Data Storage Corp (DTST) 2024 Q3 法說會逐字稿

Greetings and welcome to the Data storage Corporation 2024 fiscal third quarter, business update.

歡迎來到資料儲存公司 2024 財年第三季業務更新。

At this time. All participants are in a listen-only mode. A brief question and answer session will follow the formal presentation.

此時。所有參與者都處於只聽模式。正式演講後將舉行簡短的問答環節。

If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

如果有人在會議期間需要接線員協助，請按下電話鍵盤上的星號零。

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

It is now my pleasure to introduce your host, Alexandra Schilt from Investor Relations. Thank you. You may begin.

現在我很高興向您介紹主持人，投資者關係部門的 Alexandra Schilt。謝謝。你可以開始了。

Thank you. Good morning, everyone and welcome to Dataco Corporation's 2024 3rd quarter business update. Conference call on the call with us this morning are Chuck Puo, Chairman and Chief Executive Officer and Chris Panio Taco's Chief Financial Officer.

謝謝。大家早安，歡迎收看 Dataco Corporation 2024 年第三季業務更新。今天早上與我們一起參加電話會議的是董事長兼執行長 Chuck Puo 和財務長 Chris Panio Taco。

The company issued a press release this morning containing its 2024 3rd quarter financial results which is also posted on the company's website.

該公司今天上午發布了一份新聞稿，其中包含 2024 年第三季的財務業績，該業績也發佈在該公司的網站上。

If you have any questions after the call or would like any additional information about the company. Please contact crescendo communications at 2,126,711,020.

如果您在通話後有任何疑問或想了解有關公司的任何其他資訊。請致電 2,126,711,020 聯絡 crescendo communications。

Before we begin, I'd like to remind listeners that this conference call 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 believe expect 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.

在開始之前，我想提醒聽眾，本次電話會議包含 1995 年《私人證券訴訟改革法》修訂案含義內的前瞻性陳述，這些陳述旨在包含在由此前瞻性陳述創建的安全港範圍內。陳述存在風險和不確定性，可能導致實際結果、業績或成就與此類前瞻性陳述、前面、後面的陳述或以其他方式包含“相信”一詞所明示或暗示的任何未來結果、業績或成就有重大差異。儘管並非所有前瞻性陳述都包含上述內容。

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 be correct. Important factors that could cause actual results to differ materially from the company's expectations include but are not limited to the company's ability to benefit from the IBM cloud migration underway. The company's ability to position itself for future profitability and the company's ability to maintain the NASDAQ listing.

儘管該公司認為此類前瞻性聲明中反映的預期是合理的，但不能保證此類預期將被證明是正確的。可能導致實際結果與公司預期有重大差異的重要因素包括但不限於公司從正在進行的 IBM 雲端遷移中受益的能力。公司對未來獲利能力的定位能力以及公司維持納斯達克上市的能力。

These risks should not be construed as exhaustive and should be read together with other cautionary statements included in the company's quarterly report on form 10-Q for the quarter ended September 30th 2024 annual reports on form 10-K and current reports on form eight K filed with the Securities and Exchange Commission.

這些風與證券交易委員會。

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, I'd now like to turn the call over to Charles M. Piluso. Please go ahead, Chuck.

任何前瞻性陳述僅代表截至最初作出之日的情況，除非法律要求，本公司不承擔更新或修改任何前瞻性陳述的義務，無論是由於新資訊、未來事件的變化無論情況或其他情況，我現在想將電話轉給查爾斯·M·皮盧索(Charles M. Piluso)。請繼續，查克。

Thank you and good morning everyone.

謝謝大家，早安。

We have made important progress during the recent months including penetrating strategic markets, forging important partnerships and establishing new regional data centers.

近幾個月來，我們取得了重要進展，包括滲透策略市場、建立重要合作夥伴關係以及建立新的區域資料中心。

Before we get into the detail on those achievements, I'd like to report that we generated $5.8 million in revenue for the third quarter. While this reflects a decline of 3% from the previous year, it does align with our strategic focus on building recurring subscription revenue rather than relying on one time non-recurring sales, equipment sales are not our primary strategy, but as I've mentioned in the past, we will continue to support our clients and sell equipment and software.

在詳細介紹這些成就之前，我想先報告一下，我們第三季的營收為 580 萬美元。雖然這比前一年下降了 3%，但這確實符合我們建立經常性訂閱收入而不是依賴一次性非經常性銷售的戰略重點，設備銷售不是我們的主要戰略，但正如我所提到的過去，我們將繼續支援我們的客戶並銷售設備和軟體。

Our primary objective remains the same, securing ongoing service contracts with our enterprise infrastructure platform which creates a stable revenue foundation and supports our long term growth and profitability.

