Cloudastructure Announces Direct Listing on the Nasdaq Capital Market; Shares Begin Trading Under the Symbol CSAI

Rhea-AI Summary

Cloudastructure (NASDAQ: CSAI), a cloud-based video surveillance platform with AI and computer vision analytics, announced the commencement of trading on the Nasdaq Capital Market. The company operates at the intersection of AI, Public Cloud, and Security markets, which are growing at 19%, 20.7%, and 11% annually, respectively.

The company reported significant revenue growth compared to 2023: 214% in Q1, 115% in Q2, and 54% in Q3. Cloudastructure has secured 5 of the top 10 NMHC-ranked multifamily management companies as clients, controlling over 10,000 locations, with the capacity to onboard approximately 20 locations monthly. The company expects to become cash flow positive in 2025. Maxim Group served as the exclusive financial advisor for the direct listing.

Positive

• Achieved significant revenue growth: 214% in Q1, 115% in Q2, and 54% in Q3 2024 vs 2023
• Secured 5 of top 10 NMHC-ranked multifamily management companies as clients
• Controls over 10,000 locations with capacity to onboard 20 locations monthly
• Projects becoming cash flow positive in 2025
• Successfully listed on Nasdaq Capital Market

Negative

• Sequential quarterly revenue growth showing declining trend (214% to 115% to 54%)

Insights

Market Research Analyst

Cloudastructure's direct listing on Nasdaq marks a strategic move that differs significantly from traditional IPOs by avoiding underwriting fees and share dilution while providing immediate market access. The company's impressive growth trajectory, evidenced by triple-digit revenue increases in early 2024, demonstrates strong market validation of their AI-powered security solutions.

The company's strategic positioning is particularly noteworthy. By securing contracts with 5 of the top 10 NMHC-ranked multifamily management companies, they've established a formidable presence in a high-value market segment. Their current capacity to onboard 20 locations monthly suggests a well-structured scaling mechanism, though this could become a bottleneck given their access to 10,000+ potential locations.

Operating at the convergence of three high-growth markets provides multiple revenue expansion vectors:

• AI market ($500B, 19% growth)
• Cloud computing ($490B, 20.7% growth)
• Security sector ($188B, 11% growth)

The projected path to cash flow positivity in 2025 appears realistic given their robust pipeline and high-value enterprise clients. However, investors should monitor key metrics including client acquisition costs, churn rates and deployment efficiency as these will be important for achieving sustainable profitability.

The direct listing structure could lead to higher initial price volatility compared to traditional IPOs, as price discovery occurs in real-time without a formal underwriting process. This might present both opportunities and risks for early investors as the market determines appropriate valuation metrics for this hybrid AI-security company.

Highlights Promising Outlook - Robust Pipeline and Strong Revenue Growth Momentum

PALO ALTO, Ca, Jan. 30, 2025 (GLOBE NEWSWIRE) -- Cloudastructure, Inc. (Nasdaq: CSAI) (“we,” “us,” “our,” “Cloudastructure” or the “Company”), a cloud-based video surveillance platform with artificial intelligence (“AI”) and computer vision analytics, today announced that trading of Cloudastructure’s Class A common shares (the “common shares”) commenced today on the Nasdaq Capital Market under the stock ticker symbol CSAI. 

“We are pleased to announce that Cloudastructure’s common shares are now trading on the Nasdaq Capital Market,” said James McCormick, Chief Executive Officer of Cloudastructure. “This milestone represents a transformative moment for our Company, providing an opportunity to showcase our innovative, AI-driven, cloud-based security solutions to a wider audience of investors. Listing on Nasdaq elevates our visibility and reinforces our commitment to revolutionizing intelligent security with scalable, cost-effective technology as we strive to set the global standard in AI-powered surveillance. This achievement is a testament to the dedication and hard work of the entire Cloudastructure team. Today marks the beginning of an exciting new chapter, and we look forward to the opportunities that lie ahead.”

