Company Expects to Report $4.4 million of Annual Recurring Revenue
ENCINO, Calif., Aug. 26, 2020 /PRNewswire/ -- Research Solutions, Inc. (NASDAQ:RSSS), a pioneer in providing cloud-based workflow solutions for R&D driven organizations, today announced selected preliminary results for its fiscal fourth quarter ended June 30, 2020.
Based on preliminary unaudited information, Research Solutions expects total revenue in the fourth quarter of fiscal 2020 to increase 5.5% to approximately $7.9 million compared to $7.5 million in the same quarter last year. Platform subscription revenue is expected to increase 33% to approximately $1.1 million. Annual recurring revenue is expected to increase 38% to approximately $4.4 million (see the company's definition of annual recurring revenue below), and the number of paid platform deployments is expected to increase 33% to 401. Net income is expected to be approximately breakeven, with Adjusted EBITDA of approximately $145,000. In addition, Research Solutions expects transaction revenue to increase 2% to approximately $6.8 million.
Cash and cash equivalents at June 30, 2020, are expected to amount to approximately $9.3 million compared to $8.2 million at March 31, 2020. As of June 30, 2020 the company had no long-term liabilities or other debt and full access to a revolving line of credit for the lesser of $2.5 million, or 80% of eligible accounts receivable.
"Our preliminary fourth quarter results reflect continued momentum in our Platforms business, as more users find value in the offering, which was strengthened through our recent launch of Article Galaxy+" said Peter Derycz, President and CEO of Research Solutions. "We are also pleased to increase our cash position while remaining debt-free."
"In the face of the COVID-19 pandemic, our R&D-based clients including large and small corporations and academic institutions are relying on our seamless access to scientific research."
Research Solutions expects to report its full fiscal fourth quarter 2020 results on September 24, 2020. Information on the call details will be provided in a separate press release.