Financial Data and Key Metrics Changes - Platform subscription revenue increased by 45% to $856,000 in Q1 2020, driven by up-selling and a 34% year-over-year increase in total platform deployments from 239 to 320 [8][10] - Annual recurring revenue reached $3.5 million, up 8% sequentially and 43% year-over-year [9] - Consolidated revenue increased by 9% to $7.6 million compared to $7 million in the same year-ago quarter [11] - Gross margin improved to a record 30.5%, up 250 basis points year-over-year, primarily due to a shift towards higher-margin platform business [13] Business Line Data and Key Metrics Changes - Transaction revenue increased by 6% to $6.7 million, with transaction count rising from approximately 202,000 to 216,000 [10][11] - Active customer count grew from 1,084 to 1,134, with corporate customers slightly up to 853 and academic customers up 18% to 281 [10] Market Data and Key Metrics Changes - Approximately 40% to 45% of business comes from the U.S. market, with a similar percentage from Europe, and the remainder from the rest of the world, particularly Japan [75] Company Strategy and Development Direction - The company is focusing on expanding its enterprise customer base through targeted marketing campaigns [5][26] - A rebranding initiative is underway to consolidate three existing brands into one, simplifying the customer experience [28][30] - Partnerships with organizations like Evidence Partners are being pursued to enhance product offerings and market presence [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding transaction revenue growth, citing stabilization from large existing customers [11] - The company anticipates fiscal 2020 to be a pivotal year, expecting significant increases in new users and revenue growth [31][32] Other Important Information - Operating expenses increased to $2.4 million, primarily due to investments in sales and marketing [14] - The company has no outstanding borrowings and maintains a clean balance sheet with cash and receivables comprising nearly all assets [16] Q&A Session Summary Question: Benefits of the partnership with Evidence Partners - Management highlighted the complementary nature of their products, which can enhance customer offerings and drive joint marketing efforts [34][36] Question: Insights on sales team effectiveness - Management noted a focus on enterprise-level marketing and effective lead nurturing processes, which have improved conversion rates [40][42] Question: Average ticket price increase - Management acknowledged that the upward trend is primarily driven by upselling, indicating potential underpricing of the product [44][46] Question: Plans for NASDAQ up-listing - Management confirmed ongoing efforts to meet NASDAQ requirements, with a focus on improving equity on the balance sheet [48][49] Question: Customer progression through the sales funnel - Management explained the multi-touchpoint approach in customer nurturing, with conversion rates improving as more leads are engaged [56][58] Question: Overview of Evidence Partners' services - Management described Evidence Partners as providing tools for systematic review of scientific literature, complementing the company's literature offerings [64][66]
Research Solutions(RSSS) - 2020 Q1 - Earnings Call Transcript