Data Storage Corp. (DTST) stock prices were up 3.17% shortly after market trading commenced on August 16th 2021. This brought the price per share up to USD$3.90 early on in the trading day.
DTST Stock Revenue Report
The second quarter of fiscal 2021 saw the company report a 76% increase in revenue as compared to the prior year quarter. DTST stock reported growth across all of its product lines, with forecasts of a continue trajectory of organic growth. The year over year increase is largely attributable to the increase in monthly subscription revenue and additions sales resulting from the Flagship Solutions merger.
Acquisition of Flagship
Flagship established itself as a leading provider of IBM solutions, managed services, and cloud solutions. The partnering company’s offerings and network of customers proved highly complementary to DTST stock. Notably, Q2 2021 revenue only included one month of results integrated with Flagship. The company expects substantial opportunities to cross-sell solutions across the joint partners’ respective clients. With the rest of the synergies gained from the acquisition, the company is keen to further facilitate operational efficiency across the business.
Expansive Scope of DTST Stock
With the expansion of product and service offerings as a result of the acquisition, DTST stock realigned its sales and marketing strategy. This changed focused more heavily on sports, banking and finance, healthcare, and government in a bid to drive organic growth. The company is well positioned to capitalize on the opportunities ahead of it. The target marketplace for Infrastructure as a Service and Disaster Recovery as a Service is pegged at more than one million logical partitions in the mission critical technical environment.
Solid Liquidity Position
The second quarter of 2021 reported the company significantly enhance its balance sheet. The quarter ended with DTST stock report USD$3.1 million in cash and cash equivalents. This is after payment for the acquisition of Flagship. Since the end of the quarter, the company has generated an additional USD$3.4 million in net proceeds for the exercise of warrants. DTST stock also raised USD$7.6 million through its registered direct offering in July 2021.
Future Outlook for DTST Stock
The company reported a strong second quarter of fiscal 2021, with management confident in the continuation of the trajectory of success. DTST stock is executing its strategy so as to adequately leverage its cumulative resources. Investors are hopeful that this will result in consistent increases in shareholder value.
