Data Storage (DTST) - 2024 Q1 - Quarterly Results

Data Storage Corporation Q1 2024 Earnings Release Financial and Business Highlights Data Storage Corporation achieved Q1 2024 profitability with 20% revenue growth to $8.2 million, driven by strategic initiatives and a strong balance sheet Key Financial Highlights | Financial Metric | Q1 2024 (USD) | Q1 2023 (USD) | Change | | :--- | :--- | :--- | :--- | | Revenue | $8.2 million | $6.9 million | +20% | | Gross Profit | $3.0 million | $2.1 million | +42% | | Gross Profit Margin | 36% | 30% | +6 p.p. | - The company achieved profitability in the first quarter of 2024, demonstrating the success and scalability of its business model[2] - Strategic initiatives include the consolidation of CloudFirst and Flagship subsidiaries to optimize operations, leverage technical teams, and capitalize on cross-selling opportunities[2] - Secured two significant contracts during the quarter: an expansion with a major global telecommunications company and a new contract with one of the largest insurance companies in the U.S.[2] - The company is advancing its international growth plan, highlighted by the recent opening of a London office to serve European and other global markets[2] - Maintained a strong balance sheet with over $11.9 million in cash and marketable securities as of March 31, 2024[2] Financial Statements This section presents Data Storage Corporation's unaudited consolidated financial statements for Q1 2024, including Balance Sheets, Statements of Operations, and Cash Flows Consolidated Balance Sheets As of March 31, 2024, total assets increased to $25.8 million, liabilities significantly to $5.6 million, and stockholders' equity modestly to $20.3 million Consolidated Balance Sheet Summary | Balance Sheet Items | March 31, 2024 (USD) | December 31, 2023 (USD) | | :--- | :--- | :--- | | Cash and marketable securities | $11,902,307 | $12,746,926 | | Total Assets | $25,824,493 | $23,301,019 | | Total Liabilities | $5,552,849 | $3,546,604 | | Total Stockholders' Equity | $20,271,644 | $19,754,415 | Consolidated Statements of Operations For Q1 2024, revenue grew 20% to $8.2 million, shifting to an operating income of $213,795, with net income significantly increasing to $357,102 ($0.05 per diluted share) Consolidated Statements of Operations Summary | Income Statement (YoY) | Three Months Ended March 31, 2024 (USD) | Three Months Ended March 31, 2023 (USD) | | :--- | :--- | :--- | | Sales | $8,235,747 | $6,879,723 | | Gross Profit | $2,966,472 | $2,089,745 | | Income (loss) from Operations | $213,795 | $(41,014) | | Net Income Attributable to Common Stockholders | $357,102 | $50,666 | | Earnings per Share – Diluted | $0.05 | $0.01 | Consolidated Statements of Cash Flows In Q1 2024, net cash from operating activities shifted to an outflow of $318,624, driven by increased accounts receivable, resulting in cash and cash equivalents decreasing to $640,742 Consolidated Statements of Cash Flows Summary | Cash Flow Statement (YoY) | Three Months Ended March 31, 2024 (USD) | Three Months Ended March 31, 2023 (USD) | | :--- | :--- | :--- | | Net Cash (Used in) Provided by Operating Activities | $(318,624) | $449,139 | | Net Cash Used in Investing Activities | $(302,006) | $(530,094) | | Net Cash Used in Financing Activities | $(167,358) | $(323,728) | | Cash and Cash Equivalents, End of Period | $640,742 | $1,882,039 |