Expanded CloudFirst platform in 2024 with 4 new Tier III data centers (UK & Chicago), totaling 10 globally to enhance multi-cloud and continuity services across North America and EuropeCompleted Flagship Solutions Group integration into CloudFirst, boosting efficiency and cross-sell potential to clients; secured major 2024 contracts across motorsports, insurance, healthcare, and education sectorsNet income improved by approximately 71% for the 2024 fiscal year 
compared to 2023 fiscal year and achieved Adjusted EBITDA* of $2.37 million for 2024Ends 2024 with $12.3 million in cash and marketable securities
 and no long-term debtConference Call to be held today at 11:00 am ET

MELVILLE, N.Y., March  31, 2025  (GLOBE NEWSWIRE) -- Data Storage Corporation (Nasdaq: DTST) (“DSC” and the “Company”), a leading provider of multi-cloud hosting, managed cloud services, disaster recovery, cybersecurity, and IT automation, with direct connection to AWS, Microsoft Azure, and Google Cloud, today 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 of 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 disaster recovery 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 three Tier III data centers in the UK through three strategic partnerships. This expansion positions us to provide our Power platform serving clients across the U.S., Canada, and the UK — we are one of the few single source global providers. To lead our European operations, we appointed Colin Freeman as Managing Director, and early traction in the region has been promising. Domestically, we added a Tier III data center in Chicago, bringing our total to ten 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 U.S. 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.”

Conference Call

The Company plans will host a conference call at 11:00 a.m. Eastern Time on Monday, March 31, 2025, to discuss the Company's financial results for the 2024 fiscal year which ended December 31, 2024, as well as corporate progress and other developments.

The conference call will be available via telephone by dialing toll-free 877-407-9219 for U.S. callers or for international callers +1-201-689-8852. A webcast of the call may be accessed at  DSC 2024 Fiscal Year Earnings Call or on the Company’s News & Events section of the website,  www.dtst.com/news-events.

A webcast replay of the call will be available on the Company’s website (www.dtst.com/news-events) through September 30, 2025. A telephone replay of the call will be available approximately three hours following the call, through April 7, 2025, and can be accessed by dialing 877-660-6853 for U.S. callers or + 1-201-612-7415 for international callers and entering conference ID: 13751220.

About Data Storage Corporation

Data Storage Corporation (Nasdaq: DTST) through its subsidiaries is a leading provider of multi-cloud hosting, fully managed cloud services, disaster recovery, cybersecurity, IT automation, and voice & data solutions. Recognizing that data migration is a critical step in transitioning from on-premises systems to the cloud, DSC provides comprehensive migration services to ensure seamless, secure, and efficient data transfer, minimizing downtime and optimizing performance.

Through its owned and operated cloud platform, built on IBM Power Cloud infrastructure, DSC delivers high-performance, scalable, and secure cloud solutions with interoperability across its infrastructure partners, AWS, Microsoft Azure, and Google Cloud.

With data centers supporting its CloudFirst platform deployments across the United States, Canada, and the United Kingdom, DSC provides mission-critical solutions to a diverse clientele, including Fortune 500 companies, government agencies, educational institutions, and healthcare organizations.

As a leader in the multi-billion-dollar cloud hosting and business continuity market, DTST is recognized for its expertise in cloud infrastructure, IT modernization, and data migration, enabling clients to transition to the cloud with confidence and operational continuity.

For more information, please visit www.dtst.com or follow us on X @DataStorageCorp.

*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.

Safe Harbor Provision

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby. Forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and include statements regarding being well-positioned to invest in future growth, the Company’s Power platform serving clients across the U.S., Canada and the UK and the Company’s recent accomplishments positioning it to scale further in 2025 and beyondas demand for compliant, enterprise-grade cloud solutions continues to rise globally, and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, the Company’s ability to grow its presence in Europe,the Companybeing well-positioned to invest in future growth, the Company’s successful transition from on-premises systems to the cloud, and DSC delivering high-performance, scalable, and secure cloud solutions with interoperability across its infrastructure partners. These risks should not be construed as exhaustive and should be read together with the other cautionary statements included in the Company’s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it was initially made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or otherwise.

Contact:
Crescendo Communications, LLC
212-671-1020
[email protected]

