Research Solutions Reports Impressive Fiscal Year-End Results

Research Solutions Unveils Record Fiscal 2024 Results

Research Solutions, Inc. (NASDAQ: RSSS), a provider of innovative cloud-based workflow solutions for research-driven organizations, disclosed its remarkable financial performance for the fourth quarter and the full fiscal year ending June 30, 2024. The company experienced a substantial 18% growth in revenue, reaching a total of $44.6 million, marking a new chapter in its history.

Fiscal Fourth Quarter Highlights

The fourth quarter proved to be particularly fruitful, with total revenue reported at $12.1 million, reflecting a significant 22% increase from the previous year. Notably, platform revenue soared by an impressive 86%, amounting to $4.3 million, which accounted for 35% of total revenue, up from 23% in the prior year. This growth in platform revenue can be attributed to both acquisitions and steady organic growth.

Annual Recurring Revenue Surges

The impressive results also highlighted a remarkable jump in Annual Recurring Revenue (ARR), which reached $17.4 million, representing an 84% increase. The breakdown indicated approximately $12.1 million generated from B2B users along with $5.4 million generated from B2C users.

Substantial Improvements in Profitability

Gross profit for the quarter saw a notable 44% enhancement, with total gross margin improving by 710 basis points to 46.5%. However, despite these advancements, the company reported a net loss of $2.8 million for the quarter, primarily reflecting a $4.3 million expense tied to adjusting projected earnouts related to the Scite acquisition. Yet, adjusted EBITDA achieved a historic quarterly record of $1.4 million, marking a 70% improvement year-over-year.

Full Fiscal Year Accomplishments

The overall financial performance for fiscal 2024 was robust. With total revenue reaching $44.6 million, the company cultivated a solid foundation for future growth. Notably, platform revenue rose by 61% to $14.0 million while transaction revenue demonstrated steady growth as well, increasing by 5.7% to $30.7 million. Total gross margin improved significantly by 500 basis points to 44%.

Strategic Acquisitions Fuel Growth

Throughout fiscal 2024, Research Solutions executed two strategic acquisitions, positioning itself more prominently within the vertical SaaS and AI sectors. President and CEO Roy W. Olivier emphasized the commitment to unlocking untapped market opportunities for specialized product offerings that enhance the research workflow, thus enabling long-term value creation for shareholders.

Insight into Future Prospects

As the company moves forward, it remains focused on sustaining ARR growth while improving adjusted EBITDA margins. The successful integration of acquisitions and heightened operational performance are expected to be key drivers in maintaining this upward trajectory and delivering shareholder value. With a growing client base of 1,398 and the potential for more, Research Solutions stands poised to further enhance its market presence.

Conclusion

Fiscal 2024 was indeed a transformative year for Research Solutions, laying a solid groundwork for continued success in the coming years. With a strategic focus on innovation and customer-centric services, the company is well-prepared to navigate the complexities of the evolving market landscape.

Frequently Asked Questions

What were Research Solutions' total revenues for fiscal 2024?

The company reported a total revenue of $44.6 million for fiscal year 2024, reflecting an 18% increase compared to the previous fiscal year.

How much did the Annual Recurring Revenue (ARR) increase in fiscal 2024?

Annual Recurring Revenue surged to $17.4 million, representing an impressive 84% increase year-over-year.

What were the main factors contributing to the revenue growth?

Key factors included significant increases in platform revenue and ongoing organic growth, driven by strategic acquisitions and enhanced product offerings.

What is Research Solutions' approach to future growth?

The company intends to leverage recent acquisitions to explore untapped market opportunities, potentially increasing its client base and improving profitability.

What was the adjusted EBITDA for the fourth quarter of fiscal 2024?

The adjusted EBITDA for the fourth quarter was a record $1.4 million, showing a 70% improvement from the prior-year quarter.

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