Revenue Growth - Total revenue increased by 15.5% to $11.9 million compared to $10.3 million in the prior-year quarter[5] - Annual Recurring Revenue (ARR) rose by 23% to $19.1 million, including approximately $12.7 million from B2B and $6.4 million from B2C[4] - Platform revenue surged by 47% to $4.6 million, accounting for 39% of total revenue, up from 30% in the prior-year quarter[4] - Transaction revenue was $7.3 million, a slight increase from $7.2 million in the second quarter of fiscal 2024[7] - Total revenue for the three months ended December 31, 2024, was $11,914,219, representing a 15.5% increase from $10,313,742 in the same period of 2023[23] Profitability and Loss - Gross profit increased by 30% year-over-year, with total gross margin improving by 540 basis points to 48.9%[4] - Net loss for the quarter was $2.0 million, or ($0.07) per share, compared to a net loss of ($54,000) in the prior-year quarter[10] - Adjusted EBITDA reached $963,000, a significant increase from $318,000 in the prior-year quarter, representing a 202.4% growth[12] - Net income (loss) for the quarter was $(1,980,234), a significant increase in loss compared to $(53,628) in the previous year[17] - The company reported a loss before provision for income taxes of $1,965,040 for the three months ended December 31, 2024, compared to a loss of $43,571 in the same period of 2023[23] Cash Flow and Liquidity - Cash flow from operations exceeded $1 million, compared to $0.3 million in the prior-year quarter[4] - Cash flow from operating activities for the six months ended December 31, 2024, was $1,871,493, a significant improvement from a cash outflow of $426,888 in the prior year[25] - Cash and cash equivalents increased to $7,701,155 from $6,100,031, reflecting a growth of 26.2%[21] - Cash and cash equivalents at the end of the period were $7,701,155, an increase from $2,697,659 at the end of the same period in 2023[25] Operating Expenses - Total operating expenses rose to $5.7 million, up from $4.9 million in the second quarter of 2024, primarily due to increased costs in Sales and Marketing and Technology[9] - Total operating expenses for the three months ended December 31, 2024, were $5,728,246, up from $4,903,799 in the same period of 2023[23] Customer Metrics - The company recorded 61 net new B2B platform deployments, marking the best organic performance in a quarter[3] - Total customer accounts decreased by 14, resulting in a total of 1,384 customers, a decline of 1.0% from the previous period[13] Asset and Liability Management - Total assets rose to $42,788,993, up from $41,859,762, indicating a growth of 2.2%[21] - Total current liabilities increased to $20,921,489 from $17,867,460, a rise of 11.5%[21] Other Financial Metrics - Incremental ARR decreased by $44,085, representing a decline of 7.4% compared to the previous period, with a total ARR of $19,109,637, up 22.7% year-over-year[13] - Average sales price (ASP) at the end of the period was $11,686, down 5.2% from $12,330[13] - B2C ARR increased to $6,371,381, representing a growth of 61.1% compared to the previous period[13] - The company incurred $2,406,886 in changes in fair value of contingent earnout liability for the three months ended December 31, 2024[23] - The company did not make any payments for acquisitions during the six months ended December 31, 2024, after significant cash outflows for acquisitions in the previous year[25] Foreign Currency Impact - The company reported a foreign currency translation loss of $29,554, compared to a gain of $(13,738) in the previous year, marking a significant change[17]

Core Insights - Research Solutions, Inc. reported a 23% increase in Annual Recurring Revenue (ARR) to $19.1 million and achieved 61 net new platform deployments, marking the best organic performance in a quarter [1][4][11] Financial Performance - Total revenue for the fiscal second quarter was $11.9 million, reflecting a 15.5% increase from $10.3 million in the same quarter last year [3][11] - Platform subscription revenue rose by 47% to $4.6 million, accounting for 39% of total revenue compared to 30% in the prior-year quarter [4][11] - Transaction revenue was $7.3 million, slightly up from $7.2 million in the previous year, primarily due to increased copyright revenues [5][11] - Total gross margin improved by 540 basis points to 48.9%, driven by a shift towards higher-margin platform business [6][11] Operating Expenses and Losses - Total operating expenses increased to $5.7 million from $4.9 million in the prior-year quarter, attributed to higher costs in Sales and Marketing and Technology and Product Development [7][11] - The net loss for the quarter was $2.0 million, or ($0.07) per share, compared to a net loss of ($54,000) in the prior-year quarter [8][11] - Adjusted EBITDA was $963,000, up from $318,000 in the year-ago quarter, indicating improved operational efficiency [8][11] Customer Metrics - The company ended the quarter with 1,090 total platform deployments, a 15.7% increase year-over-year [12] - The transaction customer count was 1,384, a slight decrease from 1,398 in the prior-year quarter [5][12] Cash Flow and Financial Position - Cash flow from operations exceeded $1 million in the quarter, compared to $0.3 million in the prior-year quarter [11] - Total assets as of December 31, 2024, were $42.79 million, with current assets amounting to $16.15 million [20]

Core Viewpoint - Research Solutions Inc. (RSSS) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company Performance Indicators - Research Solutions is projected to earn $0.06 per share for the fiscal year ending June 2025, representing a year-over-year increase of 400% [8]. - Over the past three months, the Zacks Consensus Estimate for Research Solutions has risen by 200%, indicating a positive outlook for the company's earnings [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, suggesting superior earnings estimate revisions [9][10]. - The upgrade of Research Solutions to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating potential for market-beating returns in the near term [10].