我們的主要目標保持不變，即與我們的企業基礎設施平台簽訂持續的服務合同，從而創造穩定的收入基礎並支持我們的長期增長和盈利能力。

When we look at a 3% decline in revenue, consider the recurring subscription agreements their length of agreement and then our excellent renewal rate.

當我們看到收入下降 3% 時，請考慮定期訂閱協議的協議期限，然後考慮我們出色的續約率。

While there is a 3% decline for the quarter. What's not stated is the increase in baseline revenue for 2025 in monthly subscription billing.

雖然該季度下降了 3%。沒有說明的是 2025 年每月訂閱帳單基準收入的成長。

We achieved profitability for the three months and a gross profit margin of 43.2% in the third quarter of 2024. Up from 38.9% in the same period last year.

我們實現了三個月獲利，2024年第三季毛利率為43.2%。高於去年同期的38.9%。

This improvement is an increase in our infrastructure cloud based solutions on our enterprise platform.

這項改進是我們企業平台上基於基礎設施雲端的解決方案的增加。

For the nine month period, we generated 19 million in revenue and achieved profitability.

在這 9 個月期間，我們創造了 1900 萬美元的收入並實現了盈利。

I'd like to get into some of the developments during the quarter.

我想了解本季的一些進展。

This quarter, we expanded our presence into high growth, highly regulated sectors where data security compliance and reliability are paramount.

本季度，我們將業務擴展到高成長、高度監管的行業，在這些行業中，資料安全合規性和可靠性至關重要。

We expanded our partnerships with a billion dollar insurance firm that selected us to enhance its cloud infrastructure and cyber security framework.

我們擴大了與一家價值十億美元的保險公司的合作夥伴關係，該保險公司選擇我們來增強其雲端基礎設施和網路安全框架。

This reflects the client's confidence and our reliable security services that we're providing for years. Additionally, it underscores the strength of our enterprise infrastructure cloud based platform in supporting large organizations that handle sensitive compliance, heavy data working with such a prominent player, validates our focus on the insurance sector where demand for secure and scalable cloud solutions is increasing and our services are recognized as above industry standard in health care. Another highly regulated industry, we signed a contract with a leading medical center that required robust compliant cloud hosting service.

這反映了客戶的信心以及我們多年來提供的可靠安全服務。此外，它強調了我們基於企業基礎設施雲端的平台在支援處理敏感合規性的大型組織方面的實力，與如此知名的參與者合作的大量數據，驗證了我們對保險業的關注，因為保險業對安全和可擴展的雲端解決方案的需求正在不斷增加，我們的服務被認為高於醫療保健行業標準。另一個受到高度監管的行業，我們與一家領先的醫療中心簽訂了一份合同，該中心需要強大的合規雲端託管服務。

This agreement highlights our capacity to meet stringent industry requirements for data protection and HIPAA compliance.

該協議凸顯了我們滿足嚴格的資料保護和 HIPAA 合規性產業要求的能力。

Health care organizations are seeking trusted cloud partners to ensure that data is always accessible, secure and protected from cyber threats. And this agreement strengthens opposition in this sector.

醫療保健組織正在尋找值得信賴的雲端合作夥伴，以確保資料始終可存取、安全並免受網路威脅。這項協議強化了該領域的反對聲音。

We also secured a significant contract in the education sector, partnering with the music publishing organization.

我們也與音樂出版組織合作，在教育領域獲得了一份重要合約。

This six figure agreement emphasizes our flexibility in addressing diverse client needs and our adaptability to data intensive sectors.

這項六位數的協議強調了我們在滿足不同客戶需求方面的靈活性以及我們對資料密集型行業的適應性。

With the rise of digital learning and content education and publishing sectors are now required.

隨著數位學習和內容的興起，現在需要教育和出版部門。

They require secure cloud infrastructure for data storage, content delivery, making this an excellent growth avenue for our solutions.

他們需要安全的雲端基礎設施來儲存資料、內容交付，這使得這成為我們解決方案的絕佳成長途徑。

Collectively, we believe that these agreements showcase our growing reputation as a trusted provider in industries with stringent data requirements where reliability, security and regulatory adherence are critical.