“Cloudastructure is strategically positioned at the intersection of three of the world’s fastest-growing industries: Artificial Intelligence, Public Cloud, and Security. The global AI market, has been estimated by some analysts to be at $500 billion as of 2023, and growing at an impressive 19% annually, while the public cloud market, was projected at $490 billion, and expanding even faster at 20.7%. Meanwhile, the estimated $188 billion security market continued its steady 11% annual growth. Operating at the convergence of these dynamic sectors, Cloudastructure is driving a transformative shift by delivering innovative, scalable, and cost-effective security solutions tailored to the demands of these rapidly evolving industries.”

"As of September 30, 2024, our sales pipeline was extremely robust, as evidenced by three consecutive quarters of extraordinary revenue growth compared to the same periods in 2023—214% in Q1, 115% in Q2, and 54% in Q3. This strong pipeline gives us tremendous confidence in the outlook for the business as we continue to execute our growth strategy. Moreover, we now have 5 of the top 10 NMHC-ranked multifamily management companies as clients, controlling over 10,000 locations, and we have the capacity to onboard approximately 20 locations per month. As a result, we believe we are strategically positioned to become cash flow positive in 2025, illustrating the scalability and strength of our business model."

“Cloudastructure is entering a pivotal and promising phase in its journey. With a strong foundation built on innovative AI-driven technology and a robust sales pipeline, the Company is well-positioned to capitalize on its momentum. As we continue to scale operations, expand our client base, and drive sustainable growth, we remain committed to delivering exceptional long-term value to our shareholders, as well as setting new benchmarks in intelligent security solutions. The future for Cloudastructure is bright, and this is only the beginning,” concluded Mr. McCormick.

Maxim Group LLC acted as the exclusive financial advisor to Cloudastructure in connection with the direct listing.

ABOUT CLOUDASTRUCTURE

Headquartered in Palo Alto, California, Cloudastructure’s advanced award-winning security platform utilizes a scalable cloud-based architecture that features cloud video surveillance with proprietary, state-of-the-art AI/ML analytics, and a seamless remote guarding solution. The combination enables enterprise businesses to achieve proactive, end-to-end security, and pairs that platform with an attractive value proposition that eschews proprietary hardware and offers contract-free, month-to-month pricing and unlimited 24/7 support. With Cloudastructure, companies can achieve unparalleled situational awareness in real time and thereby stop crime as it is happening, while simultaneously achieving up to a 75% lower Total Cost of Ownership than other systems. For more information, visit https://www.cloudastructure.com/.

Forward-Looking Statements

Certain statements in this press release may be considered forward-looking, such as statements containing estimates, projections, and other forward-looking information. Forward-looking statements are typically identified by words and phrases such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” or the negative of such words and other comparable terminology. However, the absence of these words does not mean that a statement is not forward-looking. Any forward-looking statements expressing an expectation or belief as to future events is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future events and involve risks, uncertainties, and other factors beyond our control. Therefore, we caution you against relying on any of these forward-looking statements. Actual outcomes and results may differ materially from what is expressed in any forward-looking statement. Except as required by applicable law, including U.S. federal securities laws, we do not intend to update any of the forward-looking statements to conform them to actual results or revised expectations.

Media Contact:
Kathleen Hannon
Sr. Communications Director
Cloudastructure, Inc.
Kathleen@cloudastructure.com.
(704) 574-3732

Investor Contacts:
Crescendo Communications, LLC
212-671-1020
CSAI@crescendo-ir.com 

FAQ

What was Cloudastructure's (CSAI) revenue growth in Q1-Q3 2024?

Cloudastructure reported revenue growth of 214% in Q1, 115% in Q2, and 54% in Q3 2024 compared to the same periods in 2023.

When does Cloudastructure (CSAI) expect to become cash flow positive?

Cloudastructure expects to become cash flow positive in 2025.

How many NMHC-ranked multifamily management companies are Cloudastructure (CSAI) clients?

Cloudastructure has 5 of the top 10 NMHC-ranked multifamily management companies as clients.

What is Cloudastructure's (CSAI) monthly location onboarding capacity?

Cloudastructure has the capacity to onboard approximately 20 locations per month.

Who was the financial advisor for Cloudastructure's (CSAI) Nasdaq direct listing?

Maxim Group acted as the exclusive financial advisor for Cloudastructure's direct listing.