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Data Storage (DTST) - 2024 Q4 - Annual Results
DTSTData Storage (DTST)2025-03-31 14:58

Financial Performance - Total revenue for 2024 increased to 25.4million,a225.4 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 2.37million,indicatingimprovedmarginsandoperationalefficiency[3][4]−Netincomeattributabletocommonstockholderswas2.37 million, indicating improved margins and operational efficiency[3][4] - Net income attributable to common stockholders was 523,214, with earnings per share increasing to 0.08forbasicand0.08 for basic and 0.07 for diluted[19] - Net income for the year ended December 31, 2024, increased to 513,072from513,072 from 299,316 in 2023, representing a growth of 71.5%[21] - Adjusted EBITDA for 2024 was 2,365,238,comparedto2,365,238, 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 1,740,089in2024from1,740,089 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 1,743,174in2024,comparedto1,743,174 in 2024, compared to 3,852,245 in 2023, a reduction of 54.8%[21] - The company experienced a decrease in cash of 358,633in2024,comparedtoadecreaseof358,633 in 2024, compared to a decrease of 857,992 in 2023, showing an improvement of 58.3%[21] - Cash and marketable securities totaled 12.3millionwithnolong−termdebt,positioningthecompanywellforfuturegrowthinvestments[4]OperationalDevelopments−TheCloudFirstplatformexpandedwith4newTierIIIdatacenters,bringingthetotalto10globally,enhancingservicesacrossNorthAmericaandEurope[4][5]−TheintegrationofFlagshipSolutionsGroupintoCloudFirstimprovedoperationalefficiencyandcross−sellpotential,securingmajorcontractsinvarioussectors[4][5]−ThecompanylaunchedCloudFirstEuropeLtd.withthreeTierIIIdatacentersintheUK,aimingtoserveclientsacrosstheU.S.,Canada,andtheUK[5]−Keynewcontractsin2024includedengagementswithamajormotorsportsmanufacturer,abillion−dollarinsuranceprovider,andaU.S.medicalcenter[5]AssetManagement−Thetotalassetsincreasedto12.3 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 23.30millionin2023[17]−Accountsreceivableshowedasignificantchange,withadecreaseof23.30 million in 2023[17] - Accounts receivable showed a significant change, with a decrease of 1,010,880 in 2024 compared to an increase of 2,123,340in2023[21]ExpendituresandCompensation−Capitalexpendituresroseto2,123,340 in 2023[21] Expenditures and Compensation - Capital expenditures rose to 1,800,364 in 2024, up from 1,545,017in2023,indicatinganincreaseof16.51,545,017 in 2023, indicating an increase of 16.5%[21] - Stock-based compensation increased significantly to 794,687 in 2024 from 506,205in2023,ariseof56.8506,205 in 2023, a rise of 56.8%[21] - The company reported cash paid for interest of 23,549 in 2024, down from 65,057in2023,adecreaseof63.865,057 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]