總的來說，我們相信這些協議展示了我們作為數據要求嚴格的行業中值得信賴的提供者的聲譽，這些行業的可靠性、安全性和監管遵守至關重要。

We are confident that our expanding footprint in these fields will drive a long term value as we continue to innovate and tailor our offerings to meet the needs of our clients to accommodate our growing client base in the United States. We expanded our infrastructure platform to Chicago this facility enhances our national coverage. It reduces latency and straightens our capacity to provide reliable enterprise level high availability cloud services especially across the Midwest. With this strategic expansion, we are well equipped to meet rising demand while ensuring an exceptional client experience.

我們相信，隨著我們不斷創新和客製化我們的產品以滿足客戶的需求，以適應我們在美國不斷增長的客戶群，我們在這些領域不斷擴大的足跡將帶來長期價值。我們將基礎設施平台擴展到芝加哥，該設施增強了我們的全國覆蓋範圍。它減少了延遲並提高了我們提供可靠的企業級高可用性雲端服務的能力，尤其是在中西部地區。透過這項策略擴張，我們有能力滿足不斷增長的需求，同時確保卓越的客戶體驗。

Recently, we provided a letter to our shareholders highlighting achievements within our cloud first subsidiary which achieved 5.5 million in revenue for the third quarter and positive net income.

最近，我們向股東致函，強調了雲端第一子公司所取得的成就，該子公司第三季實現了 550 萬美元的收入和正淨利潤。

This is a direct result of our progress at cloud first as we continue to be a leader in cloud hosting, disaster recovery and cybersecurity currently serving over 425 companies across diverse industries. Cloud first is on track to reach over 20 million in projected recurring revenue for 2025. Given our 12 month term agreements renew, not only is our renewal rate. Excellent at over 90%.

這是我們在雲端優先方面取得進展的直接結果，因為我們繼續成為雲端託管、災難復原和網路安全領域的領導者，目前為不同行業的超過 425 家公司提供服務。Cloud First 預計到 2025 年經常性收入將超過 2,000 萬美元。鑑於我們的 12 個月期限協議已續簽，我們的續約率也隨之提高。優秀率超過90%。

Our clients continue to add and expand their services with us. An excellent vote of confidence.

我們的客戶不斷增加和擴展我們的服務。這是一次出色的信任投票。

Our recent expansion into the UK market and the successful integration of flagship solutions further strengthens our global footprint and operational efficiency. Setting the stage for accelerated growth and global reach.

我們最近向英國市場的擴張以及旗艦解決方案的成功整合進一步增強了我們的全球足跡和營運效率。為加速成長和全球影響力奠定基礎。

Recently announced with the appointment of Colin Friedman as managing director of Cloud first Europe, an important step of our strategy to expand across the European market and deliver our solutions to this key market.

最近宣布任命 Colin Friedman 為 Cloud First Europe 董事總經理，這是我們拓展歐洲市場並向這一關鍵市場提供解決方案策略的重要一步。

With Collins leadership experience, we are confident he will be instrumental in accelerating our growth in the region.

憑藉著柯林斯的領導經驗，我們相信他將有助於加速我們在該地區的發展。

In addition to his deployment, we are establishing infrastructure deployment in data centers in the UK positioning us to make a strong entry and enhance our footprint in this key market.

除了他的部署之外，我們還在英國的資料中心建立基礎設施部署，使我們能夠強勢進入這個關鍵市場並擴大我們的足跡。

These milestones are key steps in our organic growth to capture new opportunities and expand our impact.

這些里程碑是我們有機成長的關鍵步驟，以抓住新機會並擴大我們的影響力。

We are excited to build on this momentum as we continue delivering innovative reliable solutions and creating lasting value to our shareholders.

我們很高興能在這一勢頭的基礎上繼續提供創新的可靠解決方案並為股東創造持久的價值。

Over the past nine months, our cloud first website attracted more than 65,000 visitors underscoring the growing interest and engagement. We are seeing around the IBM power server migration to support this rising demand. We are strategically expanding our technical and business development teams readying ourselves to sustain both client acquisition and maintain impressive client renewal rates.

在過去的九個月裡，我們的雲端優先網站吸引了超過 65,000 名訪客，凸顯了人們的興趣和參與度不斷增長。我們正在關注 IBM Power 伺服器遷移來支援這種不斷增長的需求。我們正在策略性地擴大我們的技術和業務開發團隊，準備好維持客戶獲取並維持令人印象深刻的客戶續約率。

Additionally, we are focused on nurturing a significant pipeline of potential clients. Globally.

此外，我們也致力於培養大量潛在客戶。全球範圍內。

Our nurture list include thousands of organizations interested in the potential implementation of our services across various industries and regions by cultivating these relationships and providing tailored support. Our aim is to convert this interest into new contracts.

