Data Storage Corporation: Full Year 2024 Financial Results

Summary:

• Expanded CloudFirst platform in 2024 with 4 new Tier III data centers (UK and Chicago), totaling 10 globally to enhance multi-cloud and continuity services across North America and Europe
• Completed Flagship Solutions Group integration into CloudFirst, boosting efficiency and cross-sell potential to clients; secured major 2024 contracts across motorsports, insurance, healthcare, and education sectors
• Net income improved by approximately 71% for the 2024 fiscal year
  compared to 2023 fiscal year and achieved Adjusted EBITDA⁽¹⁾ of $2.37 million for 2024
• Ends 2024 with $12.3 million in cash and marketable securities
  and no long-term debt

Data Storage Corporation provided a business update and reported financial results for the year ended December 31, 2024.

“We made consistent progress in 2024 – both financially and strategically,” said Chuck Piluso, CEO, Data Storage Corporation. “To start, total revenue for the year increased to $25.4 million, a modest 2% gain from 2023, reflecting a shift from lower-margin, one-time equipment sales toward long term, recurring subscription revenue streams. This strategy builds on our already $39.2 million remaining contract value with DR and cloud hosting solutions. Importantly, we ended the year with an estimated $22 million Annual Recurring Revenue run rate, demonstrating the scalability and consistency of our subscription-based model with over 80% of our revenue recurring. Furthermore, net income rose approximately 71% to $513 thousand, while Adjusted EBITDA* increased to $2.37 million – both strong indicators of improved margins and greater operational efficiency. Finally, with $12.3 million in cash and marketable securities and no long-term debt, we remain well-positioned to invest in future growth.“

“In 2024, we also took steps to expand our footprint. Internationally, we launched CloudFirst Europe Ltd. supported by 3 Tier III data centers in the UK through 3 strategic partnerships. This expansion positions us to provide our Power platform serving clients across the US, Canada, and the UK – we are one of the few single source global providers. To lead our European operations, we appointed Colin Freeman as MD, and early traction in the region has been promising. Domestically, we added a Tier III data center in Chicago, bringing our total to 10 global sites while enhancing redundancy and performance across North America.“

“We also completed the full integration of our Flagship Solutions Group subsidiary into our CloudFirst Technologies subsidiary, which has streamlined operations and improved our ability to deliver integrated cloud and managed services to clients. Key new contracts in 2024 included engagements with a Canadian division of a major motorsports manufacturer, a billion-dollar insurance provider, and a US medical center – each reflecting our strength in delivering compliant, mission-critical high processing infrastructure solutions.“

“Overall, 2024 was a year of meaningful execution across all fronts. We advanced our shift to a high-margin, recurring revenue model, expanded into new international markets, strengthened our infrastructure, and delivered improved financial results. These accomplishments reinforce our long-term vision and position us to scale further in 2025 and beyond as demand for compliant, enterprise-grade cloud solutions continues to rise globally.“

The Company hosted a conference call on Monday, March 31, 2025, to discuss the company’s financial results, as well as corporate progress and other developments. A webcast replay of the call will be available on the company’s website through September 30, 2025. A telephone replay of the call will be available through April 7, 2025, and can be accessed by dialing 877-660-6853 for US callers or + 1-201-612-7415 for international callers and entering conference ID: 13751220.

⁽¹⁾ Adjusted EBITDA is a non-GAAP measure. Please refer to the Company’s financial disclosures for a reconciliation to the most directly comparable GAAP measure.

The following table shows the Company’s reconciliation of net income (loss) to adjusted EBITDA for the years ended December 31, 2024, and 2023: