FalconStor Software Announces Second Quarter of 2023 Results
Hybrid Cloud Recurring Revenue Growth Momentum Continues
Generated 5% increase in total GAAP revenue for Q2 versus the previous quarter
Generated 29% increase in total hybrid cloud ARR run-rate for Q2 versus the previous quarter
Generated 18% increase in MSP-driven hybrid cloud ARR run-rate for Q2 versus the previous quarter
AUSTIN, Texas, August 09, 2023--(BUSINESS WIRE)--FalconStor Software, Inc. (OTCMarkets.com: FALC), a trusted data protection leader modernizing disaster recovery and backup for the hybrid cloud world, today announced financial results for its second quarter 2023, which ended on June 30, 2023.
"Our ARR run-rate growth continued in Q2, as joint sales with IBM to deliver hybrid cloud data protection solutions to IBM customers expanded," said Todd Brooks, FalconStor CEO. "Our joint solutions enable IBM customers across the globe to optimize data protection within each of their operating environments, whether those environments run on-premises or in the cloud, and support IBM’s strategic hybrid cloud focus. In addition, our partnership with IBM is enabling MSPs to expand the backup-as-a-service offerings they provide to IBM and non-IBM customers alike, as more and more enterprises entrust MSPs to manage their IT environments."
"Total revenue in Q2 increased compared to the previous quarter, but was flat year over year as we continued our shift from perpetual revenue to annual recurring revenue. However, our hybrid cloud ARR run-rate in Q2 grew by 29% compared to the previous quarter," stated Brooks. "In addition, while we materially improved our net income year-over-year, we were not profitable in Q2 and must continue to tightly manage operating expenses to produce consistent quarterly profitability as we ramp our hybrid cloud revenue. As announced in Q2, our strategic decision to deregister from the SEC will allow us to significantly reduce general operating expenses, increase net income, and increase our hybrid cloud growth investments."
Second Quarter 2023 Financial Results
Hybrid Cloud ARR Run-Rate: 29% increase compared to the previous quarter, and 247% increase year-over-year
Ending Cash: $1.3 million, compared to $1.8 million in the previous quarter, and $1.8 million in the second quarter of fiscal year 2022
Total Revenue: $2.4 million, compared to $2.3 million in the previous quarter, and $2.4 million in the second quarter of fiscal year 2022
Total Cost of Revenue: $0.4 million, compared to $0.4 million in the previous quarter, and $0.4 million in the second quarter of fiscal year 2022
Total Operating Expenses: $2.2 million, compared to $2.3 million in the previous quarter, and $2.5 million in the second quarter of fiscal year 2022
GAAP Net Income (Loss): $(0.5) million, compared to $(0.4) million in the previous quarter, and $(0.9) million in the second quarter of fiscal year 2022
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About FalconStor Software
FalconStor is the trusted data protection software leader modernizing disaster recovery and backup operations for the hybrid cloud world. The Company enables enterprise customers and managed service providers to secure, migrate, and protect their data while reducing data storage and long-term retention costs by up to 95%. More than 1,000 organizations and managed service providers worldwide standardize on FalconStor as the foundation for their cloud first data protection future. Our products are offered through and supported by a worldwide network of leading managed service providers, systems integrators, resellers, and original equipment manufacturers.
FalconStor and FalconStor Software are trademarks or registered trademarks of FalconStor Software, Inc., in the U.S. and other countries. All other company and product names contained herein may be trademarks of their respective holders.
Links to websites or pages controlled by parties other than FalconStor are provided for the reader's convenience and information only. FalconStor does not incorporate into this release the information found at those links nor does FalconStor represent or warrant that any information found at those links is complete or accurate. Use of information obtained by following these links is at the reader's own risk.
CONTACT US AROUND THE GLOBE
Corporate Headquarters | Europe Headquarters | |
501 Congress Avenue | GERMANY | |
Suite 150 | Landsberger Straße 302 | |
Austin, Texas 78701 | 80687 München, Germany | |
Tel: +1.631.777.5188 | ||
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Contacts
Vincent Sita
Chief Financial Officer
FalconStor Software Inc.
investorrelations@falconstor.com
