The following is a summary of the TSS, Inc. (TSSI) Q4 2023 Earnings Call Transcript:
Financial Performance:
TSS reported a record Q4 revenue of $24.4 million, pushing full-year revenue to $54.4 million, an increase of 78% over last year.
The company saw a rise in gross profits of 68% compared to Q4 2022, and a $1.4 million increase in operating income over the same period with a $1.5 million improvement in net income. For the year, the operating profits saw a significant increase of 91% compared to 2022, paired with a 60% rise in adjusted EBITDA.
Business Progress:
TSS introduced several new services including in-field rack integration and cabling services, and formalized data center move service for enterprise customers, prepared to scale these operations to meet increasing demand for AI-based technology.
The company highlighted a focus on rack integration, systems integration, and data center move businesses in 2024.
Plans to expand customer base and new routes to market have been discussed, particularly given the increasing demand for AI.
Growth is expected in the service sector that offers customers with longer agreement terms and refreshing technology with new agreements. The trend towards modular data centers due to their cost and time-to-market benefits is seen as a growth potential for the company.
More details: TSS INC IR
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