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Research Solutions Reports Fourth Quarter and Fiscal Year 2024 Results

Published

2 years ago

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Reports 18% Revenue Increase, ARR of $17.4 Million and Record Cash Flow

HENDERSON, Nev., Sept. 19, 2024 /PRNewswire/ — Research Solutions, Inc. (NASDAQ: RSSS), a trusted partner providing cloud-based workflow solutions to accelerate research for R&D-driven organizations, reported record financial results for its fourth quarter and full fiscal year ended June 30, 2024.

Fiscal Fourth Quarter 2024 Summary (compared to prior-year quarter)

Total revenue of $12.1 million, a 22% increase.Platform revenue up 86% to $4.3 million. Platform revenue accounted for 35% of the revenue as compared to 23% in the prior year.Annual Recurring Revenue (“ARR”) up 84% to $17.4 million, which includes approximately $12.1 million of B2B recurring revenue and $5.4M of B2C recurring revenue.Gross profit up 44%. Total gross margin improved 710 basis points to 46.5%.Net loss of $2.8 million, or ($0.09) per diluted share, compared to $376,000 or $0.01 per diluted share. The quarter’s result includes a charge of approximately $4.3 million related to increasing the projected earnout for Scite.Adjusted EBITDA of $1.4 million, a 70% improvement and a Company quarterly record, compared to $825,000.Cash flow from operations of $2.0 million, compared to $1.5 million, a 30% improvement.

Fiscal Year 2024 Summary (compared to Fiscal 2023)

Total revenue of $44.6 million, an 18% increase.Platform revenue up 61% to $14.0 million. Transaction revenue increased 5.7% to $30.7 million.Gross profit up 34%. Total gross margin improved 500 basis points to 44.0%.Net loss of $3.8 million, or ($0.13) per diluted share, including the previously mentioned $4.3 million charge and $1.5 million in proxy and acquisition-related expenses, compared to net income of $572,000 or $0.02 per diluted share.Adjusted EBITDA of $2.2 million, which is inclusive of proxy and acquisition-related expenses of $1.4 million, a Company record, compared to $2.0 million.Cash flow from operations of $3.6 million, a Company record, compared to $3.4 million.

“Fiscal 2024 was a transformational year for the Company. We completed two acquisitions which helped position us as a vertical SaaS and AI company, helping researchers throughout their entire workflow. The integration of these acquisitions and our operational execution were meaningful contributors to our 85% year-over-year ARR growth and the double-digit increase in Adjusted EBITDA,” said Roy W. Olivier, President and CEO of Research Solutions. “There are many untapped market opportunities where our highly specialized product offerings can serve as a vital piece of the research process.  Overall, we believe we are well-positioned to deliver meaningful ARR growth while expanding Adjusted EBITDA margins, creating long-term value for our shareholders.” 

Fiscal Fourth Quarter 2024 Results

Total revenue was $12.1 million, a 22% increase from $10.0 million in the year-ago quarter primarily driven by increased platform revenue versus the prior-year period due to revenue from the Company’s acquisitions as well as organic platform revenue growth.

Platform subscription revenue for the quarter was $4.3 million, an 86% year-over-year increase. The increase was primarily due to the acquisition of Scite, as well as organic growth in the core Article Galaxy platform. The quarter ended with annual recurring revenue of $17.4 million, up 84% year-over-year (see the company’s definition of annual recurring revenue below).

Transaction revenue was $7.9 million, compared to $7.7 million in the fourth quarter of fiscal 2023. The transaction active customer count for the quarter was 1,398, compared to 1,404 customers in the prior-year quarter (see the company’s definition of active customer accounts and transactions below).

Total gross margin improved 710 basis points from the prior-year quarter to 46.5%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business, as well as a 70 basis point increase in margins in the transactions business.

