Research Solutions, Inc. (OTC: RSSS) reported Q1 EPS of ($0.01). Revenue for the quarter came in at $7 million.

• Total revenue increased 3% to $7.0 million.
• Platform revenue up 52% to $589,000, with a 48% increase in total Platform deployments to 239. Annual recurring revenue up 54% to $2.4 million.
• Transaction revenue up slightly to $6.4 million, with customer count up 6% to 1,084.
• Total gross margin up 210 basis points to 28.0%.
• Net loss from continuing operations was $0.2 million, or $(0.01) per share, compared to a net loss of $0.8 million, or $(0.04) per share.

Management Commentary

"Fiscal 2019 began on a strong note with continued momentum in our Platform business, which helped drive consolidated gross margin higher on a sequential basis for the third straight quarter," said Peter Derycz, president and CEO of Research Solutions. "The value of the Platform is also growing, as reflected by our annual recurring revenue that has reached nearly $2.5 million. Unique enhancements like near-daily innovation produced by our 'Gadget Factory' is also helping drive value and strong customer retention.

"At the beginning of our second fiscal quarter, we launched version 2.2 of our Platform, which features new self-registration capabilities that allow for more efficient lead generation and frictionless sign-ups. We believe this upgrade will increase the pace of deployments and provide important analytics that will drive more efficient sales and marketing campaigns. In fact, we have already received a few hundred self sign-ups since the launch despite no marketing campaigns, including various enterprise inquiries. The release of version 2.2 also included the introduction of our Reference Manager gadget. Reference and citation management is an activity that most of the scientific community engages in, and we\'re excited to bring this ground-breaking gadget to life after months of R&D. Given our continued Platform momentum, and a new sales and marketing strategy underway, we expect fiscal 2019 to be another successful year for our business."

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