For a tiny company which only uplisted to NASDAQ recently, Research Solutions $RSSS is very expensive but it may be worth it.
It's an information company - they sell access to scientific papers and want to become "the Bloomberg of Science"
I'll only mention a couple of the main moving parts and recent developments here and the valuation is up to you, it'll be multiples of current ARR however you slice it.
Two sections to this business: transactions and platforms - platforms is where the money is made.
A corporate or academic customer signs up to the platform (platforms) and though it can order scientific literature (transactions) and get it within an hour. The platform allows access and advanced manipulation of the literature. Note in red, the Q3 jump in deployments
The company last Q just signed a deal with Springer Nature, this move alone adds 1/3rd of all worldwide journal published scientific literature that already available on the platform and may explain the jump in deployments as well as the tone on the call afterwards.
In green above I highlight the gross margins and looking further down the table, its easy enough to see the operating leverage that the growth in platform deployments will bring.
Purple highlights show the magnitude of expensed development and EBITDA.
Why now? I've been watching $RSSS for a long time and whilst the price just doesn't crack, it has dipped somewhat. Q3 could have been the prelude to a Springer-driven step change in already strong growth and into profitability; this may well never look "cheap" or even reasonable.
10K is only 65 pages long, original table in first tweet available here on the company's website and is updated each quarter
info.reprintsdesk.com/hubfs/rsss/202…
Shhh..
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