RSSS - Earnings call transcript Q2 2022 | Research Solutions, Inc.

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Operator

0:03 Good afternoon, everyone. And thank you for participating in today’s conference call to discuss Research Solutions Financial and Operating Results for its Fiscal Second Quarter ended December 31, 2021.

As a reminder, this conference is being recorded. 0:19 I would now like to turn the conference over to your host, Steven Hooser, Investor Relations.

Steven Hooser

0:28 Thank you, Carl. everyone. afternoon, good And joining Earnings for Call. for Quarter Solutions Fiscal XXXX us you Research today Second Thank

would GAAP from SEC Actual or risks Bill Officer. of On researchsolutions.com. XXXX. of be more Roy We this refer announcing the Act results their expressed future and to and made its variety is recent release available W. call materially Solutions’ for impact that I the to Research could differ may That afternoon, filings of those a prepared XXXX. Olivier, with a you factors. Before begin the Chief the the and Bill with a due company's the President today Chief are me the the company company’s implied condition. that and results discussion of detailed issued Executive press to market A measures, financial is afternoon. management for call, After fiscal reference the at will X:XX on today provide issued you Reform results under Roy X:XX website statements are remarks, on Securities Nurthen, closed some measures forward-looking today’s in like release Financial X:XX non-GAAP operating release remind we Officer the Litigation those to of information included for certain believe reconciliation earnings useful investors. Private press quarter made which the Also of and will measures this second financial

X:XX Olivier. ahead, available for to on a would the will be call remind and Finally, the With made Go will Roy now I link like over turn that this via that, call to Roy? I company’s website. everyone replay recorded

Roy Olivier

And X:XX thanks us everyone to Thank joining today. Steven. you,

executives interests throughout will issues make and the continue our in shareholder the focusing on deliver progress accountability the with of organization. that shareholders, team aligning our value We to good improving

as to rate, starting X:XX strategy have been new our existing upgrade had our net In and seek demonstrate underscore for platform historically customers more by digit product lost, includes upsells, number, results a has upsells is quarter and features churn customers that a second which have and upsells high-single adopt additional record results. features Our high-single and and sales our the dollars outpaced We our fact seen seats percentage meaning churn includes on upsells digits basis. churn which or counts.

first stronger new revenue. XX our of are second for in than typically year-over-year over combined During X:XX upsells I'm renewal ARR, which quarter moved a and the XX setting platform and we increase time. half the QX, record the net with a of of our digits two quarter. growth reported the by we excited XX% the high growth, platforms net X:XX new very half. year, customer is customers, going other we're XXX,XXX the churn Both existing to $XXX,XXX upselling per ARR the ARR sales of a both ladder into Further, first a recurring close our that net low-churn deployments level, annual records. of into on of outpaced double and the words, at new were teams for In When XX% performing

declining those their effective that customers average optimize confidence spin on making our changes X:XX some improve options overall me we someone that us the has our performance if have which higher in for increase of Recently, in platform are an sales in their translates costs. over teams, toward expanding and low second ways. value performance churn said terms It customers a to add platforms confidence articles, that most to their lot article like new reuse In more the added. up helps growth to The more deployments the Open starting our periods transaction through and Access of six reminder, rate revenue return sales downloaded customers the of performance to downloads to with having rights our FYXX. revenue to came in organization which strong growing X:XX will our to revenue allowing expand our This year. a same XXX is will our and it short-term. easily been in a first down of X:XX article but is but platform time will reinforces our TAM transaction great net this a months in help XXX rights, our to platform our fiscal due too help trailing transactions total flat net conversion customers That an trend at continue subscriptions is and had more a without a continue in articles deployments, for again and our we're early addition, importantly and else already researchers prospecting our cost us. As strong article This the of for are in For understand headwind year. we deployments in for Researcher, seeing use to In savings is platform for TAM free. find presents have is database. article several non-revenue resources results access. we as recently research to articles example open has quarters. our our drives increase into our prospect or and or to be parallel and on sales and of tokens investment, from sources Revenue first six or made platform that the strategy the XX for looking reuse obtain we our long-term free fee. helping on a a tokens add basis, long-term, which solution customer including through value segment it One offerings, expanding and year or researcher XX translates the market addressable helps tell new a the regarding drive half database, year It that this to in XXXX, X:XX improvements a purchased XX-month last from

