RSSS - Earnings call transcript Q3 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 and Operating Results for its Fiscal Third Quarter Ended March 31, 2018. 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 Peter a remind be I the company's to Finally, would now will everyone Solutions Investors of made turn President for website. CEO. I the over recorded available this Research playback in via to link call section the Derycz, and will call and

Peter Derycz

the few quarter afternoon, operator I'll open greater. pass a and and with third our good in everyone. to speak brief you, to about Thank call comments results Alan about call then the our

Finally, outlook. I will return to address other initiatives and our

Platforms Our momentum and of total X% annual deliver has our life XXX to organizations demonstrates our and can third organization recurring that and approximately million. workflow now XX% technology which in SaaS platform, quarter growth healthy quarter our This in revenue academia. also have business the We in our consecutive growth drove in subscribing over sciences; $X surpassed to be continued efficiency business. revenue solutions seen transactions to strategy fourth

have in QX about the quite went call of fiscal and are Article our gross Alan suspected who have platform from to mostly margin SMBs first and our uptick contributing Version will transaction to users customers feedback the increases. X.X like are Alan? we say new been results pass in to well platform walk associated December platform and Galaxy to our As live also but more I received. I'd in forthcoming sales upgrades, detail. to through our

Alan Urban

and The which driven into XXX. same ago other sequentially X% ended recurring an deployments million release results, with define our was revenue use million total annual non-GAAP press account was revenue revenue up in XX% into right to everyone. by This for driven QX. year-over-year. XX% quarter XX% terms. Peter $X Please to quarter deployments platform and XX year from to platform to fiscal the Thank annual increase increased quarter. and afternoon, total you and incremental in we translates by third Jumping how good in subscription recurring Transaction in X,XXX. up net This XX% was $X.X revenue customer see to growth $XXX,XXX today's X% platform our compared

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

onto cost. by saw Moving points gross basis gross increased decreases our in third-party increase margins, to driven our business XX.X%. was platform This margins proportional by XX data

in in business margin XX% up to XX% basis transactions platforms points XX.X%. in to XXX remained Gross our gross target low the Our margin range. high was

and platforms to efficiencies a a business ongoing driver the price improvement. margin shift higher points to revenue quarter, Our key our to basis actions increased year business. margin transaction ago growth margins same improve of compared due our to are including XX.X% increases to XXX in Consolidated and mixed year-over-year margin cost gross the

of marketing Our of positions. decreased in decrease and to share to loss The was in primarily year expenses quarter. negative per Adjusted million resources $XXX,XXX million per the $XXX,XXX continued EBITDA negative $X.XX year the same and sales $X.X share $XXX,XXX negative net in $X.XX ago to to total or $XXX,XXX totaled open compared operating $X.X loss ago totaled compared or the same quarter. year optimization the due quarter. compared ago and a negative by Net operations sales from marketing continuing

in have platforms We opportunities we've cliff remain, believe more may believe that will look and strategies it investments significant opportunities human repeating worth prudent future end business but we and to in invest opportunistic quarter, last growth adoption. in as to customer to at if opportunities arise can accelerate marketing. to of further flexibility strong introduced grown As believe growth we efficiency we our investments investment a be be such and the to in to sales penetration drive capital further have and Both returns. it's that optimum and decided our example platform

and March line and There remain and I representing and our balance clean receivables will Peter. balance cash and Moving our onto $X.X revenue were turn sheet, to accrued call of sheet Peter? all our under liabilities. all XX, with continues XXXX. nearly deferred comprising at no the This revolving the versus million assets were now outstanding payable nearly cash expenses accounts completes June summary. of and our at equivalents credit of XX, million $X.X borrowings to back XXXX our financial

Peter Derycz

I'd Thanks to spend our on platforms Alan. like more time business.

