Research Solutions, Inc. recently announced selected initial financial results for its fiscal fourth quarter and fiscal year ended June 30, 2024. The company expects positive outcomes in terms of revenue and operations for both periods.
In the fiscal fourth quarter of 2024, Research Solutions anticipates total revenue to increase by 22% to approximately $12.1 million. Platform revenue is expected to rise by 86% to around $4.3 million, with Annual Recurring Revenue (ARR) projected to grow by 85% to $17.4 million. Despite incurring a GAAP net loss primarily due to expenses related to the Scite acquisition, the company expects positive income from operations of about $0.7 million. Adjusted EBITDA is forecasted to increase by 70% to approximately $1.4 million, with cash flow from operations nearing $2.0 million and ending cash balance exceeding $6 million.
For the full fiscal year 2024, Research Solutions anticipates total revenue to increase by 18% to approximately $44.6 million, with platform revenue expected to rise by 61% to $14 million. The company projects a GAAP net loss of about $3.8 million, while Adjusted EBITDA is set to increase by 11% to approximately $2.2 million. Cash flow from operations is expected to be in excess of $3.5 million.
Roy W. Olivier, the President and CEO of Research Solutions, expressed optimism about the company’s performance, attributing the strong momentum to the growth in the Platforms segment. The success of the Scite acquisition has contributed to the positive results, surpassing initial expectations and leading to an increase in earn-out assumptions for the acquisition. Olivier stated that the company expects continued strong performance as they move into fiscal year 2025.
Research Solutions plans to release its full fiscal fourth quarter 2024 results on September 19, 2024, with more details provided during the conference call. The company defines ARR as the value of contracted Platform subscription revenue normalized to a one-year period. Additionally, Research Solutions evaluates its performance using the non-GAAP measure of Adjusted EBITDA, which provides valuable insights into the company’s operating results.
Founded in 2006 as Reprints Desk, Research Solutions, Inc. offers cloud-based technologies to streamline the process of acquiring, managing, and creating intellectual property. The company’s SaaS research platform, Article Galaxy, is relied upon by leading pharmaceutical companies, universities, and businesses for accessing scientific research and data.
In conclusion, Research Solutions, Inc. is optimistic about its financial performance in the fiscal fourth quarter and fiscal year 2024, with positive revenue growth and operational improvements. The company’s strategic acquisitions and focus on platform revenue are driving its success, positioning it for continued growth in the future.