In on very as during fact, quarter churn features X:XX we provide call I'll provide – seasonally additional customer fact, minute, of we our detail features some portion activities the enter count rates, negative I'm now the detail our walk In our upsell as Bill of stronger transaction direction well year. sorry, the fiscal to our churn fact, negative summary, our renewal to in as fiscal in our I'll turns strategic recent turns number the well process. us up quarter over performance some through upsell I'm a a on users the sets as second sorry, second results. but churn -- our pass in I'll additional Bill? and

Bill Nurthen

everyone. fiscal fiscal the XXXX the X:XX quarter Roy. X.X% year million, a $X.X second quarter Total of revenue for And Thank of was you, afternoon, increase XXXX. second good compared to

platform primarily our quarter, XX from strong and the modest revenue we XX% well SaaS customers. $X.X Platform net new driven including current deployments business million, upsells by revenue. last in of platform the transaction growth as platform of As increased a increase X:XX year, as net second growth to some deployments experienced in in

was annual Roy the incremental company record was topping deployments, net $XXX,XXX. a in the company X:XX the fiscal high recurring net Also, or which added quarter, quarter of XX the customers As in quarter which the in was of new ARR a new mentioned, occurred record, XX XXXX. third previous year revenue the

have now million We ARR of $X.X the to months. last the platform added over XX

and $X.X sequentially year-over-year, our This Transaction transaction use non-GAAP terms. reflecting recurring the for XXXX. was $X.X upselling at increase $X.X represents fourth first and a see definition quarter the our to press of efforts annual and year of million end low of Please the revenue prior platform the million, X% the As quarter of up customers. continued quarter. result, revenue sales annual million XX% today's recurring for the release and from churn stood compared quarter in X:XX revenue existing revenue since at other and

over ready we year given especially a add on not more that point are saves transaction is feel the declined this begin a it to bar. transactions, incremental a a has where return to time our as a that low core X:XX customers be platform. is revenue make We grow performance customers costs, will to from potentially there ago can do value was for call growth transaction the to QX revenue we our transaction Although again, platform's as

and corporate both in result and increase from basis XX.X% of recorded platform point do an the quarter in the by a driven customers. was However, XXXX for XXX customer indicator. quarter count increase margin quarter positive The gross as we The XXXX XXXX quarter. XXXX fiscal versus prior of the was in the Transaction ago year X:XX first view the year quarter. a academic increase business this

previously have quoted platform feel and XX%. elevating comfortable this for between to target high XX% of business range gross range target now a We and the margin low XX% XX% to

continued margin increase we to somewhat XX.X%. margin reduced for at in quarter. onboard fiscal result customers XX%. points second we some XXXX. of have XX:XX the by be quarter copyright up basis, XX% overall proportionally we as lighten was XXX with The able Gross Total to expect margin As normalized able gross basis to transaction transaction less quarter. stay year our to from the copyright second The our attributable improvement positively in a impacted was to primarily in business increase the XX:XX gross in the in gross XX%, to margin were roughly labor cost. costs reserves On quarter of the transaction was

cash year the net loss prior the share year in quarter, quarter to bottom Net product quarters We meaningful to Turning continue results December performance item these quarter seeing $XXX,XXX ability and to took the compared compared expense and $XXX,XXX and quarter. focus share, associated is and as operating cash we our QX. margin growth our scale as compensation and future, ability perspective The profitably were was our transition $XX if in development in the balance due XXXX million in additional costs. one investments one quarter. was per million, Total million remain from compared $XXX,XXX of we cash for XX, equivalents the Quarter. place it gross and to corresponding demonstrates we the product five $XXX,XXX $X.XX and $X.X made providing $XXX,XXX a of is platform the to resulted revenue. feel to on Turning to sales. role, make in gross in the stock margin. G&A of still profitability for corporate metrics in to was this operating of in negative line of sheet that operating as of in expenses. $XXX,XXX $X.X or XX, about of will platform year-over-year positive that Adjusted have continue represents a to note expected XX:XX per in XX:XX ago normalize XX:XX in as all This we about or or grow primarily million to loss in QX, business even expenses year the prior the you most flow in straight we which technology were on However, One June intentionally comfortable investments expenses and CFO additional XXXX. costs company growth. the the development the higher We versus $X.XX the booked business, are revenue $XX.X EBITDA with

