Research Solutions (RSSS) investor relations material

Business overview and market positioning

• Provides research collaboration and access tools, focusing on efficiency and cost savings for researchers.

• Operates two main products: Scite (citation and quality signal tool) and Article Galaxy (article access and delivery platform).

• Positioned to bridge research content with AI tools like ChatGPT and Claude, enabling direct literature search and access within these platforms.

• Holds unique AI rights and indexing agreements with about 40 major publishers, offering proprietary quality indicators for research articles.

• Serves a diverse customer base, including large pharma, academic institutions, and corporations across various industries.

Product innovation and differentiation

• Scite provides next-generation citation analytics, showing if articles are supported or challenged, similar to Rotten Tomatoes for research.

• Article Galaxy enables seamless purchase, rental, or entitlement-based access to research articles, integrated into AI tools.

• Early integration with AI platforms and app stores, with connectors live in ChatGPT and Claude, and under review for Copilot.

• Differentiates from competitors by offering direct AI tool integration and proprietary quality signals.

• Agreements with publishers are non-exclusive, but the company is the only provider connecting research access directly into AI tools.

Financial performance and strategy

• Two revenue streams: transaction business (57% of revenue, ~25% margin) and platform business (43% of revenue, >85% margin).

• Platform business shows high scalability, with gross margins nearing 90% and minimal incremental costs for new customers.

• Recent focus on improving retention among Tier 3 customers, aiming for growth rates to rebound in the next fiscal year.

• Achieved $6 million in EBITDA and $5.8 million in cash flow over the trailing 12 months, with no debt and a healthy balance sheet.

• Expects continued margin improvement as revenue mix shifts further toward the platform business.