RSSS - Earnings call transcript Q4 2019 | 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 Fourth Quarter and Full Year Ended June 30, 2019. 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 views the non-GAAP I

like that link remind be I website to Finally, would everyone section the available replay Investors recorded for this via the a in of company's and will call

call turn Peter to CEO. the President Derycz, sir. go ahead, I'll Solutions' and over now Research Please

Peter Derycz

Alan Thank call fiscal about to comments quarter our and speak with year go-forward the it we the and Then to the I afternoon pass strategy to and speak I everyone. financial move into greater good operator about fiscal our general you, new will some the I'll XXXX. results of open about detail. initiatives as return fourth exciting over in will year.

forward Platform grow step our continued XXXX and optimize through value was business exceptional research strategies. as our tool innovative and marketing sales another to we provide Fiscal

better to speaks while In customer provides. churn fact, grew our value revenue during far XX%, industry Platform Platform the quarter, a maintain to our the than standards, continuing fourth rate volumes which

will new and our currently optimizing further user strategies this committed driving to We are marketing align growth with to remain strategy.

we get expand Platform we although the expand offering, based the a Platform, fact our I'll most that base. on ways smarter this in later. enterprise are less our leads via the in This on leads bit over corporations result, on which self-registration are for enterprise is on option. generating And to new sales are more coming self-registrations. many a generated adding more of level about customer focusing new day, the Each to while relying

and organizations specifically to benefit can enterprise significantly And better from we effectiveness campaign launched various strive continue In conjunction with know for shift, lower the and digital that efficiency. the costs each we marketing offering. of our campaigns, measure have targeting we

area, through we better will improve also on follow-up we rates. growth To intensely conversion believe this are focused which practices, further drive in nurturing leads

will direct and coming initiatives customers execute outreach efficient our revenue focused be more more coming to accelerate a believe more enhancements and the this will and platform I in the enterprise coming to we exciting Overall, expand potential upon forward. months. strategy going go-forward to growth

like fourth to financial it to results Alan first, in quarter over I'd our through detail. walk pass to Alan? But

Alan Urban

in Thanks deployments and everyone. from our translates driven good fiscal in QX. QX, quarter XX% into increase into X% $XXX,XXX subscription afternoon our from incremental fourth revenue XXX. Peter to Platform by right up Jumping XXX This year-over-year deployments total XX QX, a to Platform was in which XX% results, increased net

recurring we with quarter $X.X sequentially and in press non-GAAP The terms. release today's XX% million Please define for annual ended and revenue recurring how and other annual revenue, year-over-year. use up X% see

The our Our year the quarter. increasing active and to million customer total $X.X count Transaction count to million in ago compared was revenue due XXX,XXX from same from X,XXX. transaction primarily X,XXX increased to to slightly $X.X improvement XXX,XXX growing to

of revenue $X.X Within XX% consolidated while the of million, the down Together, were the X% corporate up XXX, same was increase million count, compared slightly to an of quarter. XXX. these $X.X businesses number active academic in year customers to to total ago customer customers delivered

third-party to by continued margin our to driven XXX decreases was data year gross points margin, Moving increase business the This increase XX.X% to saw costs. quarter. by gross basis on ago compared proportional Platform in same

to segment high target in XX% remains the XX% low the Platform in Our margin gross range.

to our points up business in copyright primarily basis XX.X%, expenses. margin decreased to was Transactions Gross XX due

basis XX.X% margin increased gross consolidated same compared to XXX result, a points ago quarter. As year the to

same to spend our ago increase and business. year and million was Platform product Our million total in $X.X operating due The expenses primarily technology marketing were to compared sales the increased $X.X and quarter. in

net loss Adjusted or in EBITDA compared a $XXX,XXX totaled operations negative year in negative same Net ago per the continuing share $X.XX loss $XX,XXX from of quarter. to compared negative the ago quarter. nil $XXX,XXX totaled to or $XX,XXX share year per

and $X.X Moving $X.X versus to clean all line representing at comprising under of on our and with June to receivables There payable, assets nearly cash million credit no XXth, our June and of the balance XXXX. balance borrowings all were deferred sheet, were continues XX, cash sheet outstanding liabilities. revenue equivalents our cash expenses, million accounts and our nearly remain accrued and at revolving of XXXX

summary. I to back financial Peter? This call completes the Peter. turn will our now

