FalconStor Software Announces Third Quarter of 2023 Results

Rhea-AI Summary

FalconStor Software, Inc. (FALC) announces strong Q3 2023 financial results with 8% YoY increase in total GAAP revenue, 18% increase in hybrid cloud ARR run-rate, and $1.8 million in ending cash. The company's hyper-focus on IBM Power customers and partnership with IBM are driving adoption of FalconStor’s data protection and migration technology throughout the IBM global ecosystem, leading to plans to increase hybrid cloud growth investments.

Positive

• Strong revenue growth and net income
• 40% increase in total GAAP revenue versus previous quarter
• 18% increase in total hybrid cloud ARR run-rate for Q3 versus previous quarter
• Positive impact of hyper-focus on IBM Power customers and partnership with IBM on adoption of FalconStor’s technology

Negative

• None.

Strong revenue growth, net income, and cash generation

• 8% year-over-year increase in total GAAP revenue for Q3 and 40% increase versus previous quarter
• 18% increase in total hybrid cloud ARR run-rate for Q3 versus previous quarter
• 10% increase in MSP-driven hybrid cloud ARR run-rate for Q3 versus previous quarter

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 third quarter of 2023, which ended on September 30, 2023.

“Enterprises around the globe are accelerating their strategic focus on hybrid cloud technology solutions as they seek competitive advantages and operating efficiencies,” said Todd Brooks, FalconStor CEO. “Our hyper-focus on IBM Power customers, and partnership with IBM, are driving adoption of FalconStor’s data protection and migration technology throughout the IBM global ecosystem. As a result, we plan to increase our hybrid cloud growth investments to continue delivering year-over-year revenue growth and profitability.”

Third Quarter 2023 Financial Results

• Hybrid Cloud ARR Run-Rate: 18% increase compared to the previous quarter, and 224% increase year-over-year
• Ending Cash: $1.8 million, compared to $1.3 million in the previous quarter, and $1.7 million in the third quarter of fiscal year 2022
• Total Revenue: $3.3 million, compared to $2.4 million in the previous quarter, and $3.1 million in the third quarter of fiscal year 2022
• Total Cost of Revenue: $0.4 million, compared to $0.4 million in the previous quarter, and $0.4 million in the third quarter of fiscal year 2022
• Total Operating Expenses: $2.0 million, compared to $2.2 million in the previous quarter, and $2.3 million in the third quarter of fiscal year 2022
• GAAP Net Income (Loss): $0.8 million, compared to $(0.5) million in the previous quarter, and $0.2 million in the third quarter of fiscal year 2022

“Our disciplined focus on operating efficiency and alignment with the industry’s adoption of hybrid cloud solutions, are driving our improved results,” said Vincent Sita, FalconStor CFO. “We generated a healthy level of cash in the quarter, and will continue to balance tight expense control and strategic growth investments as we move forward.”

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/20231108236135/en/

Vincent Sita

Chief Financial Officer

FalconStor Software Inc.

investorrelations@falconstor.com



CONTACT US AROUND THE GLOBE

Corporate Headquarters

501 Congress Avenue

Suite 150

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 are FalconStor Software, Inc.'s Q3 2023 financial results?

FalconStor Software, Inc. (FALC) reported an 8% year-over-year increase in total GAAP revenue, an 18% increase in total hybrid cloud ARR run-rate for Q3 versus the previous quarter, and $1.8 million in ending cash.

What is driving FalconStor's growth investments?

FalconStor's hyper-focus on IBM Power customers and partnership with IBM are driving the adoption of FalconStor’s data protection and migration technology, leading to plans to increase hybrid cloud growth investments.

How are FalconStor's financials improving?

The company's disciplined focus on operating efficiency and alignment with the industry’s adoption of hybrid cloud solutions are driving improved results, with healthy cash generation and balanced expense control and strategic growth investments.