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]
Research Solutions(RSSS) - 2025 Q2 - Quarterly Results