Research Solutions, Inc · NASDAQ:RSSS
Research Solutions — Investor Presentation (March 2017)
27 slides from Research Solutions's investor presentation, Mar 13, 2017
Slide 1: The Research Intelligence SaaS Solution for Science & Technology
The Research Intelligence SaaS Solution for Science & Technology Mar 2017 OTCQB: RSSS Corporate Presentation
Slide 2: Forward-Looking Statements
OTCQB:RSSS Forward - Looking Statements This presentation contains forward - looking statements that relate to future activities, events or developments. All statements, other than statements of fact, that address activities, events or developments that the company or its management expect, project,
Slide 3: We Are The LexisNexis/Bloomberg for Science & Technology Research
OTCQB:RSSS We Are The LexisNexis/Bloomberg for Science & Technology Research 3 SCIENTIFIC RESEARCH Articles from Scientific, Technical and Medical (STM) Journals Laws, Legal Cases and Opinions Annual Reports and Financial Market Data FINANCIAL RESEARCH LEGAL RESEARCH
Slide 4: Research Solutions At-a-Glance
OTCQB:RSSS Research Solutions At - a - Glance Research Solutions is pioneering an online research intelligence platform for companies in science & technology Platform rooted in our many years of article delivery market leadership Our all - in - one platform improves how users discover, filter, acces
Slide 5: Platform & Transaction Revenue Model
OTCQB:RSSS PLATFORMS Annual platform subscription fee, recurring & predictable Annual recurring revenue 1 = ~$905K Average selling price = $9,429 TTM gross margin = 82.1% Platform & Transaction Revenue Model 5 $126K $ 175 K $180K $ 208 K $251K $323K $401K $496K 581K $ 751 K $905K 13 17 17 19 21 28 3
Slide 6: The Research Process is Broken
OTCQB:RSSS The Research Process is Broken 6 Researchers are Overloaded by Information & Poor Filtering Tools ----------------------- Drowning users in millions of newly published research papers, patents, books & reports The Key Information They Need is Locked Behind Copyright & Online Paywalls ----
Slide 7: The Solution: Our Platform
OTCQB:RSSS The Solution: Our Platform 7 Platform Features Single enterprise SaaS platform featuring secure authentication, simplified workflows & 24 / 7 expert human support (no internal IT resources required) Fastest one - stop - shop for 24 / 7 access to the universe of scientific & technical cont
Slide 8: Our Transaction Business Enjoys a Large Addressable Market
OTCQB:RSSS Our Transaction Business Enjoys a Large Addressable Market 8 70M+ scientific, technical & medical articles worldwide 1.7M+ new articles published each year We have ~3% market share in the single article market today We believe the overall market is well - positioned for academic & corpora
Slide 9: Platform Market
OTCQB:RSSS Platform Market 9 Deployable across all sized organizations Especially valued by underserved small/medium business (SMB) market (< 500 employees) Why? Most SMBs don’t have access to existing corporate libraries, an information manager, etc. Platforms “democratizes” these powerful capabili
Slide 10: Platform Launch – A Strategic Evolution is Underway
OTCQB:RSSS 22.7 % 22.9% 21.6 % 23.1% 22.0% 21.5 % 20.5 % Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Platform Launch – A Strategic Evolution is Underway We Are Evolving into a More Profitable, Higher Growth Company via Platforms PLATFORMS ▪ Subscription - based SaaS revenue model ▪ Highe
Slide 11: Sales & Marketing Strategy
OTCQB:RSSS Sales & Marketing Strategy Selling direct in the U.S. and secondary markets Int’l represented by network of resellers in Europe & Asia covering: Japan (since ’ 10 ) Two new resellers covering key markets: • Denmark, Finland, Germany, Iceland, Norway, Sweden, Belgium, France, Italy, Luxemb