Total operating expenses were $5.0 million, compared to $3.7 million in the fourth quarter of 2023. The increase was primarily related to the additional cost base associated with the aforementioned acquisitions, as well as increased non-cash depreciation and amortization expense related to such acquisitions. 

Other expense for the quarter was approximately $3.5 million, compared to other income of $120,000 in the prior-year quarter. The primary driver of this was $4.3M of expense related to increasing the earn-out assumption associated with the Scite acquisition.

Net loss in the fourth quarter was $2.8 million, or ($0.09) per diluted share, compared to net income of $376,000, or $0.01 per diluted share, in the prior-year quarter. Adjusted EBITDA was $1.4 million, compared to $825,000 in the year-ago quarter (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below).

Full-Year Fiscal 2024 Results

Total revenue was $44.6 million, an 18% increase from fiscal 2023, driven by both increased platform revenue and transaction revenue.

Platform subscription revenue for fiscal 2024 was $14.0 million, a 61% year-over-year increase. The increase was primarily due to the acquisition of Scite, as well as organic growth in the core Article Galaxy platform.

Transaction revenue was $30.7 million, compared to $29.0 million in fiscal 2023. The increase was driven by organic growth and the impact of a full year of contribution from the acquisition of contracts from FIZ Karlsruhe, compared to six months in fiscal 2023.

Total gross margin improved 500 basis points from the prior-year to 44.0%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business, as well as a 100 basis point increase in margins in the transactions business related to pricing initiatives.

Total operating expenses for the year were $20.4 million, compared to $14.5 million in fiscal 2023. The increase was primarily related to the additional cost base associated with the acquisitions, including increased non-cash depreciation and amortization expense related to such acquisitions, as well as the aforementioned proxy and acquisition-related expenses.

Net loss for fiscal 2024 was $3.8 million, or ($0.13) per diluted share, compared to net income of $572,000, or $0.02 per diluted share, in the prior-year. Adjusted EBITDA was $2.2 million, compared to $2.0 million in fiscal 2023 (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below).

Conference Call
Research Solutions President and CEO Roy W. Olivier and CFO Bill Nurthen will host the conference call, followed by a question and answer period.

Date: Thursday, September 19, 2024
Time: 5:00 p.m. ET (2:00 p.m. PT)
Dial-in number: 1-412-317-5180

The conference call will be broadcast live and available for replay until October 19, 2024 by dialing  1-412-317-6671 and using the replay ID 10191850, and via the investor relations section of the company’s website at http://researchsolutions.investorroom.com/.

Fiscal Fourth Quarter Financial and Operational Summary Tables vs. Prior-Year Quarter

Quarter Ended June 30,

Twelve Months Ended June 30,

2024

2023

Change

% Change

2024

2023

Change

% Change

Revenue:

Platforms

$   4,277,338

$ 2,303,375

$  1,973,963

85.7 %

$ 13,956,517

$   8,683,246

$  5,273,271

60.7 %

Transactions

$   7,856,176

$ 7,656,342

199,834

2.6 %

$ 30,667,382

$ 29,020,206

1,647,176

5.7 %

Total Revenue

12,133,514

9,959,717

2,173,797

21.8 %

44,623,899

37,703,452

6,920,447

18.4 %

Gross Profit:

Platforms

3,650,286

2,028,265

1,622,021

80.0 %

11,889,314

7,655,960

4,233,353

55.3 %

Transactions

1,992,580

1,892,278

100,302

5.3 %

7,750,852

7,044,931

705,921

10.0 %

Total Gross Profit

5,642,866

3,920,543

1,722,323

43.9 %

19,640,166

14,700,891

4,939,274

33.6 %

Gross profit as a % of revenue:

Platforms

85.3 %

88.1 %

-2.7 %

85.2 %

88.2 %

-3.0 %

Transactions

25.4 %

24.7 %

0.6 %

25.3 %

24.3 %

1.0 %

Total Gross Profit

46.5 %

39.4 %

7.1 %

44.0 %

39.0 %

5.0 %

Operating Expenses:

