|(in $ million)||3Q20||3Q21||9 mo. 20||9 mo. 21|
|Net income (loss)||0.04||0.1||0.2||0.3|
Data Storage Corporation reported its financial results for the third quarter ended September 30, 2021.
CEO Chuck Piluso commented: “I’m pleased to report revenue for the third quarter increased 42% compared to the same period last year, and we continue to generate positive net income, while investing in the future growth of the company. We saw a meaningful increase in sales across Infrastructure & DR/Cloud Services, which increased 27%; an increase in Managed Services; and Nexxis VoIP services, which increased 17%. This increase was partially offset by a decline in Equipment and Software, reflecting our focus on recurring and high margin cloud-based subscription services. Our solid results for the quarter are a direct reflection of our new sales and marketing strategy, as well as the continued growth and synergies that are being realized from the recent Flagship merger.
“We continue to expand our offerings, as illustrated by the recent partnership with Precisely, a global leader in data integrity and security software solutions, providing us new and valuable opportunities within the market. As more companies migrate their businesses to the cloud, there is an increasing need for solutions that prioritize privacy and compliance adherence. Precisely has proven to be an ideal partner to enhance our IBM i ezSecurity solution, as evidenced by the increased demand and new sales opportunities.”
“Overall, with our new capital we are investing in our organic growth, including new employees and marketing campaigns. We are establishing special incentives for cross selling our solutions between our three subsidiaries and leveraging our distribution channels. We believe we are positioned for solid organic growth in 2022 creating the baseline of subscription recurring revenue for futures years and continuing our high contract renewal rate of 94%. Our primary objectives going into 2022 are to establish more accretive partnerships and to increase our sales presence across all our product lines. At the same time, we have maintained a strong balance sheet with approximately $12.9 million of cash and cash equivalents as of September 30, 2021. Our cash position enables us to execute on our growth strategy as well as explore opportunistic acquisitions that would enhance our offerings. Looking ahead, we believe we are on track to make considerable progress towards achieving our goals and look forward to providing further updates as developments unfold.”
Revenue for 3FQ21 was $3.86 million, an increase of 42%, compared to $2.72 million for the 3FQ20. The increase was primarily attributable to additional sales from the Flagship merger and an increase in monthly subscription revenues.
Selling, general and administrative expenses for 3FQ21 were $2.02 million compared to $1.02 million for 3FQ20. The increase in expenses was primarily attributable to increases in salaries, professional fees, advertising expenses, commission expenses, and interest expenses.