Data Storage Corp (DTST) 2025 Q1 法說會逐字稿

Greetings and welcome to the Data Storage Corporation. First quarter 2025 earnings call. (Operator Instructions) I would now like to turn the call over to your host, Alexandra Schilt, Investor Relations for Data Storage Corporation. Thank you. You may begin.

您好，歡迎來到資料儲存公司。2025 年第一季財報電話會議。（操作員指示）現在，我想將電話轉給主持人、資料儲存公司投資者關係部門的 Alexandra Schilt。謝謝。你可以開始了。

Thank you. Good morning, everyone, and welcome to Data Storage Corporation's 2025 1st quarter business update conference call.

謝謝。大家早安，歡迎參加資料儲存公司 2025 年第一季業務更新電話會議。

On the call with us this morning are Chuck Peluso, Chairman and Chief Executive Officer, and Chris Panagio Taco's Chief Financial Officer.

今天早上與我們通話的有董事長兼執行長 Chuck Peluso 和 Taco 財務長 Chris Panagio。

The company issued a press release this morning containing its 2025 first quarter financial results, which is also posted on the company's website. If you have any questions after the call or like any additional information about the company, please contact Crescendo Communications at 212-671-1020.

該公司今天上午發布了一份新聞稿，其中包含其2025年第一季的財務業績，該新聞稿也發佈在公司網站上。如果您在通話後有任何疑問或想了解有關該公司的更多信息，請聯繫 Crescendo Communications，電話：212-671-1020。

Before we begin, I'd like to remind listeners that this conference call contains forward-looking statements within the meaning of the Private Security 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.

在我們開始之前，我想提醒聽眾，本次電話會議包含經修訂的 1995 年《私人安全訴訟改革法案》所定義的前瞻性陳述，旨在受到該法案所創建的安全港的保護。前瞻性陳述受風險和不確定性的影響，這些風險和不確定性可能導致實際結果、績效或成就與此類前瞻性陳述表達或暗示的任何未來結果、績效或成就有重大差異。

Statements preceded by, followed by, or that otherwise include the words believes, expects, anticipate, 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.

以相信、預期、期望、打算、預測、估計、計劃等詞語和類似表達或未來或條件動詞（如將、應該、會、可能和可以）開頭、結尾或以其他方式包含這些詞語的陳述通常屬於前瞻性陳述，而非歷史事實，但並非所有前瞻性陳述都包含前述內容。

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 have been 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 its Nadeck listing.

儘管公司認為此類前瞻性聲明所反映的預期是合理的，但無法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存在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、公司為未來盈利做好準備的能力以及公司維持其 Nadeck 上市的能力。

These risks should not be construed as exhaustive and should be read together with the other precautionary statements included in the company's annual report for the year end of December 31, 2024, quarterly reports on Form 10, and current reports on Form 8K filed with the Securities and Exchange Commission.

這些風險不應被視為詳盡無遺，應與公司向美國證券交易委員會提交的 2024 年 12 月 31 日年度報告、10 表季度報告和 8K 表當前報告中包含的其他預防性聲明一起閱讀。

Any forward-looking statement speaks only as 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 where a result of new information, future events, change the circumstances, or otherwise. I'd now like to turn the call over to Chuck Peluso. Please go ahead, Chuck.

任何前瞻性陳述僅代表其首次作出之日的觀點，除非法律另有規定，否則本公司不承擔因新資訊、未來事件、情況變化或其他原因而更新或修改任何前瞻性陳述的義務。現在我想把電話轉給查克·佩盧索。請繼續，查克。

Thank you, Ali. Good morning, everyone, and thank you for joining us on today's call to review our first quarter 2025 results. We appreciate the opportunity to update you on our progress. Before diving into our operational highlights, let me briefly touch on our first quarter of financial performance.

謝謝你，阿里。大家早安，感謝您參加今天的電話會議來回顧我們 2025 年第一季的業績。我們很高興有機會向您通報我們的進展。在深入了解我們的營運亮點之前，讓我先簡單介紹一下我們第一季的財務表現。

Revenue was $8.1 million with our core cloud infrastructure and disaster recovery services growing 14% year over year. We delivered $2.86 million in gross profit, maintaining margin stability. Adjusted EBITDA came in at $497,000 reflecting our ongoing focus on operational efficiency, even as we make targeted investors investments such as Cloud First Europe.

我們的核心雲端基礎設施和災難復原服務​​收入為 810 萬美元，年增 14%。我們實現了 286 萬美元的毛利，維持了利潤率的穩定。調整後的 EBITDA 達到 497,000 美元，這反映出我們持續專注於營運效率，即使我們向 Cloud First Europe 等目標投資者進行投資。

Finally, we closed the quarter with $11.1 million in cash and marketable securities, and we remain debt-free, a position we believe is critical as we explore future growth opportunities and strategic alternatives. I will now shift over to what we've built and how our strategy is enabling us to scale faster and smarter.