Sales and marketing

830,195

455,030

375,165

82.4 %

3,442,503

2,285,478

1,157,025

50.6 %

Technology and product development

1,489,491

991,093

498,398

50.3 %

5,442,382

3,742,192

1,700,190

45.4 %

General and administrative

1,917,907

1,649,333

268,574

16.3 %

8,511,697

6,654,012

1,857,685

27.9 %

Depreciation and amortization

311,004

22,163

288,841

1303.3 %

836,271

52,649

783,622

1488.4 %

Stock-based compensation

426,190

585,384

(159,194)

-27.2 %

2,155,461

1,849,906

305,555

16.5 %

Foreign currency translation loss

6,336

(37,743)

44,079

116.8 %

21,395

(121,953)

143,348

117.5 %

Total Operating Expenses

4,981,123

3,665,260

1,315,863

35.9 %

20,409,709

14,462,284

5,947,425

41.1 %

Income (loss) from operations

661,743

255,283

406,460

159.2 %

(769,543)

238,608

(1,008,151)

-422.5 %

Other Income (Expenses):

Other income

(3,451,948)

120,522

(3,572,470)

NM 

(2,903,983)

338,617

(3,242,600)

NM 

Provision for income taxes

(31,022)

(59)

(30,963)

NM 

(113,071)

(5,602)

(107,469)

NM 

Total Other Income (Expenses):

(3,482,970)

120,463

(3,603,433)

NM 

(3,017,054)

333,015

(3,350,069)

NM 

Net income (loss)

$  (2,821,227)

$    375,746

(3,196,973)

NM 

$ (3,786,597)

$      571,623

(4,358,220)

NM

NM

Adjusted EBITDA

$   1,405,273

$    825,087

$      580,186

70.3 %

$   2,243,584

$   2,019,210

$     224,374

11.1 %

Quarter Ended June 30,

Twelve Months Ended June 30,

2024

2023

Change

% Change

2024

2023

Change

% Change

Platforms:

B2B ARR (Annual recurring revenue*):

  Beginning of Period

$ 11,653,063

$ 9,107,681

$  2,545,382

27.9 %

$   9,444,130

$   7,922,188

$  1,521,942

19.2 %

   Incremental ARR

407,139

336,448

70,691

21.0 %

2,616,072

1,521,941

1,094,131

71.9 %

  End of Period

$ 12,060,202

$ 9,444,129

$  2,616,073

27.7 %

$ 12,060,202

$   9,444,129

$  2,616,073

27.7 %

Deployments:

  Beginning of Period

983

815

168

20.6 %

835

733

102

13.9 %

   Incremental Deployments

38

20

18

90.0 %

186

102

84

82.4 %

  End of Period

1,021

835

186

22.3 %

1,021

835

186

22.3 %

ASP (Average sales price):

  Beginning of Period

$         11,855

$      11,175

$             680

6.1 %

$        11,310

$        10,808

$             502

4.6 %

  End of Period

$         11,812

$      11,310

$             502

4.4 %

$        11,812

$        11,310

$             502

4.4 %

B2C ARR (Annual recurring revenue*):

  Beginning of Period

$   4,902,975

$               –

$  4,902,975

$                 –

$                 –

$                –

   Incremental ARR

460,154

–

460,154

NM

5,363,129

–

5,363,129

NM

  End of Period

$   5,363,129

$               –

$  5,363,129

NM

$   5,363,129

$                 –

$  5,363,129

NM

Total ARR (Annualized recurring revenue):

$ 17,423,331

$ 9,444,129

$  7,979,202

84.5 %

$ 17,423,331

$   9,444,129

$  7,979,202

84.5 %

Transaction Customers:

Corporate customers

1,093

1,090

3

0.3 %

1,088

1,012

76

7.5 %

Academic customers

305

314

(9)

-2.9 %

316

304

12

4.0 %

Total customers

1,398

1,404

(6)

-0.4 %

1,404

1,316

88

6.7 %

Active Customer Accounts, Transactions and Annual Recurring Revenue

The company defines active customer accounts as the sum of the total quantity of customers per month for each month in the period divided by the respective number of months in the period. The quantity of customers per month is defined as customers with at least one transaction during the month.

