Research Solutions Inc (NASDAQ:RSSS) stock rose 5.61% (As on September 14, 11:37:55 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. Platform revenue up 22% to $2.3 million. The increase was primarily due to an increase in upsell activity within our existing customer base and an increase in the total number of paid Platform deployments, including 20 added in the quarter.  Annual recurring revenue up 19% to $9.4 million. Transaction revenue was up 15%, increasing to $7.7 million, compared to $6.7 million in the fourth quarter of fiscal 2022. Transaction customers count for the quarter was 1,404, compared to 1,213 customers in the prior year quarter.

Moreover, the gross profit up 19% to the prior-year quarter; Total gross margin improved 110 basis points to 39.4%. The increase was primarily driven by a continued revenue mix shift to the higher-margin Platform business. Total operating expenses were approximately $3.7 million, a $62,000 decrease from the fourth quarter of 2022. The decrease was primarily due to lower sales and marketing expenses. Net income of $375,746, compared to a net loss of ($438,267)  in the prior-year quarter. Adjusted EBITDA of $825,087 compared to ($121,327) in the same period a year ago. Cash flow from operations of $1.5 million compared to slightly negative cash flow in the prior-year quarter. Subsequent to End of Fiscal 2023, the company acquired ResoluteAI, a developer of advanced search and discovery tools and engaged Jeremy Murphy as an advisor and observer to the Board of Directors. Cash and cash equivalents on June 30, 2023, amounted to $13.5 million compared to $10.6 million as of June 30, 2022. There were no outstanding borrowings under the company’s $2.5 million revolving line of credit and the company had no long-term liabilities or other debt.

RSSS in the fourth quarter of FY 23 has reported the adjusted earnings per share of 1 cents, beating the analysts’ estimates for the adjusted loss per share of 1 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 16 percent to $10 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue by 2.68%. The company’s customers continue to recognize the greater efficiency and cost savings offered through the Article Galaxy platform and the recent acquisition of ResoluteAI expands these offerings and capabilities, providing the company with meaningful cross-selling opportunities.