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Direct Communication Solutions Announces Year-End Financials for 2023 and Operational Highlights

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Direct Communication Solutions, Inc. (OTCQX: DCSX) announces its year-end financial results for 2023, highlighting operational efficiency, cost savings, recurring revenue growth, profitability, margin expansion, and SaaS sales channel expansion. The company achieved a milestone in growing its recurring revenue subscriber base, increased gross margins, and diversified its SaaS sales channels. Video telematics contributed significantly to revenue growth. Despite an EBITDA loss in 2023, CEO Chris Bursey remains optimistic about the company's performance and strategic direction for future growth.
Direct Communication Solutions, Inc. (OTCQX: DCSX) annuncia i risultati finanziari di fine anno per il 2023, evidenziando efficienza operativa, risparmio sui costi, crescita dei ricavi ricorrenti, redditività, espansione dei margini e dell'offerta canali di vendita SaaS. La società ha raggiunto un traguardo incrementando la base di abbonati a ricavi ricorrenti, aumentato i margini lordi e diversificato i suoi canali di vendita SaaS. La telematica video ha contribuito significativamente alla crescita del fatturato. Nonostante una perdita di EBITDA nel 2023, il CEO Chris Bursey rimane ottimista riguardo alle performance della società e alla direzione strategica per la crescita futura.
Direct Communication Solutions, Inc. (OTCQX: DCSX) anuncia sus resultados financieros de fin de año para 2023, destacando la eficiencia operativa, el ahorro de costos, el crecimiento de los ingresos recurrentes, la rentabilidad, la expansión de márgenes y la expansión de los canales de ventas de SaaS. La compañía logró un hito al aumentar su base de suscriptores de ingresos recurrentes, incrementar los márgenes brutos y diversificar sus canales de ventas SaaS. La telemática de video contribuyó significativamente al crecimiento de los ingresos. A pesar de una pérdida de EBITDA en 2023, el CEO Chris Bursey se muestra optimista sobre el rendimiento de la compañía y la dirección estratégica para el crecimiento futuro.
Direct Communication Solutions, Inc. (OTCQX: DCSX)는 2023년 말 재무 결과를 발표하며 운영 효율성, 비용 절감, 반복적인 수익 성장, 수익성, 마진 확장 및 SaaS 판매 채널 확대를 강조하였습니다. 회사는 반복적 수익 구독자 기반을 성장시키는 이정표를 달성하고, 총 마진을 증가시키며, SaaS 판매 채널을 다양화하였습니다. 비디오 텔레매틱스가 수익 성장에 크게 기여하였습니다. 2023년에 EBITDA 손실에도 불구하고, CEO 크리스 버시는 회사의 성과와 미래 성장을 위한 전략적 방향에 대해 낙관적입니다.
Direct Communication Solutions, Inc. (OTCQX: DCSX) annonce ses résultats financiers de fin d'année pour 2023, soulignant l'efficacité opérationnelle, les économies de coûts, la croissance des revenus récurrents, la rentabilité, l'expansion des marges et l'élargissement des canaux de vente SaaS. La société a atteint un jalon en augmentant sa base d'abonnés aux revenus récurrents, en augmentant les marges brutes et en diversifiant ses canaux de vente SaaS. La vidéotélémétrie a significativement contribué à la croissance des revenus. Malgré une perte d'EBITDA en 2023, le PDG Chris Bursey reste optimiste quant à la performance de l'entreprise et à sa direction stratégique pour la croissance future.
Direct Communication Solutions, Inc. (OTCQX: DCSX) gibt seine Jahresabschluss-Ergebnisse für 2023 bekannt, die betriebliche Effizienz, Kosteneinsparungen, Wachstum wiederkehrender Einnahmen, Rentabilität, Margenerweiterung und den Ausbau der SaaS-Vertriebskanäle hervorheben. Das Unternehmen erreichte einen Meilenstein beim Wachstum seiner Basis an wiederkehrenden Einnahmeabonnenten, steigerte die Bruttomargen und diversifizierte seine SaaS-Vertriebskanäle. Video-Telematik trug erheblich zum Umsatzwachstum bei. Trotz eines EBITDA-Verlustes im Jahr 2023 bleibt CEO Chris Bursey optimistisch bezüglich der Leistung des Unternehmens und der strategischen Ausrichtung für zukünftiges Wachstum.
Positive
  • DCS achieved a milestone in growing its recurring revenue subscriber base to over 50,000 in 2023.
  • Operational efficiency and cost-cutting measures were implemented to enhance productivity and sustainable long-term growth.
  • The company significantly increased its gross margins by focusing on recurring SaaS and solutions revenues.
  • Expansion and diversification of the SaaS sales channel with new resellers and direct SaaS customers.
  • Video telematics provided high-margin growth and added to the diverse customer base.
  • Despite a 2023 EBITDA loss of USD -$2.6 million, CEO Chris Bursey remains positive about the company's performance and growth prospects.
Negative
  • None.

San Diego, California--(Newsfile Corp. - April 23, 2024) - Direct Communication Solutions, Inc. (OTCQX: DCSX) (CSE: DCSI) (FSE: 7QU0) ("DCS" or the "Company"), a leading provider of information technology solutions for the Internet of Things (IoT) market is pleased to report its year-end financial results for 2023 and highlight significant achievements and strategic initiatives.

