Expects Decade-High Revenue Growth, Record
Adjusted EBITDA and Cash Flow Positive GAAP Net Income for
Fiscal Year 2023
HENDERSON, Nev., Aug. 14,
2023 /PRNewswire/ -- Research Solutions, Inc.
(NASDAQ: RSSS), a pioneer in providing cloud-based workflow
solutions for R&D driven organizations, announced selected
preliminary financial results for its fiscal fourth quarter and
fiscal year ended June 30, 2023.
Based on preliminary unaudited information, Research Solutions
expects the following results for its fiscal fourth quarter
2023:
- Total revenue to increase 16% to approximately $10 million
- Platform revenue to be up 22% to approximately $2.3 million; Annual recurring revenue ("ARR") to
increase approximately 19% to $9.4 million
- Positive net income and Adjusted EBITDA of approximately
$0.8 million
The Company also expects the following results for the full year
Fiscal 2023:
- Total revenue to increase 14% to approximately $37.7 million, with organic growth of
approximately 12% when excluding the revenue impact of customers
from the Fiz acquisition. The organic growth rate is the best
the Company has reported in more than a decade.
- Platform revenue to be up 28% to approximately $8.7 million
- Positive fiscal year GAAP net income for the first time since
fiscal year 2015
- Adjusted EBITDA of approximately $2.0
million compared to ($374,000)
in the prior fiscal year; SG&A expenses, excluding items
normally removed to calculate Adjusted EBITDA, expected to be
$12.7 million compared to
$12.4 million the in prior fiscal
year
- Cash flow from operations of approximately $3.4 million and a cash balance as of
June 30, 2023, of approximately
$13.5 million
"Our preliminary fourth quarter and fiscal year 2023 results
reflect the ongoing positive transformation in our business, as the
company is experiencing significant growth on both the top line and
bottom line for the first time in its history. On a fiscal year
basis, we expect to grow revenue double digits on a percentage
basis, report a GAAP net profit, and generate cash flow of over
$3 million. We continue to execute on
our strategy and are beginning to demonstrate the earnings
potential in our business," said Roy W. Olivier, President and
CEO of Research Solutions. "We are also pleased that on
July 31, 2023, we announced the
acquisition of ResoluteAI, which is one of a number of strategic
steps we intend to take to make our software tools more efficient
and relevant for our research customers."
Research Solutions expects to report its full fiscal fourth
quarter 2023 results in September 2023. Information on the
conference call date and 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.
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 and www.reprintsdesk.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, 2023,
strategic steps regarding our software platform and the Company's
prospects for growth. 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, 2023,
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, 2023,
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 quarter 2023 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,
2023. 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.