我們的培養名單包括數千家有興趣透過培養這些關係並提供量身定制的支援在各個行業和地區實施我們的服務的組織。我們的目標是將這種興趣轉化為新合約。

Our new expanded addressable market in Europe and companies doing business cross border exceeds over 50,000 companies.

我們在歐洲新擴大的潛在市場和開展跨境業務的公司超過 50,000 家。

We have increased our addressable market positioning ourselves with enterprise level infrastructure with assets deployed in 11 data centers by January 2025.

到 2025 年 1 月，我們透過在 11 個資料中心部署資產的企業級基礎設施增強了我們的潛在市場定位。

We are positioned to capture the migration.

我們已經做好了捕捉遷移的準備。

These initiatives allow us to engage with future clients while capitalizing on opportunities to expand our reach and solidify our reputation as a leading provider in the space overall. We are proud of our execution including expanding contracts, international reach and rising industry prominence.

這些舉措使我們能夠與未來的客戶互動，同時利用機會擴大我們的影響力並鞏固我們作為整個領域領先提供者的聲譽。我們為我們的執行力感到自豪，包括不斷擴大的合約、國際影響力和不斷上升的行業地位。

This foundation allows us to consider targeted acquisitions that complement and enhance our operations. Positioning us with the greatest success as new shareholders to our value and our share price becomes reflective of the value of the company.

這項基礎使我們能夠考慮有針對性的收購，以補充和增強我們的業務。作為新股東，我們將獲得最大的成功，我們的價值和股價將成為公司價值的反映。

At the same time, we are in a strong financial position with a solid balance sheet holding 11.9 million in cash and marketable securities and no long term debt.

同時，我們的財務狀況強勁，資產負債表穩健，持有 1,190 萬現金和有價證券，沒有長期債務。

This stability provides flexibility to invest efficiently, ensuring we are ready to seize growth opportunities that create value for our shareholders.

這種穩定性提供了高效投資的靈活性，確保我們準備好抓住為股東創造價值的成長機會。

With that. I'd like to turn the call over to Chris H. Panagiotakos. Our co to discuss our financials.

就這樣。我想將電話轉給 Chris H. Panagiotakos。我們的同事討論我們的財務狀況。

Chris, thank you, Chuck. Good morning, everyone. Total revenue for the three months ended September 30th 2024 was $5.8 million. A decrease of approximately $178,000 or 3% compared to $6 million for the three months ended September 30th 2023.

克里斯，謝謝你，查克。大家早安。截至 2024 年 9 月 30 日的三個月總收入為 580 萬美元。與截至 2023 年 9 月 30 日止三個月的 600 萬美元相比，減少約 178,000 美元，即 3%。

The decrease is primarily primarily attributed to lower one time equipment and software sales during the current period and a decrease in managed services partially offset by increases in all other revenue sources.

這一下降主要是由於本期一次性設備和軟體銷售額下降以及託管服務的下降被所有其他收入來源的成長部分抵消。

Total revenue for the nine months ended September 30th 2024 was $19 million. An increase of approximately $184,000 or 1% compared to $18.7 million for the nine months ended September 30th 2023.

截至 2024 年 9 月 30 日的九個月總收入為 1,900 萬美元。與截至 2023 年 9 月 30 日的九個月的 1,870 萬美元相比，增加了約 184,000 美元，即 1%。

The increase is primarily attributed to the increase of 29% in infrastructure and disaster recovery. Cloud services offset partially by a decrease in one time equipment sales and managed services during the current period.

這一增長主要歸因於基礎設施和災難復原方面增長了29%。雲端服務部分被本期一次性設備銷售和託管服務的減少所抵銷。

Cost of sales for the three months ended September 30th 2024 was $3.3 million. A decrease of approximately $359,000 or 10% compared to $3.7 million for the three months ended September 30th 2023 the decrease of 10% was mostly related to the decrease in one time equipment and managed services related cost of sales cost of sales for the nine months ended September 30th 2024 was $11.1 million. A decrease of approximately $703,000 or 6% compared to $11.8 million for the nine months ended September 30th 2023 the decrease of 6% was mostly related to a decrease in onetime equipment sales, selling general and administrative expenses for the three months ended September 30th 2024 were $2.5 million. An increase of approximately $221,000 or 10% as compared to $2.3 million for the three months ended September 30th 2023 selling general and administrative expenses for the nine months ended September 30th 2024 were $8.1 million and the increase of approximately $1.2 million or 17% as compared to $6.9 million for the nine months ended September 30th 2023.

