FalconStor Software, Inc. recently disclosed its financial performance for the fourth quarter and the entire year of 2024, concluding on December 31, 2024. The results reflect a significant transition towards a sustainable business model with recurring revenue sources.
Key Financial Highlights
- 91% Year-over-Year (Y/Y) growth in Hybrid Cloud Annual Recurring Revenue (ARR) run-rate for full year 2024
- 12% EBITDA margin for full year 2024
- 7% net income for full year 2024
Fourth Quarter 2024 Financial Results
- Hybrid Cloud ARR Run-Rate: Increased by 91% compared to the same quarter in 2023
- Ending Cash: $2.5 million, down from $3.4 million in Q4 2023
- Total Revenue: $2.8 million, down from $3.7 million in Q4 2023
- Total Cost of Revenue: $0.5 million, unchanged from Q4 2023
- Total Operating Expenses: $2.1 million, consistent with Q4 2023
- Non-GAAP EBITDA: $0.4 million, down from $1.2 million in Q4 2023
- GAAP Net Income: $0.2 million, compared to $1.0 million in Q4 2023
Full Year 2024 Financial Results
- Total Revenue: $10.4 million, down from $11.6 million in 2023
- Total Cost of Revenue: $1.7 million, slightly up from $1.6 million in 2023
- Total Operating Expenses: $7.9 million, down from $8.5 million in 2023
- Non-GAAP EBITDA: $1.3 million, decreased from $2.0 million in 2023
- GAAP Net Income: $0.7 million, down from $1.0 million in 2023
Management Commentary
Todd Brooks, CEO of FalconStor, emphasized the company’s ongoing transformation into a high-growth, high-margin business focusing on recurring revenue. He noted a strategic shift away from one-time sales, leading to 80% of revenues now arising from recurring sources. This model, he suggests, ensures long-term stability and predictability.
Vincent Sita, CFO, added that the company is committed to disciplined expense control while pursuing innovation and growth strategies. Their collaborations with IBM and other global partners are critical to sustaining their growth trajectory.
Non-GAAP Financial Measures
FalconStor employs non-GAAP financial measures to supplement its operating performance assessment, which allows for internal comparisons and benchmarking against competitors. These measures exclude expenses such as depreciation, amortization, and stock-based compensation, providing a clearer view of operational efficiency. For details on how GAAP results and non-GAAP metrics reconcile, refer to FalconStor’s financial releases.