DATA STORAGE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS  December 31, 2024December 31, 2023ASSETS Current Assets: Cash $1,070,097  $1,428,730 Accounts receivable (less allowance for credit losses of $31,472   and $7,915 in 2024 and 2023, respectively)  2,225,458   1,259,972 Marketable securities  11,261,006   11,318,196 Prepaid expenses and other current assets  859,502   513,175 Total Current Assets  15,416,063   14,520,073  Property and Equipment: Property and equipment  9,598,963   7,838,225 Less—Accumulated depreciation  (6,159,307)  (5,105,451)Net Property and Equipment  3,439,656   2,732,774  Other Assets:  Goodwill  4,238,671   4,238,671  Operating lease right-of-use assets  575,380   62,981  Other assets  183,439   48,436  Intangible assets, net  1,427,006   1,698,084 Total Other Assets  6,424,496   6,048,172  Total Assets $25,280,215  $23,301,019  LIABILITIES AND STOCKHOLDERS’ DEFICIT Current Liabilities: Accounts payable and accrued expenses $3,183,379  $2,608,938 Deferred revenue  212,390   336,201 Finance leases payable  17,641   263,600 Finance leases payable related party  33,879   235,944 Operating lease liabilities short term  98,860   63,983 Total Current Liabilities  3,546,149   3,508,666  Operating lease liabilities  523,070   — Finance leases payable  —   17,641 Finance leases payable related party  —   20,297 Deferred Tax Liability   39,031   — Total Long-Term Liabilities  562,101   37,938  Total Liabilities  4,108,250   3,546,604  Commitments and contingencies (Note 7)  Stockholders’ Equity: Preferred stock, par value $.001; 10,000,000 shares authorized; 1,401,786 designated as Series A Preferred Stock, par value $.001; 0 shares issued and outstanding on December 31, 2024 and 2023  —   — Common stock, par value $.001; 250,000,000 shares authorized; 7,045,108 and 6,880,460 shares issued and outstanding on December 31, 2024 and 2023, respectively  7,045   6,881 Additional paid in capital  40,417,813   39,490,285 Accumulated deficit  (18,982,589)  (19,505,803)Accumulated other comprehensive loss  (23,214)  — Total Data Storage Corporation Stockholders’ Equity  21,419,055   19,991,363 Non-controlling interest in consolidated subsidiary  (247,090)  (236,948)Total Stockholders’ Equity  21,171,965   19,754,415 Total Liabilities and Stockholders’ Equity $25,280,215  $23,301,019

DATA STORAGE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME  Year Ended December 31, 20242023 Sales $25,371,303  $24,959,576  Cost of sales  14,267,936   15,383,251  Gross Profit  11,103,367   9,576,325  Selling, general and administrative  11,023,476   9,744,736  Income (loss) from Operations  79,891   (168,411) Other Income (Expense) Interest income  592,819   542,229 Interest expense  (119,008)  (74,502)Loss on disposal of equipment  (1,599)  — Total Other Income  472,212   467,727  Income before provision for income taxes  552,103   299,316  Provision for income taxes  (39,031)  —  Net Income  513,072   299,316  Loss in Non-controlling interest in consolidated subsidiary  10,142   82,259  Net Income Attributable to Common Stockholders $523,214  $381,575  Earnings per Share – Basic $0.08  $0.06 Earnings per Share – Diluted $0.07  $0.05 Weighted Average Number of Shares – Basic  6,931,399   6,841,094 Weighted Average Number of Shares – Diluted  7,347,779   7,424,228

DATA STORAGE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS   Year Ended December 31, 2024 2023Cash Flows from Operating Activities: Net income $513,072  $299,316 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization  1,350,238   1,301,594 Stock based compensation  794,687   506,205 Change in expected credit losses  45,394   119,524 Loss on disposal of equipment  1,599   — Changes in Assets and Liabilities: Accounts receivable  (1,010,880)  2,123,340 Other assets  (135,003)  — Prepaid expenses and other current assets  (347,717)  71,491 Right of use asset  135,559   163,520 Accounts payable and accrued expenses  567,930   (598,638)Deferred revenue  (123,811)  55,141 Deferred tax liability  39,031   — Operating lease liability  (90,010)  (168,446)Net Cash Provided by Operating Activities  1,740,089   3,873,047 Cash Flows from Investing Activities: Capital expenditures  (1,800,364)  (1,545,017)Purchase of marketable securities  (842,810)  (2,307,228)Sale of marketable securities  900,000   — Net Cash Used in Investing Activities  (1,743,174)  (3,852,245)Cash Flows from Financing Activities: Repayments of finance lease obligations related party  (222,362)  (520,624)Repayments of finance lease obligations  (263,600)  (359,869)Cash received for the exercise of stock options  133,005   1,699 Net Cash Used in Financing Activities  (352,957)  (878,794) Effect of exchange rates on cash  (2,591)  —  Decrease in Cash  (358,633)  (857,992) Cash, Beginning of Year  1,428,730   2,286,722  Cash, End of Year $1,070,097  $1,428,730 Supplemental Disclosures: Cash paid for interest $23,549  $65,057 Cash paid for income taxes $—  $— Non-cash investing and financing activities: Assets acquired by operating lease $647,958  $—

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

For the year ended December 31, 2024  CloudFirst Technologies CloudFirst Europe Ltd. Nexxis Inc. Corporate Total Net income (loss) $3,562,622  $(290,219) $(93,514) $(2,665,817) $513,072  Non-GAAP adjustments: Depreciation and amortization  1,348,534   79   850   775   1,350,238 Sales tax settlement  142,021   —   —   —   142,021 Interest income  —   —   —   (592,819)  (592,819)Interest expense  119,008   —   —   —   119,008 Provision for income tax  —   —   —   39,031   39,031 Stock-based compensation  295,688   —   25,991   473,008   794,687  Adjusted EBITDA $5,467,873  $(290,140) $(66,673) $(2,745,822) $2,365,238

For the year ended December 31, 2023  CloudFirst Technologies CloudFirst Europe Ltd. Nexxis Inc. Corporate Total Net income $2,625,879  $—  $(229,377) $(2,097,186) $299,316  Non-GAAP adjustments: Depreciation and amortization  1,300,237   —   705   652   1,301,594 Interest income  —   —   —   (542,229)  (542,229)Interest expense  74,502   —   —   —   74,502 Stock-based compensation  162,004   —   17,603   326,598   506,205  Adjusted EBITDA $4,162,622  $—  $(211,069) $(2,312,165) $1,639,388