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 2021, which ended December 31, 2021, driving a 40% year-over-year increase in subscription revenue for the full year 2021, fueled by growth in managed service provider business and market adoption of hybrid cloud data protection solutions.
“We are making good progress on our strategic plans to reinvent FalconStor and enable secure hybrid data protection and backup in the cloud,” said Todd Brooks, CEO of FalconStor. “Driven by encouraging adoption of FalconStor StorSafe and StorGuard solutions, we continue to focus on building recurring revenue and expanding new, existing and commercial channels to market. As part of this goal, we signed contracts with additional managed service providers and continued to migrate our installed system to a subscription-based revenue model. As a result, total subscription revenue increased 20% compared to the fourth quarter of 2020 and 40% for the full year 2021 compared to 2020.”
“While we are encouraged by the growth of our subscription revenues and the expansion of our partnerships, we continue to work towards our goal of steady growth in total revenues. Despite an increase in total revenue of 4% year over year during the quarter, total revenue for the full year 2021 decreased by 4% compared to 2020. In line with our commitment to deliver profitable operating results, we generated a positive GAAP net income for the full year 2021, but we are focused on increasing our level of profitability in 2022. The migration to the cloud, the streamlining of data centers and increased use of outsourced managed services are top priorities for enterprise CIOs and are fundamental macro shifts to which FalconStor technology and market experience are well aligned,” Brooks added. “We are thrilled with our focus on hybrid cloud, our strategic progress, and the trust our shareholders have placed in our team to deliver value to customers and shareholders.”
Fourth quarter 2021 financial results
- Subscription revenue: 20% increase to $1.4 million compared to $1.1 million in the fourth quarter of fiscal 2020
- Subscription revenue % of total revenue: 37%, compared to 31% in the fourth quarter of fiscal 2020
- Total revenue: $3.8 million, compared to $3.7 million in the fourth quarter of fiscal 2020
- Total revenue cost: $0.4 million, compared to $0.5 million in the fourth quarter of fiscal 2020
- Total operating expenses: $3.0 million, compared to $3.2 million in the fourth quarter of fiscal 2020
- Net profit (loss) under GAAP: ($0.2) million, compared to a loss of ($0.1) million in the fourth quarter of fiscal 2020
- End species: $3.2 million, compared to $1.9 million in the fourth quarter of fiscal 2020
2021 annual financial results
- Subscription revenue: 40% increase to $4.0 million from $2.8 million in fiscal 2020
- Subscription revenue % of total revenue: 28%, compared to 19% for the whole of 2020
- Total revenue: $14.2 million, compared to $14.8 million for all of 2020
- Total revenue cost: $2.0 million, compared to $1.8 million in the full fiscal year of 2020
- Total operating expenses: $11.6 million, compared to $11.1 million for all of 2020
- GAAP net income: $0.2 million, compared to $1.1 million for all of 2020
- End species: $3.2 million, compared to $1.9 million for the full fiscal year of 2020
For 2022, we provide the following full year forecast.
|Orientation (millions of dollars)||
|Adjusted EBITDA *||
|Rule of 40 (% revenue growth + % adjusted EBITDA)||
*Adjusted EBITDA adds back non-operating and other expenses and income
Please click here link to see the attached financial tables.
Conference Call and Webcast Information
WHO: Todd Brooks, President and CEO, FalconStor and Vincent Sita, Chief Financial Officer, FalconStor
WHEN: Wednesday, March 9, 2022 4:00 p.m. Central; 5:00 p.m. Eastern Time
To register for our call for results, please click on the following link:
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Toll Free: 877-568-4108
Access code: 399-172-649
About FalconStor Software
FalconStor is the leader in trusted data protection software that modernizes 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 long-term data storage and retention costs by up to 95%. More than 1,000 organizations and managed service providers worldwide are adopting FalconStor as the foundation of their cloud data protection future. Our products are offered and supported by a global network of managed service providers, system integrators, resellers and original equipment manufacturers.
FalconStor and FalconStor Software are trademarks or registered trademarks of FalconStor Software, Inc., in the United States and other countries. All other company and product names contained herein may be trademarks of their respective owners.
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