our note, long it million line debt were of credit final a XX:XX is $X.X will or monitor outstanding However, liabilities. time. have and revolving to we under no something there borrowings no continue over On we term

is line this Our of to credit month. expire scheduled

period I'll are process over Roy? terms. of the turn back call now two-year renewing for we the However another the to line Roy. in similar on

Roy Olivier

related the a Thanks, of XX:XX on acquisitions. status provide down two to drivers brief Bill. will shareholder come The accelerating each. increasing I to now main update and value growth

segment generate by we've Regarding decision understand giving us been country, makers progress database great is on to of that TAM contact information fully This confidence contact to this accelerating and which hard our to researchers targets. by prospect making are will there growth our the TAM have build vertical, XX:XX and We for a out information. the growth, working is by project, continue and that the we and some time.

which are new salespeople We also have adding been additional with customer our helping growth.

management us feel We we We penetration sales and XX:XX more We've plan around in verticals countries or choose about accelerate galaxy up people year product we by to platform X.X, supports delivery software our document journey. fiscal growth Article and the progress serve. primarily first and the have platform. end engineers increased even AGX for X researchers number to adding our to it, of half as organic historically that set more from share grow accelerate good market great we than of in that step to pivot. spend a each had our foundation ’XX, ’XX. by call FY, to for was released the Xx fiscal during research also the making And strategically to we're on and our plans this segments value to pivot of that in FYXX a the

new XX:XX received the released and new features to quarters, have full capabilities, existing analytics feedback we us are significant both the reporting now leader two space. releasing customers. as in from next management positive and the and were establish Over search reference enhanced We monthly tools, innovative prospects

have I AGXs our and released in in make capability. with new continue two scholar to an base was development a academic on that started some product customer investing utilizes different we're problem month, that new this We've progress of discussed additional last also full article solves galaxy As products previously, we formally platform.

We and acquisitions, Regarding by actively we'll our opportunities. are and products continue monitor XX:XX we review with progress several to both future in on progress their encouraged and with engage quarters. report

we we us. said, valuations had market, area We're pleased represent first and strong strong interesting the like and challenge to soon. we're and with Operator. to other the the valuations. are some for more the growth. we've call our a of opportunity for future While to cross the we hope And differentiation XX:XX believe making excited lot right have interesting turn due drive opportunities it of future have a today's to I to that we operator about product on progress back over Q&A. half conversations turn believe be to With are investments that in performance unrealistic a found on sell activity, That primarily report with In XX:XX year. in I'd continue the track. for conclusion, that, the this

Operator

you. Thank XX:XX

[Operator of The first We Klee question-and-answer comes now begin ahead. Instructions] the Please will Group. session. question Maxim from go Alan

Alan Klee

the XX:XX that of quarter you little Hi, to range. platform talk the why that at you believe on would say the margin you're I to XX% job range quarter than drove gross and that heard XX% about Could wouldn't question. a good better your maybe of I you kind this that increased stay for level? And high did what this quarter? that

Roy Olivier

Yeah. Sure. XX:XX

labor this So to and customers It's more cost as quarter we proportionately we have less is that well. to again, are more continued less customers. onboard and cost those taking proportion see system support we

comfortable reason range. This metric the we is looking customers? and we're little I'm there, think that amount raise staffing quarter seemed so we at to over Should I a trending, with and it as to And more that how make but that plays presence and as move that something see to some and feel where that, a want this beaten we see a changes XX talked little gross plays good boarded, out need is the of in about I we we to just at this, the where The raising to comfortable can we customers time. noted more looked if to, I this sort not if how of is of able in more maybe the amount want on that future. XX pass, we we've it comfortable have now that about, it's we're hopefully, or time raise our record in consistently margin out feeling to the onboard? we beyond it