最後，我們在本季結束時擁有 1,110 萬美元的現金和有價證券，我們仍然沒有債務，我們認為這一狀況對於我們探索未來成長機會和策略替代方案至關重要。現在我將轉到我們已經建立的內容以及我們的策略如何使我們能夠更快、更聰明地擴展。

At Data Storage Corporation, our mission is to support enterprises and institutions with cloud infrastructure, disaster recovery, and business continuity solutions that are mission critical in nature. This includes protecting core business systems, ensuring regulatory compliance, and enabling operational resilience in an increasingly complex IT environment.

在資料儲存公司，我們的使命是透過本質上至關重要的雲端基礎設施、災難復原和業務連續性解決方案為企業和機構提供支援。這包括保護核心業務系統、確保法規遵循以及在日益複雜的 IT 環境中實現營運彈性。

Our operating platform, Cloud First Technologies is purpose-built for reliability, scalability, and security, particularly for IBM power systems. These workloads remain prevalent in financial services, healthcare, manufacturing, and public sector organizations, sectors where performance and uptime are non-negotiable.

我們的操作平台 Cloud First Technologies 專為可靠性、可擴展性和安全性而構建，特別適用於 IBM 電力系統。這些工作負載在金融服務、醫療保健、製造業和公共部門組織中仍然普遍存在，這些領域的效能和正常運作時間是不可協商的。

Cloud First is optimized to meet these specialized needs, and as the migration is underway. And these industries and companies look towards cloud-based solutions.

Cloud First 針對這些特殊需求進行了最佳化，並且遷移正在進行中。這些行業和公司都期待基於雲端的解決方案。

The uniqueness of our offering rooted in deep IBM power infrastructure expertise sets us apart. We are not chasing commodity cloud workloads. We are delivering enterprise grade hosting, backup, recovery to clients with rigorous infrastructure requirements, many of whom operate under regulatory oversight.

我們的產品的獨特性植根於 IBM 深厚的電力基礎設施專業知識，這使我們脫穎而出。我們不追求商品雲工作負載。我們為具有嚴格基礎設施要求的客戶提供企業級託管、備份和復原服務，其中許多客戶都在監管監督下運作。

It's a deliberate model. We've built up that value proposition around long term infrastructure partnerships. That foundation is increasingly attractive as clients prioritize resilience, compliance, and predictability. A key part of this momentum is our expanding infrastructure footprint and partner ecosystem in the UK through Cloud First Europe.

這是一個經過深思熟慮的模型。我們圍繞長期基礎設施合作夥伴關係建立了這一價值主張。隨著客戶優先考慮彈性、合規性和可預測性，該基礎變得越來越有吸引力。這一勢頭的關鍵部分是我們透過 Cloud First Europe 在英國擴大基礎設施覆蓋範圍和合作夥伴生態系統。

Over the past several months, we've formed strategic relationships that significantly extend our capabilities in the region. In November, we partnered with Bright Solid, a trusted data center operator in Scotland with Tier 3 facilities.

在過去的幾個月裡，我們建立了戰略關係，大大擴展了我們在該地區的能力。11 月，我們與蘇格蘭一家擁有 Tier 3 設施的值得信賴的資料中心營運商 Bright Solid 合作。

This partnership gives us secure high availability infrastructure in the region and enables cloud first to serve regulated clients in Scotland and Northern England with enterprise grade redundancy and performance. In January we expanded our relationship with Mega port into the UK, enabling private cloud connectivity via their Direct Connect platform.

此次合作為我們提供了該地區安全的高可用性基礎設施，並使雲端首先能夠為蘇格蘭和英格蘭北部的受監管客戶提供企業級冗餘和效能。今年一月，我們將與 Mega port 的合作關係擴展到英國，透過他們的 Direct Connect 平台實現了私有雲連接。

Positioning us to provide direct, secure, high-speed access to AWS, Azure, and Google Cloud. Without traversing the public internet. This improves performance, enhances security, and enables seamless hybrid cloud deployment. Later in January, we launched a partnership with Pulsa, the most geographically diverse edge data center provider in the UK.

定位我們以提供對 AWS、Azure 和 Google Cloud 的直接、安全、高速存取。無需穿越公共互聯網。這提高了效能，增強了安全性，並實現了無縫混合雲部署。今年 1 月下旬，我們與英國地理位置最多樣化的邊緣資料中心供應商 Pulsa 建立了合作夥伴關係。

Through this relationship, Cloud First now operates across multiple edge locations throughout the country. Embedding our IBM power-based infrastructure directly into Paulsen's footprint. This accelerates our time to market and introduces us to new enterprises that are already or within the Polson ecosystem.

透過這種關係，Cloud First 現在可以在全國多個邊緣位置運作。將我們基於 IBM Power 的基礎架構直接嵌入 Paulsen 的足跡中。這加快了我們的產品上市時間，並向我們介紹了已經存在或在 Polson 生態系統內的新企業。

These partnerships are highly strategic. They allow us to meet clients where they are geographically, operationally, and technologically, while offering the flexibility, compliance assurance, and performance they expect. Each relationship is built to support long term delivery. Deep integration and scalable growth.