Company Overview - Research Solutions, Inc. (NASDAQ: RSSS) is a vertical SaaS and AI company that simplifies research workflow for academic institutions, life science companies, and research organizations globally [4] - The company operates as a publisher-independent marketplace for scientific, technical, and medical (STM) content, combining AI-powered tools with access to both open access and paywalled research [4] - The platform enhances the efficiency of discovering, accessing, managing, and analyzing scientific literature, thereby accelerating scientific discovery [4] Upcoming Financial Results - Research Solutions will hold a conference call to discuss its financial results for the fiscal 2025 second quarter, which ended on December 31, 2024 [1] - The conference call is scheduled for Thursday, February 13, 2025, at 5:00 p.m. ET [1][2] - A press release with the financial results will be issued after market close and prior to the call [1] Conference Call Details - The call will be hosted by President and CEO Roy W. Olivier and CFO Bill Nurthen, followed by a Q&A session [2] - Participants can join the call by dialing 1-203-518-9848 and using the conference ID "RESEARCH" [2] - A replay of the conference call will be available after 8:00 p.m. ET on the same day through March 13, 2025 [3]

HENDERSON, Nev., Jan. 28, 2025 /PRNewswire/ -- Research Solutions (NASDAQ: RSSS), a leader in AI solutions built for researchers, announced today that usage of its AI-powered research platform, Scite, has grown by 250 percent year-over-year. This acceleration validates the unique differentiation in the Scite offering and is indicative of platform's growing adoption among academic customers and research organizations. This has come at a time when AI-related technology costs have decreased more than 50 percen ...

Research Solutions Inc. (RSSS) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, RSSS's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day a ...

Research Solutions Inc. (RSSS) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The p ...

SaaS Executive with Track Record of Accelerating GrowthHENDERSON, Nev., Nov. 19, 2024 /PRNewswire/ -- Research Solutions (NASDAQ: RSSS), a pioneer in scientific content delivery, today announced the appointment of Sefton Cohen as Chief Revenue Officer. Cohen brings over two decades of experience scaling high-growth SaaS companies and will play a pivotal role in accelerating Research Solutions' transformation from a scientific content provider to a comprehensive AI-enabled research intelligence platform. ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $12 million, a 20% increase from Q1 2024 [11] - Platform subscription revenue increased 67% to $4.3 million, driven by the acquisition of Scite [11] - Net income for the quarter was $669,000 or $0.02 per diluted share, compared to a net loss of $988,000 or negative $0.04 per share in the prior year quarter [18] - Adjusted EBITDA for the quarter was $1.3 million, a margin of 10.6%, compared to negative $441,000 in the year-ago quarter [18] - Cash and cash equivalents as of September 30, 2024, was $6.9 million, up from $6.1 million on June 30, 2024 [19] Business Line Data and Key Metrics Changes - Annual Recurring Revenue (ARR) reached $17.6 million, up 60% year-over-year, with B2B contributing $12.2 million and B2C contributing $5.4 million [12] - Transaction revenue for Q1 was $7.7 million, a 3.4% increase from the prior year quarter [14] - Gross margin for the Platforms business was 87.4%, a 210 basis point increase compared to the prior year quarter [15] - Gross margin in the Transaction business increased 140 basis points to 25.7% [16] Market Data and Key Metrics Changes - The total active customer count for the quarter was 1,390, slightly down from 1,395 in the same period a year ago [14] - Higher-than-expected noncontrollable churn was driven primarily by customer acquisitions and business closures, with over half of the churn attributed to these factors [9] Company Strategy and Development Direction - The company is focusing on enhancing its SaaS and AI capabilities, particularly through the integration of Scite and Article Galaxy products [28] - The management is optimistic about M&A opportunities as valuations are coming down, and they are evaluating businesses that fit their product strategy [24] - The new Chief Revenue Officer is expected to improve sales processes and accountability within the organization [23] Management's Comments on Operating Environment and Future Outlook - Management noted that deployments and incremental ARR were lower than average due to seasonality and longer sales cycles [7] - There is optimism for a rebound in B2C subscriptions as the academic semester begins, with B2C ARR growth expected to be strong in Q2 [13] - The company anticipates a sequential decline in adjusted EBITDA for Q2 but expects strong performance in Q3 and Q4 [21] Other Important Information - The company has generated over $5.1 million in cash flow from operations over the last 12 months, indicating strong earnings quality [20] - The management is focused on improving sales execution and managing churn effectively [45] Q&A Session Summary Question: What caused the decrease in Platform costs? - Management indicated that labor was removed and hosting costs were reworked, leading to a sustainable reduction in costs [32] Question: What are the expectations for M&A valuations? - Management noted that inbound inquiries have increased due to their reputation in the industry, and they are looking for acquisitions that enhance product strategy and offer cross-selling opportunities [36][38] Question: What drove the lower deployments despite the new logo team hitting targets? - The management explained that seasonality, underperformance by the upsell team, and increased churn affected deployments [41][43] Question: What are the priorities for the new Chief Revenue Officer? - The new CRO will focus on learning the business, implementing standardized training, and improving sales execution [46][48] Question: How is Resolute AI performing? - Management acknowledged that Resolute AI is underperforming but sees value in its databases and is pivoting efforts towards more successful products like Scite and Article Galaxy [58] Question: What is the competitive environment like for corporate customers? - Management reported a decrease in churn to competitors but noted challenges with customers reducing budgets or going out of business [68][70]

Reports 60% Increase in ARR to $17.6 Million, Positive Net Income and Cash Flow, Adjusted EBITDA of $1.3 MillionHENDERSON, Nev., Nov. 14, 2024 /PRNewswire/ -- Research Solutions, Inc. (NASDAQ: RSSS), the leading AI-powered research workflow platform, reported financial results for its fiscal first quarter ended September 30, 2024.Fiscal First Quarter 2025 Summary Research Solutions, Inc. Logo (PRNewsfoto/Research Solutions, Inc.) Total revenue of $12.0 million, a 20% increase from the prior-year quar ...