $299,316 for 2023, a significant turnaround from a net loss of $4.41 million in 2022[13] - Net income for 2023 was $299,316, a significant improvement from a net loss of $4,408,863 in 2022[15] Financial Position - Cash and marketable securities totaled over $12.7 million as of December 31, 2023, reflecting a strong balance sheet[3] - Total assets decreased to $23.3 million in 2023 from $24.1 million in 2022, primarily due to changes in current assets[11] - Total liabilities reduced to $3.55 million in 2023 from $5.14 million in 2022, indicating improved financial health[11] - Cash and cash equivalents at the end of the period decreased to $1,428,730 from $2,286,722 in 2022, showing a reduction in liquidity[15] Operational Performance - Net cash provided by operating activities increased to $3,873,047 from $663,801 in the previous year, reflecting a strong operational performance[15] - Capital expenditures rose to $(1,545,017) in 2023, compared to $(127,257) in 2022, indicating increased investment in growth[15] - Cash paid for interest decreased to $65,057 from $127,871, suggesting improved interest management[15] - Accounts receivable increased significantly to $2,242,864 from $(1,118,469), indicating a change in credit terms or sales growth[15] Strategic Initiatives - The company plans to advance growth strategies, including the CloudFirst and Flagship merger, to enhance revenue and profitability[3] - Data Storage Corporation is positioned to capitalize on the growing multibillion-dollar market opportunities in disaster recovery, cloud infrastructure, and cybersecurity[3] - The company anticipates continued improvement in margins and overall profitability in 2024 and beyond as revenue grows[3] Investment Activities - Net cash used in investing activities decreased to $(3,852,245) from $(9,138,225), reflecting a reduction in investment outflows[15] - The company received $1,699 from the exercise of stock options, down from $6,934 in the previous year, indicating lower stock option activity[15] - Total liabilities related to finance lease obligations decreased, with repayments of $(520,624) and $(359,869) for related and non-related parties respectively[15] Goodwill and Impairment - The company reported no impairment of goodwill in 2023, a notable recovery from $2,322,000 in 2022[15]

MELVILLE, N.Y, March 21, 2024 (GLOBE NEWSWIRE) -- Data Storage Corporation (NASDAQ:DTST) ("DSC" and the "Company"), a provider of diverse business continuity solutions for disaster-recovery, cloud infrastructure, cyber-security, and IT services, today announced its CloudFirst Solutions subsidiary has been selected by one of the largest United States insurance companies to migrate their data center to the cloud for one of the customer's divisions. In addition to the cloud migration, Data Storage Corporation ...

MELVILLE, N.Y., March 14, 2024 (GLOBE NEWSWIRE) -- Data Storage Corporation (Nasdaq: DTST) (“DSC” and the “Company”), a provider of diverse business continuity solutions for disaster-recovery, cloud infrastructure, cyber-security, and IT services, today announced that it plans to host a conference call at 11:00 a.m. Eastern Time on Thursday, March 28, 2024, to discuss the Company's financial results for the 2023 fiscal year ended December 31, 2023, as well as corporate progress and other developments. The c ...

MELVILLE, N.Y., March 14, 2024 (GLOBE NEWSWIRE) -- Data Storage Corporation (NASDAQ:DTST) ("DSC" and the "Company"), a provider of diverse business continuity solutions for disaster-recovery, cloud infrastructure, cyber-security, and IT services, today announced that it plans to host a conference call at 11:00 a.m. Eastern Time on Thursday, March 28, 2024, to discuss the Company's financial results for the 2023 fiscal year ended December 31, 2023, as well as corporate progress and other developments. The co ...

MELVILLE, N.Y., March 08, 2024 (GLOBE NEWSWIRE) -- Data Storage Corporation (NASDAQ:DTST) ("DSC" and the "Company"), a provider of diverse business continuity solutions for disaster-recovery, cloud infrastructure, cyber-security, and IT services, today announced that it has appointed Nancy M. Stallone, CPA, and Uwayne A. Mitchell, Esq., to the Company's Board of Directors. Ms. Stallone will also serve as a member of the Audit Committee. "Nancy and Uwayne bring extensive experience within their respective fi ...

