Core Insights - Research Solutions has announced a strategic integration with Third Iron's LibKey platform to enhance access to scholarly content for researchers [1][2] - The integration simplifies the process of accessing articles not available through library holdings, providing direct access to over 34,000 journals [2][6] - The partnership aims to improve library services by streamlining access and providing insights into research demand patterns [3][5] Company Overview - Research Solutions (NASDAQ: RSSS) is a vertical SaaS and AI company focused on simplifying research workflows for academic institutions and research organizations [8] - Third Iron, LLC develops innovative services for libraries, with its LibKey and BrowZine services used by over 2,000 libraries globally [9] Integration Details - The LibKey-AGS integration operates within LibKey's linking hierarchy, checking various sources for access before utilizing AGS [3][4] - The integration offers features such as 98% instant delivery of articles, 24/7 availability, and permanent article retention for ongoing research [6] - The integration is currently being piloted and will be more widely available in the coming months, with additional services receiving AGS capabilities in Summer 2025 [7]

Core Insights - Research Solutions' Scite platform has signed an indexing agreement with the American Society for Microbiology (ASM), enhancing its position in the competitive AI research landscape [1][2] - The partnership adds ASM's extensive portfolio of peer-reviewed journals to Scite's network, which now includes over 30 major publishers and provides access to more than 1.3 billion indexed citations [2][5] - Scite's Smart Citations technology offers deeper insights into citation patterns, allowing researchers to understand how microbiology research is referenced and utilized [3][5] Company Overview - Research Solutions is a vertical SaaS and AI company that simplifies research workflows for academic institutions and life science companies globally, combining AI-powered tools with access to both open access and paywalled research [7] - The company emphasizes ethical sourcing of information through direct partnerships with publishers, distinguishing itself from competitors that scrape content [5] Industry Context - The indexing agreement with ASM reflects the growing importance of citation intelligence in modern research evaluation, providing a richer framework for understanding scholarly impact [4][5] - ASM, established in 1899, is a leading organization in microbiological research, advocating for open science and evidence-based public policies [8]

Summary of Research Solutions (RSSS) FY Conference Call Company Overview - **Company Name**: Research Solutions (RSSS) - **Ticker Symbol**: RSSS - **Industry**: Research and Information Services - **Business Model**: SaaS platform focused on simplifying the research process for organizations Key Points and Arguments 1. **Market Position and Growth**: RSSS operates in a growing market driven by AI and digitization of research, with a focus on non-cyclical demand markets [4][6] 2. **Revenue Composition**: The company has transitioned from a low-margin business to a vertical SaaS platform, increasing recurring revenue from $6 million in ARR in 2021 to over $20 million today [6] 3. **High Renewal Rates**: RSSS boasts renewal rates in the low nineties, with net renewal rates exceeding 100%, indicating strong customer retention [5][36] 4. **Total Addressable Market (TAM)**: The company has a large TAM with a single-digit market share, indicating significant growth potential [7][14] 5. **Product Offerings**: Key products include: - **SITE**: AI-driven search tool for peer-reviewed scientific research - **Article Galaxy**: Manages article entitlements and acquisitions - **References**: Manages corporate libraries and document sharing [8][9] 6. **Customer Base**: Approximately 50% of revenue comes from pharmaceutical, biotech, and medical device sectors, with installations across 60 different verticals [13][17] 7. **Financial Performance**: - SaaS revenue has a gross margin of over 85% and is growing at over 20% [25][26] - Transactional revenue has a gross margin of about 25% and is stable [26] - Adjusted EBITDA reached $5.1 million, with cash flow from operations at $6.7 million [29] 8. **Strategic Focus**: The company aims to grow SaaS revenue from $20 million to $30 million in the next few years, with a focus on organic growth and strategic acquisitions [35][41] 9. **Acquisition Strategy**: RSSS is looking for acquisitions that can enhance its product offerings, particularly in the research workflow space [38][39] 10. **Market Challenges**: Concerns exist regarding academic library budgets due to potential cuts in grants, but corporate clients remain stable [19][49] Additional Important Insights 1. **AI Integration**: The company emphasizes its AI capabilities to reduce "hallucinations" in research results, providing more accurate and comprehensive search results compared to competitors [11][52] 2. **Customer Feedback**: Positive customer testimonials highlight the time-saving benefits of Article Galaxy and the unique capabilities of SITE [14] 3. **Future Outlook**: The management remains optimistic about growth in both corporate and academic sectors, despite potential short-term challenges in the academic market [20][49] 4. **Cash Position**: The company has approximately $9.9 million in cash, which can be used for strategic initiatives and acquisitions [31][32] 5. **Management Experience**: The management team has extensive experience in public companies and private equity, enhancing confidence in execution and growth strategies [43]

