Data Storage Corporation Provides Letter to Shareholders Highlighting Recent Achievements within CloudFirst Technologies Subsidiary
Data Storage (DTST) reports significant progress at its CloudFirst Technologies subsidiary. The company serves over 425 clients with expected annual recurring revenue of over $20.0 million for 2025, and current remaining contract value exceeding $31.0 million. CloudFirst maintains a 90%+ contract renewal rate and is expanding into the UK market in Q1 2025. The company successfully integrated Flagship Solutions Group, which transformed from negative EBITDA in 2022 to positive EBITDA in 2023. The integration has enhanced operational efficiency through consolidated technical teams and unified monitoring systems.
Data Storage (DTST) riporta progressi significativi nella sua controllata CloudFirst Technologies. L'azienda serve oltre 425 clienti con un fatturato ricorrente annuale previsto di oltre 20,0 milioni di dollari per il 2025 e un valore residuo del contratto attuale che supera i 31,0 milioni di dollari. CloudFirst mantiene un tasso di rinnovo dei contratti superiore al 90% ed è in espansione nel mercato del Regno Unito nel primo trimestre del 2025. L'azienda ha integrato con successo Flagship Solutions Group, che è passata da un EBITDA negativo nel 2022 a un EBITDA positivo nel 2023. L'integrazione ha migliorato l'efficienza operativa attraverso team tecnici consolidati e sistemi di monitoraggio unificati.
Data Storage (DTST) informa sobre un progreso significativo en su subsidiaria CloudFirst Technologies. La empresa atiende a más de 425 clientes con unos ingresos recurrentes anuales previstos de más de 20,0 millones de dólares para 2025, y un valor restante de contrato actual que supera los 31,0 millones de dólares. CloudFirst mantiene una tasa de renovación de contratos superior al 90% y se está expandiendo al mercado del Reino Unido en el primer trimestre de 2025. La empresa integró con éxito Flagship Solutions Group, que pasó de un EBITDA negativo en 2022 a un EBITDA positivo en 2023. La integración ha mejorado la eficiencia operativa a través de equipos técnicos consolidados y sistemas de monitoreo unificados.
데이터 저장 (DTST)은 CloudFirst Technologies 자회사의 상당한 발전을 보고했습니다. 이 회사는 2025년까지 2천만 달러 이상의 예상 연간 반복 수익으로 425명 이상의 고객에게 서비스를 제공하며 현재 남아 있는 계약 가치는 3100만 달러를 초과합니다. CloudFirst는 90% 이상의 계약 갱신률을 유지하고 있으며 2025년 1분기에 영국 시장으로 확장을 계획하고 있습니다. 이 회사는 Flagship Solutions Group을 성공적으로 통합했으며, 이 그룹은 2022년에는 부정적인 EBITDA에서 2023년에는 긍정적인 EBITDA로 전환했습니다. 이 통합 과정은 통합된 기술 팀과 통일된 모니터링 시스템을 통해 운영 효율성을 높였습니다.
Data Storage (DTST) fait état de progrès significatifs au sein de sa filiale CloudFirst Technologies. L'entreprise compte plus de 425 clients avec des revenus annuels récurrents prévus de plus de 20,0 millions de dollars pour 2025, et une valeur de contrat restante actuelle dépassant 31,0 millions de dollars. CloudFirst maintient un taux de renouvellement des contrats supérieur à 90 % et s'étend sur le marché britannique au premier trimestre de 2025. L'entreprise a intégré avec succès Flagship Solutions Group, qui est passée d'un EBITDA négatif en 2022 à un EBITDA positif en 2023. Cette intégration a amélioré l'efficacité opérationnelle grâce à des équipes techniques consolidées et des systèmes de surveillance unifiés.
Data Storage (DTST) berichtet über signifikante Fortschritte bei seiner Tochtergesellschaft CloudFirst Technologies. Das Unternehmen betreut über 425 Kunden und erwartet für 2025 wiederkehrende jährliche Einnahmen von über 20,0 Millionen Dollar sowie einen aktuellen Vertragswert von mehr als 31,0 Millionen Dollar. CloudFirst hat eine Vertragsverlängerungsrate von über 90% und expandiert im ersten Quartal 2025 in den britischen Markt. Das Unternehmen hat Flagship Solutions Group erfolgreich integriert, die von einem negativen EBITDA im Jahr 2022 zu einem positiven EBITDA im Jahr 2023 übergegangen ist. Die Integration hat die operative Effizienz durch konsolidierte technische Teams und einheitliche Überwachungssysteme verbessert.
- Expected annual recurring revenue baseline of $20.0 million for 2025
- Over $31.0 million in remaining contract value
- Contract renewal rate exceeding 90%
- Flagship Solutions Group turned EBITDA positive in 2023
- Expansion into UK market planned for Q1 2025
- None.
Insights
This shareholder update reveals significant financial and operational progress at CloudFirst Technologies. The subsidiary demonstrates robust financial metrics with
The UK market expansion planned for Q1 2025 represents a strategic growth opportunity, particularly in the lucrative European cloud services market. The successful integration of Flagship Solutions Group, marked by its transition from negative to positive EBITDA between 2022 and 2023, demonstrates effective operational synergy and cost management.
With 425 enterprise clients across diverse industries and typical 36-month agreement terms, the company shows promising revenue stability and growth potential. The focus on high-margin services in cloud infrastructure, disaster recovery and cybersecurity positions CloudFirst favorably in rapidly growing market segments.
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.
Contact:
Crescendo Communications, LLC
212-671-1020
DTST@crescendo-ir.com
FAQ
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