Data Storage Corporation ( (DTST) ) has released its Q3 earnings. Here is a breakdown of the information Data Storage Corporation presented to its investors.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
Data Storage Corporation (Nasdaq: DTST) stands as a prominent provider of comprehensive business continuity solutions, specializing in disaster recovery, cloud infrastructure, cybersecurity, and IT automation, serving a diverse range of industries, including government, education, and healthcare.
In its third-quarter earnings report for 2024, Data Storage Corporation announced key financial achievements, including increased gross profit margins and profitability for both the three and nine-month periods ending September 30, 2024. Despite a slight decrease in quarterly sales compared to the previous year, the company continues to focus on high-margin recurring subscription revenues.
The company reported $5.8 million in sales for the third quarter and $19.0 million for the first nine months of 2024. A notable achievement was the increase in gross profit by 8.7% and an improvement in gross margin by over 400 basis points. This aligns with their strategy to secure high-margin service agreements, contributing to a stable revenue foundation. The company also expanded its partnerships with significant industry players, launched a new data center in Chicago, and established a presence in the UK, enhancing its international reach and operational efficiency.
Looking forward, Data Storage Corporation is well-positioned for growth, supported by a strong financial standing with approximately $11.9 million in cash and marketable securities, and no long-term debt. The company remains focused on executing its strategic growth plan, aiming to deliver long-term value for its shareholders through careful expense management and strategic investments.
