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Data Storage (DTST) - 2024 Q3 - Quarterly Results
DTSTData Storage (DTST)2024-11-14 15:02

Financial Performance - Data Storage Corporation achieved 19.0millioninsalesfortheninemonthsendedSeptember30,2024,with19.0 million in sales for the nine months ended September 30, 2024, with 5.8 million in sales for the third quarter[2]. - Sales for Q3 2024 were 5,808,835,adecreaseof35,808,835, a decrease of 3% compared to 5,986,625 in Q3 2023[11]. - Gross profit increased to 2,511,671inQ32024,up82,511,671 in Q3 2024, up 8% from 2,330,354 in Q3 2023[11]. - Net income attributable to common stockholders was 122,397inQ32024,down32122,397 in Q3 2024, down 32% from 179,011 in Q3 2023[11]. - Net cash provided by operating activities decreased significantly to 552,590in2024from552,590 in 2024 from 2,161,424 in 2023[12]. - Interest income increased to 160,770inQ32024,comparedto160,770 in Q3 2024, compared to 152,471 in Q3 2023[11]. - The company reported a loss from operations of 25,830inQ32024,comparedtoincomeof25,830 in Q3 2024, compared to income of 14,141 in Q3 2023[11]. Profitability and Margins - Gross profit margin increased over 400 basis points to 43.2% for the third quarter of 2024, with gross profit rising by 8.7%[1][2]. Assets and Liabilities - Total assets increased to 24.2millionasofSeptember30,2024,comparedto24.2 million as of September 30, 2024, compared to 23.3 million at the end of 2023[10]. - Total liabilities stood at 3.6millionasofSeptember30,2024,slightlyupfrom3.6 million as of September 30, 2024, slightly up from 3.5 million at the end of 2023[10]. - Stockholders' equity increased to 20.6millionasofSeptember30,2024,comparedto20.6 million as of September 30, 2024, compared to 19.8 million at the end of 2023[10]. Cash and Investments - The company has approximately 11.9millionincashandmarketablesecuritiesandnolong−termdebt,providingflexibilityforstrategicinvestments[3].−Cashandcashequivalentsattheendoftheperiodwere11.9 million in cash and marketable securities and no long-term debt, providing flexibility for strategic investments[3]. - Cash and cash equivalents at the end of the period were 513,718, down from 993,388inthepreviousyear[12].−CapitalexpendituresforQ32024were993,388 in the previous year[12]. - Capital expenditures for Q3 2024 were 1,116,008, a reduction from 1,246,996inQ32023[12].StrategicInitiatives−AnewdatacenterwaslaunchedinChicagotosupportthegrowingU.S.customerbase,enhancingreliabilityandcapacity[2].−DataStorageCorporationexpandeditspresenceintheUKmarketandintegratedFlagshipSolutions,positioningforacceleratedgrowthinEurope[2].−Thecompanysecuredacontractwithaleadingmedicalcenterforcompliantcloudhosting,strengtheningitspositioninthehealthcaresector[2].−Asix−figurecontractwasobtainedwithamusicpublishingorganizationineducation,showcasingadaptabilitytodiverseindustries[2].RiskManagement−Thecompanyrecognizedaprovisionforcreditlossesof1,246,996 in Q3 2023[12]. Strategic Initiatives - A new data center was launched in Chicago to support the growing U.S. customer base, enhancing reliability and capacity[2]. - Data Storage Corporation expanded its presence in the UK market and integrated Flagship Solutions, positioning for accelerated growth in Europe[2]. - The company secured a contract with a leading medical center for compliant cloud hosting, strengthening its position in the healthcare sector[2]. - A six-figure contract was obtained with a music publishing organization in education, showcasing adaptability to diverse industries[2]. Risk Management - The company recognized a provision for credit losses of 25,541 in Q3 2024, indicating a new strategy to address potential financial risks[12]. Shareholder Information - The weighted average number of shares - diluted increased to 7,340,545 in Q3 2024 from 7,246,250 in Q3 2023[11].