Research Solutions Reports Preliminary Fourth Quarter and Fiscal Year 2024 Results
Research Solutions (NASDAQ: RSSS) has announced preliminary financial results for Q4 and FY 2024, expecting record revenue and income from operations. Key highlights include:
- Q4 total revenue up 22% to ~$12.1M
- Q4 Platform revenue up 86% to ~$4.3M
- Annual Recurring Revenue (ARR) increased ~85% to $17.4M
- Q4 Adjusted EBITDA of ~$1.4M, up 70% YoY
- FY2024 total revenue up 18% to ~$44.6M
- FY2024 Platform revenue up 61% to ~$14M
The company anticipates a GAAP net loss in Q4 due to a $4.3M charge related to increased earn-out assumptions for the Scite acquisition. Despite this, Research Solutions reports strong cash flow and improved overall gross margin.
Research Solutions (NASDAQ: RSSS) ha annunciato i risultati finanziari preliminari per il quarto trimestre e l'intero anno fiscale 2024, prevedendo entrate e reddito operativo da record. I principali punti salienti includono:
- Entrate totali del Q4 aumentate del 22% a ~$12,1M
- Entrate della piattaforma del Q4 aumentate dell'86% a ~$4,3M
- Entrate ricorrenti annuali (ARR) aumentate di circa l'85% a $17,4M
- EBITDA rettificato del Q4 di ~$1,4M, in aumento del 70% rispetto all'anno scorso
- Entrate totali dell'FY2024 aumentate del 18% a ~$44,6M
- Entrate della piattaforma dell'FY2024 aumentate del 61% a ~$14M
La società prevede una perdita netta GAAP nel Q4 a causa di un onere di $4,3M legato all'aumento delle assunzioni di earn-out per l'acquisizione di Scite. Nonostante ciò, Research Solutions riporta un forte flusso di cassa e un margine lordo complessivo migliorato.
Research Solutions (NASDAQ: RSSS) ha anunciado resultados financieros preliminares para el cuarto trimestre y el año fiscal 2024, esperando ingresos y ganancias operativas récord. Los aspectos destacados incluyen:
- Ingresos totales del Q4 aumentaron un 22% a ~$12,1M
- Ingresos de la plataforma del Q4 aumentaron un 86% a ~$4,3M
- Los ingresos recurrentes anuales (ARR) aumentaron aproximadamente un 85% a $17,4M
- EBITDA ajustado del Q4 de ~$1,4M, un aumento del 70% interanual
- Ingresos totales del FY2024 aumentaron un 18% a ~$44,6M
- Ingresos de la plataforma del FY2024 aumentaron un 61% a ~$14M
La empresa anticipa una pérdida neta GAAP en el Q4 debido a un cargo de $4,3M relacionado con el aumento en las suposiciones de earn-out para la adquisición de Scite. A pesar de esto, Research Solutions informa un fuerte flujo de efectivo y un margen bruto general mejorado.
Research Solutions (NASDAQ: RSSS)는 2024년 4분기 및 회계연도에 대한 잠정 금융 실적을 발표하며 역대 최고 매출 및 운영 수익을 기대하고 있다고 밝혔습니다. 주요 하이라이트는 다음과 같습니다:
- 4분기 총 매출 22% 증가한 ~$12.1M
- 4분기 플랫폼 매출 86% 증가한 ~$4.3M
- 연간 반복 수익 (ARR) 약 85% 증가한 $17.4M
- 4분기 조정 EBITDA ~$1.4M로, 작년 대비 70% 증가
- FY2024 총 매출 18% 증가한 ~$44.6M
- FY2024 플랫폼 매출 61% 증가한 ~$14M
회사는 Scite 인수와 관련된 earn-out 가정 증가로 인해 4분기에 GAAP 기준 순손실을 예상하고 있습니다. 그럼에도 불구하고, Research Solutions는 강력한 현금 흐름과 개선된 총 매출 총 이익률을 보고했습니다.
