RSSS - Earnings call transcript Q1 2018 | Research Solutions, Inc.

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Operator

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Research Solutions' Financial Results for its Fiscal First Quarter Ended September 30, 2017. Earlier today, the company issued a press release discussing these results, and a copy of the release is available for viewing and can be downloaded from the Investor Relations section of the company's website.

Joining us today are Research Solutions' President and CEO, Peter Derycz; and the company's CFO, Alan Urban.

Following their remarks, we will open the call for your questions. Then before we conclude today's call, I will provide the necessary cautions regarding any forward-looking statements made by management. information company's provide financial of also information. will regarding use the non-GAAP I

like that Solutions the remind be I to will to Finally, would call the everyone CEO. the website. made over for now turn of Derycz, recorded available this and replay section via Research Investors Peter company's I President and will call

Peter Derycz

call speak our everyone. with a call our you, Thank business then in open and I'll detail. operator, to and good the to pass results financial the state about afternoon of Alan to brief

responded we Finally, Platform I our cloud-based with with quarter, $X.X recurring our address Year-over-year initiatives. at our other XXX% has our business in increased business, and are to effect. first for of revenue to details deployments continuing has Transactions by strong of into continued momentum fiscal have our the taking million. will solution return supported the their XXX% margin to the continued XXXX to end measures outlook. intended and Transactions Platforms gross revenue The are to enhancing fiscal In to margins up improve growth quarter of a annual XXX% proactive XXXX that

before the over us who CFO, I'd to of for walk planned Urban, through more with remarks. gross forward launch to will quarter. Alan? to my carrying First quarter revenue XXX to details X.X to We which look further, up have go in our margin will some say version XX.X%. like launch December. increased But the of Platform in call X% solution, in This Alan to our the XXX of this basis I the increase Transaction into is points helps about financial point margin year-over-year, Article XX.X%. basis a closing drive consolidated turn Galaxy our the to gross live commenting momentum

Alan Urban

and everyone. Peter, morning, good you, Thank

XX, XXXX, on and Reprints classified we discontinued that a business is and a any sold as that ePrints for our reminder activity June business First, operation.

compared year fiscal Now year a our results few the comments prior same QX XXXX to on period.

XXX% for million QX. sequentially. revenue increase to increased to in translates subscription release incremental year-over-year $X.X how use million annual in XXX% by XX driven recurring by basis to X% quarter the deployments was deployments a growth we $X.X revenue, up with was total other This in into ended a and to Platforms recurring terms. up XXX%. driven and XX% Our a The revenue annual see XXX,XXX, today's This Transaction to total compared XXX% revenue Platform by same Platform up on to quarter. Please define customer non-GAAP and count was press X% year-ago which X,XXX.

of XX% Together, the academic drove in consolidated businesses customers year-ago X% XXX. same million revenue delivered growth corporate the increase to Transactions XXX number a In were to was X% X% addition, to million versus quarter. and up in to XXX,XXX. $X.X customers $X.X up approximately this these of Together,

gross to on Moving margins.

the addition business our XXX decline sources new was XX.X%. enhance by of to decline by Platform points Our platform. This margins driven data gross further that basis saw

for of addition valued new the the these necessary to are believe increases revenue of our differentiated term, creating short While in we data and sources investments offering customers. cost highly our

our Our to basis XX% Transaction low be target XXX Gross points was XX% should range. gross margin to by on high the XX.X%. up in Platforms business in margin

our to our Transaction same shift a the Platforms higher margin in efforts results of our actions reductions, these and on mentioned third were improve and took increased including XX.X% gross driver to we to points year-ago to As business. growth margin revenue basis margin due XXX of increases the key improvement. the a quarter year-over-year and price margins, to business Consolidated compared quarter cost call, mix

