Q4 2024 Research Solutions Inc Earnings Call Transcript
Key Points
- Research Solutions Inc (RSSS) achieved record revenue of $44.6 million for fiscal 2024, including $14 million in platform revenue and $30.7 million in transaction revenue.
- The company completed the acquisitions of Resolute.ai and Scite.ai, enhancing its leadership in discovery and analysis capabilities.
- Annual recurring revenue (ARR) increased by 84% year-over-year to $17.4 million, with platform customer count exceeding 1,000 for the first time.
- Gross margin improved to 46.5% in Q4, driven by a revenue mix shift towards higher-margin platform business.
- Adjusted EBITDA for the quarter reached a new high at $1.4 million, a 70% increase from the prior year quarter.
- Net loss for the quarter was $2.8 million, or $0.09 per diluted share, compared to net income of $376,000 in the prior year quarter.
- Total operating expenses increased to $5 million in Q4, up from $3.7 million in the prior year quarter, primarily due to costs associated with acquisitions.
- The platform business recorded a slight decrease in gross margin to 85.3%, down from 88.1% in the prior year quarter.
- There is some seasonality in the business, particularly affecting B2C revenue during summer months, leading to potential softness in Q1 ARR growth.
- Macroeconomic headwinds and longer sales cycles are impacting the B2B segment, extending the days to sale from around 90 days to over 120 days.
Good day, and welcome to the Research Solutions, Inc. fourth-quarter 2024 earnings conference call. (Operator Instructions) This event is being recorded.
I would now like to turn the conference over to John Beisler. Please go ahead.
Thank you, Nick, and good afternoon, everyone. Thank you for joining us today for Research Solutions' fourth quarter and full fiscal year 2024 earnings call. On the call today are Roy W. Olivier, President and Chief Executive Officer; and Bill Nurthen, Chief Financial Officer.
After the market closed this afternoon, the company issued a press release announcing its results for the fourth quarter and full year fiscal 2024. The release is available on the company's website at researchsolutions.com.
Before Roy and Bill begin their prepared remarks, I would like to remind you that some of the statements made today will be forward-looking and are made under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially
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