Data Storage Corporation Shares Up as Company Reports 236% Increase in Revenue￼
May 16, 2022 By MarketDepth
Data Storage Corporation (NASDAQ: DTST) shares rose about 50% Monday after the Company reported a business update and reported financial results for the first quarter ended March 31, 2022.
Increased Monthly Subscriptions
The Company revealed that it has 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.
“We continue to deliver critically required information technology solutions to a niche multi-billion-dollar market and have invested millions of dollars to establish ourselves as a leader within the IBM Power cloud infrastructure and disaster recovery industry. As anticipated, the Flagship merger has positioned us as a comprehensive one-stop-solutions provider with the ability to cross-sell solutions across our respective clients. 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.”Chuck Piluso, CEO of Data Storage Corporation
Data Storage Corporation is well positioned to grow further, as it over $13 million in cash as of March 31, 2022 and no long-term debt.
“The sports industry represents just one of several key markets we are targeting for our solutions. Importantly, we believe we are extremely well positioned to take advantage of the ever increasing market demand for cloud infrastructure services, disaster recovery, cyber security, and data analytics/AI markets, which we believe will translate to accelerated revenue growth, especially as more companies migrate their IBM Power infrastructure to the cloud.”