Fri, Sep 20, 8:02 PM (91 days ago)
For the fiscal year ending June 30, 2024, Research Solutions, Inc. reported total revenue of $44,624,000, an 18.4% increase from $37,703,000 in 2023, driven by a 60.7% rise in Platform revenues due to customer expansions and acquisitions. However, the company incurred a net loss of $3,787,000, a significant decline from a net income of $572,000 in the prior year, attributed to rising operating expenses, particularly from acquisitions and amortization. Operating expenses surged to $20,410,000, up 41.1% year-over-year, primarily in sales, marketing, and technology development. Despite gross profit improving to $19,640,000 (up 33.6%), the operational losses were exacerbated by a $3,237,000 adjustment to the contingent earnout liability from acquisitions. The company ended the year with $6,100,000 in cash, a decrease from $13,545,000, mainly due to cash used in investing activities for acquisitions totaling over $10 million. Research Solutions faces risks including reliance on key suppliers for content and the potential impact of economic instability on operations. Looking forward, the company aims to leverage its recent acquisitions to enhance its market position and drive future growth.