Reports 17% Revenue Increase, ARR of $16.6 MillionPositive Net Income and Record Adjusted EBITDA HENDERSON, Nev., May 9, 2024 /PRNewswire/ --  Research Solutions, Inc. (NASDAQ:RSSS), a trusted partner providing cloud-based workflow solutions to accelerate research for R&D-driven organizations, reported financial results for its fiscal third quarter ended March 31, 2024. Fiscal Third Quarter 2024 Summary (compared to prior-year quarter) Total revenue of $12.1 million, a 17% increase. Platform revenue up 76% to $4.0 million. Annual Recurring Revenue ("ARR") up 82% to $16.6 million, which includes approximately $11.7 million of B2B recurring revenue and $4.9M of B2C recurring revenue. Gross profit up 36%. Total gross margin improved 630 basis points to 45.2%. Net income of $76,000 or $0.00 per diluted share, compared to $237,000 or $0.01 per diluted share. Adjusted EBITDA of $961,000, a Company quarterly record, compared to $559,000. Quarterly cash flow from operations of over $2 million, also a Company quarterly record, compared to $0.8 million.  "Our third quarter performance reflects the first full quarter of contribution from Scite and continued progress integrating Scite and ResoluteAI within our Article Galaxy platform. While we realized some anticipated churn in ResoluteAI ARR in the quarter, we experienced strong growth in both Scite B2B and B2C ARR, closing some large cross-sell opportunities with existing customers," said Roy W. Olivier, President and CEO of Research Solutions. "During the quarter we launched two new product offerings, Technology Landscape and Clinical Trial Landscape, both of which harness our ability to simultaneously search across multiple datasets, extracting and synthesizing insights into use case specific outputs as part of our strategy to deliver workflows that save time for our customers.  The highly specialized value proposition for our product offerings continues to grow as we serve as a critical piece of the research process, giving users the opportunity to effectively discover, acquire and manage the most relevant content all in one place. Overall, we believe our offerings and expanded addressable market will deliver meaningful growth and long-term value for our shareholders."  Fiscal Third Quarter 2024 Results Total revenue was $12.1 million, a 17% increase from $10.3 million in the year-ago quarter primarily driven by increased platform revenue from the prior-year period which included a full quarter of revenue from the acquisitions of ResoluteAI and Scite. Platform subscription revenue for the quarter was $4.0 million, a 76% year-over-year increase. The increase was primarily due to the acquisitions of ResoluteAI and Scite, as well as organic growth in the core Article Galaxy platform. The quarter ended with annual recurring revenue of $16.6 million, up 82% year-over-year (see the company's definition of annual recurring revenue below). Transaction revenue was $8.2 million, compared to $8.1 million in the third quarter of fiscal 2023. This quarter represents the first comparable period following the acquisition of contracts from FIZ Karlsruhe, which was effective January 1, 2023. The transaction active customer count for the quarter was 1,426, compared to 1,417 customers in the prior-year quarter (see the company's definition of active customer accounts and transactions below). Total gross margin improved 630 basis points from the prior-year quarter to 45.2%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business, as well as a modest increase in margins in the transactions business. Total operating expenses were $5.4 million, compared to $3.9 million in the third quarter of 2023. The increase was primarily related to the additional expense base associated with the acquisitions of ResoluteAI and Scite.  