<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1054151198438221&amp;ev=PageView&amp;noscript=1">

It looks like your browser is incompatible with our website.

If you are currently using IE 11 or earlier, we recommend you update to the new Microsoft Edge or visit our site on another supported browser.


Press Releases


Research Solutions Reports Third Quarter 2020 Financial Results

May 14, 2020

ENCINO, Calif. – May 14, 2020 – Research Solutions, Inc. (NASDAQ: RSSS), a SaaS provider of workflow efficiency solutions for R&D-driven organizations, reported financial results for its fiscal third quarter ended March 31, 2020.

Fiscal Third Quarter 2020 Highlights vs. Year-Ago Quarter

  • Platform revenue up 36% to $1.0 million, with a 33% increase in total Platform deployments to 374. Annual recurring revenue up 39% to $4.1 million.
  • Transaction revenue increased 6% to $7.0 million compared to $6.6 million, with customer count up to 1,115 compared to 1,078.
  • Total gross margin up 210 basis points to 31.6%.
  • Net income from continuing operations increased to $12,000, or nil per share, compared to a net loss of $0.2 million, or nil per share.

Management Commentary

“As initially announced in our Q3 pre-release, the momentum in our business has accelerated, even amidst these unprecedented times,” said Peter Derycz, president and CEO of Research Solutions. “During the quarter, we experienced our highest level of annual recurring revenue for our Platforms business due to another strong period of new client wins and existing customer ‘upsells.’ In addition, we achieved an important milestone by completing the up-listing process to Nasdaq, which we believe will improve liquidity, expand our investor base and continue to drive long-term shareholder value.

“Subsequent to the quarter end, we launched Article Galaxy+ through a ground-breaking partnership with Springer Nature to significantly expand content available to our customers by providing full access to research from one of the world’s largest publishers. Additionally, we continue to be a valuable resource to our customers during the height of the pandemic. We have tailored specific tools to help our clients research the virus, including the launch of a COVID-19 research viewer gadget and providing copyright free articles pertaining to the virus, when applicable. We have received excellent feedback from our customers who are working tirelessly in the fight against this pandemic and we are proud to be of help.

“Going forward, we have the utmost confidence in our ability to meet our customers’ evolving needs in this current market environment. In fact, we experienced another strong month for April and, while we remain vigilant, we do not anticipate any near-term challenges that would dampen our momentum. We ended the quarter with the highest cash balance in our history and continue to carry zero debt, which further supports our strong outlook.”

Fiscal Third Quarter 2020 Financial Results

Total revenue increased 9% to $8.0 million compared to $7.4 million in the same year-ago quarter.

Platform subscription revenue increased 36% to $1.0 million compared to $749,000 in the same year-ago quarter. The increase was primarily due to a 33% increase in the total number of paid Platform deployments from 281 to 374 and upselling current platform customers. The quarter ended with annual recurring revenue up 39% to $4.1 million (see the company's definition of annual recurring revenue below).

Transaction revenue increased 6% to $7.0 million compared to $6.6 million in the same year-ago quarter. Total active customers increased 3% from 1,078 to 1,115 and transaction count increased 8% from 212,000 to 228,000 (see the company's definition of active customer accounts and transactions below).

Total gross margin increased 210 basis points to 31.6% from 29.5% in the same year-ago quarter. The increase was primarily driven by a continued revenue mix shift to the higher-margin Platform business.

Total operating expenses were $2.6 million compared to $2.4 million in the same year-ago quarter. The increase was primarily due to greater personnel costs as well as fees associated with the Nasdaq up-listing.

Net income from continuing operations increased to $12,000, or nil per share, compared to a net loss of $0.2 million, or nil per share, in the year-ago quarter. Adjusted EBITDA increased significantly to $145,000 compared to $(30,000) in the year-ago quarter (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below).

Cash and cash equivalents at March 31, 2020, amounted to $8.2 million compared to $5.4 million at June 30, 2019. There were no outstanding borrowings under the company’s $2.5 million revolving line of credit and the company had no long-term liabilities or other debt.

Further details about these results are available in the company’s quarterly report on Form 10-Q, which is available in the investor relations section of the company’s website at researchsolutions.investorroom.com.

Conference Call

Research Solutions President and CEO Peter Derycz and CFO Alan Urban will host the conference call, followed by a question and answer period.

  • Date: Thursday, May 14, 2020
  • Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
  • Toll-free dial-in number: 1-855-327-6837
  • International dial-in number: 1-631-891-4304
  • Conference ID: 10009445

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of the company’s website at researchsolutions.investorroom.com.

A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through June 4, 2020.

  • Toll-free replay number: 1-844-512-2921
  • International replay number: 1-412-317-6671
  • Replay ID: 10009445


Active Customer Accounts, Transactions and Annual Recurring Revenue

The company defines active customer accounts as the sum of the total quantity of customers per month for each month in the period divided by the respective number of months in the period. The quantity of customers per month is defined as customers with at least one transaction during the month. A transaction is an order for a unit of copyrighted content fulfilled or managed in the Platform. The company defines annual recurring revenue as the value of contracted Platform subscription recurring revenue normalized to a one-year period.

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.

The tables below provide a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure. 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. Set forth below is a reconciliation of Adjusted EBITDA to net income (loss):


About Research Solutions

Research Solutions, Inc. (NASDAQ: RSSS) provides workflow efficiency solutions for R&D-driven organizations in life sciences, technology and academia worldwide. Our Software-as-a-Service platform provides tools or “Gadgets” that allow users to discover, access, manage and collaborate around science, technology and medical (STM) content and data. Our customers range from 70 percent of the top 25 global pharmaceutical companies to emerging small and medium-sized businesses. We generate recurring revenue from subscriptions to our SaaS platform and transactional revenue from the sale of STM content. For more information, 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 improved liquidity, an expanded investor base and driving long-term shareholder value as a result of listing on Nasdaq, continued momentum in the Company’s business and financial performance, and the Company’s strong outlook. 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.

Investor Relations:

Gateway Investor Relations
Cody Slach
Tel 1-949-574-3860

Media Contact:

Research Solutions, Inc. and Reprints Desk, Inc.
Leah Rodriguez, VP of Marketing
+1 (310) 477-0354




Ready to See
Article Galaxy in Action?

Schedule a call with one of our advisors. We will get you
started with a FREE 14-day trial, with no obligation.