HENDERSON, Nev., Aug. 24, 2021 /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, 2021.
Based on preliminary unaudited information, Research Solutions expects total revenue in the fourth quarter of fiscal 2021 to increase 4.2% to approximately $8.2 million compared to $7.9 million in the same quarter last year. Platform subscription revenue is expected to increase 34% to approximately $1.4 million. Annual recurring revenue is expected to increase 32% to approximately $5.9 million (see the company's definition of annual recurring revenue below), and the number of paid platform deployments is expected to increase 38% to 553. Net loss is expected to be approximately $90,000, and adjusted EBITDA approximately $135,000 (see definition of Adjusted EBITDA, a non-GAAP term, below).
Cash and cash equivalents at June 30, 2021, are expected to amount to approximately $11 million compared to $9.3 million at June 30, 2020. As of June 30, 2021, 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 the continued momentum and dedication in our Platforms business. For the full year, platform deployments increased 38%, and the past two quarters reflect our two best quarters of net platform deployments in company history. The strategic sales initiatives implemented over the past two years are starting to drive results," said Roy W. Olivier, Interim President and CEO of Research Solutions. "We are also pleased to increase our cash position by $1.7 million while remaining debt-free, and are actively looking to make strategic acquisitions."
Research Solutions expects to report its full fiscal fourth quarter 2021 results on September 23, 2021. Information on the call details will be provided in a separate press release.
Annual Recurring Revenue
The company defines annual recurring revenue as the value of contracted Platform subscription recurring revenue normalized to a one-year period.
Use of Non-GAAP Measure – Adjusted EBITDA
Research Solutions' management evaluates and makes operating decisions using various financial metrics. In addition to the company's GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP measure provides useful information about the company's operating results. Adjusted EBITDA is defined as net income (loss), plus interest expense, other income (expense), foreign currency transaction loss, provision for income taxes, depreciation and amortization, stock-based compensation, gain on sale of discontinued operations, and other potential adjustments that may arise.
About Research Solutions
Research Solutions, Inc. (NASDAQ: RSSS) provides cloud-based technologies to streamline the process of obtaining, managing, and creating intellectual property. Founded in 2006 as Reprints Desk, the company was a pioneer in developing solutions to serve researchers. Today, more than 70 percent of the top pharmaceutical companies, prestigious universities, and emerging businesses rely on Article Galaxy, the company's SaaS research platform, to streamline access to the latest scientific research and data with 24/7 customer support. For more information and details, please visit www.researchsolutions.com.
Certain statements in this press release may contain "forward-looking statements" regarding future events and our future results. All statements other than statements of historical facts are statements that could be deemed to be forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the markets in which we operate and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "targets," "goals," "projects", "intends," "plans," "believes," "seeks," "estimates," "endeavors," "strives," "may," or variations of such words, and similar expressions are intended to identify such forward-looking statements. Readers are cautioned that these forward-looking statements are subject to a number of risks, uncertainties and assumptions that are difficult to predict, estimate or verify. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Such risks and uncertainties include those factors described in the Company's most recent annual report on Form 10-K, as such may be amended or supplemented by subsequent quarterly reports on Form 10-Q, or other reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements. For more information, please refer to the Company's filings with the Securities and Exchange Commission.
SOURCE Research Solutions, Inc.