continues. As business this mentioned we strong in the growth

Our continue ways. this to priorities are in this we and being two momentum see executed

additions provide user enriching framework that we expertise. First; make continue an will to

gadgets, through time adoption It new These December controls, our [ph]. and powerful more gadgets also with studies videographies that all projects. as of other research live launch as to scalable fostering in also As to deployed list backfill of allow you help May, cloud and computing amongst of their work will features help collaboration in administrator management them well tens enhanced article search and of compile instant a researchers and gadget with a help greater accelerate groups. the ability maybe prove Version and tool them rollout all researchers. tool for some with full launch just user went more on of [indiscernible] reference ordering, the features mentioned, which data literature save dashboards, interested view intercompany screen a will work this scientific will This customers [ph] group. Later tools combined the storage of tools will publishing in, gadgets we X.X in-depth Version features included an our which get X.X speed the

platform. the use in on This export researcher's tooling's our early workflows. databases X.X self-registration built have into daily will Version collaboration and feature Additionally and and summer. will system tool import the cloud-based their unique easy is connectivity improve external go will yet Article unique it or be features Galaxy day in to our and will another one live our capabilities differentiator between

new will powerful of efficient we drive of discussed As and Which deployments lead platform power previously called weekly delivering and will we're allow [indiscernible] innovation more Gadgets. generation launches self-registration believe this even more the constant apps sign a transactions. ups. Within we with of smart stream framework

launch conjunction X.X In daily fact, innovation. our our in users gadget will with delivering our be factory

for It also us the and forward agile functionality. with gadgets. to allows of super allows to to allows architecture be customer about to specific the their tailor in gadget-oriented look removable rearrangement users us super system We're gadget-oriented it delighting it. Our to own, customers request our framework addition and platform through make their excited ultimately response verticals and to new the

continue our momentum execution users net Q&A. our us help self-provisioning In market in way efficiency our this digital sales end to to along sales infrastructure our track. third believe We This marketing marketing new and right not second the discussed and but enable our quarter that indicate self-registration of technology team to capabilities that The Particularly results the continues investment our to platforms wider do summary, upgrade today. with benefiting platform to deliver a strategy on restructuring and in returns. optimizes is it directly our for marketing teams continued call this organization. that operator? drive to way to and includes is and the plan. implement growth strategic entire only operator that hires leveraging of in over the cast like will to business and the a investment our and from I'd platform focused will drive back our momentum now With turn

Operator

go question Artko Capital. is Rabover Please the Instructions] ahead. Peter [Operator first of from

Peter Rabover

a just every the growth growth spend get you pretty So and can How that that a guess dollars I spend growth spend? recurring wondering that. is you're was game Is I you talking see on well predictable Peter, quickly for where amounts on can works levels guessing revenue you'll or or not? that direct opportunities dollar opportunities XYZ about. that marketing X spend maybe the or how you this of implement elaborate more if of strategy that and you is

Peter Derycz

do first of not we in to engage Yes, guessing any want games. all, well

our and and engine metrics marketing be to data sales driven very we're driven. reorganizing So

we experimentation will media in and approach. that social best is, messaging the be can do words. but way measured the another spends, want positive to what in No determine our small digital driven big spend some return. so to So money that can We marketing, and do [indiscernible] that's providing we data in just that's really we we're that

Peter Rabover

be be recurring might big a that will way for XX% it that we No, will do there pretty sticky there for still is EBITDA you to but I guess with the hey nice a way say, platform is, a is kind you that or revenue, million trying generate I'm of to where do you revenue to that's this fine, are you spend cautious a being your had - loss business. $X [ph] what spend? growth in but clip and if quarter you XYZ say

Peter Derycz

and still what this our We're summer cautious call we're self-registration we being little launching in self-provisioning mentioned because I the as platform. call,

that to at responses enterprise have marketing this So is point efforts. driven, we sales we're marketing existing some

their and to We this doors But on. going we're platform. and have in so all users on website, SaaS reps enterprises comes common own it's on sign as the with workgroups on up knocking to time, sales summer allowing be other

little have sign which marketing in contracts that measurements time, we'll so direct a and more driving ups activities And kind bit point are online. of what of

been new So worth investing. we've that capability at looking point, as that evolved we've at, that was

Peter Rabover

Okay, that. for That's today. have thanks all I appreciate I

Operator

concludes this [Operator our this Instructions] time, session. question-and-answer at

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

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

Research Solutions (RSSS) 15 May 182018 Q3 Earnings call transcript