這些夥伴關係具有高度策略性。它們使我們能夠在地理、營運和技術方面與客戶取得聯繫，同時提供他們期望的靈活性、合規性保證和效能。每種關係的建立都是為了支持長期交付。深度整合和可擴展增長。

While we are encouraged by the ongoing performance of our business and overall financial position, we must acknowledge a disconnect between our operating fundamentals and our current equity valuation.

雖然我們對業務的持續表現和整體財務狀況感到鼓舞，但我們必須承認我們的經營基本面與當前的股權估值之間存在脫節。

Our stock price does not, in our view, reflect the value of the business, particularly the recurring nature of our cloud infrastructure revenues, our high retention rate, and our differentiated platform. We will continue to seek ways to unlock value for our shareholders.

我們認為，我們的股價並未反映業務的價值，特別是我們的雲端基礎設施收入的經常性、我們的高留存率以及我們的差異化平台。我們將繼續尋求為股東釋放價值的方法。

As we look ahead to the remainder of 2025 and beyond, I want to take a moment to reflect on how far we've come and where we're headed. Through a combination of targeted geographic expansion and a clear focus on our core strengths, we have laid the groundwork to become a global leader in cloud infrastructure services.

當我們展望 2025 年剩餘時間及以後時，我想花點時間回顧我們已經走了多遠以及我們要去哪裡。透過有針對性的地理擴張和對核心優勢的明確關注，我們為成為雲端基礎設施服務的全球領導者奠定了基礎。

Today, we are proud to stand as one of the very few global single-source providers of both disaster recovery and multi-cloud hosting solutions, including integration with AWS, Microsoft Assure, and Google Cloud. This is particularly true of our IBM power platform. Where we continue to lead with unmatched specialization and performance.

今天，我們很自豪能夠成為全球極少數提供災難復原和多雲託管解決方案的單一來源供應商之一，包括與 AWS、Microsoft Assure 和 Google Cloud 的整合。對於我們的 IBM Power 平台來說尤其如此。我們將繼續以無與倫比的專業化和性能保持領先地位。

Our ability to support IBMI and AIX workloads gives us a valuable market advantage and a distinct competitive edge, especially as enterprise look to modernize our infrastructure without compromising legacy reliability.

我們支持 IBMI 和 AIX 工作負載的能力為我們帶來了寶貴的市場優勢和獨特的競爭優勢，尤其是當企業希望在不損害傳統可靠性的情況下實現基礎設施現代化時。

A differentiation here is not incidental, it's intentional. It's built on decades of expertise, long-term client relationships, and the proven ability to deliver. As we move forward, our priorities are clear. Grow a high margin recurring cloud first revenue, expand our global infrastructure. Expand our partnership ecosystem, maintain a strong financial footing to support scalable operations.

這裡的區分不是偶然的，而是有意的。它建立在數十年的專業知識、長期的客戶關係以及經過驗證的交付能力之上。隨著我們不斷前進，我們的優先事項非常明確。增加高利潤的經常性雲端優先收入，擴大我們的全球基礎設施。擴大我們的合作夥伴生態系統，維持強大的財務基礎以支持可擴展的營運。

And continue to evaluate paths that will enhance long term shareholder value. We are now operating across 10 global data centers serving over 400 clients and managing over 600 contracts. We are proud of what our team has accomplished operationally and financially and remain confident in our staff and our platform.

並持續評估能夠提升長期股東價值的途徑。我們目前在全球 10 個資料中心運營，為 400 多個客戶提供服務並管理 600 多份合約。我們為團隊在營運和財務上的成就感到自豪，並對我們的員工和平台充滿信心。

While we operate in a complex and evolving IT environment, our core value proposition remains clear and relevant, ensuring continuity, security, and performance for mission critical systems while delivering a high level of client satisfaction.

雖然我們在複雜且不斷發展的 IT 環境中運營，但我們的核心價值主張仍然清晰且相關，確保關鍵任務系統的連續性、安全性和效能，同時提供高水準的客戶滿意度。

With that, I'd like to turn the call over to Chris Panagiotakos, our CFO, to discuss our financials. Please go ahead, Chris.

說到這裡，我想把電話轉給我們的財務長克里斯·帕納吉奧塔科斯 (Chris Panagiotakos)，討論我們的財務狀況。請繼續，克里斯。

Thank you, Chuck. Good morning, everyone.

謝謝你，查克。大家早安。

Total revenue for the three months ended March 31, 2025 was $8.1 million a decrease of approximately 2% compared to $8.2 million for the three months ended March 31, 2024. The decrease is primarily attributed to a decrease in one-time equipment sales during the quarter.

