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Research Solutions Inc (RSSS-1.38%). has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing shows an increase in total revenue to $11,914,219 from $10,313,742 in the same quarter the previous year. The increase is attributed to additional deployments to new and existing customers and expansion from existing customers.
Platform revenue increased to $4,601,257 from $3,125,584, driven by the Scite acquisition and customer expansion. Transaction revenue increased slightly to $7,312,962 from $7,188,158, due to organic growth in copyright revenues.
Cost of revenue was $6,093,126, representing 51.1% of sales, compared to 56.5% in the previous year. The decrease in cost ratio is due to lower personnel costs in platform services.
The company reported a gross profit of $5,821,093, compared to $4,483,802 in the previous year, with the increase attributed to higher platform revenue.
Operating expenses increased to $5,728,246 from $4,903,799, primarily due to increased personnel costs and marketing expenses related to the Scite acquisition.
Net loss for the quarter was $1,980,234, compared to a net loss of $53,628 in the previous year. The increase in net loss is mainly due to charges related to the Scite acquisition.
Cash provided by operating activities was $1,871,493, while cash used in investing and financing activities was $5,404 and $267,838, respectively.
Research Solutions had cash and cash equivalents of $7,701,155 as of December 31, 2024. The company notes that it has a $500,000 secured revolving line of credit with PNC Bank, with no outstanding borrowings as of the end of the quarter.
The filing also details the company's acquisition activities, including the Scite acquisition, and adjustments to the fair value of contingent earnout liabilities associated with these acquisitions.
Research Solutions continues to focus on expanding its SaaS platform offerings and increasing its customer base through acquisitions and organic growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Research Solutions Inc quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.