Data Storage Corporation (NASDAQ:DTST) Q4 2023 Earnings Call Transcript

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Matthew Galinko: Got it. And I guess kind of — help me understand what that pipeline is? I think you said those Flagship closed in mid — what was it mid-‘21 and maybe you had three quarters of all on that. And you said maybe like two or three quarters into really getting your paces with the cross-sell efforts. So how much low-hanging fruit is there out there?

Charles Piluso: Well, The low-hanging fruit, Matt, it’s interesting you say that, first of all, we have a significant number of proposals outstanding. And just because someone doesn’t give us their business, it doesn’t mean that we lost it to a competitor. They’re just not ready to go yet. They might be collecting things for quotes and budget. Should we buy equipment and put it into a data center or should we outsource this for cloud infrastructure and disaster recovery. So sometimes those cycles can take some time on it. That’s why in our sales force, it could be a 20% probability, a 10% probability or a 50% probability. So it continues to move along with it. So when we say low-hanging fruit, it’s more low-hanging fruit is the lead generation program that Hal and his team has put together, we are — have a very, very good lead.

So if someone is coming in on a lead generation program that’s low-hanging fruit. The nurture list that we have with 25,000 companies in that, that have either met with us, talk to us, downloaded white papers, we believe that, that is low-hanging fruit. But when you say low-hanging fruit, the easiest low-hanging fruit is when god forbid something happens, in a particular region of the country, and they thought they had a good DR program, disaster recovery program in place, and it just didn’t work like one of the cases that I brought out in this earnings call. And when we do it, we’re pretty good at it, and it works. So — and we guarantee it with service level agreements. So low-hanging fruit, the best low-hanging fruit you could say really is our nurture list and leads that come in that folks are anxious to get up on a surface.

But the 25,000 in that nurture list is with Hal has folks working on to be able to say come on, speak to our solution architects, speak to our senior team members to be able to move them along.

Hal Schwartz: Chuck, can I add one note to that. We have pretty strong relationships with our account base and we view that as we add these products and solutions to our portfolio. We feel that those – we can leverage those relationships to gain more of the IT spend in our current account base. So that is also considered low-hanging fruit to us.

Charles Piluso: There’s a good amount of addendums that go on every month to the existing contracts. Does that help, Matt?

Matthew Galinko: It does. That’s very helpful. Yeah.

Charles Piluso: Okay. Do we have any other questions? Are we good? Okay. Matt, thanks very much for the questions. We appreciate them and are we good?

Operator: There are no further questions at this time. If you have any closing remarks.

Charles Piluso: Sure. I do. Thank you. First of all, thank you, everyone for attending. We developed a business strategy that we are very confident that will bolster our growth and ensure sustainable profitability in the long run. All while maximizing our value to our shareholders. We anticipate reaping the full rewards of our endeavors over time, and we’re excited about the business outlook and we look forward to providing meaningful updates to the shareholders, and I’d like to thank everyone once again for joining our call today. Have a great day.

Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time, and thank you for your participation.

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