PR Newswire
HENDERSON, Nev., Nov. 9, 2023
Reports 16% Revenue Increase and ARR over $11.0 Million
HENDERSON, Nev., Nov. 9, 2023 /PRNewswire/ -- Research Solutions, Inc. (NASDAQ: RSSS), a trusted partner providing cloud-based workflow solutions to accelerate research for R&D-driven organizations, reported financial results for its fiscal first quarter ended September 30, 2023.
"Our first quarter results reflect the continued growth across our platform and transaction offerings and our acquisition of ResoluteAI completed in late July, which helped push our ARR over $11 million," said Roy W. Olivier, President and CEO of Research Solutions. "We continue to experience softer growth in our platform products due to ongoing inflationary pressures and budgetary constraints, however, our profit performance remained strong when you exclude a number of unique items that impacted our first quarter. Lasty, we continue to be active in the M&A market with additional potential transactions that we believe will help complete our product set and enhance our growth profile."
Fiscal First Quarter 2024 Results
Total revenue was $10.1 million, a 16% increase from $8.7 million in the year-ago quarter as both platform and transaction revenue increased from the prior-year period.
Platform subscription revenue increased 29% to $2.6 million compared to $2.0 million in the year-ago quarter. The increase was primarily due to an increase in the total number of paid Platform deployments and the acquisition of ResoluteAI, as well as upsells to existing customers. When consolidating ARR from the ResoluteAI acquisition, the quarter ended with annual recurring revenue of $11.0 million, up 32% year-over-year (see the company's definition of annual recurring revenue below).
Transaction revenue was $7.5 million, compared to $6.7 million in the first quarter of fiscal 2023. The increase was primarily due to organic growth and higher transaction volumes related to contracts transferred from FIZ Karlsruhe effective on January 1, 2023. The transaction customer count for the quarter was 1,395, compared to 1,220 customers in the prior-year quarter (see the company's definition of active customer accounts and transactions below).
Total gross margin improved 150 basis points from the prior-year quarter to 40.1%. The increase was primarily driven by a continued revenue mix shift to the higher-margin Platforms business as well as increased margins in the transactions business.
Total operating expenses were $5.1 million, compared to $3.2 million in the first quarter of 2023. This quarter's results include $339,000 in expenses related to the Company's M&A activities, $542,000 in proxy-related expenses and $280,000 in separation costs related to the termination of the Executive Chairman.
Net loss in the first quarter was ($988,000), or ($0.04) per share, compared to net income of $215,000, or $0.01 per diluted share, in the prior-year quarter. Adjusted EBITDA was ($441,000), compared to $433,000 in the year-ago quarter. The net loss result included the $1.161M of itemized operating costs noted above and the Adjusted EBITDA result is inclusive of approximately $1.078M of those costs (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below).
Conference Call
Research Solutions President and CEO Roy W. Olivier and CFO Bill Nurthen will host the conference call, followed by a question and answer period.
Date: Thursday, November 9, 2023
Time: 5:00 p.m. ET (2:00 p.m. PT)
Dial-in number: 1-631-891-4304
Conference ID: 10022638
The conference call will be broadcast live and available for replay until December 9, 2023 by dialing 1-412-317-6671 and using the replay ID 10022638, and via the investor relations section of the company's website at http://researchsolutions.investorroom.com/.
Fiscal First Quarter Financial and Operational Summary Tables vs. Prior-Year Quarter
| | Quarter Ended September 30, | |||
| | 2023 | 2022 | Change | % Change |
Revenue: | | | | | |
| Platforms | $ 2,600,192 | $ 2,019,967 | $ 580,225 | 28.7 % |
| Transactions | 7,460,779 | 6,664,676 | 796,103 | 11.9 % |
Total Revenue | 10,060,971 | 8,684,643 | 1,376,328 | 15.8 % | |
| | | | | |
Gross Profit: | | | | | |
| Platforms | 2,217,577 | 1,789,494 | 428,083 | 23.9 % |
| Transactions | 1,813,988 | 1,559,754 | 254,234 | 16.3 % |
Total Gross Profit | 4,031,565 | 3,349,248 | 682,317 | 20.4 % | |
| | | | | |
Gross profit as a % of revenue: | | | | | |
| Platforms | 85.3 % | 88.6 % | -3.3 % | |
| Transactions | 24.3 % | 23.4 % | 0.9 % | |
Total Gross Profit | 40.1 % | 38.6 % | 1.5 % | | |
| | | | | |
Operating Expenses: | | | | | |
| Sales and marketing | 685,016 | 521,216 | 163,800 | 31.4 % |
| Technology and product development | 1,244,579 | 875,290 | 369,289 | 42.2 % |
| General and administrative | 2,542,869 | 1,519,424 | 1,023,445 | 67.4 % |
| Depreciation and amortization | 59,620 | 5,812 | 53,808 | 925.8 % |
| Stock-based compensation | 591,814 | 175,361 | 416,453 | 237.5 % |
| Foreign currency translation loss | 6,620 | 72,516 | (65,896) | -90.9 % Werbung Mehr Nachrichten zur Research Solutions Aktie kostenlos abonnieren
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