Net income in the third quarter was $76,000, or $0.00 per share on a fully diluted basis, compared to $237,000, or $0.01 per diluted share, in the prior-year quarter. Adjusted EBITDA was $961,000, compared to $559,000 in the year-ago quarter (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below). Conference Call Research Solutions President and CEO Roy W. Olivier and CFO Bill Nurthen will host the conference call, followed by a question and answer period. Date: Thursday, May 9, 2024Time: 5:00 p.m. ET (2:00 p.m. PT)Dial-in number: 1-785-424-1699Conference ID: RESEARCH The conference call will be broadcast live and available for replay until June 9, 2024 by dialing  1-412-317-6671 and using the replay ID 11155728, and via the investor relations section of the company's website at http://researchsolutions.investorroom.com/. Fiscal Third Quarter Financial and Operational Summary Tables vs. Prior-Year Quarter Quarter Ended March 31, Nine Months Ended March 31, 2024 2023 Change % Change 2024 2023 Change % Change Revenue: Platforms $     3,953,403 $   2,249,632 $    1,703,771 75.7 % $     9,679,179 $     6,379,871 $    3,299,308 51.7 % Transactions $     8,162,269 $   8,092,794 69,475 0.9 % $   22,811,206 $   21,363,864 1,447,342 6.8 % Total Revenue 12,115,672 10,342,426 1,773,246 17.1 % 32,490,385 27,743,735 4,746,650 17.1 % Gross Profit: Platforms 3,382,051 1,981,002 1,401,049 70.7 % 8,239,028 5,627,695 2,611,333 46.4 % Transactions 2,099,881 2,046,271 53,610 2.6 % 5,758,272 5,152,653 605,619 11.8 % Total Gross Profit 5,481,932 4,027,273 1,454,659 36.1 % 13,997,300 10,780,348 3,216,952 29.8 % Gross profit as a % of revenue: Platforms 85.5 % 88.1 % -2.5 % 85.1 % 88.2 % -3.1 % Transactions 25.7 % 25.3 % 0.4 % 25.2 % 24.1 % 1.1 % Total Gross Profit 45.2 % 38.9 % 6.3 % 43.1 % 38.9 % 4.2 % Operating Expenses: Sales and marketing 1,122,365 642,624 479,741 74.7 % 2,612,308 1,830,448 781,860 42.7 % Technology and product development 1,371,754 953,677 418,077 43.8 % 3,952,891 2,751,099 1,201,792 43.7 % General and administrative 2,027,074 1,871,591 155,483 8.3 % 6,593,791 5,004,679 1,589,112 31.8 % Depreciation and amortization 309,898 18,332 291,566 1590.5 % 525,267 30,486 494,781 1623.0 % Stock-based compensation 541,002 480,458 60,544 12.6 % 1,729,271 1,264,522 464,749 36.8 % Foreign currency translation loss 22,177 (72,547) 94,724 NM 15,059 (84,210) 99,269 NM Total Operating Expenses 5,394,270 3,894,135 1,500,135 38.5 % 15,428,587 10,797,024 4,631,563 42.9 % Income (loss) from operations 87,663 133,139 (45,476) -34.2 % (1,431,286) (16,675) (1,414,611) 8483.2 % Other Income (Expenses): Other income 31,228 104,331 (73,103) -70.1 % 547,965 218,095 329,870 151.3 % Provision for income taxes (42,590) (628) (41,962) NM  (82,049) (5,543) (76,506) NM  Total Other Income (Expenses): (11,362) 103,703 (115,065) NM  465,916 212,552 253,364 119.2 % Net income (loss) $          76,301 $      236,842 (160,541) -67.8 % $      (965,370) $        195,877 (1,161,247) NM NM Adjusted EBITDA $        960,740 $      559,382 $       401,358 71.8 % $        838,311 $     1,194,123 $     (355,812) -29.8 % Quarter Ended March 31, Nine Months Ended March 31, 2024 2023 Change % Change 2024 2023 Change % Change Platforms: B2B ARR (Annual recurring revenue*):   Beginning of Period $   11,614,748 $   8,776,977 $    2,837,771 32.3 % $     9,444,130 $     7,922,188 $    1,521,942 19.2 %    Incremental ARR 38,315 330,704 (292,389) -88.4 % 2,208,933 1,185,493 1,023,440 86.3 %   End of Period $   11,653,063 $   9,107,681 $    2,545,382 27.9 % $   11,653,063 $     9,107,681 $    2,545,382 27.9 % Deployments:   Beginning of Period 942 790 152 19.2 % 835 733 102 13.9 %    Incremental Deployments 41 25 16 64.0 % 148 82 66 80.5 %   End of Period 983 815 168 20.6 % 983 815 168 20.6 % ASP (Average sales price):   Beginning of Period $          12,330 $        11,110 $           1,220 11.0 % $          11,310