截至 2024 年 9 月 30 日的三個月銷售成本為 330 萬美元。與截至 2023 年 9 月 30 日止三個月的 370 萬美元相比，減少約 359,000 美元或 10%，減少 10% 主要與截至 9 個月的一次性設備和託管服務相關銷售成本的減少有關2024年9 月30 日為1,110 萬美元。與截至2023年9月30日止九個月的1,180萬美元相比，減少約703,000美元或6%，減少6%主要與截至2024年9月30日止三個月一次性設備銷售、銷售一般和管理費用的減少有關250萬美元。較截至2023年9月30日止三個月的230萬美元增加約221,000美元或10%；截至2024年9月30日止九個月的銷售一般及行政開支為810萬美元，較去年同期增加約120萬美元或17%截至 2023 年 9 月 30 日的九個月為 690 萬美元。

The increases were primarily due to an increase in professional fees, salaries, stock based compensation and travel. As a result of our international expansion efforts adjusted EBITA for the three months ended September 30th 2024 was $515,000 compared to adjusted EBITA of $486,000 for the same period last year adjusted EBITA for the nine months ended September 30th 2024 and 2023 was $1.4 million net income attributable to common shareholders. For the three months ended September 30th 2024 was $122,000 compared to net income of $179,000 for the three months ended September 30th 2023 net income attributable to common shareholders for the nine months ended September 30th 2024 was $235,000 compared to $456,000 for the nine months ended September 30th 2023 we ended the period with cash and marketable securities of approximately $11.9 million at September 30th 2024 compared to $12.75 million at December 31st 2023. Thank you. I will now turn the call back to Chuck.

增加的主要原因是專業費用、薪資、股票薪資和差旅費的增加。由於我們的國際擴張努力，截至2024 年9 月30 日止三個月的調整後EBITA 為515,000 美元，去年同期調整後EBITA 為486,000 美元。 EBITA 為140 萬美元歸屬淨利給普通股股東。截至2024年9月30日的三個月為122,000美元，而截至2023年9月30日的三個月的淨利潤為179,000美元截至2024年9月30日的九個月的普通股股東淨利潤為235,000美元，而截至9月30日的九個月為456,000美元截至2023 年，截至2024 年9 月30 日，我們的現金和有價證券約為1,190 萬美元，截至2023 年12 月31 日，現金和有價證券為1,275 萬美元。謝謝。我現在將電話轉回給查克。

Thanks, Chris. Let's open up the call for questions. Do you have any questions?

謝謝，克里斯。讓我們開始提問吧。您還有什麼疑問嗎？

Thank you.

謝謝。

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

謝謝。我們現在將進行問答環節。如果您想提問，請按電話鍵盤上的星號一。確認音將表示您的線路已在問題佇列中。

You may press star two. If you would like to remove your question from the queue for participants using speaker equipment, it may be necessary to pick up your handset before pressing star keys. One moment. Please while we pull for questions.

您可以按星二號。如果您想從使用揚聲器裝置的參與者群組中刪除您的問題，可能需要在按星號鍵之前拿起聽筒。一會兒。請在我們提問時提問。

Thank you. Our first question comes from the line of Matthew Galinko with Maxim Group. Please proceed with your question.

謝謝。我們的第一個問題來自 Maxim Group 的 Matthew Galinko。請繼續你的問題。

Hey, thanks for taking my questions. Can we start on the the services renewal? I think I, I think you mentioned 20 million or maybe it was north of that. But, but what do you for? What is your line of sight to the 2025 services revenue as of now? And just so I could get that correct.

嘿，謝謝你回答我的問題。我們可以開始更新服務嗎？我想我，我想你提到了 2000 萬，或者可能超出了這個數字。但是，但是你到底是為了什麼？截至目前，您對 2025 年服務收入有何看法？這樣我就能得到正確的結果。

Good, thanks. Thanks Matt. Thanks for the question. Good. Hearing your voice. The when we say service renewals, I think that if you're talking about managed services, you know, we can give a number on that, Chris, you have managed services that we have on the revenue side. I think what we average between 175,000 a month to $200,000 a month on managed services. But you know, when we, I'm not sure if you're talking about software renewal and hardware maintenance. But I just give some of those numbers. So typically on managed services, we're between between 175 and and 200 that'll also include professional services that are part of the implementation of our subscription services. So for example, if we were to take a look, you know, let's say in our sales funnel, you usually can look at around 10% for implementation services. So when we take a look at that, you can kind of work backward on that on, on what our numbers have been on the actual software and hardware renewals we run between, we run between five and $6 million annually and that's what creates a lumpiness sometime. You know, one company, a large company has around $2.9 million to $3 million that occurs. What month does that occur? March in March. So you'll see that move up, you know. So it's not only equipment that gives it a lumpiness, but if we were to look at our baseline, okay, what's going to move over into 2025 let's just say, for example, that our, our annual agreements and when we talk about the annual agreements I'm really referring to and that's why I was bringing it up, software renewal and hardware maintenance at that $5 million to $6 million. We're talking about Chriss. What's that number? On 21 million?