Peter Derycz

Thanks XXXX. first the upgrades the in notable Platform have various the of made we Alan. I'd pipeline highlight to fiscal like half enhancements for first we and the

enhancing We customers. are research our upgrading most we providing innovative the consistently to are continually valuable ensure for tools and committed our to Platform and

during the different fact, gadgets and and the new more a that fourth refreshed In provide launched users of we to believe Platform feel a experience we quarter, to the tools. navigate intuitive look all research

receive Although our our good feedback Platform. in work hard and from we continuously to the we remains where team development customers, end-user are to drive sits improvement happy with our the continue at of Platform of friendliness currently

group research driven which experience This to will to continue to we our understand better the end-user interface, by product doing and in upgrade nurture is sales. more new user better our being order new

another interlinking allows from provided further work each other, This so integration and to able quarter. or to improvements users made data for we of our the fourth transfer be all functionality seamlessly to features, utilize gadgets. conjunction interference gadget also during transfer between during integrate the is to We various several less important data hiccups Platform to one It and in with parts the the capabilities the with additional processes. and very base user capability of

to functionality and we improvements improved export Manager. pubmed, Reference and gadgets, added several supported updates integrations privacy new folders, During for of the and Including the admin capabilities. support, one shared our sharing improved quarter, implemented flagship for

full also introduce Microsoft compatibility Mac We on Word for OS. plan to

feature anticipate with more anticipated in experienced early some fourth along new launching We quarter many during minor this happening this the in originally the but quarter fiscal XXXX. delays and

to Reference we improvements as made to the one to many we can Manager, value gadgets our more constantly of addition provide are how each evaluating users. In updating

abstracts, table integrate Manager contents better feel along to gadget and provide improvements. [ph] we gadget, Reference article and look show of example, updated with the with general metadata the For richer [general]

quarter, searcher, protein useful searcher, save provide they we a researchers platform the CRISPR-CasX new also the money. of single GeneLab the and variety During because very including the interaction These experiment gadgets, are launched that NASA and tools time biomedical help searcher. gadgets in a

feedback positive time-saving has for only tools, we've single specifically related various Platform to but providing platform. Some a within not been of also the scientific all literature, stop, a our received for unified

further our we this it. plan on Platform as improvements of to focus to continue will We aspect

this for provide interested Manager connectivity help customers, of of powerful to Galaxy product Galaxy should from which interface taste ordering. non-enterprise keep working that and help and a key giving drive. which currently our gadget The tool widget test one exciting that Platform note, Platform some On article we're scientific in our user a of it on will a gadget for Reference being specialized of perspective, university to should for literature search Article full track initiatives primary grow the Article and search market. version anyone discovery A provides Scholar, that A sales. with

also continuing storage capabilities. to additional management We're data work and on

footprint is large guided roadmap which in by needs, information strong, and marketplace. looking customer improve in the part should prospect being Our our product help

the in than to wanted towards organizations specific customers. our strategy, to further shift I rationale go-forward on expand on marketing the targeting individual Moving behind rather

longer During we expected customers the of good, and paying generating were that while new into were the than quarter, convert the we taking was getting realized to a self-registrations leads amount required substantial from them nurturing.

experience full incredibly that an enterprise valuable organizations have current Platform to we of customers benefits to to as bring tool possible Our to R&D-focused proven SMB on for offer. we be spectrum want and has our many as the

we to these of As and earlier, launched reaching marketing I campaigns targeting to focused enterprise many are as behind we these mentioned and optimize potential on engaging ensure continue as the organizations possible. will campaigns with specific customers types methodologies

can offering being free going through that that we'll leads we're do individual forward. and continue option still to everything the capitalize With on we to that provide come said, the self-registration doing

with incredibly past performed current year our the are market. during fiscal we we Overall, positioning in how pleased the and

make and value consistently process development substantial research As platform, enhancements continues users the tools efficient. important provide our we to through to more much make that it

user our Platform benefit the our along substantially new become our to has many accelerate significant with sales increase and us Platform the further And outline, marketing believe goal expand that so to more the level we base, trained revenue our enterprise team, It offers. allow can realize organizations we will growth. fully approach R&D-focused

over that, turn to I'd the to the for now With call Operator? like Q&A. back operator