截至 2025 年 3 月 31 日的三個月的總收入為 810 萬美元，與截至 2024 年 3 月 31 日的三個月的 820 萬美元相比減少約 2%。下降主要歸因於本季一次性設備銷售額的下降。

Cost of sales for the three months ended March 31, 2025, was $5.2 million a decrease of approximately $45,000 or 1% compared to $5.3 million for the three months ended March 31, 2024. The decrease was mostly related to the decrease in one-time equipment related cost of sales.

截至 2025 年 3 月 31 日的三個月的銷售成本為 520 萬美元，與截至 2024 年 3 月 31 日的三個月的 530 萬美元相比減少約 45,000 美元或 1%。下降主要與一次性設備相關銷售成本的下降有關。

Selling general and administrative expenses for the three months ended March 30, 2025 were approximately $3 million an increase of approximately $200,000 or 2% as compared to $2.8 million for the three months ended March 31, 2024.

截至 2025 年 3 月 30 日的三個月的銷售一般及行政費用約為 300 萬美元，與截至 2024 年 3 月 31 日的三個月的 280 萬美元相比增加約 20 萬美元或 2%。

The increases were primarily due to an increase in professional fees, stock-based compensation, and an increase in headcount. Adjusted EBITA for the three months ended March 31, 2025, was $497,000. Compared to adjusted EBITDA of $680,000 for the three months ended March 31, 2024.

成長的主要原因是專業費用、股票薪酬和員工人數增加。截至 2025 年 3 月 31 日的三個月的調整後 EBITA 為 497,000 美元。相比之下，截至 2024 年 3 月 31 日的三個月的調整後 EBITDA 為 680,000 美元。

Net income attributable to common shareholders for the three months ended March 31, 2025, was $24,000 compared to net income of $357,000 for the three months ended March 31, 2024. We ended the quarter with cash and marketable securities of approximately $11.1 million at March 31, 2025, compared to $12.3 million at December 31, 2024.

截至 2025 年 3 月 31 日的三個月，歸屬於普通股股東的淨收入為 24,000 美元，而截至 2024 年 3 月 31 日的三個月的淨收入為 357,000 美元。截至 2025 年 3 月 31 日，本季末我們的現金及有價證券約為 1,110 萬美元，而 2024 年 12 月 31 日為 1,230 萬美元。

Thank you, and I will now turn the call back to Chuck.

謝謝，現在我將把電話轉回給查克。

Thanks, Chris. Let's open it up to some questions.

謝謝，克里斯。讓我們來探討一些問題。

Thank you. (Operator Instructions) Our first question comes from the line of Matthew Galina with Maxim Group. Please proceed with your question.

謝謝。（操作員指示）我們的第一個問題來自 Maxim Group 的 Matthew Galina。請繼續您的問題。

Hey, good morning. Thanks for taking my questions. Maybe we could start with, where should we, where are we on the European expansion? I guess like in terms of the business development side. I know you've sort of gone through the infrastructure side in Europe now, what, where are we in the business development and sort of bringing business into those assets now?

嘿，早安。感謝您回答我的問題。也許我們可以從哪裡開始，我們在歐洲擴張的進程中處於什麼位置？我想就業務發展方面而言。我知道您現在已經了解了歐洲的基礎設施方面，那麼，我們現在在業務發展方面處於什麼位置，以及如何將業務引入這些資產？

Thanks, Mitt, for the question. On the business development side. So, we had started investing in the UK in October time frame with some consultants, and then we solidified all of that. Now we have a managing director there. We have a solution architect and a partner manager. In the third week of January, we installed the equipment in three data centers, in the UK.

謝謝米特提出這個問題。在業務發展方面。因此，我們與一些顧問於 10 月開始在英國進行投資，然後我們鞏固了所有這些。現在我們在那裡有一位總經理。我們有一位解決方案架構師和一位合作夥伴經理。一月份的第三個星期，我們在英國的三個資料中心安裝了設備。

During the time of the consultant to employee, let's call it six months, we've established approximate, I think it's there might be more right now, but the last number I saw was 10 partnerships, distributors that we have established, and the folks who are out there doing training on.

在從顧問到員工的這段時間裡，我們姑且稱之為六個月，我們已經建立了大概的數字，我認為現在可能會更多，但我看到的最後一個數字是我們已經建立的 10 個合作夥伴關係、分銷商，以及在那裡進行培訓的人員。

On those three data centers, the data centers that we that we're in actually were training their sales reps so that they can actually take the orders and build them out. So we've installed it and we're part of their we'll call it product. List or service or solution list today.

在這三個資料中心，我們所在的資料中心實際上正在培訓他們的銷售代表，以便他們可以真正接受訂單並完成訂單。所以我們安裝了它，我們是他們的一部分，我們稱之為產品。今天列出服務或解決方案清單。

So training's been going on a lot of meetings have been going on to be able to educate them so that they can bring that out to their existing clients because we're talking about going after their client base.

