Expects Record Revenue and Income from
Operations, Continued Strong Cash Flow
HENDERSON, Nev., Aug. 19,
2024 /PRNewswire/ -- Research Solutions, Inc.
(NASDAQ: RSSS), a trusted partner providing cloud-based workflow
solutions to accelerate research for R&D-driven organizations,
announced selected preliminary financial results for its fiscal
fourth quarter and fiscal year ended June
30, 2024.
Based on preliminary unaudited information, Research Solutions
expects the following results for its fiscal fourth quarter
2024:
- Total revenue to increase 22% to approximately $12.1 million
- Platform revenue to be up 86% to approximately $4.3 million; Annual recurring revenue ("ARR") to
increase approximately 85% to $17.4
million
- Positive income from operations of approximately $0.7M. The Company expects to incur a GAAP net
loss in the quarter primarily due to a charge of approximately
$4.3M related to increasing its
projected earn-out assumptions with respect to the Scite
acquisition.
- Adjusted EBITDA of approximately $1.4
million, a 70% increase from the prior-year quarter
- Cash flow from operations near $2.0
million and ending cash balance above $6 million
- The Company also expects the following results for the full
year Fiscal 2024:
- Total revenue to increase 18% to approximately $44.6 million
- Platform revenue to be up 61% to approximately $14 million
- GAAP net loss of approximately $3.8
million; Adjusted EBITDA to increase 11% to approximately
$2.2 million
- Cash flow from operations in excess of $3.5 million
"Our preliminary fourth quarter and fiscal year 2024 results
reflect the strong momentum in our business, particularly within
our Platforms segment. In addition, the continued growth in
Platform revenue is improving our overall gross margin, Adjusted
EBITDA and cash flow," said Roy W. Olivier, President and CEO
of Research Solutions. "The early success of Scite has contributed
to this performance as ARR growth for this product has exceeded our
initial expectations. For this reason, we increased our
earn-out assumptions for the acquisition, as we continue to expect
strong performance as we move into our fiscal year 2025."
Research Solutions expects to report its full fiscal fourth
quarter 2024 results on September 19, 2024. Information on the
conference call details will be provided in a separate press
release.
Annual Recurring Revenue
The company defines annual recurring revenue ("ARR") as the
value of contracted Platform subscription recurring revenue
normalized to a one-year period. For B2C ARR, this includes the
annualized value of monthly subscriptions, meaning their monthly
value multiplied by twelve.
Use of Non-GAAP Measure – Adjusted EBITDA
Research Solutions' management evaluates and makes operating
decisions using various financial metrics. In addition to the
company's GAAP results, management also considers the non-GAAP
measure of Adjusted EBITDA. Management believes that this non-GAAP
measure provides useful information about the company's operating
results.
Adjusted EBITDA is defined as net income (loss), plus interest
expense, other income (expense), foreign currency transaction loss,
provision for income taxes, depreciation and amortization,
stock-based compensation, gain on sale of discontinued operations,
and other potential adjustments that may arise.
About Research Solutions
Research Solutions, Inc. (NASDAQ: RSSS) provides cloud-based
technologies to streamline the process of obtaining, managing, and
creating intellectual property. Founded in 2006 as Reprints Desk,
the company was a pioneer in developing solutions to serve
researchers. Today, more than 70 percent of the top pharmaceutical
companies, prestigious universities, and emerging businesses rely
on Article Galaxy, the company's SaaS research platform, to
streamline access to the latest scientific research and data with
24/7 customer support. For more information and details, please
visit www.researchsolutions.com
Important Cautions Regarding Forward-Looking
Statements
Certain statements in this press release may contain
"forward-looking statements" regarding future events and our future
results. All statements other than statements of historical facts
are statements that could be deemed to be forward-looking
statements. These statements are based on current expectations,
estimates, forecasts, and projections about the markets in which we
operate and the beliefs and assumptions of our management. Words
such as "expects," "anticipates," "targets," "goals," "projects",
"intends," "plans," "believes," "seeks," "estimates," "endeavors,"
"strives," "may," or variations of such words, and similar
expressions are intended to identify such forward-looking
statements. Readers are cautioned that these forward-looking
statements are subject to a number of risks, uncertainties and
assumptions that are difficult to predict, estimate or verify.
Therefore, actual results may differ materially and adversely from
those expressed in any forward-looking statements. Such risks and
uncertainties include those factors described in the Company's most
recent annual report on Form 10-K, as such may be amended or
supplemented by subsequent quarterly reports on Form 10-Q, or other
reports filed with the Securities and Exchange Commission. Examples
of forward-looking statements in this release include statements
regarding our expected results for our fiscal fourth quarter and
fiscal year ended June 30, 2024,
earnout assumptions related to acquisitions and the Company's
expected operational performance. The preliminary financial and
operating results presented herein are an estimate and subject to
the completion of the Company's financial closing and other
procedures and finalization of the Company's consolidated financial
statements for its year ended June 30,
2024, including the completion of the audit of the Company's
financial statements. Accordingly, actual financial and operating
results that will be reflected in the Company's Annual Report on
Form 10-K for the year ended June 30,
2024, including its audited financial statements, when they
are completed and publicly disclosed may differ from these
preliminary results. In addition, any statements regarding the
Company's estimated financial performance for the fourth fiscal
quarter 2024 do not present all information necessary for an
understanding of the Company's financial condition and results of
operations as of and for the quarterly period ended June 30, 2024. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity,
performance, achievements, or events and circumstances reflected in
the forward-looking statements will occur. Readers are
cautioned not to place undue reliance on these forward-looking
statements. The forward-looking statements are made only as of the
date hereof, and the Company undertakes no obligation to publicly
release the result of any revisions to these forward-looking
statements. For more information, please refer to the Company's
filings with the Securities and Exchange Commission.
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SOURCE Research Solutions, Inc.
