10 High Growth IT Stocks To Invest In Now

2. Data Storage Corp. (NASDAQ:DTST)

5 Year Revenue CAGR: 25.23%

Average Upside Potential as of November 14: 121.14%

Data Storage Corp. (NASDAQ:DTST) is a leading provider of fully managed cloud hosting, disaster recovery, cybersecurity, IT automation, and voice & data solutions. It offers a comprehensive suite of multi-cloud IT solutions, including robust cybersecurity measures. It also provides data protection and recovery solutions. With a focus on industries like healthcare, financial services, manufacturing, and more, it empowers businesses to effectively manage and protect their critical data.

It announced its financial results for the third quarter of 2024, highlighting significant progress in its strategic initiatives. The company achieved profitability for both the quarter and the nine months leading to it, driven by a focus on high-margin recurring subscription revenue. While the revenue of $5.81 million was lower than Street estimates and also 2.97% lower than Q3 in 2023, there was an 8.7% increase in gross profit.

The company expanded its partnership with a major insurance firm to enhance its cloud infrastructure and cybersecurity capabilities. Additionally, it secured contracts with a leading medical center for compliant cloud hosting and a music publishing organization. To better serve its growing US customer base, it opened a new data center in Chicago. The company also expanded its global footprint by entering the UK market through the integration of Flagship Solutions and the appointment of Colin Freeman as Managing Director of UK Cloud Host Technologies Ltd., positioning it for accelerated growth in Europe.

With a strong financial position of approximately $11.9 million in cash and marketable securities and no long-term debt, Data Storage Corp. (NASDAQ:DTST) is well-positioned to capitalize on future growth opportunities. The company’s management expressed satisfaction with the progress made and reiterated its commitment to driving growth, enhancing profitability, and delivering value to shareholders.