因此，我們一直在進行培訓，召開了很多會議，以便能夠對他們進行教育，使他們能夠將這些知識帶給他們現有的客戶，因為我們正在談論追逐他們的客戶群。

And our folks are involved when they go on those calls because we find a much higher close ratio when our folks are with them. The partner, but these are actually partnership type arrangements, not just a rack of equipment and we're putting salespeople on the ground.

當我們的員工接聽這些電話時，他們也會參與其中，因為我們發現，當我們的員工與他們在一起時，成交率要高得多。合作夥伴，但這些實際上是合作類型的安排，而不僅僅是一架設備，而且我們還將銷售人員派往實地。

We're going after essentially with them their client base. So, you know they have we'll call it suspects, prospects, we're expecting to hopefully I would anticipate revenue to start. In the fourth quarter of 2025, we're hoping, I would imagine we're hoping that the month of January 2026, is that month will be the first month to break even. Chris, how much money has been invested so far in the in the UK for the quarter it.

我們主要是為了追尋他們的客戶群。所以，你知道他們有，我們稱之為嫌疑犯、潛在客戶，我們期望我希望能夠預期收入開始。在 2025 年第四季度，我們希望，我想我們希望 2026 年 1 月能成為第一個達到收支平衡的月份。克里斯，本季到目前為止在英國投資了多少錢？

Was around $450,000.

大約是45萬美元。

So that's why you'll see that, decrease in inhibitor, right, Chris. That if that helps.

所以這就是為什麼你會看到抑制劑減少，對吧，克里斯。如果有幫助的話。

Yeah, if, maybe if you could also, just give us some color on where the, from what you're seeing, where the European market is on, shifting to more cloud services consumption model versus just buying for their own, data center and managing their own infrastructure. Are they further along that process than the US market, or, are we sort of getting to an inflection point there?

是的，如果，也許您也可以為我們介紹一下，從您所看到的情況來看，歐洲市場正轉向更多的雲端服務消費模式，而不是僅僅購買自己的資料中心並管理自己的基礎設施。他們在這一進程中是否比美國市場走得更遠，或者，我們是否正到達一個轉折點？

Oh, it would be a lot of speculation on my part to actually give you an answer that's kind of definitive, but I will say that we know that IBM stated that there's approximately $90 million a year in revenue that will be migrating each year. So that we know that that and that was a conference we attended in Europe. So we were in the common, which is a user event that takes place every year.

哦，我實際上需要進行很多猜測才能給你一個明確的答案，但我要說的是，我們知道 IBM 表示每年大約有 9000 萬美元的收入將會轉移。所以我們知道那是我們在歐洲參加的會議。所以我們參加了一個共同的活動，這是一個每年都會舉辦的使用者活動。

They've made that statement, and by the count of their customers that they actually have. I believe that Cloud First has more customers at that time than they do, from site readings, but I don't want to make a commitment on that, but that's what it seemed like.

他們已經做出了這樣的聲明，根據他們實際擁有的客戶數量也證實了這一點。從網站讀數來看，我相信 Cloud First 當時擁有的客戶比現在多，但我不想對此做出承諾，但看起來就是這樣。

But if the migrations going across the board, that people are moving to it, the bigger the big obstacle in a lot of cases was that, people were concerned about security, when they're moving to the cloud, and I think that that pretty much has been showing with the momentum that's going on that the security objections and stuff, we're able to overcome that today and actually in many cases have newer equipment, a better environment, tier 3 data centers, so.

但是，如果遷移全面展開，人們正在轉向雲端運算，那麼在許多情況下，最大的障礙就是人們擔心遷移到雲端時的安全性，我認為，隨著安全異議和其他問題的出現​​，我們今天能夠克服這些問題，實際上在許多情況下，我們有了更新的設備、更好的環境、三級資料中心等等。

I think we're positioned very well. We may move into Europe itself so that we can serve it a couple of the distributor partners that we do have that are very large are saying their customer base is also in Europe, so we're expecting. I would anticipate seeing something in Europe to be able to tie that together. Our CTO Chuck Piluso is working on all of the security requirements and regulations in Europe as we speak.

我認為我們的定位非常好。我們可能會進入歐洲，以便為歐洲提供服務，我們現有的幾個經銷商合作夥伴都表示，他們的客戶群也在歐洲，所以我們期待著。我希望在歐洲看到一些能夠將這些連結起來的東西。我們的技術長 Chuck Piluso 正在研究歐洲的所有安全要求和法規。

Thanks. Great caller. I'll jump back in the queue.

謝謝。很棒的來電者。我會重新回到隊列中。

Thank you. Our next question comes from the line of Adam Waldo with Li More partners. Please proceed with your question.

謝謝。我們的下一個問題來自 Li More 合夥人 Adam Waldo。請繼續您的問題。

Good day, Chuck and Chris. I hope you can hear me okay.

查克和克里斯，大家好。我希望你能聽到我的聲音。

Sure, Adam, how are you?

當然，亞當，你好嗎？

I'm well, Chuck. How are you?

我很好，查克。你好嗎？

Good, thanks.

