Data Storage Corporation Provides 2021 Year-End Business Update

Rhea-AI Summary

Data Storage Corporation (Nasdaq: DTST) reported significant progress in 2021, highlighting key achievements such as commencing trading on the Nasdaq and completing a merger with Flagship Solutions. The company expanded its service offerings, particularly in IBM solutions and managed services, and increased its workforce by over 100%. DSC reported a 57% growth in subscription and recurring revenue along with a 94% renewal rate on contracts. The year ended with a $17 million total contract value in sales proposals and a multi-million dollar agreement with a major sports team, positioning DSC for future growth in 2022.

Positive

• Grew subscription and recurring revenue by 57% for the first nine months of 2021.
• Maintained a 94% renewal rate on existing long-term client contracts.
• $17 million total contract value in outstanding sales proposals.
• Concluded 2021 with a multi-million dollar contract with a well-known professional sports team.
• Headcount increased from 29 to 60, a 100% growth.

Negative

• None.

Reports meaningful progress and well positioned for continued growth in 2022

MELVILLE, N.Y., Jan. 13, 2022 (GLOBE NEWSWIRE) -- Data Storage Corporation (Nasdaq: DTST) (“DSC” and the “Company”), a provider of diverse business continuity, disaster-recovery-as-a-service (DRaaS) protection, IBM Power infrastructure-as-a-service (IaaS), cyber-security and data analytics solutions, today provided a 2021 year-end business update.

2021 Achievements:

• Commenced trading on the Nasdaq Capital Market
• Completed merger with Flagship Solutions, LLC, a leading provider of IBM solutions, managed services and cloud solutions worldwide
• Opened the Canadian marketplace by placing IBM equipment in two Tier 2 data centers for IaaS and disaster recovery
• Entered a managed services model partnership with Precisely, a global leader in data integrity software
• Announced several significant appointments to senior management
• With Flagship acquisition and new hires, grew headcount from 29 to 60 increasing headcount by over 100%
• Grew subscription and recurring revenue by 57% for the first nine months of 2021
• Maintaining a 94% renewal rate on existing long term client contracts
• $17m total contract value sales proposals
• $16m+ in remaining contract value
• Tier 3 data centers in the USA and Canada
• Concluded 2021 with a multi-million dollar contract with one of the nation’s most recognized professional sports teams

Chuck Piluso, CEO of Data Storage Corporation, commented, “2021 was a monumental year for Data Storage Corporation that has laid the foundation for meaningful growth for years to come, both operationally and financially. Notably, we completed the merger with Flagship Solutions that significantly expanded our services and quickly proved to be highly synergistic with our existing IBM operations, ultimately positioning us as a leading, one-stop provider for multi-cloud IT solutions.

We have already identified numerous cross-selling opportunities, allowing us to realize solid revenue growth since completion of the merger. Moreover, we anticipate continued growth and additional opportunities within this market as the IBM on-premise server market has only begun to transition to the cloud in the last few years. Specifically, of the one million plus virtual IBM Power servers, only 15% have begun the migration to the cloud. We believe this represents a multi-billion-dollar global addressable market and we are ideally positioned to capitalize on this trend.”

“Additionally, we continue to execute on our business growth strategy by expanding our offerings, which have provided new and valuable opportunities—much like our partnership with Precisely, a global leader in data integrity and cyber security software solutions. The addition of Precisely’s expanded solutions within a cloud environment has allowed us to offer an even more robust and full-featured offering that addresses the most common IT security exposure issues, including ransomware. These solutions have become increasingly important as more and more organizations are migrating to the cloud and are in need of critical security features that protect information, data privacy, and adhere to compliance standards.”

“We also entered into a partnership with Able-One, filling a vital need for cloud services in Canada among businesses that run IBM Power systems on IBM i, AIX and Linux operating systems. This partnership begins to open up new markets in Canada and added two new Tier 3 enterprise-level data centers, while expanding the DSC’s North American footprint. To date, we have completed meaningful acquisitions and entered into strategic partnerships that provide us more inclusive features and services for our clients, demonstrating our commitment to offering customers the most cutting-edge and comprehensive technologies.”

“As a result of our strategic initiatives in 2021, DSC has a remaining contract value on subscription services alone of greater than $16 million with a 94% contract renewal rate and over $17 million in total outstanding contract proposals—a historic high for our company. We continue to see an uptick in interest in our solutions and a desire from the user community to find out how to migrate their IBM systems to the cloud, as well as layer additional cloud infrastructure solutions such as disaster recovery, cyber security and data analytics. We have a strong balance sheet with approximately $12.9 million of cash and cash equivalents as of September 30, 2021, enabling us to execute on our growth strategy, as well as explore opportunistic acquisitions that would further enhance our offering. Overall, we are proud to report that the activities we undertook throughout the year have proven successful, resulting in more than 400 customers, 16 new channel partners, and a growing employee base, including a number of key senior appointments in 2021. We believe with the meaningful progress achieved, we are well positioned for significant growth in 2022 and beyond given our established and scalable global business model that we believe will sustain Data Storage as a leader in the industry for years to come,” concluded Chuck Piluso.

About Data Storage Corporation

The Company delivers and supports a broad range of premium technology solutions focusing on IaaS, data storage protection and IT management. Clients look to Data Storage to ensure disaster recovery, business continuity, enhance security, and to meet increasing industry, state and federal regulations. The Company markets to businesses, government, education and the healthcare industry by leveraging leading technologies. Through its business units, the Company provides IaaS, SaaS, DRaaS, VoIP, cyber security, data analytics, IBM Power systems and storage hardware with managed IT services. For more information, please visit http://www.DataStorageCorp.com.

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. 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 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 for the year ended December 31, 2020, 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.

Contact:
Crescendo Communications, LLC
212-671-1020
DTST@crescendo-ir.com

SOURCE: Data Storage Corporation

FAQ

What were Data Storage Corporation's achievements in 2021?

Data Storage Corporation completed a merger with Flagship Solutions, grew headcount by over 100%, and reported a 57% increase in subscription revenue.

What is the current contract value for Data Storage Corporation?

Data Storage Corporation has a total contract value of $17 million in outstanding sales proposals as of the end of 2021.

What is Data Storage Corporation's renewal rate?

The company maintained a 94% renewal rate on existing long-term client contracts.

How did Data Storage's workforce change in 2021?

Data Storage Corporation increased its headcount from 29 to 60 in 2021, marking a growth of over 100%.

What is the significance of the merger for Data Storage Corporation?

The merger with Flagship Solutions expanded DSC's service offerings and positioned it as a leading provider of multi-cloud IT solutions.