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Financial Data and Key Metrics Changes - The company reported a 35% increase in revenue to approximately $6 million for Q3 2023, compared to $4.4 million in Q3 2022 [12][33] - Net income for Q3 2023 was approximately $158,000, a significant improvement from a net loss of $246,000 in Q3 2022 [12][36] - Adjusted EBITDA for Q3 2023 was $487,000, up from $162,000 in the same period last year [36] - Cash and marketable securities at the end of Q3 2023 were approximately $11.5 million, slightly up from $11.3 million at the end of 2022 [36][32] Business Line Data and Key Metrics Changes - CloudFirst generated $3.7 million in revenue for Q3 2023 with a net income of over $800,000 and $1.1 million in EBITDA [18] - Equipment and software revenue reached approximately $2 million in Q3 2023, nearly doubling from approximately $1 million in Q3 2022 [18] Market Data and Key Metrics Changes - The company has seen a significant increase in website visitors, with over 60,000 visitors reported by the end of August 2023, translating to a strong lead generation [44] - The total contract value in the CloudFirst pipeline is well above $10 million [45] Company Strategy and Development Direction - The company is focused on integrating Flagship and CloudFirst to leverage their combined strengths and enhance service offerings [20][59] - Plans for international expansion are underway, particularly targeting the U.K. market by reaching out to over 1,000 managed service providers [21][62] - A strategic sales and marketing initiative has been launched to capitalize on growing demand for products and services [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing business growth initiatives and the positive outlook for the company [5][12] - There is a growing demand for cybersecurity solutions, driven by increasing awareness of disaster recovery needs among companies [69][71] Other Important Information - The company maintains a 94% renewal rate on contracts with an average term of 24 months, indicating strong client retention [29] - The company is actively exploring potential strategic acquisitions to support growth and improve operations [30] Q&A Session Summary Question: Inquiry about new business pipeline and backlog metrics - Management reported over 60,000 inbound inquiries by the end of August 2023, with a current pipeline value exceeding $10 million [42][45] Question: Potential synergies from integrating Flagship and CloudFirst - Management highlighted the benefits of combining technical expertise and sales teams to enhance cross-selling opportunities [58][59] Question: U.K. strategy for building partnerships - The company is reaching out to managed service providers in the U.K. to establish partnerships and create distribution channels [62] Question: Importance of the nurture list in the sales strategy - The nurture list is part of an authority-based marketing strategy aimed at engaging potential clients early in the buying cycle [66] Question: Impact of increasing ransomware cases on market demand - Management noted a growing demand for disaster recovery services as many companies lack a holistic approach to security [69][71]

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 ☐TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) Commission File Number: 001-35384 DATA STORAGE CORPORATION (Exact name of registrant as specified in its charter) | Nevada | 98-0530147 | ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2023 was $5.9 million, an increase of 22% compared to $4.8 million in Q2 2022 [28][56] - Net income attributable to common shareholders for Q2 2023 was $227,000, compared to a net loss of $1.1 million in Q2 2022 [37] - Adjusted EBITDA for Q2 2023 was $530,000, compared to an adjusted EBITDA loss of $259,000 for the same period last year [57] Business Line Data and Key Metrics Changes - The equipment and software group generated $2.4 million in Q2 2023, up from $1.9 million in Q2 2022 [8] - CloudFirst achieved $3.2 million in revenue for Q2 2023, with net income over $550,000 and EBITDA of $800,000, representing a 25% margin [8] Market Data and Key Metrics Changes - The company reported over 45,000 visitors to its websites year-to-date, indicating growing market interest [9] - The total contract value and proposals to potential clients exceeded $9 million [9] Company Strategy and Development Direction - The company aims to increase gross profit margins on subscription revenue within its Flagship business unit, targeting a margin closer to 50% [8] - Strategic initiatives include expanding distribution channels, enhancing digital marketing, and exploring M&A opportunities to drive growth [29] - The company is focused on securing high-margin subscription-based contracts and expanding its geographic footprint [30][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term sustainable profitability and anticipates realizing full benefits from business initiatives over time [28][77] - The company is witnessing an acceleration in the migration of customers to IBM systems, which is expected to enhance growth opportunities [60] Other Important Information - Selling and general administrative expenses for Q2 2023 were $2.5 million, a decrease of 5% compared to $2.6 million in Q2 2022 [17] - Cash and short-term investments at the end of Q2 2023 were approximately $10.7 million, down from $11.3 million at the end of 2022 [18] Q&A Session Summary Question: What is the composition of the $9 million pipeline? - The $9 million pipeline includes proposals from companies that have engaged with the technical and sales teams, with larger deals typically excluded or adjusted for probability [22][40] Question: How is the company categorizing spending on go-to-market initiatives? - SG&A expenses can fluctuate due to equipment sales commissions and stock compensation, which can cause temporary increases [43] Question: How does the new business pipeline compare to previous periods? - The company reported a significant increase in inbound inquiries, with 45,000 year-to-date, compared to 6,000 in the previous year [46][47] Question: What is the status of executed contracts and their implementation? - Approximately $160,000 in monthly recurring revenue is currently being installed, but timing for full implementation is uncertain due to client dependencies [71]