Allen Klee

you've around fiscal you much. of any does end questions. Thank you you for plan that said second a the Thank know, had second, One drivers XX:XX to people maybe then year? are that you historically added little about other Have you. yet? year's sales what I you two half stand? very that have And the the Or talk double seasonality. this by X where is fiscal

Roy Olivier

have is part Yeah, in sure than of type of cycles better business our can And of today, the the tie approval seasonality segment, we portion pretty the suggest historic corporate then typically have there the seasonality, the QX it's, strict I the anything to our and the and don't that cycles, budgetary that our I it's is is year. the academic middle release terms that not business, of dynamic. which QX are XX:XX funds side, only that particular. I'm answer it a small very In of

can years, I of of business of bookings. data chunk simply the the looking that's the of we than in is it's seats of question, new second in something years kind the part of historic to off get our is of because the just stronger FYXX. say second QX, at to new training And to first. last your come So for the no, bookings, them business. people So seasonality the where the several XX:XX one, is in four start impacts and regards hired half of up, always three terms year this which see ramping In to our that upsell well, in last we over course, but renewals a fiscal the plan

to do of a seats ready QX QX. end We're seats today. But at work to in to get do plan the start trying not not. and in in people on we're doing We're we're So to people the that. putting put blitz recruiting

Allen Klee

Thank you. XX:XX

Operator

ahead. go Please from Richard next The XX:XX capital. question from comes Baldry ROTH

Richard Baldry

the those US we sales Thanks. new vertical, Can International. to would heads be you geographic, deploy talk do XX:XX about, see opportunities where

added in they're they'll get looking opportunities an at? we be idea the So of where

Roy Olivier

a kind question. of There's Yeah, of XX:XX answers. couple great

First an our by to off, rep we're user in the – of account. users going sales by segment number

So XXXXs mid-tier or that users, than, that's even users company example. a when selling you users, that of as an AstraZeneca, a think to about have sub different sales XXX XX has might cycle

salespeople will executive larger the XXX,XXX level a pursue account a will Does a continue be with are of which are to So brought will number perspective, things to on we've that that work accounts, into we help? a a have team user from job, to and in that focused accounts the from that to little our kind on mostly used new accounts, dealing fall lower a kind segment be of users the XXX,XXX user – from OTE smaller of telemarketing role, identified that that will large perspective.

Richard Baldry

Yep. XX:XX while it side, the now even Then two platform going been are the up. gross the the on dollars backwards looking in at actually have a revenues kind of row, margin down quarters

So so turn that cost cost total on the about maybe labor decide the versus fixed revenues? you've with components And the it's, the we down, talked of call flatline can and the and are with should climbing that that where start costing but can talk about variable. a

Roy Olivier

good the add right question. have sales we States Yeah, By sales is to add let today, analysis seats one rep of number kind Europe. the number. reps question. me We doing thing that in think we When your in of need people we're United the larger the XX:XX user to the way, we think

larger is group that the This XX below executive with this the group. kind Now accounts. XX not seat deals is of below

people add in some account will primarily we Europe. So larger

report China. what's is running expand there, Japan research As we marketing no the partners our that's which on be Japanese today, spins we China, in to Japan And and the progress business. to is looking have today on but for person in two real and mentioned going market are in I number patent one our going in so of previous calls, some world trying

China XX:XX So what's could And you Japan going and on your in I'm sorry, repeat specifically? question?

Richard Baldry

with variable, sort down platform in start were about XX:XX fixed the cost revenues should think very the total Yeah, versus climbing of revenue? been have when going dollars because components curious we spend just the the on the How there. that turn do and side, falling. up, the But to it's narrowly while

Roy Olivier

not And just clear, you're to cost, ARPU? be talking XX:XX about

Allen Klee

XX:XX cost No the platform. side the of

Roy Olivier

Bill, want you address to So XX:XX up?

