Research Solutions, Inc · NASDAQ:RSSS
Research Solutions — Investor Presentation (December 2014)
27 slides from Research Solutions's investor presentation, Dec 2, 2014
Slide 1: On-Demand Access to Scientific, Technical, and Medical Information
On - Demand Access to Scientific, Technical, and Medical Information Corporate Presentation December 2014 OTCQB: RSSS
Slide 2: Important Cautions Regarding Forward Looking Statements
OTCQB:RSSS IMPORTANT CAUTIONS REGARDING 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
Slide 3: Revenue Transition: Print to Digital and Key Stats
OTCQB:RSSS Revenue Transitio n: Print to Digital 1 Key Stats (OTCQB: RSSS) 3 Stock Price (11/25/14) $0.77 52 Week Low - High $2.45 - $0.51 Avg. Daily Vol. (3 mo.) 5,257 Shares Outstanding 18.0M Float (est.) 7.9M Insider Holdings ~54% Institutional Holdings ~37% Market Cap $13.8M Enterprise Value $13
Slide 4: Who We Are
OTCQB:RSSS Who We Are We provide on - demand access to scientific, technical and medical (STM) information for life science companies, academic institutions, and other research - intensive organizations Our Article Galaxy cloud - based software - as - a - service (SaaS) solution provides: Effi
Slide 5: How We're Different
OTCQB:RSSS How We’re Different 5 Our 100% focus on Scientific, Technical and Medical (STM) Research distinguishes us from LexisNexis and Bloomberg SCIENTIFIC RESEARCH Articles from Scientific , Technical, and Medical Journals Laws, Legal Cases and Opinions Annual Reports and Financial Market Data FI
Slide 6: Our Market Segments
OTCQB:RSSS Our Market Segments Annual Growth 1 Information Industry Segments 1 2013 Revenue (Billions) % Growth 2013 2014 - 16 CAGR Forecast B2B Trade $30.6 3.1% 3.4% Market Research, Reports and Services $41.2 3.6% 3.4% Market Automation, Analytics and CRM $23.4 12.1% 10.9% Marketing Services $113.
Slide 7: Our Current Addressable Market
OTCQB:RSSS $87B $33B Rest of Industry Search, Aggregation and Syndication (SAS) Scientific, Technical and Medical (STM) Our Current Addressable Market 7 Our current total addressable market (TAM) of STM Subsc ription and Syndication Services is estimated at $5 billion 1 This is roughly comprised
Slide 8: We Support the Perennial Cycle of STM Discovery and Publication
OTCQB:RSSS We Support the Perennial Cycle of STM Discovery and Publication 8 70M + STM Articles Plus 1.7M+ new articles published annually Our Customers Scientists, Engineers, IP Attorneys, Information Managers, Academics STM Discovery and Publication Eco System STM Discovery Activity By Life Scienc
Slide 9: The Industry Transition to Digital Media
OTCQB:RSSS Information Industry Revenue by Source 65.8% Print 34.4% 29.9% Electronic 61.7% 4.3% In Person 3.9% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 The Industry Transition to Digital Media 9 We are Uniquely Positioned to Benefit from the Continued Transition from Print to Digital S
Slide 10: Our Revenue Mix: Strategic Transformation Underway
OTCQB:RSSS Our Revenue Mix 1 Strategic Transformation Underway Research Solutions is Evolving into a More Profitable, Higher Growth, Digital - based Company ▪ Print - Bulk Physcial Reprints ▪ Manual Process, Commoditized ▪ Highly Competitive, Low Margin ▪ Volatile Revenue ▪ Digital – Article Galaxy,
Slide 11: The Problem with STM Research Access and Our Solution
OTCQB:RSSS 1) Percent as top reason according to Outsell 2013 End - User Survey The Problem with STM Research Access and Our Solution Major Obstacles Reported by Knowledge Workers The Article Galaxy Solution Time (29% 1 ) – not enough time in the day Fast “One - stop - shop” for accessing the Univer
Slide 12: Web-based, Easy-to-Use SaaS Platform
OTCQB:RSSS Web - based, Easy - to - Use SaaS Platform 12 Select it (and see what you already have) Find it ( on our site or others) 1 Buy or Rent it Download it 1) Use the Article Galaxy Widget browser plug - in to select articles on 50+ third - party websites/tools, like PubMed, Google Scho
Slide 13: Our Solution Ranks #1 Across the Board in Customer Satisfaction
OTCQB:RSSS Our Solution Ranks #1 Across the Board in Customer Satisfaction 13 Source: Outsell 2012 Document Delivery Survey Scale: 1=Very Dissatisfied 2=Dissatisfied 3=Neutral 4=Satisfied 5=Very Satisfied 3.6 4 3.8 3.9 4.4 4.1 4.5 Coverage Depth and Breadth 3.2 3.3 3.6 3.7 3.7 4 4.2 Fair Pricing 3.4
Slide 14: Loyal Marquee Customer Base
OTCQB:RSSS Loyal Marquee Customer Base Stable and growing base of Article Galaxy customers; virtually zero top customer churn Client Composition 4 out of 5 of the Top 5 Drug Companies ranked by R&D performance 1 50% of the Global Top 10 Biotech and Pharmaceutical Companies ranked by revenue
Slide 15: Partnered with Leading, Long-Established STM Publishers
OTCQB:RSSS We’re Partnered with Leading, Long - Established STM Publishers 15 Our partners publish the articles we sell, and we help them monetize and protect their content.
