CloudFirst Continues Strong Financial Performance Along with Expansion into the United Kingdom and Operational Success Following Flagship Solutions Group Integration
MELVILLE, N.Y., Nov. 04, 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 automation, today provided a letter to shareholders from its CEO, Chuck Piluso.
“To our Valued Shareholders:
We are excited to share significant updates on the transformative progress at our wholly owned subsidiary, CloudFirst Technologies. This year we have witnessed fundamental growth, driven by our commitment to establishing CloudFirst as an industry leader in cloud hosting, disaster recovery, and cyber-security. By focusing on these high-demand areas, we are positioning the company for sustainable long-term profitability, global expansion, and heightened operational efficiency. Below, we outline key highlights, strategic initiatives, and our outlook for the future.
Operational Highlights:
As of June 30, 2024, CloudFirst is proud to report the following:
We serve over 425 companies, representing diverse industries and a growing client base.
For 2025, the baseline billing in annual recurring revenue baseline, given all annual services renew, is expected to reach over $20.0 million, while our typical agreement for our enterprise cloud is 36 months, underscores our robust financial trajectory and confidence in CloudFirst’s market positioning.
CloudFirst today has over $31.0 million in remaining contract value for our enterprise subscription cloud hosting infrastructure, disaster recovery and cyber security solutions.
Additionally, we are pleased to report a contract renewal rate, for over a decade, greater than 90%, highlighting the strength of our customer relationships and the ongoing satisfaction with our team and our services.
These achievements reflect our strategic focus on cloud infrastructure, disaster recovery and cyber security services, which continue to deliver sustainable, high-margin growth.
UK Expansion:
In line with our growth strategy, we are pleased to announce our entry into the UK market where we expect to begin offering services in the first quarter of 2025. This expansion is key to our plan to increase CloudFirst's global footprint.
We are partnering with Intel-based data centers to establish CloudFirst’s technical infrastructure across multiple data centers. These partnerships will allow us to leverage our enterprise IBM Power platform while Intel-based providers manage client referrals and billing.
Our expansion into the rapidly growing European market is expected to enable us to capture new demand for cloud services, disaster recovery, and cybersecurity while positioning us as a key player in the region.
These steps mark major milestones in CloudFirst’s goal of becoming a global leader in enterprise cloud-based services and offers us the opportunity to grow our client base and increase revenue in a growing market.
Flagship Solutions Group Integration:
We are also reporting the successful integration of Flagship Solutions Group into CloudFirst on January 1, 2024. Acquired in 2021, Flagship has undergone a transformation over the past few years:
Flagship moved from a negative EBITDA for the year ended December 31, 2022, to a positive result in EBITDA for the year ended December 31, 2023, a testament to our ability to streamline operations and create synergies across the two organizations.
A key driver of this turnaround has been our efforts to consolidate technical teams under CloudFirst’s CTO, unify our monitoring systems, and integrate various platforms, thereby optimizing the efficiency of our service delivery.
This strategic integration enhances CloudFirst’s operational efficiency and positions us to capitalize on new revenue opportunities by offering our full suite of cloud and recovery services to Flagship's established client base.
Conclusion:
Looking ahead, we believe CloudFirst is well-positioned for continued success. Our expansion into the UK, the operational efficiencies we have achieved through the Flagship Solutions Group integration, and our strong financial performance are all expected to provide a solid foundation for sustained growth and shareholder value creation.
As we continue to execute our growth strategy, we remain focused on our core mission: to provide reliable, scalable, and high-margin cloud infrastructure, disaster recovery, and cybersecurity solutions. We are committed to driving innovation, delivering excellent customer experiences, and pursuing new market opportunities.
We sincerely thank you for your continued support and look forward to sharing more updates as we reach new milestones.
Sincerely,
Chuck Piluso CEO, Data Storage Corporation”
About Data Storage Corporation
Data Storage Corporation (Nasdaq: DTST) is a leading provider of fully managed cloud hosting, disaster recovery, cybersecurity, IT automation, and voice & data solutions. With strategic technical investments in multiple regions, DTST serves a diverse clientele, including Fortune 500 companies, in sectors such as government, education, and healthcare. Focused on the fast-growing, multi-billion-dollar cloud hosting and business continuity market. DTST is recognized as a stable and emerging growth leader in cloud infrastructure, support and the migration of data to the cloud. Our regional data centers across North America enable us to deliver sustainable services through recurring subscription agreements.
For more information, please visit www.dtst.com or follow us on X @DataStorageCorp.
Safe Harbor Provision This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby. Forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. The forward looking statements in this press release include statements such as continuing to grow revenue and increase profitability as the Company executes on its strategic initiatives, the consolidation of the CloudFirst and Flagship subsidiaries positioning the Company to optimize operations, leverage its technical teams, realize greater efficiencies, and improve internal resource allocation, while capitalizing on extensive cross-selling and upselling opportunities among its customer networks, having developed a robust business strategy that we will drive growth and secure sustainable profitability while maximizing long term value for shareholders and providing meaningful updates to shareholders as developments unfold. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include the Company’s ability to execute and advance its growth strategies. These risks should not be construed as exhaustive and should be read together with the other cautionary statements included in the Company’s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it was initially made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or otherwise.
