TSS ( (TSSI) ) has released its Q4 earnings. Here is a breakdown of the information TSS presented to its investors.
TSS, Inc. is a data center services company based in Round Rock, Texas, specializing in the integration of AI and high-performance computing infrastructure and software. The company is known for its flexibility in building, integrating, and deploying custom solutions for data centers, supporting the digital transformation of AI and other advanced technologies.
In its latest earnings report for the fiscal year 2024, TSS, Inc. announced a remarkable 172% increase in revenue, reaching a record $148.1 million. The company’s earnings per share also rose significantly to $0.24, up from breakeven in the previous year. This growth was largely driven by a surge in demand for AI rack integration and strategic procurement services.
Key financial metrics highlighted in the report include a 103% increase in gross profit to $22.4 million and a 283% rise in adjusted EBITDA to $10.2 million. The company also reported a net income of $6.0 million, a substantial increase from $74,000 in 2023. TSS, Inc. secured a multi-year agreement with its largest customer, enhancing its position in the AI rack integration market, and obtained debt financing for a new facility, which is on track to be operational by mid-2025.
Looking ahead, TSS, Inc. is optimistic about its growth prospects in 2025 and beyond, driven by strong customer relationships and expanded capacity. The company expects significant growth in its higher-margin systems integration and facilities management businesses, alongside continued variability in procurement services revenue. The new facility is anticipated to contribute to EBITDA growth as rack volumes increase throughout the year.