Research Solutions (NASDAQ: RSSS) a annoncé des résultats financiers préliminaires pour le quatrième trimestre et l'exercice fiscal 2024, s'attendant à des revenus et des revenus d'exploitation record. Les points forts incluent :
- Revenus totaux du Q4 en hausse de 22% à ~$12,1M
- Revenus de la plateforme du Q4 en hausse de 86% à ~$4,3M
- Revenus annuels récurrents (ARR) augmentés d'environ 85% à $17,4M
- EBITDA ajusté du Q4 de ~$1,4M, en hausse de 70% par rapport à l'année précédente
- Revenus totaux pour l'exercice 2024 en hausse de 18% à ~$44,6M
- Revenus de la plateforme pour l'exercice 2024 en hausse de 61% à ~$14M
L'entreprise prévoit une perte nette GAAP au quatrième trimestre en raison d'une charge de $4,3M liée à l'augmentation des hypothèses de gain pour l'acquisition de Scite. Malgré cela, Research Solutions rapporte un flux de trésorerie solide et une amélioration du bénéfice brut global.
Research Solutions (NASDAQ: RSSS) hat vorläufige finanzielle Ergebnisse für das vierte Quartal und das Geschäftsjahr 2024 bekannt gegeben und erwartet Rekordumsätze und Betriebseinkommen. Wichtige Highlights sind:
- Gesamtumsatz im Q4 um 22% auf ~$12,1M gestiegen
- Umsatz der Plattform im Q4 um 86% auf ~$4,3M gestiegen
- Jährlich wiederkehrender Umsatz (ARR) um ca. 85% auf $17,4M gestiegen
- Bereinigtes EBITDA im Q4 von ~$1,4M, um 70% im Jahresvergleich gestiegen
- Gesamtumsatz FY2024 um 18% auf ~$44,6M gestiegen
- Umsatz der Plattform FY2024 um 61% auf ~$14M gestiegen
Das Unternehmen erwartet einen GAAP-Nettoverlust im Q4 aufgrund einer Gebühr von $4,3M, die mit erhöhten Earn-Out-Annahmen für die Übernahme von Scite verbunden ist. Trotz dessen berichtet Research Solutions von einem starken Cashflow und einer verbesserten Gesamtbruttomarge.
- Q4 total revenue increased 22% to approximately $12.1 million
- Q4 Platform revenue grew 86% to approximately $4.3 million
- Annual Recurring Revenue (ARR) increased approximately 85% to $17.4 million
- Q4 Adjusted EBITDA of approximately $1.4 million, a 70% increase year-over-year
- FY2024 total revenue increased 18% to approximately $44.6 million
- FY2024 Platform revenue grew 61% to approximately $14 million
- Q4 cash flow from operations near $2.0 million with ending cash balance above $6 million
- FY2024 cash flow from operations in excess of $3.5 million
- Expected GAAP net loss in Q4 due to a $4.3M charge related to increased earn-out assumptions for Scite acquisition
- Anticipated GAAP net loss of approximately $3.8 million for FY2024
Insights
Research Solutions' preliminary Q4 and FY2024 results paint a robust picture of growth. The
However, the projected GAAP net loss, primarily due to a
The improving gross margin and cash flow from the growing Platforms segment are encouraging signs for long-term profitability. Overall, these results reflect a company in transition, with strong top-line growth but near-term pressure on GAAP earnings due to acquisition-related expenses.
Research Solutions' preliminary results reveal a significant shift in their business model towards higher-margin platform solutions. The
The exceptional growth in ARR, particularly from Scite, indicates strong product-market fit and potential for sustained growth. This trend aligns with the increasing demand for efficient research tools in R&D-driven organizations. However, the competitive landscape in this sector is evolving rapidly and maintaining this growth rate may be challenging.
The company's focus on cash flow and adjusted EBITDA growth demonstrates a balanced approach to scaling. Yet, investors should be aware that the GAAP net loss might impact market perception in the short term. The company's ability to continue innovating and expanding its platform offerings will be important for maintaining its growth trajectory in the research solutions market.
Expects Record Revenue and Income from Operations, Continued Strong Cash Flow
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 85% to$17.4 million - Positive income from operations of approximately
$0.7M $4.3M - Adjusted EBITDA of approximately
$1.4 million 70% increase from the prior-year quarter - Cash flow from operations near
$2.0 million $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 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.
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