Research Solutions, Inc. (NASDAQ:RSSS) Q3 2022 Earnings Conference Call May 12, 2022 5:00 PM ET

Company Participants

Steven Hooser - IR

Roy Olivier - President and CEO

Bill Nurthen - CFO

Conference Call Participants

Allen Klee - Maxim Group

Peter Rabover - Artko Capital

Richard Baldry - ROTH Capital

Operator

Good afternoon, everyone. And thank you for participating in today’s conference call to discuss Research Solutions Financial and Operating Results for its Fiscal Third Quarter ended March 31, 2022. As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Steven Hooser, Investor Relations. Please go ahead.

Steven Hooser

Thank you, operator, good afternoon, everyone. And thank you for joining us today for Research Solutions’ Third Quarter Fiscal 2022 Earnings Call. On the call with me today are Roy W. Olivier, President and Chief Executive Officer and Bill Nurthen, Chief Financial Officer.

After the market closed this afternoon, the company issued a press release announcing its results for the second quarter of fiscal 2022. That release is available on the company’s website at researchsolutions.com.

Before turning the call over to Roy and Bill or before Roy and Bill begin their prepared remarks, I would like to remind you that some of the statements made today will be 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 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 included in the earnings press release issued this afternoon. Finally, I would like to remind everyone that this call will be recorded and made available for replay via a link on the company’s website.

With that, I will now turn the call over to Roy. Roy?

Roy Olivier

Thank you, Steven. And thanks to everyone joining us today. We are generally pleased with our continued progress in growing the business. It was our second quarter of net ARR growth over 500,000 and a record in terms of quarterly recognized revenue. We had a strong up-sell quarter, which is a good sign that the product upgrades we’ve been investing in are valuable to our customers. The up-sell number was also a company record and helped us to maintain over 110% net churn for the second quarter in a row and now in three of the last four quarters. The business also posted over 30% growth year-over-year and platform customer growth, ARR and platform revenue.