很好，謝謝。

So if you don't mind, I'm going to start with a couple of financial reporting, housekeeping questions for Chris and then turn to strategic and capital allocation questions for Chuck. Chris, when do you expect to file your Form 10Q for the quarter?

所以如果您不介意的話，我將首先向克里斯詢問幾個財務報告和內部問題，然後再向查克詢問戰略和資本配置問題。克里斯，您預計何時提交本季的 10Q 表？

Well, it's going to be filed today.

嗯，今天就要提交。

Great, okay. And then as you exited the first quarter, how did the run rate annual recurring revenue of the business compare with the $21.5 million that you had exiting the fourth quarter that you recorded with the fourth quarter results back in March?

太好了，好的。那麼，當您退出第一季時，業務的運行率年度經常性收入與您在 3 月份第四季度業績中記錄的第四季度結束時的 2,150 萬美元相比如何？

So the annual recurring revenue for the quarter was about $6.7 million. The new estimate for the annual recurring revenue is a little bit over $22 million for the year, the estimate.

因此本季的年度經常性收入約為 670 萬美元。新的年度經常性收入預估略高於 2,200 萬美元。

Okay. All right, good. And then the remaining customer contract value at the end of the first quarter was what is compared with the $39.2 million that you reported at the end of the fourth quarter?

好的。好的，很好。那麼，第一季末剩餘的客戶合約價值與第四季末報告的 3,920 萬美元相比是多少？

I don't have a number for you right now. On that, I could give you some color on a little bit differently is that all of the contracts that are in place today, the total contract value on that was in excess of $41 million and you know I would say that more than 95% of those have an auto renewal clause in there that auto renews at their initial term but you know for the most part, it's the total contracts that are in existence today when they were signed up and they were billing around $41 million.

我現在沒有你的電話號碼。關於這一點，我可以稍微換一種方式給你解釋一下，那就是今天簽訂的所有合同，合同總價值超過 4100 萬美元，其中 95% 以上的合同都有自動續約條款，可以在初始期限內自動續約，但你知道，在大多數情況下，這是簽訂時現有的合同總額，合同金額約為 4100 萬美元。

So that's really helpful. Will the contain a specific number on that, Chris, as we've seen in the K and some of the cus in the past, or is that okay, it won't.

這真的很有幫助。克里斯，正如我們過去在 K 和一些客戶中看到的那樣，它是否會包含一個具體的數字，或者可以，它不會。

We're not going to be reporting that number in Q1.

我們不會在第一季報告該數字。

Just to give some color on that a little bit so just so we're very transparent on it, what ends up happening is the renewal rate that we have is very significant. So what happens is you have a sales organization, some people, that, if they've turned over a little, what ends up happening is when a renewal takes place, they have to put in the new beginning, and to the term because it just renewed over and what ends up happening is that we're making a major effort to be able to say beginning and end turn on the new agreement.

只是為了稍微解釋一下，以便我們對此非常透明，最終發生的事情是我們的續約率非常高。所以發生的情況是，你有一個銷售組織，一些人，如果他們已經稍微轉變了，最終發生的事情是，當續約發生時，他們必須把新的開始和期限放進去，因為它剛剛續約，最終發生的事情是，我們正在做出重大努力，能夠說出新協議的開始和結束。

So you know we keep on trying to refine that, but what we do know is that those initial terms were the (40), $41 million. So you know when we work with Salesforce on this, we're always kind of looking what that is, looking who has an automatic.

所以你知道我們一直在努力完善這一點，但我們所知道的是，最初的條款是 4,100 萬美元。因此，您知道，當我們與 Salesforce 合作時，我們總是在尋找它是什麼，尋找誰擁有自動化。

An automatic renewal rate and whatever their term is that they renew in very few cases, we have folks that are there, I'm going to say probably less than 10, that are on short term agreements because let's say they're trying to move off of the platform, which is very hard for them to do, but say they're doing that, so they might be on a six month agreement to transition off of the platform.

自動續約率以及他們在極少數情況下續訂的期限，我們有一些人，我想說可能不到 10 人，他們簽訂了短期協議，因為假設他們正試圖離開該平台，這對他們來說很難，但假設他們正在這樣做，所以他們可能會簽訂為期六個月的協議來離開該平台。

So those folks we have as non-not automatically renewable, but there's not many of them. So we're really trying to refine that, but we always look at what the total contract value is of who's billing today. And in our agreements that we have, how Schwartz made some adjustments to that, I think a few years ago where in the agreement it says that we have the right to increase them 10% at the end of the term so that when you look at that $41 million, if all of them.

因此，我們認為這些人不能自動續約，但這樣的人並不多。因此，我們確實在努力改進這一點，但我們始終關注的是今天付款人的合約總價值。在我們的協議中，施瓦茨對此做出了一些調整，我想幾年前協議中說我們有權在期限結束時將其增加 10%，所以當你看到那 4100 萬美元時，如果全部都是的話。

Over again you're looking at, $4 million on top of that, unless they fall out or something. But so that's pretty good, we made those adjustments. Hal did in the past, so you know we like that and that's what's happening. So when they renew it's 10% higher.

