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Research Solutions(RSSS) - 2025 Q2 - Quarterly Results
RSSSResearch Solutions(RSSS)2025-02-13 21:38

Revenue Growth - Total revenue increased by 15.5% to 11.9millioncomparedto11.9 million compared to 10.3 million in the prior-year quarter[5] - Annual Recurring Revenue (ARR) rose by 23% to 19.1million,includingapproximately19.1 million, including approximately 12.7 million from B2B and 6.4millionfromB2C[4]−Platformrevenuesurgedby476.4 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 7.3million,aslightincreasefrom7.3 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,representinga15.511,914,219, 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 2.0million,or(2.0 million, or (0.07) per share, compared to a net loss of (54,000)intheprior−yearquarter[10]−AdjustedEBITDAreached54,000) in the prior-year quarter[10] - Adjusted EBITDA reached 963,000, a significant increase from 318,000intheprior−yearquarter,representinga202.4318,000 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)inthepreviousyear[17]−Thecompanyreportedalossbeforeprovisionforincometaxesof(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 43,571inthesameperiodof2023[23]CashFlowandLiquidity−Cashflowfromoperationsexceeded43,571 in the same period of 2023[23] Cash Flow and Liquidity - Cash flow from operations exceeded 1 million, compared to 0.3millionintheprior−yearquarter[4]−CashflowfromoperatingactivitiesforthesixmonthsendedDecember31,2024,was0.3 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 426,888intheprioryear[25]−Cashandcashequivalentsincreasedto426,888 in the prior year[25] - Cash and cash equivalents increased to 7,701,155 from 6,100,031,reflectingagrowthof26.26,100,031, reflecting a growth of 26.2%[21] - Cash and cash equivalents at the end of the period were 7,701,155, an increase from 2,697,659attheendofthesameperiodin2023[25]OperatingExpenses−Totaloperatingexpensesroseto2,697,659 at the end of the same period in 2023[25] Operating Expenses - Total operating expenses rose to 5.7 million, up from 4.9millioninthesecondquarterof2024,primarilyduetoincreasedcostsinSalesandMarketingandTechnology[9]−TotaloperatingexpensesforthethreemonthsendedDecember31,2024,were4.9 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 4,903,799inthesameperiodof2023[23]CustomerMetrics−Thecompanyrecorded61netnewB2Bplatformdeployments,markingthebestorganicperformanceinaquarter[3]−Totalcustomeraccountsdecreasedby14,resultinginatotalof1,384customers,adeclineof1.04,903,799 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,indicatingagrowthof2.241,859,762, indicating a growth of 2.2%[21] - Total current liabilities increased to 20,921,489 from 17,867,460,ariseof11.517,867,460, 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,up22.719,109,637, 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]−B2CARRincreasedto12,330[13] - B2C ARR increased to 6,371,381, representing a growth of 61.1% compared to the previous period[13] - The company incurred 2,406,886inchangesinfairvalueofcontingentearnoutliabilityforthethreemonthsendedDecember31,2024[23]−ThecompanydidnotmakeanypaymentsforacquisitionsduringthesixmonthsendedDecember31,2024,aftersignificantcashoutflowsforacquisitionsinthepreviousyear[25]ForeignCurrencyImpact−Thecompanyreportedaforeigncurrencytranslationlossof2,406,886 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]