Continued Managed Service Provider Adoption and Hybrid Cloud Momentum Fuel Subscription Revenue Growth
- Generated a 20% year-over-year increase in software subscription revenue for Q4 and a 40% year-over-year increase for full year of 2021
- Added three new MSP partners for the StorSafe secure backup-as-a-service solution while existing MSP partners expanded their business to protect new customers and systems
- Launched initiative for MSPs using IBM POWER Servers and/or Intel Servers to leverage StorSafe for backup-as-a-service and migration-as-a-service offerings using public cloud platforms
- Expanded the reseller relationship with Hitachi Vantara to provide advanced disaster recovery and cloud-enabled protection for Hitachi Flash arrays through FalconStor’s StorGuard solution
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 on December 31, 2021, delivering a 40% year-over-year increase in subscription revenue for the full year of 2021, fueled by the growth in managed service provider business and market adoption of hybrid cloud data protection solutions.
“We are making good progress against our strategic plans to reinvent FalconStor and enable secure hybrid cloud backup and data protection,” said Todd Brooks, FalconStor CEO. “Driven by encouraging adoption of the FalconStor StorSafe and StorGuard solutions, we continue to focus on building recurring revenue and expanding new and existing and commercial channels to market. As part of this focus, we signed additional managed service providers, and continued migrating our installed based to a subscription revenue model. As a result, total subscription revenue increased 20% compared to Q4 of 2020, and 40% for the full year of 2021 compared to 2020.”
“While we are encouraged by our subscription revenue growth and expanding partnerships, we are continuing to work toward our goal of consistent total revenue growth. Despite total revenue increasing by 4% year-over-year during the quarter, total revenue for the year of 2021 decreased by 4% compared to 2020. Consistent with our commitment to deliver profitable operating results, we delivered positive GAAP Net Income for the full year of 2021, but are focused on increasing our level of profitability in 2022. Migration to the cloud, data center rationalization, and increased leverage 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,” added Brooks. “We are excited by our hybrid cloud focus, strategic progress, and trust our shareholders have placed in our team to deliver customer and shareholder value.”
Fourth Quarter 2021 Financial Results
- Subscription Revenue: 20% increase to $1.4 million, compared to $1.1 million in the fourth quarter of fiscal year 2020
- Subscription Revenue % of Total Revenue: 37%, compared to 31% in the fourth quarter of fiscal year 2020
- Total Revenue: $3.8 million, compared to $3.7 million in the fourth quarter of fiscal year 2020
- Total Cost of Revenue: $0.4 million, compared to $0.5 million in the fourth quarter of fiscal year 2020
- Total Operating Expenses: $3.0 million, compared to $3.2 million in the fourth quarter of fiscal year 2020
- GAAP Net Income (Loss): $(0.2) million, compared to a loss of $(0.1) million in the fourth quarter of fiscal year 2020
- Ending Cash: $3.2 million, compared to $1.9 million in the fourth quarter of fiscal year 2020
Full Year 2021 Financial Results
- Subscription Revenue: 40% increase to $4.0 million, compared to $2.8 million during the full year of 2020
- Subscription Revenue % of Total Revenue: 28%, compared to 19% during the full year of 2020
- Total Revenue: $14.2 million, compared to $14.8 million during the full year of 2020
- Total Cost of Revenue: $2.0 million, compared to $1.8 million during the full year of 2020
- Total Operating Expenses: $11.6 million, compared to $11.1 million during the full year of 2020
- GAAP Net Income: $0.2 million, compared to $1.1 million during the full year of 2020
- Ending Cash: $3.2 million, compared to $1.9 million at the full year of 2020
Guidance
For 2022, we are providing the following full year guidance.
2022 Guidance
| Guidance (in $ millions) | Low | High |
| Total Revenues | 14.2 | 15.5 |
| Adjusted EBITDA * | 3.2 | 3.9 |
| % | 23% | 25% |
| Net Income | 1.9 | 2.3 |
| % | 13% | 15% |
| Rule of 40 (Revenue Growth % + Adjusted EBITDA %) | 23 | 34 |
*Adjusted EBITDA adds back Non-Operating and Other Expenses and Income
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 9, 2022 4:00 PM Central; 5:00 PM Eastern
To register for our earnings call, please click the following link:
FALCONSTOR FOURTH QUARTER 2021 FINANCIAL TELECONFERENCE AND PRESENTATION
As an alternative, you can copy and paste the following link into your web browser to register:
Conference Call:
Please dial the following if you would like to interact with and ask questions to FalconStor hosts:
Toll Free: 877-568-4108
Access Code: 399-172-649
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