Slide 12: Key Market Coverage
OTCQB:RSSS Key Market Coverage 12 Reseller Internal
Slide 13: Loyal, Marquee Customer Base
OTCQB:RSSS Loyal, Marquee Customer Base Stable & growing base of 100 + platform customers & ~ 1 , 000 transaction customers ~$ 1 M in ARR from platform subscriptions Virtually zero top customer churn Revenue concentrations Top customer: ~ 4 % of revenue Top 10 customers: ~ 27 % of revenue Top 35 cus
Slide 14: Partnered with Leading, Long-Established Publishers & Data Sources
OTCQB:RSSS We’re Partnered with Leading, Long - Established Publishers & Data Sources 14
Slide 15: Long-Term Growth Drivers
OTCQB:RSSS Long - Term Growth Drivers 15 Underserved SMB Market Expand Sales & Marketing International Penetration via Resellers Upsell Transaction Customers ̴ 700 , 000 SMB’s (< 1 % penetration) Fewer information resources for SMB’s driving greater willingness to procure our services & faster close
Slide 16: Financial Overview
FINANCIAL OVERVIEW
Slide 17: Platform & Transaction Revenue Key Stats
OTCQB:RSSS Platform & Transaction Revenue 1 Key Stats (OTCQB: RSSS) 17 Stock Price (3/6/17) $1.11 52 Week Low - High $0.52 - $1.22 Avg. Daily Vol. (3 mo) 22,280 Shares Out/Diluted 23.9M/29.0M Float (est.) 3.0M Insider Holdings ~47% Institutional Holdings ~37% Market Cap $27.0M Enterprise Value $20.2
Slide 18: Revenue Profile
OTCQB:RSSS Revenue Profile 18
Slide 19: Balance Sheet Supports Growth
OTCQB:RSSS Balance Sheet Supports Growth $ 6.7 million in cash $ 0 debt Untapped $ 4 million max line of credit Prime plus 2.25 % ¹ Federal net operating losses (NOLs) of ~$ 9.0 million, State NOLs of ~$ 5 million to offset future profits Federal NOLs begin expiring in 2030 State NOLs begin expiring
Slide 20: Key Takeaways
OTCQB:RSSS Key Takeaways Strategic SaaS Transformation Underway: content management platform interconnects & extracts highly useful scientific & technology information Information Logistics Backbone: transaction business provides a multi - million dollar information backbone for platform growth Larg
Slide 21: Contact Us
OTCQB:RSSS Contact Us Peter Derycz, Chairman & CEO Alan Urban, CFO Research Solutions, Inc. 15821 Ventura Blvd., Suite 165 Encino, California 91436 For more information, please visit: www.researchsolutions.com Investor Relations Contact: Cody Slach or Sean Mansouri Liolios Investor Relations 949 - 5
Slide 22: Appendix
Appendix 22
Slide 23: What's Fueling the Platform Evolution?
OTCQB:RSSS What’s Fueling the Platform Evolution? Incremental, Value - Add Capabilities 23 Problem Platform Solution Transactions Platform Limited time One - stop shopping & no credit card pay walls Data security & privacy Enterprise grade security policies and framework Limited IT availability Clou
Slide 24: Management Team
OTCQB:RSSS PETER DERYCZ CEO • Founded Research Solutions in 2006 • Founded then sold Infotrieve Inc. to private equity investors in 2003 • Voted one of the 100 most influential people in Pharma by PharmaVoice • Holder of 9 patents • BA from UCLA ALAN URBAN CFO • Previously CFO of ReachLocal (RLOC),
Slide 25: Capitalization Table
OTCQB:RSSS Capitalization Table SECURITY AS OF FEBRUARY 28, 2017 WEIGHTED AVERAGE EXERCISE PRICE PERCENTAGE FULLY DILUTED Common Stock Outstanding 23,875,188 N/A 82.4% Stock Options 3,122,277 $1.15 10.8% Warrants 1,985,000 $1.25 6.8% Fully Diluted Shares Outstanding 28,982,465 100.0% MAJOR SHAREHOLD
Slide 26: Financial Results
OTCQB:RSSS Financial Results 26
Slide 27: Financial Results (cont'd)
OTCQB:RSSS Financial Results (cont’d) 27
Research Solutions — Investor Presentation (March 2017) on 6ix