Data Storage Corporation (NASDAQ: DTST) is up 50% after the diverse business continuity solutions provider for cloud infrastructure, disaster recovery analytics solutions, and cyber-security announced its Q12022 financial results and offered a business update.
Data storage grew revenue by 236% YoY
CEO Chuck Piluso said:
I am pleased to report we have witnessed increased sales, as well as an increase in monthly subscription services, which contributed to our revenue growth from $2.6 million to $8.7 million, a year-over-year increase of 236% for the first quarter of 2022. At the same time, we achieved positive net income and generated over $600 thousand of EBITDA.
For the quarter ended March 31, 2022, the company reported sales of $8.657 million versus $2.575 million a year ago. Net income (loss) attributable to shareholders was $135,788, and on per diluted and basic share basis, the company reported EPs of $0.02 compared to $0.01 per share a year ago.
The company has invested heavily to position itself as a leader in the IBM Power cloud platform and disaster recovery business. Additionally, the company continues to supply crucial information technology services to a specialty multibillion-dollar sector. The Flagship combination has placed the firm as a complete one-stop solutions company.
Piluso added:
The synergies of the merger are already evident, as illustrated by the multi-million-dollar contract with a highly recognized national sports team announced earlier this year, as well as our expanded our partnership with the Professional Fighters League. The sports industry represents just one of several key markets we are targeting for our solutions.
Data storage well positioned to leverage the fast-growing market
Data Storage’s management believes that they are in a strong position to leverage the fast-expanding cloud infrastructure services, cyber security, disaster recovery, and data analytics markets that will contribute to fast revenue growth, considering more companies are transitioning their IBM Power platforms into the cloud.
Piluso concluded:
With over $13 million in cash as of March 31, 2022 and no long-term debt, we are well positioned to take advantage of the countless opportunities within this emerging multi-billion-dollar mark.
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