compared quarter. or per negative Adjusted marketing. $X.XX personnel a from that $X.X or Our basis, by million note operations and the basis, the quarter. due expenses. increased reduction is important planned and expenses same improved by the and of of declined approximately to adjusted approximately reduction marketing compared in marketing and marketing continuing sequential of and reflects investments $XXX,XXX investments in On year in totaled more have including negative deployments. negative same Net loss personnel driven ago efficient to Both in EBITDA technology share loss the growing It loss $XXX,XXX compared expenses net sales reallocation quarter, net total sales to $X.XX optimization support $XXX,XXX digital the negative totaled per sales sales EBITDA This share $XXX,XXX our $X.X a primarily inbound adjusted marketing and and $XXX,XXX. mentioned resources, increased the the and our million content through Platform year reflect of operating by to to in ago to $XXX,XXX and in expenses sequential our Platform to on customers acquiring or ways business. sales EBITDA year-ago generation a previously sales, and

As we Platform losses even narrow breakeven operating continued and stabilizing towards we EBITDA by our in expenses fiscal forward, quarter, look revenue. reducing working adjusted increasing or to continue each XXXX to expect

from representing XXXX. back the XX, and our to liabilities. our turn versus Peter? borrowings Peter. I'll accounts resulted on The outstanding and cash September with $X.X accrued XX, were call were Moving the in expenses. remain our accrued credit assets my decrease net decrease and million equivalents to sheet now cash clean expenses million to of and at June XXXX continues accounts at and completes under financial primarily a all of summary. nearly This our line receivables and all comprising cash There and payable loss revolving our no Cash $X.X balance nearly balance payable of sheet.

Peter Derycz

Alan. Thanks,

details Platforms more progress now of So the our on business.

further my our of development left the continued we in in the with opening, enhancement mentioned and we strides right ended product. off year, As where fiscal positive

functionality to to of we state-assisted of Consortium. grow the the say meantime, Platform Library about non-profit this than consortium and launch deploying which and in continue store confidence X.X, very libraries the have I'll noting our gadgets customers XX app-like within of tools advanced One scientific for in Our Article agreement seen form Virginia, our number shortly. with gadget featuring productivity more Galaxy Commonwealth a worth of of including is our organizations VIVA universities. of been management colleges more researchers. us releases all feedback The libraries. In organization scientific Academic of information upcoming gives and data prospects the have solution. our VIVA corporate Virginia's academic well more new major has received, is such with

users. In reference to we cost delivery to academic most being great more look a effective their information addition forward than fastest, XXX,XXX account, delivering to possible the

mentioned, helped client sales In us efficiently. addition, us acquiring new generation our tool ways more customers, inbound as as at grow content another such and and digital Alan base efficient has provided marketing, and more

our Platform group, to from and needs customers time Finally, customer keep to Article that new and identify the formed can management which account benefit happy, renewing Galaxy to is introduce existing customers customers. new first enhancements adoption

of the greatly has of this overall inside Platforms Importantly, rate group customer our adoption to base. contributed internal

version paid XX% approximately adopted existing As corporate the the of of of Galaxy Article our have customers today, Platform.

This calling upgrade, Galaxy platform to expected major on Article are we December. our X.X. which moving is live to upgrade Now in go

and customers help an getting launch adoption one discussed, such gadgets, features in-depth the workgroups. each of the as have which to speed the and of already we every of of of rollout improve view Some our will intracompany

search scalable enhanced planned gadget and of literature data early instant an control, more administrator storage we tool laid and deployed haven't groundwork all and new enhancements gadgets, XXXX. for computing equally tabbed discussed the article backbone. dashboards, on Some enhancements features of the ordering, include Feed full screen set more for impressive a

our team a which definitely valued development better product to the we lot the technology and has delivered more expanded brought customers. Our innovation of results in agile of table, to

for financial momentum of we Operator? like Given this progress for technology. operator the to Q&A. XXXX that, the our call With look back the in our fiscal and development transformational company our and operational to commercialization to be business, a of year I'd of turn sustained

Operator

question Our Walrus Scott Instructions] [Operator Billeadeau from sir. you, comes Thank first Partners. of

