Qualified investors interested in participating or learning more about the IDEAS conferences, please contact Lacey Wesley at (817) 769 -2373 or [email protected]. HENDERSON, Nev., Aug. 20, 2025 /PRNewswire/ -- Research Solutions, Inc. (NASDAQ: RSSS), the leading AI-powered research workflow platform, announced that management will present at the Midwest IDEAS Investor Conference on Wednesday August 27, 2025 at The InterContinental in Chicago, IL. The company's presentation is scheduled to begin at 9:15am CT ...

Core Insights - Research Solutions, Inc. anticipates record fiscal year revenue, net income, adjusted EBITDA, and cash flow for the fiscal year ended June 30, 2025 [1][2] - The company reported a 20% growth in Annual Recurring Revenue (ARR) for its Platforms business, reaching nearly $21 million [2][4] - The company expects to finalize its full fiscal year results on September 18, 2025 [2] Financial Performance - For the fiscal fourth quarter 2025, platform revenue is expected to increase by 21% year-over-year to approximately $5.2 million [4] - Total revenue is projected to rise by 3% year-over-year to around $12.4 million [4] - Positive income from operations is estimated at approximately $1.2 million, with net income exceeding $2.3 million, including a $1.1 million adjustment related to the Scite acquisition [4] - Adjusted EBITDA is expected to be around $1.6 million, reflecting a 15% increase from the prior year [4] - Cash flow from operations is projected to be approximately $2.3 million, with an ending cash balance above $12.2 million [4] Annual Recurring Revenue (ARR) - ARR is defined as the value of contracted platform subscription recurring revenue normalized to a one-year period [3] - The company reported a total ARR increase of approximately 20% from the prior year to $20.9 million [4] Scite Acquisition and Earn-Out - The Scite earn-out has been finalized at approximately $15.4 million, to be paid 50% in cash and 50% in stock over eight quarters [4] - Due to an offer to Scite's former shareholders, the earn-out payments will be approximately 62% in cash and 38% in stock [4] Future Outlook - The company aims to improve its weighted "rule of 40" metric, which was 34% for fiscal year 2025, for fiscal year 2026 [2] - Management expresses optimism regarding the business's growth trajectory and operational performance [2]

Business Overview - Research Solutions operates a SaaS platform and a legacy article (transactions) business, serving primarily North America, EMEA, and Japan[11] - The company's platform business boasts nearly 4x the gross margin of the traditional transaction business, with a SaaS growth rate exceeding 30%+[36] - The company has a strong balance sheet with $10.6 million in cash and no outstanding debt[12] Market Opportunity - The company estimates a total addressable market (TAM) of approximately 700,000 SMBs worldwide, with current penetration less than 1%[12] - The company estimates that ~4% penetration into the SMB market would equate to ~$280 million in annual recurring revenue[26] - The company estimates the platform market to be ~$7 billion[26] Financial Performance - The company's annual recurring revenue (ARR) from platform subscriptions is approximately $7.9 million[20,30] - The company's platform business has a high retention rate and over 100% net retention[20,48] - The company's TTM revenue is $32.9 million[40] - The company's TTM gross margin for the platform business is 86.2%[20,40] - The company's TTM gross margin for the transaction business is 23.6%[40] Key Stats - The company's stock price as of 9/23/22 was $1.86[50] - The company's market capitalization is $50.4 million[50] - The company's enterprise value is $39.8 million[50]

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]

We've launched enhanced search capabilities into the Article Galaxy platform that allow researchers to search across citation statements from full-text articles. Advanced Citation Analysis & Filtering Tools Help Researchers Cut Through The Noise & Surface The Most Relevant, Trustworthy Studies HENDERSON, Nev., May 14, 2025 /PRNewswire/ -- Research Solutions (NASDAQ: RSSS), a leading provider of AI-powered scientific research tools, announces the integration of powerful new search capabilities into its Artic ...

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]