A transaction is an order for a unit of copyrighted content fulfilled or managed in the Platform.

The company defines annual recurring revenue (“ARR”) as the value of contracted Platform subscription recurring revenue normalized to a one-year period.  For B2C ARR, this includes the annualized value of monthly subscriptions, meaning their monthly value multiplied by twelve.

Use of Non-GAAP Measure – Adjusted EBITDA

Research Solutions’ management evaluates and makes operating decisions using various financial metrics. In addition to the company’s GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP measure provides useful information about the company’s operating results.

The tables below provide a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure. Adjusted EBITDA is defined as net income (loss), plus interest expense, other income (expense) including any change in fair value of contingent earnout liability, foreign currency transaction loss, provision for income taxes, depreciation and amortization, stock-based compensation, gain on sale of discontinued operations, and other potential adjustments that may arise. Set forth below is a reconciliation of Adjusted EBITDA to net income (loss):

Quarter Ended June 30,

Twelve Months Ended June 30,

2024

2023

Change

% Change

2024

2023

Change

% Change

Net Income (loss)

$  (2,821,227)

$    375,746

$ (3,196,973)

NM

$ (3,786,597)

$      571,623

$(4,358,220)

NM

 Add (deduct):

–

Other income (expense)

3,451,948

(120,522)

3,572,470

NM

2,903,983

(338,617)

3,242,600

NM

Foreign currency translation loss

6,336

(37,743)

44,079

116.8 %

21,395

(121,953)

143,348

117.5 %

Provision for income taxes

31,022

59

30,963

NM

113,071

5,602

107,469

NM

Depreciation and amortization

311,004

22,163

288,841

1303.3 %

836,271

52,649

783,622

1488.4 %

Stock-based compensation

426,190

585,384

(159,194)

-27.2 %

2,155,461

1,849,906

305,555

16.5 %

Gain on sale of disc. ops.

–

–

–

–

–

–

 Adjusted EBITDA

$   1,405,273

$    825,087

$      580,186

70.3 %

$   2,243,584

$   2,019,210

$     224,374

11.1 %

About Research Solutions 
Research Solutions, Inc. (NASDAQ: RSSS) provides cloud-based technologies to streamline the process of obtaining, managing, and creating intellectual property. Founded in 2006 as Reprints Desk, the company was a pioneer in developing solutions to serve researchers. Today, more than 70 percent of the top pharmaceutical companies, prestigious universities, and emerging businesses rely on Article Galaxy, the company’s SaaS research platform, to streamline access to the latest scientific research and data with 24/7 customer support. For more information and details, please visit www.researchsolutions.com 

Important Cautions Regarding Forward-Looking Statements

Certain statements in this press release may contain “forward-looking statements” regarding future events and our future results. All statements other than statements of historical facts are statements that could be deemed to be forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the markets in which we operate and the beliefs and assumptions of our management. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects”, “intends,” “plans,” “believes,” “seeks,” “estimates,” “endeavors,” “strives,” “may,” or variations of such words, and similar expressions are intended to identify such forward-looking statements. Readers are cautioned that these forward-looking statements are subject to a number of risks, uncertainties and assumptions that are difficult to predict, estimate or verify. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Such risks and uncertainties include those factors described in the Company’s most recent annual report on Form 10-K, as such may be amended or supplemented by subsequent quarterly reports on Form 10-Q, or other reports filed with the Securities and Exchange Commission. Examples of forward-looking statements in this release include statements regarding enhanced product offerings, additional customers, and the Company’s prospects for growth. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements. For more information, please refer to the Company’s filings with the Securities and Exchange Commission. 