Scott Billeadeau

I getting Could the some - you call, talked Galaxy go-to-market what bit or to guys. strategy an a little on pretty expanding good end update that? little the of call, part out bit hope with strategy but of you new leverage terms any guys this. give some I current on Article mentioned first go-to-market just of the of leveraging in about a maybe some the Hi, doing the of missed you of you at launch you're X.X, of anything the But the guys? so expand internal as

Peter Derycz

absolutely. is some Yes, there. There Scott. Yes, shifts

we're the customizable more granular. doing hand more is end We of of which are the getting a outreach. market a of more organization-based what and a to And hand marketing development in by user end shifting user-oriented, organization-based that, from sales is more product, with

We marketing spearhead end are with of we be today. the that end in sort organizations attract our the do shipping users to users different don't and more business have will programs that individual

Scott Billeadeau

want or I customer comfortable within service different you looks as to does with that with or whatever, point? need somewhat - maybe have, And handling require at you that views able current handle users Okay. different your that you load are installed? do this mean, to resources So, gadgets end the a organization being same

Peter Derycz

ever more lot a doing done We're Yes. we've online before. than

gadget store, which new the content each our which the in-depth every of sort catalog of platform of of one the aspects with platform. the key and the is support functionality provide of most videos the calling is in description, we're One materials for and a gadgets,

of so pre-made store. sort And lot basically, educating self-assertive going support materials, to be and gadget and the with there's a learning meaning going on of

and couple that of So next that's different quarters. the about iterations discussions in different two

out coming Galaxy catalog an of the store Galaxy. within version X.X gadget of First Article internal Article sort is with as

customer each we the every So in-depth gadgets. all have store Store you the see things if the And over descriptions which could then to of quarters, will basically non-customers Gadget you'll catalog call of what of a an see a of emerging, for platform in one and coming you're the access gadget ours, be external our and alike.

users, non-customers, end about you does. our really to individual and on professors, rely not organization scientists, about infers or meetings to platform the allow necessarily learn whoever what and will our learn that in-depth platform are, So sales

Scott Billeadeau

curve, to early this Platform kind you know, the or customer, we to you have of amount same transfer looking the once it's kind kind of that to any you've of - Okay. get transactions to been business increasing and are really how whether start to at occur, up Platform or the business, of the platform, early start amount, at, And just the flipping go do have drive, too look is a we numbers? seen shifting we hey, accelerating someone or you transactions to those granted or

Peter Derycz

of one access and because great platform the things to adopt and it people literature the - definitely you help it on. your about organize it's No, is information so

transactions. So that up that, because adopt people platform the end of buying do

there. in So I that's of And part been have always Transactions due think our to growth to be that. going

Scott Billeadeau

Okay, back jump All in Thanks. right, great. guys. the I'll queue.

Peter Derycz

right. All you, Scott. Thank

Operator

from Our Peter Instructions] of next [Operator Capital. Rabover Artko question comes

Peter Rabover

noise. there's couple I outside per platform, in organization, selling it prior I'm if assume Sorry, any guys, Hey, to that is seat, questions. to background one, you're selling it when correct? that But sell you're more the than a a you're of to able

Peter Derycz

additional yes, correct. the tweaking going departments the I charge. the using precisely seat point. individual or for in organization generate model But it we it's larger wouldn't to organization it, per business We're how to are that's us. the at Yes, call more this revenue still the

to So up slightly different has just geographic another. maybe different, department like multiple region situation same yes, to that accounts need where geographic one a company the wherein different parent function can going, maybe mentioned departments, end system one regions, you is the we in

Peter Rabover

you And Okay. your maybe then can sales productivity. about talk

guys got quarter. XX, platform So, sales guess, you this I

their pipeline you I sales do your bit have? and guess, little a you how - maybe the think pipeline So how what talk developing. many guys And that people more is about you do potential

whatever discuss lines. So, lead happy shorter, next on you months, get be noticed those like want goal, et I'd some you end XX I the than got XX, but more Have your guess, getting to something the you along times color? for to what's that cetera,

Peter Derycz

Yes.

