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]
Data Storage (DTST) - 2023 Q4 - Annual Results