Bill Nurthen

the labor, the guess so we're I Yeah, dollar clarify, profit to – a things. a going seeing the that couple XX:XX couple – up delivering on portion, labor over total hosting the been two is largest cost as been sort the that to largest component relatively seeing there does lightly the will growth same last One, in platform from standpoint hosting then from that you're and that one a go the The mean platform it component. compared has The the the is into what well. just platform. to Really is gross increase has the of smaller going I be the of at of which a to year-over-year. component that the dramatically with few But the is quarters. not growth the up components, gross is XX:XX there's proportionately more rate. component but And

Richard Baldry

XX:XX Okay.

is any Given our about sort ability would inflation, How match feel I taker rising. to positioning a lately about setter your talk be pricing you headline can about that talking along price a to price costs in pass every internal space? hear versus you of your to

Roy Olivier

a that is that's have platform a itself. three that's of levers Yeah, in the area. topic. And kind One hot we XX:XX

cost the is article. the of second The

them, our year. renew we XX:XX of once those cost associated which change they business, to a actually our a alone fee. fee, with whenever for make a to them we in or will renegotiation, the change third costs, charge which as that's are is fees part, very, contracts we of annually. the not the But leave can the few But to bulk Index annual those agreement. the of something. article an require typically have for January. fees consumer fee or tied And Most of On most transaction them. adjustments limit service and renegotiate we to delivery very a caps The set service the have contract part necessarily typically PPE agreements our service our need And do do structure we is most change article, ability service on

last mid-year, simply price an had incident a we publisher where However, that increase. raise we mid-year year pass and prices

pretty we're features, side, and positive costs. and So the is in us On that cases, just result platform increasing net of kind got churn double proactive we've the transaction raising about know, mentioned of I a some as count digit prices. you XX:XX to earlier, seat moving

for them the land fantastic which account. us up what we and that have team, as moving each Although a our account, of sales we users flexibility price. new team new renewal land to customers that is what Once a most not more a standard toward expand land uplifting view, part, we doing, end the we kind selling Does that help? and that year mentality of refer have from job and uplifting of before the calculator to sales we point does from them number bought transactions features give

Richard Baldry

that's Yep, helpful. XX:XX Thank you.

Operator

XX:XX Adam The Management. next question Capital Wilk go comes ahead. from Please Graystone of

Adam Wilk

segment side, is this of little we kind prepared I of or were asked on touched my question. you all thanks my for moving that already moving comments. impressive about questions to my a How forward? expect XX:XX guys. bit sort transactions couple A forward? only are guys increase and are you Hey, Really question quarter give. one that a you appreciate the your you guess on unpredictable thinking from off quarter? taking I in continued that guys, color of the able Or but

Roy Olivier

be of on short-term I'd flattening every analysis it mentioned gotten what's bill to suggests ready expect But since gotten trough. And see and be. that's of the we're that? make I will doing, year Bill, of would with we externally, But am I quarters here good and to our the add that may balls it commitment not level couple here last a crystal decline we as pricing, Monday like Bill going that to Bill's that have the like and that want I'd not data short-term, over data we're under I tremendous my get at things there. because the and belt in question. positive declines frankly great news anything another some to as that seen we've comfortable happen do we this to the to you XX:XX mentioned, unfortunately, it in is or Yeah, not I've as we near the two. look the to

Bill Nurthen

Yeah, that's Roy. I XX:XX spot on think that's pretty

to have point here, think platform, like at it Roy it's one I see just a make right turn, view I'm some we that feel hard to now, add happen as of happen. customers has not point, trying kind some these it'll the do the we we that to, to is feel going at turn this to a but as that is said, do We to when make call ready yet. we're