Operator

sir. you, Thank

ahead first We Artko will question session. Capital. begin from Instructions] [Operator the comes with Rabover Peter go The now sir. Please question-and-answer

Peter Rabover

what wondering, another Hey under are clients, Peter. converting on difficulties like talk the -- you maybe into getting Hey was what about year are hang-ups the belt. can the with people? leads I what Congratulations

Peter Derycz

are up through actions enterprise it the two people people are that of tiers. and what enterprise the between. coming it a that sort way, of sure found what October the free not we're not characterize four becoming I'm but to back launched tier and is customers capability sort finding we self-registration And with signing and for in that tier Yes, we of lot

free we're to the and to enterprise, work they professional great -- rather to to tend or jump than So, in sign-ups leads finding but group.

marketing more user we while the on let's experience figured in. enterprise, efforts where money do And focus figured so research, the and -- is just okay, our we coming out some that's that

Peter Rabover

you're enterprise more is one I of saying you like seat XX like are volume seats rather one like mean? you more a just for focusing company, like mean than -- of contract, when you that you're what seat say going on type thing,

Peter Derycz

a professional are right tiers point the we like we enterprise, enterprise, up very now. price are this the had sales from signing And our work of and We -- that right. that's at But is the -- Yes. well. are it's people the $XX,XXX, $X.XX an which and for average where the coming tier affordable as today group signing have

And for a accounts. so makes of one workgroup enterprise and professional lot deal up

are And focused. so we that's

pricing -- think to of available we point, that's tiers functionality experience. But workgroup to that what capabilities on the research user workout. on this user revenue on selling are is and and focus we going what can want, our additional do what I to is the are some mix our do more the sign-up continue -- see professional people and to then experience well there that and the And and way. other we're saying, how okay, at enterprise driving if

Peter Rabover

XXX give so getting color you new Could customers? us of companies or customers? like The they maybe Okay. in your Just level of the of something success I having is revenue maybe on demographics a some better idea guess, some where kind from are? what coming that?

Peter Derycz

Yes.

targeting business what market. We have small -- been medium-size the call the we

that's And been of spot, that's less. So, X,XXX our sort that a these typically of let's companies were are or found occurring. sales that, say, employees there what we sweet lot organic

SMB that I say, And small a that need R&D are typically, so they it's fit firms category. mode. typically in solutions; they some And sort would growth yes of into

need they in come internally have we literature and haven't so of the sort of of help solution And out resources to information their sort to that business them out build side side plug-and-play built all and they a managed.

seen where really And call SMBs. we’ve what success, so we that’s it’s really

Peter Rabover

I mean like guess quantify maybe there Fortune to your are many -- or XXX XXX Is of Fortune I that? a XXXX way customers customers? how

Peter Derycz

world, I sort before, there's the XX-XX top XX I only right. that the -- rule. sure would quantified XX companies we but pharma of is in am say And not

line. XX-XX I'd the So, fall say, on

Peter Rabover

Okay. that And happening Do decline happening, the you could then how bleeding? are Transactions -- idea a have in kind business. why better continued of seeing you -- you what's maybe Transactions there, that's in stop sort guys of of a

Peter Derycz

a actually. Yes, of stabilized it sort

And we of stabilization a so seeing are there. a bit

the the bit, we and now. a a type out right their small So, small and and of our that another and at dropped occurs, that we starting medium-sized of some that same shift R&D of stabilization dynamic sort planned so businesses large shifts while see is time, a of we're bit up as businesses medium picking had as to presentation, had that to customers volume

Peter Rabover

you an idea-- have Do

Peter Derycz

maybe a even And even slight -- increase.

Peter Rabover

that more I'm it have of any I less reason into asking Is people there like on is that? is -- specific is going papers a academic guess, web, external Okay. or what there is why just you was maybe dark idea read something like is happening, do the if -- just sort it there

Peter Derycz

with No. able just The base. we've to nature our own entirely phenomenon do of measure been to that has customer the

drop to historically volumes business gets all was bit time a tend customers. companies SMBs large Transactions our little the say, dwindle we and And large, life that their companies, up on new founded So, found are we life bit adding. science that that little as let's or a these picked by science over

there takes organizations. many sort look, is hey, research by interesting of say, we're would industry of that the meanings, is trend is a to may many, point they that buy contract And out right, I macro an company on to biotech company, outsourcing the outsource when that pharma that biotech say let's pharma only R&D more The the basically large in. have interested and just product fact we their

and biotech And and so their more for and medical our instead so on the large they core marketing more of on in life R&D that relying products seen doing companies focus are of the their own, we've contract organizations competencies and research industry. more science on the and are distribution - more that research finding

that’s strategy driver going focus the SMB. on part that's on, of to external So, trend our an of that's