再說一遍，你會看到，除此之外，還有 400 萬美元，除非他們鬧翻或發生其他事情。但這非常好，我們做出了這些調整。哈爾過去就是這樣做的，所以你知道我們喜歡這樣，而且這就是正在發生的事情。因此，當他們續約時，費用會高出 10%。

Okay, that's really helpful. One last financial reporting question, and then I'll jump back in for the strategic and capital allocation questions for Chuck later. On the financial reporting side, can you just give us a sense for what the revenue would have been in the first quarter of this year and what it would have been last year in the first quarter of 2024.

好的，這確實很有幫助。最後一個財務報告問題，然後我稍後會回到查克的策略和資本配置問題。在財務報告方面，您能否告訴我們 2024 年第一季的收入是多少以及去年第一季的收入是多少。

If we'd stripped out just the equipment sales from both quarters numbers, what would the year over year revenue growth rate of them?

如果我們從兩季的數據中剔除設備銷售額，那麼它們的年比收入成長率是多少？

I can get you that number, Adam and email it to you.

我可以給你那個號碼，亞當，然後透過電子郵件發送給你。

But back in the envelope it'd be strongly into the double digits, right?

但回到信封裡，它會強勁地達到兩位數，對嗎？

I'm not sure. I'd rather just look at the numbers and just give you a definite answer.

我不知道。我寧願只看數字並給你一個明確的答案。

Okay, thank you. I'll jump back in the queue.

好的，謝謝。我會重新回到隊列中。

Okay.

好的。

Thank you ladies and gentlemen. (Operator Instructions) Our next question is a follow up from the line of Adam Wo with Lismore Partners. Please proceed with your question.

謝謝各位女士、先生們。（操作員指示）我們的下一個問題是 Lismore Partners 的 Adam Wo 的後續問題。請繼續您的問題。

Okay, thanks. On the strategic and capital allocation side, checking your prepared remarks, you made reference to strategic alternatives. You made reference to continued understandable frustration with the stock price relative to the sort of private market value of the company.

好的，謝謝。在策略和資本配置方面，檢查您準備好的發言，您提到了戰略替代方案。您提到，相對於公司的私人市場價值，人們對股價的失望情緒持續存在，這是可以理解的。

This has been a source of frustration I know for a number of quarters. What steps might the board pursue here? Does that include potentially pursuing strategic alternatives? Could management start to Institute quarterly and annual financial performance guidance for the markets.

我知道這已經是很多季度以來令人沮喪的一個原因了。董事會可能採取哪些措施？這是否包括可能尋求策略替代方案？管理層能否開始為市場制定季度和年度財務業績指引。

What are some of the things that you all are thinking about to try to close that valuation disconnect between where stocks trading and the private market value of the company?

你們都在考慮哪些方法來縮小股票交易和公司私人市場價值之間的估值差距？

We were in OTC Hell from 2008 to 2021. Now we're in micro-cap space which, we have some great institutions that have invested in the company. They're there long term, and then we have retail that moves us up and moves us down.

從 2008 年到 2021 年，我們一直處於場外交易地獄之中。現在我們處於微型股領域，有一些優秀的機構對該公司進行了投資。他們長期在那裡，然後我們有零售，它使我們上升，也使我們下降。

We need to be able to see a very stable share price for us to be comfortable that's in line where Matt, who follows us and writes about us, and we're not seeing that $9. So as to strategic alternatives, I mean there it's everyone's strategic alternatives. What would it be, if I went into chat GPT and say give me the strategic alternatives for every micro-cap that has a great.

我們需要能夠看到一個非常穩定的股價，這樣我們才能感到安心，這與關注我們並為我們撰寫文章的馬特的股價一致，而我們沒有看到 9 美元。至於戰略選擇，我的意思是每個人都有自己的戰略選擇。如果我進入聊天室 GPT 並要求我為每個具有出色表現的微型股提供策略替代方案，那會怎麼樣？

What would it be, undervalued with cash in the bank? Well, buy back shares, carve out the company, and sell it to someone to a P/E firm, buy back warrants, just suffer along and watch the thing at $3.50 and others take advantage for a short period of time of running it up $2 and running it back. I mean, it's just you can go into chat GPT and get like five alternatives.

如果銀行有現金，價值被低估了會怎麼樣？好吧，回購股票，剝離公司，然後將其出售給私募股權投資公司，回購認股權證，忍受痛苦，看著股價跌至 3.50 美元，而其他人則利用這一機會在短時間內將其推高 2 美元，然後再將其收回。我的意思是，您可以進入聊天 GPT 並獲得五種替代方案。

I mean, there's just, I mean, there's probably five alternatives that go on. We're just looking at everything, quite frankly, but it is, we just need to deliver shareholder value. We just need to do that and where it's sitting right now and for me, I, with various, trust or individually, I have 13% of the company, so it's.

