Overview

• AI-powered research platform's fiscal Q2 revenue missed analyst expectations

• Net income for fiscal Q2 improved significantly from a loss last year

• Adjusted EBITDA for fiscal Q2 grew 36% yr/yr

Outlook

• Company did not provide specific guidance for future quarters or full year in press release

Result Drivers

• B2B PLATFORM GROWTH - Co reported 14% increase in ARR to $21.8 mln, driven by 47 net new deployments and organic growth in B2B platform

• REVENUE MIX SHIFT - Improved gross margin to 52.4% driven by shift to higher-margin platform revenue

• TRANSACTIONS REVENUE DECLINE - Co reported decline in transactions revenue due to customer churn and reduced volume from larger customers

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Research Solutions Inc is $5.00, about 99.2% above its February 11 closing price of $2.51

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nPn6lFMbfa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)