Peter Rabover

question Okay. maybe the And final today.

know I as but on detail. little it well, and call this mentioned maybe think bit last I a you more quarter

sales of place have kind You your now. in organization

pricing things testing changed working to generation more -- of been like from not, -- sales you're like is working, color great customer customers, acquisition clearly, the on, what's little what in product? more question? the what's you've what's lead the mean, just that's You've a so last and the so the I enterprise various push bigger maybe bit it, starting you're existing things, since so getting for out -- strategies on

Peter Derycz

Yes.

that would say, other been So, trained the on of are And get fully training reps. the well. I experience are our it's have I and to has so team some let's ones then sales like and people been doing really say newer sales we're -- the said working levels reorganized, to the

So, that is phenomenon that's on. one going

lead We're in heavily focused lead generation pretty now nurturing. on and

there's people the from sign-ups type becoming people, along we of these can enterprise path and that all to customer. lot free an of those So, nurture a

through lead And additional enterprise so identify we customers. them, additional and content, nurture and the them into touchpoints we them

So, of these through side that's what sales just our type effectivity. we of of one -- new sort revenue overall call is

And is in also revenue well group, which also as some up-selling our that then there as increases addition to well that renewing customer average are we and have sales generation -- by accounts in generated our sales them happiness additional and as drive price.

Peter Rabover

the Okay. questions. I'll offline. hop appreciate Thank I all you. answering

Peter Derycz

Okay. Thank you, Peter.

Operator

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

today's Harbor important Before use Safe forward-looking I'd the like statements to regarding regarding as we well provide conclude call today's Solutions' call, include Research statements of during as statements cautions made that information. company's non-GAAP financial

develop management services, call continued to that relating company's and by and contain improvement the made expansion events terms future and that Examples acceptance during that in in greater continue the include, the its to few and of information Transaction in will today's growth. expected the company market statements but statements revenue and the proprietary expected not financial its presentation in continued the statements forward-looking such company to Platform executing will faces deployments this achieving be products include successful growth barriers performance. are and limited of sales global and of and marketing and future revenue Statements forward-looking and strategy that operating the and maintain company regarding software

be Such achieved. forward-looking will necessarily interpreted guarantee those by the performance or accurate or be future which results results statements not of performance at should indications times as will be the and of or not

could and uncertainties information statements. and our statements time subject expressed the by forward-looking to performance differ as from suggested results The this forward-looking and are time. materially cause actual and/or management's that that events were belief future with at or to are at They available those based on faith risks respect made to good

but described statements company's include, Report of factors, the on conditions, company's Annual Form from limited competitive execute risks the Important the the financial factors Commission company's could the acceptance technology economic SEC, products company's related is in contained not interim on are and in business information filings Platform and and Exchange Form general changes in that its to and XX-Q. related market, differences the including Securities success customers development, the quarterly product with new the and XX-K and model company's new plans, and report company's ability all information in the strategy time-to-time in success and that the obtaining deployments, cause in to

update to new undertakes of The statements because no company whether or The obligation the information, revise no events information obligation forward-looking publicly to or the in otherwise. also update assumes any presentation. future provided cautionary company

the presentation for substitute as SEC. or defined presented financial with is the accordance measures isolation financial of about GAAP. in included the in information Please Generally non-GAAP to also the to U.S., as information The company's or by this Accepted measures refer not prepared considered Accepted as more today's release. discussion Accounting their in the the to presentation Today's and financial GAAP measures nearest press reconciliation detailed earnings intended be financial measures of otherwise in referred Principles to non-GAAP use

Finally, Eastern that be would dial-in press like Xrd, remind Please today's through today replay will available I XXXX. after the call instructions. P.M. and to for for recording X:XX of to release everyone today's October refer

Thank for the you for presentation. us joining

You disconnect. now may

Research Solutions (RSSS) 19 Sep 192019 Q4 Earnings call transcript