好的，謝謝。謝謝馬特。謝謝你的提問。好的。聽到你的聲音。當我們說服務續約時，我認為如果您談論的是託管服務，您知道，我們可以給出一個數字，克里斯，我們在收入方面擁有託管服務。我認為我們平均每月在託管服務上的花費在 175,000 到 200,000 美元之間。但你知道，當我們談論時，我不確定你是否在談論軟體更新和硬體維護。但我只是給出其中一些數字。因此，通常在託管服務方面，我們的數量在 175 到 200 之間，其中還包括作為訂閱服務實施一部分的專業服務。舉例來說，如果我們要查看一下，您知道，比方說在我們的銷售漏斗中，您通常可以查看大約 10% 的實施服務。因此，當我們審視這一點時，您可以回顧一下，根據我們運行的實際軟體和硬體更新的數字，我們每年運行 5 到 600 萬美元，這就是造成混亂的原因某個時候。你知道，一家公司，一家大公司，大約有 290 萬到 300 萬美元的資金。那發生在哪一個月？三月三月。所以你會看到它的上升，你知道。因此，不僅僅是設備讓它變得笨重，而且如果我們看看我們的基線，好吧，到 2025 年將會發生什麼，讓我們舉個例子，我們的年度協議以及當我們談論年度協議時我真正指的是協議，這就是我提出這個問題的原因，軟體更新和硬體維護費用為500 萬至600 萬美元。我們正在談論克里斯。那個數字是多少？2100萬？

Yes, over 20 million.

是的，超過2000萬。

So it's over 20 million that we create a baseline from that. And you know, with the degree and the amount that existing customers add for storage and compute power on, on that alone, we have growth demands on it. So you'll see this lumpiness that goes on. So what ends up happening is if we take someone that's got software renewal and hardware maintenance, if, and they're, they're an onp premise customer obviously, but we're most likely doing disaster recovery for them, you know, as well. If we move them to cloud hosting, well, then we're going to lose that revenue. They could move off the platform to, you know, another platform, not an IBM power platform, let's say to intel, whatever you know, you would lose that. But typically, they'll move to our hosting and they're currently using disaster recovery. So on baseline, you're looking at around 21 million, which includes 5 million to 6 million of software renewal and hardware maintenance.

因此，我們以此為基礎創建了超過 2000 萬的基線。您知道，隨著現有客戶增加儲存和運算能力的程度和數量，僅此一點，我們對其就有成長的需求。所以你會看到這種持續存在的塊狀現象。因此，最終發生的情況是，如果我們選擇一個進行軟體更新和硬體維護的人，如果他們是本地客戶，那麼我們很可能會為他們進行災難恢復，你知道，因為出色地。如果我們將它們轉移到雲端託管，那麼我們將損失該收入。他們可以從這個平台轉移到另一個平台，而不是 IBM 的 Power 平台，比如說英特爾，無論你知道什麼，你都會失去它。但通常情況下，他們會轉移到我們的託管，並且目前正在使用災難復原。因此，在基線上，您會看到大約 2100 萬，其中包括 500 萬到 600 萬的軟體更新和硬體維護。

And you're also looking at around, let's just call it 2 million to 2.4 million of managed services. That's part of that number.

您也環顧四周，我們稱之為 200 萬到 240 萬個託管服務。這是該數字的一部分。

Got it. That, that's very help. Oh, sorry, go ahead.

知道了。那，這很有幫助。哦，抱歉，請繼續。

No, that's it. I just want to make sure I'm answering that.

不，就是這樣。我只是想確保我正在回答這個問題。

Oh, got you. Okay. So I guess that that number is inclusive of any. Is that, does that assume the kind of the 90% renewal rate? So we're north of 90%. So you'll have some churn built into that number. Or, you know, so like how should we see that number? Is that pre or post expected churn?

