Research Solutions Announces Impressive Fiscal Second Quarter Results for 2025 with Significant Revenue Growth
Research Solutions, Inc. (NASDAQ: RSSS), known for its pioneering AI-powered research workflow platform, has announced its financial performance for the fiscal second quarter ending December 31, 2024. The results are impressive, demonstrating solid growth in both revenue and annual recurring revenue (ARR). Overall revenue amounted to $11.9 million, reflecting a 15.5% increase compared to the same quarter in the previous year, where it stood at $10.3 million. Notably, platform revenue surged by 47%, reaching $4.6 million, signifying a significant shift in their revenue dynamics. This platform revenue constituted 39% of the total, up from 30% the prior year, underscoring the platform's growing contribution to the overall business.
In line with these achievements, the company recorded an ARR of $19.1 million, which is a 23% year-over-year increase. This includes around $12.7 million from B2B recurring revenue and $6.4 million from B2C recurring revenue. The overall gross profit also experienced substantial growth, rising by 30% compared to last year's quarter, with a total gross margin improvement of 540 basis points, reaching 48.9%.
However, despite these record revenues, the company reported a net loss of $2.0 million or $0.07 per share. This marks a notable increase from the net loss of $54,000 in the same quarter of 2024. The current losses are attributed primarily to increased expenses linked to scaling operations, particularly concerning the integration and performance of the Scite platform. Roy W. Olivier, President and CEO, attributed the quarter's results to a strong focus on enhancing product offerings, leading to better recognition of the platform's advantages. He noted, “Our second quarter results benefited from the recognition of the advantages and savings our products offer within the research process.” He also stated the company’s distinct performance in new B2B platform deployments was particularly noteworthy, achieving a record 61 net new deployments.
Operating expenses rose to $5.7 million, reflecting increased investment in sales and marketing as well as technology development, including full operational costs of Scite for the quarter. Notably, cash flow from operations exceeded $1 million for the first time this period, compared to $0.3 million in the same quarter the previous year, indicating healthier cash generation capabilities.
Moving forward, the leadership is optimistic about the company’s trajectory; with the acquisition of Scite yielding robust B2B sales and growing B2C revenues, they are preparing for broader expansion into both markets. Roy W. Olivier expressed enthusiasm about diversifying ownership, with the former chairman exiting his position, which should further stabilize stock performance.
Research Solutions continues its commitment to supporting researchers globally, providing pivotal resources through its Article Galaxy platform, contributing to scientific research access, and reaffirming its place within the industry.
In line with these achievements, the company recorded an ARR of $19.1 million, which is a 23% year-over-year increase. This includes around $12.7 million from B2B recurring revenue and $6.4 million from B2C recurring revenue. The overall gross profit also experienced substantial growth, rising by 30% compared to last year's quarter, with a total gross margin improvement of 540 basis points, reaching 48.9%.
However, despite these record revenues, the company reported a net loss of $2.0 million or $0.07 per share. This marks a notable increase from the net loss of $54,000 in the same quarter of 2024. The current losses are attributed primarily to increased expenses linked to scaling operations, particularly concerning the integration and performance of the Scite platform. Roy W. Olivier, President and CEO, attributed the quarter's results to a strong focus on enhancing product offerings, leading to better recognition of the platform's advantages. He noted, “Our second quarter results benefited from the recognition of the advantages and savings our products offer within the research process.” He also stated the company’s distinct performance in new B2B platform deployments was particularly noteworthy, achieving a record 61 net new deployments.
Operating expenses rose to $5.7 million, reflecting increased investment in sales and marketing as well as technology development, including full operational costs of Scite for the quarter. Notably, cash flow from operations exceeded $1 million for the first time this period, compared to $0.3 million in the same quarter the previous year, indicating healthier cash generation capabilities.
Moving forward, the leadership is optimistic about the company’s trajectory; with the acquisition of Scite yielding robust B2B sales and growing B2C revenues, they are preparing for broader expansion into both markets. Roy W. Olivier expressed enthusiasm about diversifying ownership, with the former chairman exiting his position, which should further stabilize stock performance.
Research Solutions continues its commitment to supporting researchers globally, providing pivotal resources through its Article Galaxy platform, contributing to scientific research access, and reaffirming its place within the industry.
Topics Business Technology）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.