Company Overview - Research Solutions (NASDAQ: RSSS) is a leading provider of AI-powered scientific research tools, focusing on simplifying research workflows for academic institutions, life science companies, and research organizations globally [3]. - The company operates as a vertical SaaS and AI firm, offering a unique marketplace for scientific, technical, and medical (STM) content that is independent of publishers [3]. - Research Solutions combines AI-powered tools, including an intelligent research assistant and full-text search capabilities, with access to both open access and paywalled research, enhancing the efficiency of scientific literature discovery and analysis [3]. Event Participation - The CEO, Roy W. Olivier, and CFO, Bill Nurthen, will participate in the "2025 Virtual Tech Conference: Discover the Innovations Reshaping Tomorrow," hosted by Maxim Group LLC on June 3rd at 3:30 p.m. EDT [1]. - The conference will be available live on M-Vest, requiring investors to sign up for membership to view the session [2]. Industry Context - Maxim Group LLC is a full-service investment banking, securities, and wealth management firm that provides a wide range of financial services, including investment banking and equity research [4]. - The participation of Research Solutions in this conference highlights the growing intersection of technology and finance within the scientific research sector [1][4].

Core Insights - Research Solutions has integrated advanced search capabilities into its Article Galaxy platform, allowing researchers to search across citation statements from full-text articles, marking a significant improvement over traditional search methods [1][3][4] Company Developments - The upgraded search system reflects Research Solutions' commitment to innovation and feature enhancement based on customer feedback, enabling more relevant literature discovery through both basic and sophisticated search methods [3][5] - The new search functionality aims to improve research efficiency and strengthen Article Galaxy's position as a comprehensive platform for managing scientific literature [4][5] Industry Context - The enhanced literature discovery tools represent a growth area within scientific research technologies, addressing the challenges posed by the increasing volume of published research [5] - The integration of AI-powered tools and advanced search capabilities positions Research Solutions as a key player in simplifying research workflows for academic institutions and life science companies [7]

PART I — FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) These unaudited statements present the company's financial position, operations, and cash flows, highlighting $45.2 million in assets and a $1.1 million net loss [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets reached $45.2 million and liabilities $34.0 million, driven by cash and acquisition-related liabilities Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $9,852,007 | $6,100,031 | | Total current assets | $18,837,091 | $14,690,621 | | Goodwill | $16,372,979 | $16,315,888 | | Total assets | $45,227,380 | $41,859,762 | | **Liabilities & Equity** | | | | Deferred revenue | $10,355,768 | $9,023,848 | | Contingent earnout liability (current & long-term) | $15,110,910 | $12,298,114 | | Total liabilities | $33,996,250 | $30,165,574 | | Total stockholders' equity | $11,231,130 | $11,694,188 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) Total revenue increased to $36.6 million for the nine months ended March 31, 2025, with a $1.1 million net loss due to a non-cash earnout liability charge Statement of Operations Highlights (Unaudited) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$12,661,363** | **$12,115,672** | **$36,620,064** | **$32,490,385** | | Platform Revenue | $4,839,929 | $3,953,403 | $13,770,831 | $9,679,179 | | Gross Profit | $6,267,080 | $5,481,932 | $17,854,049 | $13,997,300 | | Income (Loss) from Operations | $556,922 | $87,663 | $1,296,460 | ($1,431,286) | | **Net Income (Loss)** | **$216,470** | **$76,301** | **($1,094,760)** | **($965,370)** | | Basic EPS | $0.01 | $0.00 | ($0.04) | ($0.03) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly increased to $4.8 million for the nine months ended March 31, 2025, primarily due to non-cash adjustments and deferred revenue Cash Flow Summary (Unaudited, Nine Months Ended March 31) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,764,251 | $1,589,791 | | Net cash used in investing activities | ($11,571) | ($10,081,507) | | Net cash used in financing activities | ($999,567) | ($836,984) | | **Net increase (decrease) in cash** | **$3,751,976** | **($9,323,909)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's business, accounting policies, and key financial events, including acquisitions, contingent