Falconstor Software

And thank you for joining us to discuss Falcon Store Software's Q4 2022 and full year 2022 earnings. Todd Brooks, Falcon Store's Chief Executive Officer, and Vincent Sita, Chief Financial Officer. We'll discuss the company's results and activities, and we'll then open the call to your questions. The company would like to advise all participants that today's discussion may contain what some consider forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties are discussed in FalconStor's reports on Forms 10-K, 10-Q, and other reports filed with the Securities and Exchange Commission and in the company's press release issued today. During today's call, there will be discussions that include non-GAAP results. A reconciliation of the non-GAAP results to GAAP has been posted on Falcon Store's website at www.falconstore.com under Investor Relations. After the close of business today, Falcon Store released its Q4 2022 earnings. Copies of the earnings released and supplemental financial information are available on Falcon Store's website at www.falconstore.com. I'm now pleased to turn the call over to Todd Brooks.

All right. Well, thank you, Clark. I appreciate that. And I'd like to thank each of you for taking your time to participate in our call today. Q4 was obviously an important quarter for Falcon Store as we increased our hybrid cloud annual recurring revenue, delivered positive net income, added new customers through our partnership with IBM, expanded our MSP business, and improved legacy customer retention. FalconStore is a trusted data protection innovator, and we enable the world's most demanding managed service providers and enterprises to modernize their disaster recovery and data backup operations for the hybrid cloud world, protecting data across on-premise data centers, private cloud, and public cloud environments. Migration to the cloud, data center rationalization, and increased leverage of outsourced managed services are top priorities for enterprise CIOs and are fundamental micro shifts to which Falcon Store software and technology in 20 plus years of market experience are well aligned. Our solutions deliver increased data security and provide for quick data recovery. including recovery from ransomware attacks. And our solutions accomplish these while driving down long-term data storage footprints by up to 95%. Our HyperCloud data protection solutions excel in four key areas. First, in scalability, as our solutions enable customers to protect their mission-critical enterprise workloads. Second, in offsite protection as our customers have flexibility to leverage any data storage medium from tape to modern object storage, whether that storage exists on premises or in the cloud. Third, in cost savings as our industry leading patented data deduplication technology empowers our customers to decrease their backup data storage by up to 95%. And then fourth in hardware vendor flexibility, as our solutions integrate with IBM's power system hardware and Intel-based hardware. So packaged together, these advantages give our solutions competitive differentiation, especially within the IBM-centric enterprise IT environments. We're excited by the growth markets that we serve and their ability to drive significant recurring revenue growth for FalconStore in the future. Data protection as a service, hybrid cloud, and managed IT services are growing quickly and are clear reflections of macro shifts in our industry to which FalconStore technology and experience are well aligned. In fact, the data protection as a service market is predicted to grow by 31% annually to 104 billion in 2027. The worldwide hybrid cloud market is predicted to grow by 20% annually to 204 billion in 2027. And the managed IT services market is predicted to grow by 8% annually to 355 billion in 2026. Our go-to-market focus on hybrid cloud partners like IBM and managed service providers like Service Express will be key drivers for Falcon Storage to generate consistent and meaningful recurring revenue growth over the next several years. Now for 2023, we have initiated three key strategic initiatives. And one second here.

Sorry about that.