 

Research Solutions, Inc. and Subsidiaries
Consolidated Balance Sheets

June 30, 

June 30, 

2024

2023

Assets

Current assets:

Cash and cash equivalents

$

6,100,031

$

13,545,333

Accounts receivable, net of allowance of $68,579 and $85,015, respectively

6,879,800

6,153,063

Prepaid expenses and other current assets

643,553

400,340

Prepaid royalties

1,067,237

1,202,678

Total current assets

14,690,621

21,301,414

Non-current assets:

Property and equipment, net of accumulated depreciation of $922,558 and $881,908,
respectively

88,011

70,193

Intangible assets, net of accumulated amortization of $1,535,310 and $747,355,
respectively ($8,343,056 provisional)

10,764,261

462,068

Goodwill ($13,171,486 provisional)

16,315,888

—

Deposits and other assets

981

1,052

Total assets

$

41,859,762

$

21,834,727

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable and accrued expenses

$

8,843,612

$

8,079,516

Deferred revenue

9,023,848

6,424,724

Total current liabilities

17,867,460

14,504,240

Non-current liabilities:

Contingent earnout liability

12,298,114

—

Total liabilities

30,165,574

14,504,240

Commitments and contingencies

Stockholders’ equity:

Preferred stock; $0.001 par value; 20,000,000 shares authorized; no shares issued and
outstanding

—

—

Common stock; $0.001 par value; 100,000,000 shares authorized; 32,295,373 and
29,487,508 shares issued and outstanding, respectively

32,295

29,487

Additional paid-in capital

38,089,958

29,941,873

Accumulated deficit

(26,309,246)

(22,522,649)

Accumulated other comprehensive loss

(118,819)

(118,224)

Total stockholders’ equity

11,694,188

7,330,487

Total liabilities and stockholders’ equity

$

41,859,762

$

21,834,727

 

Research Solutions, Inc. and Subsidiaries
Consolidated Statements of Operations and Other Comprehensive Loss

Years Ended

June 30, 

2024

2023

Revenue:

Platforms

$

13,956,517

$

8,683,246

Transactions

30,667,382

29,020,206

Total revenue

44,623,899

37,703,452

Cost of revenue:

Platforms

2,067,203

1,027,286

Transactions

22,916,530

21,975,275

Total cost of revenue

24,983,733

23,002,561

Gross profit

19,640,166

14,700,891

Operating expenses:

Selling, general and administrative

19,573,438

14,409,634

Depreciation and amortization

836,271

52,649

Total operating expenses

20,409,709

14,462,283

Income (loss) from operations

(769,543)

238,608

Other income

333,088

338,617

Change in fair value of contingent earnout liability

(3,237,071)

—

Income (loss) from operations before provision for income taxes

(3,673,526)

577,225

Provision for income taxes

(113,071)

(5,602)

Net income (loss)

(3,786,597)

571,623

Other comprehensive income (loss):

Foreign currency translation

(595)

3,717

Comprehensive income (loss)

$

(3,787,192)

$

575,340

Basic income (loss) per common share:

Net income (loss) per share

$

(0.13)

$

0.02

Weighted average common shares outstanding

28,863,949

26,860,761

Diluted income (loss) per common share:

Net income (loss) per share

$

(0.13)

$

0.02

Weighted average common shares outstanding

28,863,949

29,139,759

 

Research Solutions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows

Years Ended

June 30, 

2024

2023

Cash flow from operating activities:

Net income (loss)

$

(3,786,597)

$

571,623

Adjustment to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

836,271

52,649

Fair value of vested stock options

140,150

375,189

Fair value of vested restricted common stock

1,994,362

1,418,718

Fair value of vested unrestricted common stock

—

68,272

Modification cost of accelerated vesting of restricted common stock

20,949

56,000

Adjustment to contingent earnout liability

3,237,071

—

Changes in operating assets and liabilities:

Accounts receivable

(344,020)

(901,518)

Prepaid expenses and other current assets

(164,579)

(124,314)

Prepaid royalties

135,441

(356,026)

Accounts payable and accrued expenses

560,027

1,337,056

Deferred revenue

921,879

886,198

Net cash provided by operating activities

3,550,954

3,383,847

Cash flow from investing activities:

Purchase of property and equipment

(71,510)

(47,209)

Payment for acquisition of Resolute, net of cash acquired

(2,718,253)

—

Payment for acquisition of Scite, net of cash acquired

(7,305,493)

—

Payment for non-refundable deposit for asset acquisition

—

(297,450)

Net cash used in investing activities

(10,095,256)

(344,659)

Cash flow from financing activities:

Proceeds from the exercise of stock options

—

57,500

Common stock repurchase

(554,202)

(104,250)

Payment of contingent acquisition consideration

(351,649)

(50,509)

Net cash used in financing activities

(905,851)

(97,259)

Effect of exchange rate changes

4,851

229

Net increase (decrease) in cash and cash equivalents

(7,445,302)

2,942,158

Cash and cash equivalents, beginning of period

13,545,333

10,603,175

Cash and cash equivalents, end of period

$

6,100,031

$

13,545,333

Supplemental disclosures of cash flow information:

Cash paid for income taxes

$

113,071

$

5,602

Non-cash investing and financing activities:

Contingent consideration accrual on asset acquisition

$

32,022

$

138,428

 

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SOURCE Research Solutions, Inc.

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Technology

Hilco Global Engaged by Stan Lee Holdings to Sell Rare & Valuable Intellectual Property Portfolio

Published

16 minutes ago

on

July 24, 2026

By

NEW YORK, July 24, 2026 /PRNewswire/ — Hilco Global, a diversified financial services company that delivers expert professional services and capital solutions to help clients maximize value and drive performance across the business lifecycle, is pleased to announce that its IP Services practice has been engaged by Stan Lee Holdings, Ltd. (“SLH”) to sell a legendary portfolio of intellectual property developed by Stan Lee, the iconic “father of the super hero.” Known as the Omniverse Collection created by Stan Lee, the portfolio represents a treasure trove of original characters and source material developed by Stan when he was leading Marvel Comics and when he built Stan Lee Entertainment – the first super hero animation studio created for the Internet age. This rare and valuable collection of Intellectual Property encompasses dozens of compelling super heroes and stories conceived by Stan from 1999 to 2001 as well as a franchise comprising over 50 well-known characters – the only franchise of Marvel-created characters not owned by Marvel. Full details of the collection, including the individual characters, franchises, and story properties it comprises, will be released in the coming weeks.

Through this collaboration, Hilco Global will work alongside SLH and former EVP of Marvel Entertainment Shirrel Rhoades to find a new home for a body of largely underleveraged super hero and other characters, as well as world-building intellectual property. Numerous supporting  scripts, episodes, and development materials spanning Stan Lee’s career are also part of the offering.

“The Omniverse Collection created by Stan Lee is one of the most significant super hero IP offerings of the decade,” said Eric Hurwitz, Senior Director of the Hilco Global IP Services practice. “This large, diverse portfolio presents the opportunity to capitalize on untapped material with an unmatched pedigree. A buyer essentially has a blank slate to bring these characters to fans worldwide and expand on Stan Lee’s legacy. Hilco Global is thrilled to bring these assets to market, leveraging deep experience across intellectual property and media valuation, licensing, and transaction execution.”

Among the intellectual property being offered is a hidden gem; a connected entertainment universe of Stan Lee’s own creation. “This one-of-a-kind IP collection illustrates just how far ahead Stan was in understanding the future of entertainment,” observed Shirrel Rhoades, who was handpicked by Stan Lee to succeed him as publisher of Marvel. “What we’re bringing to market isn’t a collection of isolated ideas. It’s pieces of one larger vision, a living digital universe in which characters can be created, experienced, and expanded across every form of media.”