John Beisler

XX:XX add color. Yeah, we're gonna

Roy Olivier

please Yeah, XX:XX ahead. go

John Beisler

came on a were XXXX. a just XXX than of little of big XX:XX before XXX can add If think I when And largest guys jumped customers, those on color, touch those you customers now, transaction about, first. typically we the have some our less platform board odd

and they right, stuff. of also they've amount here and dollars. been And all because and seen a drive tremendous of the subscriptions tokens that savings of terms and volume the most they've in So reuse, transaction XXXX, since

their fact look the that decline, when it's platform So the the year-over-year and you at – driven transaction by works. dollars,

transactions. at analysis One we of out And trends, platform couple the their the did all other pieces find we to they the we were years. that on we is times board over and of cost we looked pleased of the three that around on spend brought took last customers

customer, buying to $XX,XXX $XX,XXX that number of and when XX,XXX they're our typically on So seems be And transactions. worth between bring steady. we holding pretty

new to trough hit that the are platform pivot that older, start be help? as Does is what doing three declining them huge charging more the because start we bringing customers to we're in job. that So its are that we whatever that have growing. customers platform, [Indiscernible] we for as of where And should these and

Adam Wilk

it XX:XX made a completed It stage? And you of Thank I it this this guess just Is deal road clearly, would I, the then any if with see commentary other helpful. from end private on it? have a or behind sort any little year, absence helpful that's Or does, maybe I nice you've bit. in Again, function end, down kind significantly is in of on if significant, would you. market is a have and to the anything improvement there's of guess you the by people but touched of really seen touched obviously, market of come at yeah, your a valuations? been anything? you any M&A typically some the markets early deal it – there be further activity, on down And I'm pretty maybe lag wondering year. world? it, private know And have areas I public valuations flinching Thanks. last any,

Roy Olivier

would or and foreign I continue our had kind ability whatever have of get of think people over fund challenge. not much then, to be talked about mean, I something made that back have XXXX training deal, think have certain be spot narrower net cash, raise first we our I to interesting in on to to amount changes. know, than But near No, point, through valuations the talk But didn't Yeah. do may a to they unlimited brings the doing them of you course, done. were months. over can and we to four from hope get road wide as seen XX:XX some last we you But a you it's And a Bill you actionable, I a ability where in opportunities say deals, said, a about we've that three do we on simply that this That I the I future. something to been are – like would proven We'll if months you're last evaluation. and turned if something a nine have XXXX. definitely any only down found if to offer, in to because capital net, that see have time like I this fantastic. an tougher done us

Adam Wilk

I That's job. you helpful. questions. XX:XX my Great, Thanks. yeah. you. Thank Great appreciate And taking

Roy Olivier

XX:XX Thank you.

Operator

from Peter Please Artko of question ahead. next comes The Rabover go XX:XX Capital.

Peter Rabover

quarter, and passing off Any us color were Hey, I price the we XX:XX why prices, is? give or the down I thanks talking that Hey, has noticed inflation average but trended and this for – you that call. taking guys, could ASP X% know X%. some or about my

Roy Olivier

largest mentioned ago I XXX were moment customers our customers. that Yeah, XX:XX XXXX, under our a previous

So guys of is ARPU, a because we seats. that's ton lower. base, where continued that sell a And are the ARPU as had that then to high we've these on SMB pretty focused into

lot of ARPU $XX,XXX to a XX,XXX So that not number. sales, new is the the

sales sign previous have that and for don't maybe couple ARPU. expect one of get sale continue XX we've So seats an on ARPU ones that huge one. we XXX to a a the to occasionally, seats, that know very XX us often. which I seat to last into days. on we'll we any of generally, I And do I quarter. come commentary XXX,XXX you did is those think like But come the are telegraphed if give we Bill. pull think space, our kind seat down, deals, to occasional, between additional up those those this will don't that bump along we're kind deal SMB that calls, would But selling

Bill Nurthen

at like XX:XX those expect are No, down, there's big that well, think predominantly I there coming as that would in come market I sales newer we sales. do although accurate feel to that's, the out smaller that's ASP, a for it

Peter Rabover

off second. a for Hey me? sorry, you you hear cut guys there Can Hello? XX:XX

Roy Olivier

XX:XX Yeah, hear we can you.