哦，明白了。好的。所以我猜這個數字包含了任何一個。那是不是假設續訂率是90%的那種？所以我們已經超過 90%了。所以你會在這個數字中內建一些流失率。或者，你知道，我們應該如何看到這個數字？這是預期流失前還是後？

You know, when we look at the churn on our calculations, it's around 92%. And, you know, I'm given an estimate, I want to give the exact numbers, but 92% on the client revenue side and 94% on the actual client side. So, you know, with only four or five competitors. I'll, I'll use six competitors. Two of them, one was purchased by a P/E firm. Another one was purchased by, I think Kindred. So usually now when P/E firms and other companies buy firms, sometimes, you know, they don't leadership leaves and you know, you, but you know, you'll have people leave, but the customers typically don't leave because, you know, there's enough business out there and they don't want to migrate their data again. So I would say that when we look at this 94% renewal rate that I'm going to say is an is an estimate, they just continue to stay. So it really comes in jeopardy is people, larger companies, you're not going to get Deutsche Bank or Citibank to go into a cloud over the next few years. My belief, you know, they're bigger than anybody their platforms. So you'll see that $5 million to $6 million maybe dwindle down as hosting moves up. So you won't get that one big time, you know, pop for that 2.9 million, but that's at a 15% margin, gross profit margin. If we move that to cloud hosting, we're talking about north of 50% today. You know, our estimated calculations are really on our cloud services around a 60% margin.

您知道，當我們查看計算結果時，流失率約為 92%。而且，你知道，我得到了一個估計，我想給出確切的數字，但 92% 是在客戶收入方面，94% 是在實際客戶方面。所以，你知道，只有四、五個競爭對手。我會，我會使用六個競爭對手。其中兩份，一份被私募股權公司購買。另一件是由 Kindred 購買的。所以現在通常當私募股權公司和其他公司收購公司時，有時，你知道，他們的領導層不會離開，你知道，但你知道，你會讓人們離開，但客戶通常不會離開因為，你知道，那裡有足夠的業務，他們不想再次遷移資料。所以我想說，當我們看到 94% 的續約率（我想說的是一個估計值）時，他們只是繼續留下來。因此，真正面臨危險的是人們，大公司，你不會讓德意志銀行或花旗銀行在未來幾年內進入雲端。我相信，你知道，他們的平台比任何人都大。因此，您會發現隨著託管費用的增加，500 萬至 600 萬美元可能會減少。所以你不會得到那麼大的一次，你知道，290 萬美元，但那是在 15% 的毛利率下。如果我們將其轉移到雲端託管，我們今天討論的比例將超過 50%。您知道，我們的估計計算實際上是在我們的雲端服務上進行的，利潤率約為 60%。

So, you know, when you look at managed services, we continue to do monitoring and managing the infrastructure for the clients. So, but you know, our main focus is really is supporting. And so many of our clients have intel platforms with us as well as the IBM platform, cybersecurity we're doing monitoring. So it's kind of a bundle that it's, you know, it's, it's kind of tough to migrate away from us unless the company was purchased, you know, most likely they're not going out of business. Our clients are midsize or enterprise level, but they could be acquired and moved to a different platform. So what we do is extremely sticky.

因此，您知道，當您查看託管服務時，我們會繼續為客戶監控和管理基礎架構。所以，但你知道，我們的主要重點確實是支持。我們的許多客戶都擁有英特爾平台以及 IBM 平台，我們正在監控網路安全。因此，這是一種捆綁，你知道，它是一種很難從我們手中遷移出去的方式，除非該公司被收購，你知道，他們很可能不會倒閉。我們的客戶是中型或企業級的，但他們可以被收購並轉移到不同的平台。所以我們做的事情是非常有黏性的。

Helpful, very much appreciated. And I've got one more and then I'll jump in the queue. So I'm not hogging the line. But if we could go a little bit deeper into that, so if we take just the cloud subscription renewals, is it, is it reasonable to say that those really sticky customers that have already migrated to the cloud subscriptions? Are, you know, or maybe like 95%,96%? And, you know, are they on a revenue basis?

有幫助，非常感謝。我還有一個，然後我會插隊。所以我不會搶佔線。但如果我們能更深入地探討這一點，那麼如果我們只考慮雲端訂閱續訂，那麼說那些已經遷移到雲端訂閱的真正黏性客戶是否合理？是，你知道，或者可能是 95%,96% 嗎？而且，你知道，它們是以收入為基礎的嗎？

They're generally growing? So like, are the renewals generally bigger than the prior contracts as they, if they push more into the cloud or their cloud services come under higher demand?