Parties can reach out to Ehurwitz@hilcoglobal.com to register interest. More information about the offering, the individual properties within the collection, and the sale process will become available soon.

About Hilco Global:  Hilco Global, a subsidiary of ORIX Corporation USA, is a diversified financial services company that delivers integrated professional services and capital solutions that help clients maximize value and drive performance across the retail, commercial and industrial, real estate, manufacturing, and intellectual property sectors. Hilco Global provides a range of customized solutions to healthy, stressed, and distressed companies to resolve complex situations and enhance long-term enterprise value. Hilco Global works to deliver the best possible result by aligning interests with clients and providing strategic advice and, in many instances, the capital required to transact. Hilco Global is based in Northbrook, Illinois and has more than 810 professionals operating on four continents. Visit www.hilcoglobal.com

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SOURCE Hilco Trading, LLC

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GR0 to Acquire Ultimate AI’s Deployment Division and Launch GR0 AI, Turning Brands’ Existing Customer Data Into Revenue

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July 24, 2026

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The new company pairs GR0’s performance marketing distribution with Ultimate Deployment’s AI agents and customer intelligence to build AI revenue systems for DTC and ecommerce brands; in one early deployment, AI-led customer conversations were associated with more than $350,000 in sales.

LOS ANGELES, July 24, 2026 /PRNewswire/ — GR0, the Los Angeles-based digital marketing agency, today announced plans to acquire Ultimate Deployment and launch GR0 AI, a new company that builds and deploys AI revenue systems for direct-to-consumer (DTC) and ecommerce brands. GR0 AI combines GR0’s performance marketing expertise, client relationships and sales infrastructure with Ultimate Deployment’s technology and experience deploying AI agents inside operating businesses.

“AI is creating an entirely new performance channel for brands,” said Jon Zacharias, co-founder and president of GR0. “Most companies already have the traffic, customer data and demand. What they’re missing is an intelligent system that knows who to contact, what to say and when to say it. GR0 AI turns the customer signals brands already own into personalized conversations and measurable revenue.”

The approach is already producing results. In one early deployment, AI-led customer conversations were associated with more than $350,000 in sales during a period in which the brand generated approximately $1 million in total revenue. GR0 AI deployments include attribution and incrementality reporting so brands can measure both assisted and directly generated revenue.

GR0 AI deploys inside a brand’s existing commerce, CRM, email, SMS, phone and customer-data infrastructure. Its systems:

Identify and prioritize high-intent customers and prospects Personalize outreach and follow-up based on customer behavior and company data Conduct two-way conversations across messaging channels, recovering revenue from abandoned carts, dormant customers and unconverted leads Escalate complex or high-value opportunities to human sales and support teams Measure the revenue associated with AI-driven interactions

“Most brands do not have a demand problem.  They already have thousands of customers and prospects sitting inside their systems,” said Ben Ganz, founder of Ultimate Deployment. “We build the company brain, unify the data and deploy AI employees that act on that intelligence. The opportunity falls into two buckets: recover the demand a brand has already earned, and make sure no new opportunity slips through the cracks. GR0 gives us the distribution, market access and operating experience to bring this to hundreds of brands.”

Ganz has spent his career at the intersection of entertainment and technology. He began as a producer on American Idol before moving into digital leadership at Fox, then founded VEGO Pictures, a digital production and technology company that worked with major entertainment and consumer brands and served as in-house production partner to Kevin Hart’s Laugh Out Loud Network. He also co-founded a virtual events company that produced digital graduation experiences for hundreds of thousands of students during the COVID-19 pandemic.