Peter Rabover

during Did it. Okay, into of to I ask missed a but, say I'm XXX question. you call XX:XX kind deal? so the signed sorry, the you have operator to must cut a

Roy Olivier

deal It's time. to signed sign XXX and won't it's seats pay XXX we into Yeah, they seats, XXX they'll us won't for yesterday. grow XX:XX seats But One regards. tomorrow. we is so unusual an for over in up many a – deal

Peter Rabover

XX:XX Okay. hear. That's, Wow. to that's fantastic. great That's

manufacturing, like, base, the growth to it about kind something I So, could is biotech I came growth to about share about XXX and now had a have deployments, it, granularity? try almost question maybe about your and But talk like, doesn't you XXXX. to a to just really so start pharma, think talk you most is where like you're maybe like, something that just direct where base guess, close your that it answer. or thinking To it customer is you,

Roy Olivier

question. that's a Yeah. great XX:XX

go can what on instead other we're We but have effective FYXX. that, so we have some we In territory I doing words, a that analysis into bunch data of as plans call just tell territory want give territory to we got to accounts a are generate guide and you want say given rep in all your to and we XXX,XXX, our them here's territory. the sales

to analysis And a we're accounts is we so XX:XX lot watching market X% of the share doing it. here's now. to Your to and X% do pursue

our question, other and your to still [Indiscernible] is in do stalls biotech. have XX verticals. business pharma We However, of

where for to dive group deep fastest? biotech. for be over, functionality most of to food next sales or Some the on lot those appealing a line identify more most gross But looking are where XX, or content share maybe business can the have we helps Is seeing growing the info sweet like the calling in us as spot of in that XX or I the But including sales, the you as contribution what the of XX, it user we transactions want. our simple by and has of XXX and cosmetics? is to terms is it those is, what vertical total seeing we add a as what that vertical call, XX continues of pharma I'm because it to probably growing aggressively that better that in margin are we the reps guys

drag on from. teams in it generally opposed sales comes XXX just looking matter where Our to grand be to as calling as a

Peter Rabover

Okay. appreciate have XX:XX answered. Thanks. that I all [Indiscernible] that’s – I

Roy Olivier

XX:XX Thank you.

Operator

MKH ahead. comes Melas management. question XX:XX go George from from Please The next

George Melas

you. just, the about job important Good to the the transactions question afternoon, sales is of a gentlemen. it on Good is continued growth. part business. XX:XX sort very, very Thank of My

side. have things for on making direct the an platform there, that [Indiscernible] Is you competitive investment impact on AGX the on where the competitors that the dynamic transaction could of you the and the side some planning the You business have new some are growth of that platform the business? transaction

Roy Olivier

yes, it new have well haven't AGS think AGX They we transaction talked and really as And I all XX:XX lot element. Well, a the a about. as will, product

products we are of up through number identified So that we're of of those transactions revenue platforms, various more that things business. that improvements are help processing, the each the to will drive a software the think our we the can some transaction transaction of is we're doing series one driving with

and our tell hey, suggest similar don't we think will the we of that's either, search to literally you you other by the about of or five where did things, can we versions the say released two example, researcher, new it. proactively are were articles this one upsell, For that future acquired last I think how you that and these here's software, to But want in would I research over you're related week, these working these project that articles actually on. to publishers we point are that articles to the get

same all are our intended have we a XXX improve about that deployed at to transaction a And initiatives that half them release, in will like uptake of but in existing day. a to help to features the will this implement So not to all to one XXX on going dozen product be able customers series are we're be base. of month's all these customer once, be

be to these not. working So immediately able know will we things or are that if they're

George Melas

Okay. XX:XX

going us try know Scholar, initial size TAM? maybe your to new TAM try AG the under up there and to you let And Okay. just that to can reach to how you're steps

Roy Olivier

larger. top – the to say head. it's Well, numbers. I don't a I it's business, do think the I'll pull But don't TAM. it's But know I off top those would exact my we a my together. We we XX:XX sizable TAM a of I do sizable It's business. can Yeah, if I we'll have have can, certainly the head. pull remember off numbers apologize. see them the

George Melas

I and or… the do one to salesperson Okay, that first use XX:XX voting at

Roy Olivier

XX:XX now. two people on have We it

So are two working people it.