我的意思是，可能有五種選擇。坦白說，我們只是在關註一切，但我們只需要實現股東價值。我們只需要這樣做，它現在處於什麼位置，對我來說，我透過各種信託或個人，擁有該公司 13% 的股份，所以就是這樣。

It's not that much, not that little, but for the most part it's, I'm with everyone else on this, and our objective is to be able to deliver shareholder value. So, as I say, all the alternatives, it's like, when you meet with somebody and you say, gee, what's your plan? Do you have a great company, what's the exit? You always ask that question.

說不多也不少，但整體來說，我和大家的看法一致，我們的目標是能夠實現股東價值。所以，正如我所說的，所有的替代方案，就像，當你遇到某人時，你會說，哎呀，你的計劃是什麼？你有一家很棒的公司，那麼退出方式是什麼？你總是問這個問題。

So frankly, I think there's a number of different alternatives, and we'll see what that is, but our focus is on shareholder value, we have insiders who own 41% of the company and frankly we're always focusing on the other folks that are all owning public shares and feel that responsibility to be able to deliver that and not languish it where we are. So, it's very frustrating. Adam.

所以坦白說，我認為有很多不同的選擇，我們會看看是什麼，但我們的重點是股東價值，我們有內部人士擁有公司 41% 的股份，坦率地說，我們始終關注所有擁有公眾股份並感到有責任實現這一目標而不是讓我們停滯不前的其他人士。所以，這非常令人沮喪。亞當。

No, understood. And just to follow up though, do you, are you all considering instituting a formal quarterly and annual financial guidance process to the street to to potentially help close that valuation GAAP or is that still something that is really not being contemplated?

不，明白。不過，為了跟進一下，你們是否都在考慮制定一個正式的季度和年度財務指導流程，以便潛在地幫助完成 GAAP 估值，還是這仍然是一個尚未考慮的事情？

We've been encouraged by folks that actually own shares, when we have, investor conferences and things like that to do that. And even though Cloud first had what, $1.5 million in EBITDA (1.5 IIA) for the quarter, I'm not going to say that it's $6 million for 2025. I'm not going to say that, but that would be great. But for, it's $1.5 million for the quarter. We've been encouraged to do that.

當我們舉辦投資者會議和類似活動時，那些真正擁有股票的人鼓勵我們這樣做。儘管 Cloud First 本季的 EBITDA（1.5 IIA）為 150 萬美元，但我不會說 2025 年它會達到 600 萬美元。我不會這麼說，但那會很棒。但本季的營收為 150 萬美元。我們被鼓勵這麼做。

We probably could, but I don't think we want the it's just we've been advised against it, quite frankly, so we're taking the advice that we pay for not to do that.

我們也許可以，但我認為我們不想這樣做，只是有人建議我們不要這樣做，坦白說，所以我們接受了付費的建議，不要這樣做。

Okay. Well, thank you very much and best wishes for the rest of 2025.

好的。好的，非常感謝您，並祝您 2025 年剩餘時間一切順利。

Thank you, thanks, Adam. Thanks for the questions.

謝謝你，謝謝，亞當。感謝您的提問。

Thank you, ladies and gentlemen. There are no other questions in line. I'll turn the phone back to Mr. Peluso for any final comments.

謝謝各位，女士們、先生們。目前沒有其他問題。我會將電話轉回給佩盧索先生，以便聽取他的最後評論。

Thank you. Thanks for the questions, Matt and Adam. Before we conclude, I want to reiterate that our priorities remain clear delivering reliable, high-performance infrastructure to organizations with complex regulated IT environments, expanding into new markets and geographies, and doing so with financial discipline and operational integrity.

謝謝。感謝馬特和亞當提出的問題。在結束之前，我想重申，我們的首要任務仍然很明確，即向具有複雜監管 IT 環境的組織提供可靠、高性能的基礎設施，擴展到新的市場和地區，並在財務紀律和運營誠信的前提下做到這一點。

We recognize that our current market valuation does not reflect the true strength of our core business, particularly the performance of cloud first.

我們認識到，我們目前的市場估值並不能反映我們核心業務的真正實力，尤其是雲端優先的表現。

Our growing international reach and our recurring revenue model. That is why we've shared with the board and the leadership team. They were actively evaluating a range of strategic alternatives to unlock and deliver long term shareholder value.

我們不斷成長的國際影響力和經常性收入模式。這就是我們與董事會和領導團隊分享的原因。他們正在積極評估一系列策略替代方案，以釋放和實現長期股東價值。

We appreciate your continued support and interest in data storage Corporation, and thank you once again for joining us today, and we look forward to keeping you informed as we move ahead. Thank you.

我們感謝您對資料儲存公司的持續支持和關注，再次感謝您今天加入我們，我們期待在未來的發展中隨時向您通報情況。謝謝。

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。現在您可以斷開線路。感謝您的參與。