FalconStor Software Announces Second Quarter of 2024 Results

Rhea-AI Summary

FalconStor Software (FALC) announced its Q2 2024 financial results, highlighting continued growth in hybrid cloud ARR run-rate. Key points include:

- Total revenue remained flat at $2.4 million compared to Q2 2023
- 112% increase in total hybrid cloud ARR run-rate year-over-year
- $0.4 million increase in Net Income compared to Q2 2023
- Ending cash of $2.5 million, up from $1.3 million in Q2 2023
- Non-GAAP EBITDA of $0.11 million, improved from $(0.05) million in Q2 2023
- GAAP Net Loss of $(0.03) million, reduced from $(0.46) million in Q2 2023

The company emphasized its focus on operating efficiency and alignment with hybrid cloud solutions adoption. FalconStor also completed certification of StorSafe and StorGuard integration with IBM Storage Ceph, expanding into AI data lake solutions.

Positive

• 112% year-over-year increase in hybrid cloud ARR run-rate
• Improved cash position from $1.3 million to $2.5 million year-over-year
• Reduced GAAP Net Loss from $(0.46) million to $(0.03) million year-over-year
• Non-GAAP EBITDA improved from $(0.05) million to $0.11 million year-over-year
• Reduced total operating expenses from $2.2 million to $2.0 million year-over-year
• Expanded into AI market with IBM Storage Ceph integration

Negative

• Total revenue remained flat at $2.4 million year-over-year
• GAAP Net Loss of $(0.03) million, although improved from previous year

Continued Hybrid Cloud ARR Run-Rate Growth

• Total Revenue flat for Q2 versus Q2 2023
• 112% increase in total hybrid cloud ARR run-rate for Q2 versus Q2 2023
• $0.4 million increase in Net Income for Q2 versus Q2 2023

AUSTIN, Texas--(BUSINESS WIRE)-- FalconStor Software, Inc. (OTCMarkets.com: FALC), a trusted data protection leader modernizing disaster recovery and backup for the hybrid cloud world, today announced financial results for its second quarter of 2024, which ended on June 30, 2024.

“In Q2, we continued to effectively manage operating expenses and bolster our cash position, while we once again grew hybrid cloud ARR run-rate by over 100% compared to Q2 2023,” said Todd Brooks, CEO of FalconStor. “Our growth is fueled by the expansion of FalconStor's data protection and migration technology across the IBM global ecosystem, spanning on-premises, cloud, and MSP segments of the IBM Power customer base. Additionally, Q2 marked the go-to-market expansion of FalconStor technology into AI, as we completed certification of StorSafe and StorGuard integration with IBM Storage Ceph, IBM’s on-premises AI data lake solution. We are excited by the continued strength of our partnership with IBM.”

Second Quarter 2024 Financial Results

• Hybrid Cloud ARR Run-Rate: 112% increase year-over-year
• Ending Cash: $2.5 million, compared to $1.3 million in the Second Quarter of fiscal year 2023
• Total Revenue: $2.4 million, compared to $2.4 million in the Second Quarter of fiscal year 2023
• Total Cost of Revenue: $0.4 million, compared to $0.4 million in the Second Quarter of fiscal year 2023
• Total Operating Expenses: $2.0 million, compared to $2.2 million in the Second Quarter of fiscal year 2023
• Non-GAAP EBITDA: $0.11 million, compared to $(0.05) million in the Second Quarter of fiscal year 2023
• GAAP Net Income (Loss): $(0.03) million, $(0.46) million in the Second Quarter of fiscal year 2023

“Our focus remains on operating efficiency and alignment with the industry’s adoption of hybrid cloud solutions. We are committed to further enhancing our financial performance as we pursue ongoing growth and innovation,” said Vincent Sita, FalconStor CFO.

Non-GAAP Financial Measures

The non-GAAP financial measures used in this press release are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. The Company’s management refers to these non-GAAP financial measures in making operating decisions because they provide meaningful supplemental information regarding the Company’s operating performance. In addition, these non-GAAP financial measures facilitate management’s internal comparisons to the Company’s historical operating results and comparisons to competitors’ operating results. We include these non-GAAP financial measures (which should be viewed as a supplement to, and not a substitute for, their comparable GAAP measures) in this press release because we believe they are useful to investors in allowing for greater transparency into the supplemental information used by management in its financial and operational decision-making. The non-GAAP financial measures exclude (i) depreciation, (ii) amortization, (iii) restructuring expenses, (iv) severance expenses, (v) board expenses, (vi) stock based compensation, (vii) non-operating expenses (income) including income taxes and interest & other expenses (income). For a reconciliation of our GAAP and non-GAAP financial results, please refer to our Reconciliation of Net Income (Loss) to Adjusted EBITDA presented in this release.

Please click this link to see the accompanying financial charts.

About FalconStor Software

FalconStor is the trusted data protection software leader modernizing disaster recovery and backup operations for the hybrid cloud world. The Company enables enterprise customers and managed service providers to secure, migrate, and protect their data while reducing data storage and long-term retention costs by up to 95%. More than 1,000 organizations and managed service providers worldwide standardize on FalconStor as the foundation for their cloud first data protection future. Our products are offered through and supported by a worldwide network of leading managed service providers, system integrators, resellers, and original equipment manufacturers.

FalconStor and FalconStor Software are trademarks or registered trademarks of FalconStor Software, Inc., in the U.S. and other countries. All other company and product names contained herein may be trademarks of their respective holders.

Links to websites or pages controlled by parties other than FalconStor are provided for the reader's convenience and information only. FalconStor does not incorporate into this release the information found at those links nor does FalconStor represent or warrant that any information found at those links is complete or accurate. Use of information obtained by following these links is at the reader's own risk.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240807254868/en/

CONTACT INFORMATION

For more information, contact:

Vincent Sita

Chief Financial Officer

FalconStor Software Inc.

investorrelations@falconstor.com

CONTACT US AROUND THE GLOBE



Corporate Headquarters

111 Congress Avenue

Suite 500

Austin, Texas 78701

Tel: +1.631.777.5188

salesinfo@falconstor.com



Europe Headquarters

GERMANY

Landsberger Straße 302

80687 München, Germany

salesemea@falconstor.com

Source: FalconStor Software, Inc.

FAQ

What was FalconStor Software's (FALC) hybrid cloud ARR run-rate growth in Q2 2024?

FalconStor Software (FALC) reported a 112% increase in total hybrid cloud ARR run-rate for Q2 2024 compared to Q2 2023.

How did FalconStor's (FALC) total revenue change in Q2 2024 compared to Q2 2023?

FalconStor's (FALC) total revenue remained flat at $2.4 million in Q2 2024 compared to Q2 2023.

What was FalconStor's (FALC) GAAP Net Income/Loss for Q2 2024?

FalconStor (FALC) reported a GAAP Net Loss of $(0.03) million for Q2 2024, an improvement from $(0.46) million in Q2 2023.

How much cash did FalconStor (FALC) have at the end of Q2 2024?

FalconStor (FALC) reported ending cash of $2.5 million at the end of Q2 2024, compared to $1.3 million in Q2 2023.