AUSTIN, Texas--(BUSINESS WIRE)--FalconStor Software, Inc. (OTCQB: FALC), a trusted data protection leader modernizing disaster recovery and backup for the hybrid cloud world, today announced financial results for its fourth quarter and full year 2022, which ended on December 31, 2022.
“We are pleased with the progress we made in the 2022, especially in Q4 and the last half of the year, as our joint sales with IBM to deliver hybrid cloud data protection solutions to IBM customers formally launched in the second half and began to increase,” said Todd Brooks, FalconStor CEO. “IBM’s hybrid cloud focus is a key element of its growth strategy, as detailed in each of their earnings announcements in 2022. 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. 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.”
“While total revenue declined by 30% year over year in 2022, as we continued our shift from legacy perpetual revenue to annual recurring revenue, total revenue increased by 26% in the second half of 2022 compared to the first half of the year. This increase is a good early validation of our expanding partner sales since the formal launch of our IBM relationship at the beginning of the second half of 2022,” stated Brooks. “In addition, we continued to maintain tight control of our operating expenses, resulting in positive net income in the second half of 2022. We are excited by the progress we made in 2022 and believe we have created a strong foundation from which to build in 2023 and beyond.”
Fourth Quarter 2022 Financial Results
- Hybrid Cloud ARR Run-Rate: 20% increase compared to the previous quarter, and 222% increase year over year
- Ending Cash: $2.0 million, compared to $1.7 million in the previous quarter, and $3.2 million in the fourth quarter of fiscal year 2021
- Total Revenue: $2.5 million, compared to $3.1 million in the previous quarter, and $3.7 million in the fourth quarter of fiscal year 2021
- Total Cost of Revenue: $0.4 million, compared to $0.4 million in the previous quarter, and $0.4 million in the fourth quarter of fiscal year 2021
- Total Operating Expenses: $2.2 million, compared to $2.3 million in the previous quarter, and $3.0 million in the fourth quarter of fiscal year 2021
- GAAP Net Income (Loss): $20 thousand, compared to $0.2 million in the previous quarter, and ($0.3) million in the fourth quarter of fiscal year 2021
Second Half 2022 Financial Results
- Total Revenue: $5.6 million, compared to $4.4 million during the first half of year 2022
- Total Cost of Revenue: $0.8 million, compared to $0.8 million during the first half of year 2022
- Total Operating Expenses: $4.5 million, compared to $5.3 million during the first half of year 2022
- GAAP Net Income (Loss): $0.2 million, compared to ($2.0) million during the first half of year 2022
Full Year 2022 Financial Results
- Total Revenue: $10.1 million, compared to $13.9 million during the full year of 2021
- Total Cost of Revenue: $1.6 million, compared to $2.0 million during the full year of 2021
- Total Operating Expenses: $9.7 million, compared to $11.6 million during the full year of 2021
- GAAP Net Income (Loss): ($1.8) million, compared to ($42) thousand during the full year of 2021
Please click this link to see the accompanying financial charts.
Conference Call and Webcast Information
WHO: Todd Brooks, Chief Executive Officer, FalconStor and Vincent Sita, Chief Financial Officer, FalconStor
WHEN: Wednesday, March 15, 2023, 4:00 PM Central; 5:00 PM Eastern
To register for our earnings call, please click the following link:
FALCONSTOR FOURTH QUARTER 2022 FINANCIAL TELECONFERENCE AND PRESENTATION
As an alternative, you can copy and paste the following link into your web browser to register:
https://register.gotowebinar.com/register/1800241812476581214
Conference Call:
Please dial the following if you would like to interact with and ask questions of FalconStor hosts:
Toll Free: 877-568-4108
Access Code: 796-227-449
Non-GAAP Financial Measures
The non-GAAP financial measures used in this press release are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. The Company’s management refers to these non-GAAP financial measures in making operating decisions because they provide meaningful supplemental information regarding the Company’s operating performance. In addition, these non-GAAP financial measures facilitate management’s internal comparisons to the Company’s historical operating results and comparisons to competitors’ operating results. We include these non-GAAP financial measures (which should be viewed as a supplement to, and not a substitute for, their comparable GAAP measures) in this press release because we believe they are useful to investors in allowing for greater transparency into the supplemental information used by management in its financial and operational decision-making. The non-GAAP financial measures exclude (i) depreciation, (ii) amortization, (iii) restructuring expenses, (iv) severance expenses, (v) board expenses, (vi) stock based compensation, (vii) non-operating expenses (income) including income taxes and interest & other expenses (income). For a reconciliation of our GAAP and non-GAAP financial results, please refer to our Reconciliation of Net Income (Loss) to Adjusted EBITDA presented in this release.
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.