pipeline. So, we - We momentum strong a continuing. we opened but that, don't forecast see our like we the put do have

question, becoming of a the mention, explosions we sales is this are that from and there. I did looks point, more part see It as pipeline, don't growth at are little horizons So, Scott's see continued pipeline you'll user-focused. marketing-oriented as any to we bit like so the perspective. fact answer more the pipeline as end my expected a contract platform the getting is on

eggs more basket. sales are putting the so, basket the And actually into we're in marketing than we

reps, them little any a and So, larger sales you are we reps, the more medium-sized are hoping and to to bit deals executives, to try deals want on point smaller get our sales then to sales call if where focus systematic. of a

changes there and small going can so sign-up be on and medium-sized that. future do the may in And sales have and things things platform like that we so like organizations

So, you'll well. hear as going about that news forward

Peter Rabover

Where have been marketing do channels you your successful far? think most so

Peter Derycz

to science-oriented. Well, we've fairly continue life and historically be historically been

I think we're of customers life in we terms - in sciences. on and weighted so the

We are more. doing

As the scientific of any into specialists more of platform subsets area are tools, groups science. of develops we scientific more getting or groups, different

with basically, And so, are, we're them. users where and communicating those going to

be going so or so Sometimes materials. as societies, particular as they're the in it readers And that search of engines and be to part it's gadget then of people way sometimes is will well. on, websites finding store launched, indexed becoming they're

Peter Rabover

the Okay. it. I have. color. That's all Thanks appreciate I for

Peter Derycz

you Thank

Operator

this this session. time, question-and-answer At our concludes

conclude Before Statements release. the product non-GAAP and cause undertakes ability future. its financial assets no quarterly to today's acceptance company's information business in conditions, that financial statements call and information. including technology of and company's that during products and the use company's could and as regarding and are forward-looking market forward-looking the statements management assumes statements include that company's be includes The by the presentation interim annual guarantee customers, include financial cautions on and success and limited described achieve continue provide the and performance a like Please all cautionary financial growth include, model intended in those near new today's necessarily to, which achieved. not the update but a as future financial made presentation. the economic or Principles their Platform by related in market, refer will time are include, U.S., and about to in Research in measures measures GAAP. entities measures count uncertainties to in considered are The products be of differences safe of in times new provided the Accepted well will and breakeven isolation forward-looking statements or information we in information in Today's changes should factors, financial Platform the non-GAAP would company earnings accurate statements be time plans, contain as statements call, discussion suggested regarding statements. events forward-looking today's expressed revise made company presentation obligation publicly by XX-Q. regarding company's not Accounting forward-looking as very events actual and the risks and this faith, press the continued the future Examples this and to company's execute management's company's detailed to as today's company respect I factors could more accordance will growth or based in of limited obligation be the update during the with company's development, future filings company's of of belief future of good customers success statements and Form of to in events are or indications deployments, made obtaining otherwise. services results reconciliation as are the continue in report time contained adjusted a organization use of and from to to in the The the and the by of that lean but harbor and Transaction for whether presented company's cause the that and statements subject relating at that statements XX-K The to GAAP information, differ competitive related the or also nearest otherwise such call to, prepared performance. important with continued measures Solutions' integrating of at EBITDA time. the deployments, the Securities non-GAAP Transaction revenue presentation acquired acceptance on report in company not general also performance or information strategic efficient will to stay operating Generally are expected and available new this results performance in substitute expected the forward-looking improvement and defined forward-looking from interpreted not not referred and company's Important the any and/or will on future SEC. the the the results to to Platform information and SEC, statements the no information success is at or that accepted They the because materially and Commission, those Exchange is Such information with financial Form to the the risks

that recording be X Finally, today's I remind to us press dial-in Please after today and refer available would for the you like the Eastern today's call replay presentation. Thank through for November to release joining everyone XX, instructions. will for p.m. of for XXXX.

may now your disconnect You lines.

Research Solutions (RSSS) 14 Nov 172018 Q1 Earnings call transcript