Research Solutions, Inc

Good afternoon, everyone. Welcome to the Research Solutions Incorporated first quarter fiscal 2025 earnings conference call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing star 1 on your telephone keypad. Also, today's call is being recorded, and if you should need any operator assistance during the call today, please press star 0. Now at this time, I'll turn things over to Mr. Stephen Hooser, Investor Relations. Please go ahead, sir.

Thank you, Beau, and good afternoon, everyone. Thank you for joining us today for Research Solutions' first quarter fiscal year 2025 earnings call. On the call with me today are Roy W. Olivier, President and Chief Executive Officer, and Bill Nervin, Chief Financial Officer. After the market closed this afternoon, the company issued a press release announcing its results for the first quarter fiscal of 2025. The release is available on the company's website at researchsolutions.com. Before Roy and Bill begin their prepared remarks, I would like to remind you that some of the statements made today are forward-looking and are made under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied due to a variety of factors. We refer you to Research Solutions' recent filings with the SEC for a more detailed discussion of the risks and uncertainties that could impact the company's future operating results and financial condition. Also, on today's call, management will reference certain non-GAAP financial measures, which we believe provide useful information for investors. A reconciliation of those measures to GAAP measures is located in today's earnings press release as well. Finally, I would like to again remind everyone that this call will be recorded and made available for replay via a link on the company's website. I would now like to turn the call over to President and CEO Roy Olivier. Roy?

Thank you, Stephen. Our first quarter results reflect the financial scalability of our model, as our net income and adjusted EBITDA growth outpaced our top line on a year-over-year basis, even when factoring in some one-time expenses from the prior year. Deployments in the quarter were below our historical range, but we are seeing growth rebound in the second quarter. I'm particularly pleased to report a 20% increase in total revenues and a 67% increase in platform revenue for the quarter. A 60% increase in ARR with B2B contributing 12.2 million and B2C contributing 5.4 million. An outstanding improvement in adjusted EBITDA and cash flows generated from operations of 1.3 million in EBITDA and 800,000 in cash flow resulting in almost $4 million in adjusted EBITDA on a TTM basis and $5.1 million in cash flow in the same period. Our first quarter deployments in incremental ARR were lower than average due to several factors, including lower B2C subscription revenue growth during the summer months when universities are out of season and the impact of the traditional European vacation period. As we enter the fall, our B2C subscriptions have materially picked up and our B2C subscription ARR is currently approaching 6 million. Net platform deployments continue to be affected by a longer sales cycle where customers are increasing their due diligence periods and extending budgetary reviews. Under the surface, the new logo team hit their quarterly targets, but that was offset by higher than normal term and lower productivity from the upsell team. We saw higher than expected non-controllable churn driven primarily by acquisitions of our customers and customers closing their business. That was over half of our churn. On a positive note, we lost fewer customers to competitors in Q1. My hope is that at the conclusion of this election, provide some clarity for the near term and will allow for companies to make decisions as we approach the window for 2025 budgets to be finalized. I'll review some of the steps we're taking to improve our sales performance, but first I'd like to pass it over to Bill to walk through our fiscal first quarter financial results in detail, and then I'll wrap it up with some comments and outlook for fiscal 2025.