liabilities, and stock repurchases - The company is a vertical software-as-a-service (SaaS) and artificial intelligence (AI) company offering platforms for research-intensive organizations, which include Discovery Tools (Scite.ai, Resolute.ai), Access (Article Galaxy), and Manage (References solution)[17](index=17&type=chunk)[19](index=19&type=chunk)[22](index=22&type=chunk) - The acquisition of Scite on December 1, 2023, involved a total purchase consideration of approximately **$21.1 million**, including cash, stock, and a contingent earnout. The fair value of this earnout liability increased from an initial **$7.2 million** to **$15.1 million** as of March 31, 2025[95](index=95&type=chunk)[96](index=96&type=chunk) - The company has a stock repurchase program, authorized by the Board's Compensation Committee, to satisfy employee tax obligations on vested stock awards. As of March 31, 2025, **$188,500** remained under the current authorization[86](index=86&type=chunk)[87](index=87&type=chunk) Revenue by Geographical Region (Nine Months Ended March 31) | Region | 2025 Revenue | 2025 % | 2024 Revenue | 2024 % | | :--- | :--- | :--- | :--- | :--- | | United States | $21,271,525 | 58.1% | $19,220,592 | 59.1% | | Europe | $11,619,759 | 31.7% | $10,225,116 | 31.5% | | Rest of World | $3,728,780 | 10.2% | $3,044,677 | 9.4% | | **Total** | **$36,620,064** | **100%** | **$32,490,385** | **100%** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 12.7% revenue increase to $36.6 million for the nine months ended March 31, 2025, a $1.1 million net loss, and a significant rise in Adjusted EBITDA [Results of Operations](index=45&type=section&id=Results%20of%20Operations) For the nine months ended March 31, 2025, total revenue grew 12.7% to $36.6 million, gross profit increased to $17.9 million, and the net loss widened to $1.1 million Revenue Comparison (Nine Months Ended March 31) | Category | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Platforms | $13,770,831 | $9,679,179 | $4,091,652 | 42.3% | | Transactions | $22,849,233 | $22,811,206 | $38,027 | 0.2% | | **Total revenue** | **$36,620,064** | **$32,490,385** | **$4,129,679** | **12.7%** | Gross Profit Comparison (Nine Months Ended March 31) | Category | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Platforms | $11,993,516 | $8,239,028 | $3,754,488 | 45.6% | | Transactions | $5,860,533 | $5,758,272 | $102,261 | 1.8% | | **Total gross profit** | **$17,854,049** | **$13,997,300** | **$3,856,749** | **27.6%** | - Sales and marketing expenses for the nine-month period increased by **$1.5 million** (**58.5%**), primarily due to greater personnel costs, consulting expenses, and advertising spend associated with the Scite acquisition[142](index=142&type=chunk) - The net loss for the nine months ended March 31, 2025 increased by **13.4%** to **$1.1 million**, mainly due to charges from increasing the estimated earnout liability for the Scite acquisition, which offset the growth in gross profit[145](index=145&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, cash and cash equivalents increased to **$9.9 million**, driven by **$4.8 million** in operating cash flow, with a **$500,000** revolving credit line available - Cash and cash equivalents increased by **$3.75 million** during the nine months ended March 31, 2025, ending the period at **$9,852,007**[147](index=147&type=chunk) - Net cash from operating activities was **$4.8 million**, primarily resulting from a non-cash adjustment to contingent earnout liability (**$2.8M**), an increase in deferred revenue (**$1.3M**), and stock-based compensation (**$1.4M**)[148](index=148&type=chunk) - The company has a **$500,000** secured revolving line of credit with PNC Bank, maturing April 15, 2026. There were no outstanding borrowings as of March 31, 2025[152](index=152&type=chunk) [Non-GAAP Measure – Adjusted EBITDA](index=55&type=section&id=Non-GAAP%20Measure%20%E2%80%93%20Adjusted%20EBITDA) Adjusted EBITDA, a non-GAAP measure, significantly increased to **$3.7 million** for the nine months ended March 31, 2025, reflecting improved operational performance Reconciliation of Net Income (Loss) to Adjusted EBITDA | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | $216,470 | $76,301 | ($1,094,760) | ($965,370) | | Adjustments | $1,202,585 | $884,439 | $4,749,306 | $1,803,681 | | **Adjusted EBITDA** | **$1,419,055** | **$960,740** | **$3,654,546** | **$838,311** | [Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not required for smaller reporting companies - Disclosure is not required for this item[157](index=157&type=chunk) [Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective at a reasonable assurance level[161](index=161&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[164](index=164&type=chunk) PART II — OTHER INFORMATION [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2024 - No material changes from the risk factors disclosed in the Annual Report on Form 10-K for the year ended June 30, 2024[165](index=165&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 246,707 shares for approximately **$703,115** during the quarter ended March 31, 2025, under its stock repurchase program, with **$188,500** remaining available Common Stock Repurchases (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet Be Purchased | | :--- | :--- | :--- | :--- | | January 2025 | — | — | $891,615 | | February 2025 | — | — | $891,615 | | March 2025 | 246,707 | $2.85 | $188,500 | - For the nine months ended March 31, 2025, the company repurchased a total of **300,596** shares for an aggregate amount of **$908,393**[168](index=168&type=chunk) [Exhibits](index=61&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q, including acquisition agreements, corporate bylaws, and officer certifications

