Encino, Calif.-based Research Solutions, Inc. (NASDAQ:RSSS), a SaaS provider of workflow efficiency solutions for R&D-driven organizations, saw its shares propelled higher by Tuesday’s a corporate update and presenting selected preliminary results for its fiscal third quarter ended March 31, 2020.
Research Solutions expects total revenue in the third quarter of fiscal 2020 to increase 9% to approximately $8.0 million compared to $7.4 million in the same quarter last year.
Platform subscription revenue is expected to increase 36% to approximately $1.0 million with annual recurring revenue expected to increase 39% to approximately $4.1 million, representing the highest quarterly increase in the company's history. In addition, Research Solutions expects transaction revenue to increase 6% to approximately $7.0 million.
Cash and cash equivalents at March 31, 2020, amounted to approximately $8.3 million compared to $6.8 million at December 31, 2019. The company has no long-term liabilities or other debt and has full access to a $2.5-million revolving line of credit.
Shares in RSSS leaped 39 cents, or 15.2%, late Tuesday to $2.95, on 40,000 shares.
