Research Solutions(US:RSSS)2020-09-24 22:46Financial Data and Key Metrics Changes - For Q4 2020, total revenue was $7.9 million, a 5.5% increase from Q4 2019 [11] - Full-year revenue increased 7.9% to $31.1 million compared to $28.8 million in fiscal 2019 [15] - Net loss improved to $1,000 or nil on a per share basis, compared to a loss of $71,000 in the previous year [15] - Adjusted EBITDA improved to $146,000 compared to negative $41,000 in the year-ago quarter [15] Business Line Data and Key Metrics Changes - Platform subscription revenue increased 33% to approximately $1.1 million in Q4 2020, driven by a net increase of Platform deployments [11] - Full-year Platform subscription revenue increased 38% year-over-year to $3.9 million [15] - Transaction revenue increased 2% to $6.8 million in Q4 2020, with transaction count rising from approximately 215,000 to 231,000 year-over-year [12] Market Data and Key Metrics Changes - Total active customers were 1,087, essentially even with 1,090 active customers in Q4 2019 [12] - Total platform deployments as of June 30 were 401, a net increase of 100 deployments or 33% from a year ago [15] Company Strategy and Development Direction - The company aims to continue building on the momentum from the previous year, focusing on expanding market reach to small and medium-sized businesses [22] - Selling the Article Galaxy platform remains a top priority, with a focus on increasing platform pricing upon contract renewal [23] - The company is committed to product development and has hired a new Chief Product Officer to enhance customer-centric product innovation [24] Management's Comments on Operating Environment and Future Outlook - Management noted that operations have been largely unaffected by COVID-19, allowing the company to focus on key initiatives [9] - The company remains optimistic about demand trends moving forward, with additional product improvements and partnership opportunities [27] - Management expressed confidence in the ability to adapt to changes in the operating environment due to the pandemic [22] Other Important Information - The company successfully uplisted to the NASDAQ on March 23, increasing market visibility and liquidity [8] - Cash and cash equivalents increased to $9.3 million as of June 30, 2020, compared to $5.4 million a year earlier [20] Q&A Session Summary Question: How direct is the correlation between marketing spend and results? - Management indicated optimism regarding improvements in customer acquisition costs and sales pipelines, though precise metrics were not available [29][31] Question: What are the reasons for not winning some accounts? - The primary objection noted was the unavailability of budget at the time of contact, rather than issues with pricing or functionality [32][34] Question: Can you provide insights on the current quarter's performance? - Management stated that positive trends are continuing, with eagerness to release specific guidance in the upcoming quarter [35] Question: Who are the main competitors? - Management identified a "Do It Yourself" approach as a significant competitor, alongside other software tools and internally built solutions [39][40] Question: Can you quantify the benefits from COVID-19? - Management noted significant disruption in customer organizations due to COVID-19, leading to increased relevance of cloud-based solutions [41][42]