Research Solutions Inc (FRA:61I)
€ 1.86 +0.010 (+0.54%) Market Cap: 64.62 Mil Enterprise Value: 54.03 Mil PE Ratio: 14.67 PB Ratio: 3.83 GF Score: 69/100

Q2 2025 Research Solutions Inc Earnings Call Transcript

Feb 13, 2025 / 10:00 PM GMT
Release Date Price: €3.64 (-2.15%)

Key Points

Positve
  • Research Solutions Inc (RSSS) reported a 15.5% increase in total revenue for the second quarter of fiscal 2025 compared to the same period in fiscal 2024.
  • Platform subscription revenue increased by 47%, driven by a net increase in platform deployments and contributions from the acquisition of Site.
  • The company achieved a record number of organic net new deployments, attributed to the reorganization of the sales team into corporate and academic-focused teams.
  • Gross margin improved by 540 basis points to 48.9%, driven by a revenue mix shift towards higher-margin platform business.
  • Adjusted EBITDA for the quarter was $963,000, a significant increase from $318,000 in the prior year quarter, indicating improved profitability.
Negative
  • Research Solutions Inc (RSSS) experienced a net loss of $2 million for the quarter, compared to a net loss of $54,000 in the prior year quarter.
  • The company noted a slowdown in B2C sign-ups at the end of the quarter due to the holiday break, which is expected to impact January results.
  • Gross margin in the transaction business decreased by 50 basis points to 25.2%, primarily due to lower service fees and fewer paid transactions.
  • Operating expenses increased to $5.7 million from $4.9 million in the prior year quarter, driven by higher costs in sales, marketing, and technology development.
  • The company anticipates additional expenses in sales and marketing investment in the coming quarters, which may negatively impact customer acquisition costs and lifetime value ratios in the short term.


Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

RSSS.OQ - Research Solutions Inc
Q2 2025 Research Solutions Inc Earnings Call
Feb 13, 2025 / 10:00PM GMT

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Presentation
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Unidentified_1 [1]
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To all sites on hold, we do appreciate your patience and I see you continue to stand by. Your program will begin in a minute.

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Unidentified_2 [2]
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Please stand by. Your program is about to begin. If you need assistance during your conference today, please press 0.

Good day everyone and welcome to today's Research Solutions Inc. 2nd quarter 2025 earnings conference call.

At this time, all participants are in a listen-only mode. Later you will have the opportunity to ask questions during the question and answer session. You may
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