Highlights for the fiscal year 2023 include:

Operational Efficiency and Cost Savings

Direct Communication Solutions implemented cost-cutting measures to reduce employee overhead in 2023 and will continue the company's strategic restructuring efforts, aimed at focusing on high-margin, recurring Software as a Service (SaaS) and services revenue streams in 2024. The streamlined operational efficiencies and cost savings will position the company for enhanced productivity and sustainable long-term growth.

Milestone Achievement in Recurring Revenue Growth

In 2023 DCS grew its recurring revenue subscriber base to over 50,000. This milestone includes a diverse range of customers in both software and connectivity segments, contributing to the company's robust and sustainable revenue streams.

Enhanced Profitability and Margin Expansion

With a steadfast focus on recurring SaaS and solutions revenues, DCS has significantly increased its overall gross margins. The company anticipates that its margins for Q1 2024 will continue to grow as we execute on our strategic plan. This strategic emphasis on high-margin SaaS and services offerings has not only enhanced profitability but also strengthened the company's financial position for future growth and expansion.

Expansion and Diversification of SaaS Sales Channel

Expanded and diversified our SaaS sales channel by onboarding 7 new resellers, bringing our reseller channel to 19, and added 36 new direct SaaS customers. Our focus on SaaS recurring revenues in the second half of 2023 generated almost 15,000 new SaaS subscriptions from over 600 different accounts that rely on our SaaS and services solutions to run their businesses effectively and efficiently. The SaaS and services recurring revenue growth in 2023 will allow us to continue to execute our strategy of focusing on high-margin, long-term recurring revenues in 2024 and beyond.

Video Telematics Provides High-Margin Growth

Video telematics provided a significant contribution to our overall SaaS and services recurring revenue in 2023 and will continue to grow and add to our diverse and expanding customer base. We announced long-term agreements with ALSCO and Streamline Transportation for our video telematics solution offering and will continue to focus on this exciting vertical for continued future growth.

CEO of Direct Communication Solutions, Chris Bursey, reports strong year-end revenues and growth, highlighted by the subsequent information:

For the year ended December 31, 2023, gross margin were 34.0% (28.2% for 2022), representing USD $4.4 million estimated gross profit (USD $6.3 million for 2022 YTD). The 2023 EBITDA Loss was USD -$2.6 million compared to a USD$0.50 million 2022 EBITDA loss.

Bursey commented on the company's year-end financial results, stating, "We are pleased to announce our strong performance for the fiscal year 2023, marked by significant achievements and strategic milestones. Our focus on operational efficiency, recurring revenue growth, and strategic partnerships has yielded positive results, positioning Direct Communication Solutions for continued success." He continued, "The operational cost reductions and strategic focus on our SaaS and services offerings represent a key milestone in our growth strategy, allowing us to offer enhanced IoT solutions to our customers. We look forward to building on this momentum in 2024 as we continue to innovate and deliver value to our stakeholders."

About Direct Communication Services Inc.

DCSI is a technology solutions integrator focusing on connecting the Internet of Things. We provide real solutions that solve real problems. Our software applications and scalable cloud services collect and assess business-critical data from all types of assets. DCSI is headquartered in San Diego, California and is publicly traded on the OTCQX ("DCSX"), Canadian Securities Exchange ("DCSI") and Frankfurt Stock Exchange ("7QU0"). For more information, visit www.dcsbusiness.com. DCSI and the DCSI logo are among the trademarks of DCSI in the United States. Any other trademarks or trade names mentioned are the property of their respective owners.

Contacts

Chris Bursey, CEO
cbursey@dcsbusiness.com
Ph: 858-525-2483

Forward-Looking Statements
This release contains forward-looking statements reflecting management's current views of future events and operations. These statements are based on current expectations and assumptions, subject to risks and uncertainties that could cause results to differ materially. DCS believes that these potential risks and uncertainties include, without limitation: the ongoing COVID-19 pandemic, the Company's dependence on third-party manufacturers, suppliers, technologies, and infrastructure; risks related to intellectual property; industry risks, including competition, online security, government regulation, and global economic conditions; and the Company's financial position and need for additional funding. Statements in this release should be evaluated in light of these factors. These risk factors and other important factors that could affect our business and financial results are discussed in our Management's Discussion and Analysis, periodic reports, and other public filings available on SEDAR+ at www.sedarplus.ca and posted with the OTC Disclosure and News Service. DCS undertakes no duty to update or revise any forward-looking statements.

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/206534

FAQ

What are the highlights of Direct Communication Solutions year-end financial results for 2023?

DCS highlights operational efficiency, cost savings, recurring revenue growth, profitability, margin expansion, and SaaS sales channel expansion.

How many new resellers were onboarded by DCS in 2023?

DCS onboarded 7 new resellers in 2023, bringing the total reseller channel to 19.

What was DCS's gross margin for the year ended December 31, 2023?

DCS's gross margin for 2023 was 34.0%, representing USD $4.4 million estimated gross profit.

What was the EBITDA loss for DCS in 2023?

DCS reported a USD -$2.6 million EBITDA loss in 2023 compared to USD $0.50 million in 2022.

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