Group 1: Earnings Performance - Research Solutions Inc. reported quarterly earnings of $0.03 per share, matching the Zacks Consensus Estimate, compared to break-even earnings per share a year ago [1] - The company had a loss of $0.07 per share in the previous quarter, resulting in a surprise of -450% against the expected earnings of $0.02 [1] - Over the last four quarters, the company has only surpassed consensus EPS estimates once [1] Group 2: Revenue Performance - For the quarter ended March 2025, Research Solutions posted revenues of $12.66 million, missing the Zacks Consensus Estimate by 2.46%, but up from $12.12 million year-over-year [2] - The company has exceeded consensus revenue estimates three times in the last four quarters [2] Group 3: Stock Performance and Outlook - Research Solutions shares have declined approximately 32.8% since the beginning of the year, while the S&P 500 has decreased by -4.3% [3] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market [6] - The consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $12.75 million, and for the current fiscal year, it is $0.12 on revenues of $49.7 million [7] Group 4: Industry Context - The Commercial Printing industry, to which Research Solutions belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Total revenue for Q3 FY2025 was $12.7 million, up from $12.1 million in Q3 FY2024, representing a year-over-year increase of approximately 5% [8] - Annual recurring revenue (ARR) reached $20.4 million, a 23% increase year-over-year [9] - Gross margin improved to 49.5%, a 430 basis point increase compared to the prior year [12] - Net income was $216,000 or $0.01 per diluted share, compared to $76,000 in the prior year [16] Business Line Data and Key Metrics Changes - Platform subscription revenue increased by 22% to $4.8 million, driven by growth in both B2B and B2C segments [8] - Transaction revenue decreased to $7.8 million from $8.2 million in the prior year, a decline of 4% [11] - B2B ARR experienced net incremental growth of $736,000, a record for the company [10] Market Data and Key Metrics Changes - The total active customer count decreased to 1,380 from 1,426 in the same period a year ago [12] - The company noted that budget cuts in government and academic institutions have not yet materially impacted churn or the sales pipeline [34] Company Strategy and Development Direction - The company is focusing on building a professional sales and renewal team as part of its long-term strategy [21] - Investments in sales and marketing are expected to drive predictable growth, with a focus on both B2B and B2C segments [42] - AI is central to the company's strategy, with ongoing development of AI-based products and features [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing revenue mix shift towards higher-margin SaaS revenue [19] - The company anticipates a strong finish in the final quarter of the fiscal year, despite potential declines in transaction revenue [19] - Management is monitoring the impact of budget cuts on academic library budgets but views it as an opportunity for their products [34] Other Important Information - The company achieved a new record for adjusted EBITDA at $1.4 million, compared to $961,000 in the prior year [17] - Cash flow from operations for the quarter was approximately $2.9 million, a significant increase from $2 million in the prior year [18] Q&A Session Summary Question: Thoughts on shifting gears to drive faster growth through sales and marketing - Management indicated that investments in sales and marketing are aimed at creating a predictable model for growth, particularly in B2B [42] Question: Potential of AI to streamline operations and lower costs - Management acknowledged the need to utilize AI for productivity enhancements and indicated plans to report on AI initiatives in future meetings [47] Question: Performance of new logo versus cross-sell teams - New logo teams performed well, contributing over half of total new bookings, with strong performance noted in both corporate and academic segments [54]