一般都在成長吧？那麼，如果他們將更多內容推向雲，或者他們的雲端服務面臨更高的需求，那麼續約是否通常比之前的合約更大？

It's an interesting question because the first thing I want to approach is the years ago, we would always say we would have an automatic renewal on most of our term contracts for 36 months. We have 12 months as well and we have 60 months, but most of them are 36 months. And what we were doing in the past is we had an automatic renewal and the automatic renewal was just for a year. So if they had a three year term, it was one year. So we picked up on this from, from a competitor, I think, and I'm, I'm going back a bunch of years and now what we do is we actually, they renew for the actual term. That was the original term. So we go for three years and then renew for three years. But what ends up happening is our account management team is constant touch with these clients, you know, and Chris, you know, our CFO puts out a weekly report, KPIS and I keep looking at that and it's actually like a 3 to 1 ratio that our clients continue to add storage and compute power, other services, whether they were on IBM power or Intel or not Intel, moving to IBM power or different levels of disaster recovery or cybersecurity. So what ends up happening is is that we're in, in touch and it's growing, it looks like, you know, a 3 to 1 ratio. I'm not saying on the revenue side, but on on the actual contract side addendums. The other thing is how Schwartz who is the President of the company, how put in place that when it renews, we can increase up to 10% we have the right to increase up to 10% on the on their actual monthly term. So which is good. So we can go back and increase that. We're not stuck with keeping that because years ago, I mean, we have clients for, you know, over a decade and they were maintaining the same price and other services that might be software, we continue to move up. So with that, you know, we have a built in 10% on top of that. Along with, if you remember that whole model years ago, it's a data grows. That's what we've been doing. We've been doing data vaulting since 2002. You know, and it's only really since you know, raising the money and all of that and moving on to NASDAQ that has given the opportunity to really get very aggressive and get smarter.

這是一個有趣的問題，因為我首先想談的是幾年前，我們總是說我們的大部分定期合約都會自動續約 36 個月。我們也有12個月，也有60個月，但大多數是36個月。我們過去所做的是自動續訂，自動續約只有一年。因此，如果他們的任期為三年，那就是一年。所以我們從競爭對手那裡學到了這一點，我想，我，我要追溯到很多年前，現在我們所做的是我們實際上，他們續簽了實際期限。這是原來的術語。所以我們先辦三年，然後再續簽三年。但最終發生的是我們的客戶管理團隊與這些客戶不斷接觸，你知道，克里斯，你知道，我們的CFO 發布了每週報告，KPIS 和我一直在關注它，它實際上就像3 比1的比率我們的客戶不斷增加儲存和運算能力以及其他服務，無論他們使用的是 IBM power 還是 Intel，還是轉向 IBM power 或不同等級的災難復原或網路安全。所以最終發生的事情是，我們保持聯繫，而且還在不斷增長，看起來，你知道，比例是 3 比 1。我不是說收入方面，而是實際合約方面的附錄。另一件事是公司總裁施瓦茨（Schwartz）如何落實，當續約時，我們可以增加最多 10%，我們有權在他們的實際每月期限上增加最多 10%。那麼哪個好呢。所以我們可以回去增加它。我們不會堅持保持這一點，因為幾年前，我的意思是，我們有十多年的客戶，他們保持相同的價格和其他可能是軟體的服務，我們繼續前進。因此，您知道，我們在此基礎上內建了 10%。另外，如果您還記得幾年前的整個模型，那就是資料成長。這就是我們一直在做的事情。自 2002 年以來，我們一直在進行資料儲存。你知道，只有自從你知道之後，籌集資金和所有這些，然後進入納斯達克，才給了我們真正變得非常激進和變得更聰明的機會。

Great. Thank you.

偉大的。謝謝。

Thank you, Mr Panagiotakos. We have no further questions at this time. I'd like to turn the floor back over to you for closing comments.

謝謝您，帕納吉奧塔科斯先生。目前我們沒有進一步的問題。我想將發言權交還給您以供結束評論。

Thank you.

謝謝。

Since our NASDAQ uplisting and capital raises in 2021 we have developed a business strategy that we believe will accelerate our growth, drive long term profitability and maximize value to our shareholders.

自 2021 年在納斯達克上市和融資以來，我們制定了一項業務策略，我們相信該策略將加速我們的成長，推動長期獲利能力並為股東實現價值最大化。

We are optimistic about the potential of our initiatives and we are executing, we remain committed to providing our shareholders with meaningful updates.

我們對我們的舉措的潛力感到樂觀，我們正在執行，我們仍然致力於為我們的股東提供有意義的更新。

And I would like to thank everyone who joined our call today. We appreciate it. Thank you have a great day.

我要感謝今天加入我們電話會議的所有人。我們很感激。謝謝你度過愉快的一天。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

女士們、先生們，今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。