have a includes presentations and marketing consortiums. lot of of We active campaign conferences a a that library pretty to webinars and lot

in and attended. both of had You know, them were the very webinars we in well month fact, two last

a presenting to be I active was our And, whole part once. the But over are a attending and probably pretty months, in well frankly, we're biggest them as and and the the XXX first we did presenting around XX us of bunch second of that's the leads was of is conferences, of mistake. to EGS people I bunch XX attendance, a for webinars in East marketing webinar few as additional consortiums think anyway, mover the was webinar nice where attendance which those a at morning, will time, think libraries, Coast generation when we next plan. group. And into

George Melas

is a space? penetrated all? Or at of not there and very Okay, in competitor XX:XX that kind clear is it

Roy Olivier

decision. let to they can where run. as XX:XX There's works libraries a set that want student, or the and can library buy the set around makes technology we you other it not than rules And article the as the does, buy our what some just out people cannot that decisions buy not middle competitor, librarian a whether it In of and set cases, and allows in you what a have that many that buying that it library buy. clear you up or and of get we've limits professor had a to –

that that saved all articles buy low risk library a time. the and a six it at are made I libraries cancel high tokens subscriptions – other and their it amount out, have decision and money. use have actually mean, we as significant of XX:XX to seven simply the figures. one a one And turns We them pretty high platform figures,

an to that with ROI But, going the So using one are do is platform. not people interesting that every did. customer customer there's developing from

George Melas

much for XX:XX Okay, question. great. my taking very Thank you

Roy Olivier

XX:XX you. Thank

Operator

from Group. comes question next Klee The Maxim Instructions] Please [Operator of Allen ahead. go XX:XX

Allen Klee

you're article you about that scholar, thinking go additions you're rollout the just addition, strategy? XX:XX how kind of again, of terms you're the Galaxy the Hi, in can through best and gallery. doing the better for what talk providing, of good,

Roy Olivier

features. AGS, AGX best include to was, the the mean, updated or to a which better eventually the and Galaxy course, include is best I actually applied be will features Yeah, better good, article, corporate initially just version, AGX, article, XX:XX good, updated was of scholar to version bunch the of

process, the or ago, the a to then we're a other make those on doing in for do check or librarian to But what as in of what sources unique information, they acquire they having space. it looks faculty, because of we do integration articles for the is article the the I to our that similar. who background faculty the very very do Only some doing sign that different acquisition are are help do of answer your of other library, for same, from are the are single and whether the search not. it and that And it's checks obviously platform same, decision in or have things terms go buy students the you than different question. terms we they the sources acquisition want In are what through platform, researcher mentioned on a you systematize of XX:XX to to second the the opposed students similar do There corporate corporate. actually library in there integrating article. will sources that going before Did some we we

Allen Klee

double a at fourth costs sales least to kind from is sales and run bodies on kind Does then double of rate by quarter. fiscal seated imply a And force current and your comments you. to on thank that from your run your rate? that kind just will your Yeah, of marketing the get XX:XX of plans

Roy Olivier

be OTE XX:XX farm existing team. lower because of to is materially salespeople going Not biotech the the of smaller necessarily, the than

have and founding a of more unit smaller smaller is So account for complex the is per team higher think Those they're are that a team opportunities, small are those a working working about are more some of typically kind account like are the rep opportunities with people lower paid lower that territory, that of companies they revenue geography accounts. deals, executives -- just also like and existing assigned looking come average a OTE.

We would little them is the a half So next than bring actual more you bit on those those to have existing the impact on our of think for a call of teams. or we'll teams. I little be economic of people more OTE But data the going of half board.

Allen Klee

much. Okay, you so XX:XX thank

Operator

back First closing XX:XX the turn for now concludes Olivier like the remarks. conference to would question any and session, over This to Roy I

Roy Olivier

right, XX:XX All today call. thanks for on everyone joining well our us

As in will in the a Capital conference be March. we Roth participating reminder, Partners

contact forward day. to information have look to rep. our your a Roth May you great on please we and this to third We event, you results discuss quarter in Sales For more speaking again hope

Operator

call. This today's XX:XX concludes conference

You have may your for lines. you Thank disconnect participating and day. pleasant a

Research Solutions (RSSS) 11 Feb 222022 Q2 Earnings call transcript