Financial Data and Key Metrics Changes - Total revenue for Q3 FY2025 was $12.7 million, up from $12.1 million in Q3 FY2024, representing a year-over-year increase of approximately 5% [8] - Annual recurring revenue (ARR) reached $20.4 million, a 23% increase year-over-year [9] - Gross margin improved to 49.5%, a 430 basis point increase compared to the prior year [12] - Adjusted EBITDA set a new record at $1.4 million, compared to $961,000 in the year-ago quarter, with a trailing twelve months adjusted EBITDA of $5.1 million, representing a 10.4% margin [17][18] Business Line Data and Key Metrics Changes - Platform subscription revenue increased by 22% to $4.8 million, driven by growth in both B2B and B2C segments [8] - B2B segment saw net incremental ARR growth of $736,000, a record for the company [10] - Transaction revenue decreased to $7.8 million from $8.2 million in the prior year quarter, a decline of 4% [11] Market Data and Key Metrics Changes - Total active customer count decreased to 1,380 from 1,426 year-over-year [12] - The company noted that budget cuts in government and academic institutions have not yet materially impacted churn or the sales pipeline [33] Company Strategy and Development Direction - The company is focusing on building a professional sales and renewal team as part of its long-term strategy [21] - Investments in sales and marketing are expected to drive predictable growth, particularly in the B2C segment through digital advertising [42] - AI is central to the company's strategy, with ongoing development of AI-based products aimed at enhancing research capabilities [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing revenue mix shift towards higher-margin SaaS revenue and expects a strong finish in the final quarter of the fiscal year [19][20] - The company is monitoring the impact of budget cuts on academic library budgets but views it as an opportunity rather than a threat [36] Other Important Information - The company reported a cash balance of $9.9 million as of March 31, 2025, up from $6.1 million on June 30, 2024 [18] - The company is exploring options for utilizing its cash reserves, including potential acquisitions [38] Q&A Session Summary Question: Thoughts on shifting gears to drive faster growth through sales and marketing - Management indicated that investments in sales and marketing are aimed at creating a predictable growth model, particularly in B2C [40][41] Question: Potential of AI to streamline operations and lower costs - Management acknowledged that AI could enhance productivity and is focusing on utilizing AI for R&D and software engineering [46][47] Question: Performance of new logo versus cross-sell teams - New logo teams performed well, contributing over half of total new bookings, with strong performance noted in both academic and corporate segments [52][53] Question: Trends in B2C segment as classes wrap up - Management noted a weakening in trials and sign-ups, but improvements in conversion rates were also highlighted [57][58]

Financial Data and Key Metrics Changes - Total revenue for Q3 FY2025 was $12.7 million, up from $12.1 million in Q3 FY2024, representing a year-over-year increase of approximately 5% [8] - Annual recurring revenue (ARR) reached $20.4 million, a 23% increase year-over-year [9] - Gross margin improved to 49.5%, a 430 basis point increase compared to the prior year [12] - Net income was $216,000 or $0.01 per diluted share, compared to $76,000 in the prior year [15] Business Line Data and Key Metrics Changes - Platform subscription revenue increased by 22% to $4.8 million, driven by growth in both B2B and B2C segments [8] - Transaction revenue decreased to $7.8 million from $8.2 million in the prior year, a decline of 4% [11] - B2B ARR grew by $736,000, marking a record for the company in a single quarter [10] Market Data and Key Metrics Changes - The total active customer count decreased to 1,380 from 1,426 year-over-year [12] - The company noted that budget cuts in government and academic institutions have not yet materially impacted churn or the sales pipeline [33] Company Strategy and Development Direction - The company is focusing on building a professional sales and marketing team as a cornerstone of its value creation strategy [21] - AI-based products are central to the company's strategy, with significant growth reported in the B2B enterprise license segment, which saw an 80% increase year-over-year [5][24] - The company aims to continue shifting its revenue mix towards higher-margin SaaS revenue [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing investments in sales and marketing, which are expected to yield predictable growth [41] - The company anticipates a strong finish to the fiscal year, despite potential declines in transaction revenue [19] - Management is closely monitoring the impact of budget cuts on academic library budgets but views it as an opportunity for their pay-as-you-go model [37] Other Important Information - Adjusted EBITDA reached a record $1.4 million, compared to $961,000 in the prior year, with a trailing twelve-month adjusted EBITDA margin of 10.4% [17] - Cash flow from operations for the quarter was approximately $2.9 million, up from $2 million in the prior year [18] Q&A Session Summary Question: Thoughts on shifting gears in sales and marketing to drive faster growth - Management indicated that investments in sales and marketing are aimed at creating a predictable model for customer acquisition and growth [41] Question: How AI can streamline operations and lower costs - Management acknowledged the potential of AI to enhance productivity and indicated plans to focus on utilizing AI for R&D and software engineering [47] Question: Performance of new logo versus cross-sell teams - New logo teams performed well, contributing over half of total new bookings, with strong performance noted in both corporate and academic segments [54]