Slide 16: Growing Article Galaxy Customer Base
OTCQB:RSSS Growing Article Galaxy Customer Base 16 Average Number of Customers per Quarter Continues to Climb Customer Reach Increasingly Global (Geography as Percentage of Revenue ) 389 503 546 551 564 603 665 710 752 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 35.7% 35.
Slide 17: Article Galaxy Revenue Model
OTCQB:RSSS “Stable and sticky” revenue from Article Galaxy recurring transactions How it’s sticky: While single article delivery services are charged on a transactional basis, customer order volume tends to be consistent from month - to - month. This is mostly due to consistent orders of larger
Slide 18: Financial Results and Pro Forma Model
OTCQB:RSSS Financial Results and Pro Forma Model Excludes Discontinued Operations FY2012 FY2013 FY2014 TTM 9/30/2014 Pro Forma Article Galaxy Revenue Doubles Revenue Article Galaxy/Digital 15,104,395 16,779,889 18,673,515 19,429,511 38,859,022 Reprints/Print 15,969,589 18,418,038 9,809,660 9,989,630
Slide 19: Growth Drivers
OTCQB:RSSS Growth Drivers Continued migration from subscriptions to on - demand content from current customers Further penetrate current corporate customer focus – convert customers from competitors Expansion to the largely untapped academic market Opportunistic rollups/acquisitions Articl
Slide 20: Peer Valuation
OTCQB:RSSS Peer Valuation Our valuation is significantly below our peers Recent sector M & A activity — buyout of major competitor Infotrieve: Infotrieve , a major provider of advanced document delivery and workflow solutions, was founded by Peter Derycz (CEO of Research Solutions), and built
Slide 21: 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 22: Key Takeaways
OTCQB:RSSS Revenue Transitio n: Print to Digital 1 6.2 9.8 11.7 15.1 16.8 18.7 19.4 FY09 FY10 FY11 FY12 FY13 FY14 TTM 9/14 Reprints (Print) Article Galaxy (Digital) $ Millions Key Takeaways Unmet demand with growing spend on digital content Recurring transactional revenue model Minimal competi
Slide 23: Contact Us
OTCQB:RSSS 23 Contact Us Peter Derycz, Chairman & CEO Alan Urban, CFO Research Solutions, Inc. 5435 Balboa Blvd., Suite 202 Encino, California 91316 For more information, please visit: www.researchsolutions.com Investor Relations Contact: Chris Tyson Managing Director Liolios Group 949 - 574 - 3860
Slide 24: Appendix
Appendix 24
Slide 25: Evolution of Research Solutions: From Print to Digital
OTCQB:RSSS 25 2012 Article Galaxy Digital Journal Article platform launched Evolution of Research Solutions: From Print to Digital 2013 Discontinuation of domestic commercial printer 2006 Reprints Desk founded by Peter Derycz to provide bulk paper reprints to pharma/biotech companies 2012 Outsell ra
Slide 26: Capitalization Table
OTCQB:RSSS 1) 400,000 warrants with a weighted average exercise price of $2.08 expiring on 12/21/2014 Capitalization Table SECURITY AS OF NOVEMBER 30, 2014 WEIGHTED AVERAGE EXERCISE PRICE PERCENTAGE FULLY DILUTED Common Stock Outstanding 17,971,302 N/A 87.1% Stock Options 1,954,501 $1.25 9.5% Warran
Slide 27: What Our Customers Are Saying
OTCQB:RSSS What Our Customers Are Saying… 27
Research Solutions — Investor Presentation (December 2014) on 6ix