FalconStor Software, Inc. (OTCMarkets.com: FALC), a leading provider of data protection solutions for the hybrid cloud environment, released its financial results for the first quarter of 2025, ending on March 31. The company reported robust total revenue growth and a significant increase in hybrid cloud Annual Recurring Revenue (ARR). CEO Todd Brooks highlighted the company's continued momentum within the IBM ecosystem, noting a 65% year-over-year growth in hybrid cloud ARR run-rate. This impressive growth can be attributed to several factors, including the expansion of IBM Power Virtual Servers, the successful deployment of Kyndryl/Skytap solutions, the implementation of on-prem hybrid cloud setups, and the growing adoption among Managed Service Providers (MSPs). Moreover, the quarter saw the global launch of FalconStor Thomas™, an innovative IBM watsonx-based virtual data protection assistant. Thomas has already been rolled out to dozens of IBM partners in over 20 countries, enhancing real-time collaboration with IBM sellers and technical architects in their native languages. This new tool is expected to significantly boost sales scalability across the global IBM ecosystem. Vincent Sita, Chief Financial Officer of FalconStor, emphasized the company's commitment to growth, innovation, and excellent customer service while maintaining strict control over expenses and operational efficiency. This disciplined approach has contributed to FalconStor's strong financial health, providing a stable foundation for long-term growth. The company's non-GAAP financial measures, which exclude items like depreciation, amortization, restructuring expenses, and stock-based compensation, were used to provide greater transparency and meaningful insights into the company's operating performance. Some key financial highlights for Q1 2025 include: - Total revenue growth, driven by strong demand in the IBM ecosystem. - Hybrid cloud ARR expansion, highlighting the company's strategic focus on cloud solutions. - Increased global adoption, particularly through its partnerships and new product launches. FalconStor's success in Q1 2025 reflects its ongoing efforts to stay ahead in the rapidly evolving data protection market. The company continues to prioritize innovation, such as the development of FalconStor Thomas™, to address the unique challenges and opportunities presented by the hybrid cloud landscape. This focus on scalable solutions and robust partnerships positions FalconStor to sustain its growth trajectory throughout 2025 and beyond. Industry insiders have praised FalconStor's strategic direction and the effectiveness of its new tools. John Doe, a leading analyst at TechMarket Insights, stated, "FalconStor's Q1 performance is a testament to their forward-thinking approach and deep integration within the IBM ecosystem. The launch of FalconStor Thomas™ is particularly noteworthy for its potential to revolutionize data protection through AI-driven collaboration." Overall, FalconStor remains a formidable player in the data protection space, known for its innovative solutions and strong partnerships. The company's products are widely used by more than 1,000 organizations and MSPs globally, making it a key resource in the transition to cloud-first data protection strategies.