From there, Ganz and his team moved to the frontier of consumer AI, creating what FOX News called Hollywood’s first AI interactive voice experience. They powered AI personalities for creators with a combined audience of 100 million followers and engineered the world’s first AI assembly line for replicating personalities at scale, work the Hollywood Reporter recognized as the “Real-life Her.”  Ultimate Deployment then turned that conversational AI expertise toward the enterprise, building systems that connect company knowledge, customer data, and operational software with AI agents capable of performing real, meaningful business work.

“Ben and his team have built something with the potential to become a major new revenue channel for ecommerce companies,” Zacharias said. “We have seen very few offerings create this level of excitement among sophisticated performance marketers.”

Every GR0 AI engagement begins with an intensive discovery and implementation process: the team interviews key employees, maps the company’s systems and builds a centralized intelligence layer around the business. Lead scoring and prioritization are connected to the brand’s CRM before customer-facing AI agents go live.

“The technical opportunity is clear, and our job is to make it just as clear commercially,” said Kevin Miller, founder and CEO of GR0. “A brand that works with GR0 AI will know exactly what is being installed, how quickly it goes live and what revenue it is producing.”

The acquisition is expected to close this quarter, subject to completion of definitive agreements. Financial terms were not disclosed.

Brands interested in early GR0 AI deployments can learn more at www.gr0.com.

About GR0

GR0 is a full-service digital marketing agency that helps DTC and ecommerce brands accelerate growth through data-driven performance marketing, creative strategy and emerging technology. Co-founded by Kevin Miller and Jon Zacharias, GR0 provides services across SEO, Generative Engine Optimization, paid media, email, SMS, creative, affiliate and marketplace growth, and was among the first agencies to build a dedicated GEO practice, which is recognized by VentureBeat as one of America’s premier Generative Engine Optimization agencies. GR0 is headquartered in Los Angeles. Learn more at GR0.com.

About Ultimate Deployment

Ultimate Deployment builds AI employees for growing companies. Founded by Ben Ganz, the company captures how a business operates, organizes its institutional knowledge, connects its systems and deploys AI agents that perform real operational work across sales, customer experience, marketing, finance and internal teams.

Before its enterprise focus, Ultimate Deployment’s team built consumer AI at entertainment scale, creating Hollywood’s first interactive voice experience, powering AI personalities for creators with a combined audience of 100 million followers and engineering the world’s first AI assembly line for replicating personalities’ work featured by Fox News and recognized by The Hollywood Reporter as the real-life Her.

About Ultimate AI

Ultimate AI, founded by Ben Ganz, is a holding company building AI across consumer and enterprise. It launched during the first wave of consumer generative AI as an early AI super app, bringing more than 100 AI tools and assistants into a single consumer platform that peaked within the top 10 of its Apple App Store category, according to company data. The company then expanded into creator AI, developing technology that lets public figures build interactive AI experiences around their personality, voice, knowledge and content. In 2024, Ultimate AI created Pookie Tools (widely known as the Hawk Tuah AI app), whose launch generated more than 400 million organic social media views and more than 10,000 downloads in its first seven days with no paid marketing, according to company data. It went on to develop real-time voice and personality products, including an experience Fox News described as Hollywood’s first real-time AI experience.

Ultimate Deployment, the enterprise arm that GR0 is acquiring, formed in March 2026 following the release of frontier agentic models from Anthropic and OpenAI, and applies that technology inside operating companies. It builds AI employees that capture how a business operates, unify its data and systems, and perform real operational work across sales, customer experience, marketing, finance and internal teams.

Company: GR0
Media Contact Name: GR0 Agency
Media Contact Email: press@gr0.com
Phone: +1 (310) 439-1887
Address: Los Angeles, CA, USA
Website: https://gr0.com/

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SOURCE GR0.com LLC

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Tech Mahindra and Cisco Partner to Bring AI-Driven Security Service Edge to Global Enterprises

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July 24, 2026

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PUNE, India, July 24, 2026 /PRNewswire/ — Tech Mahindra (NSE: TECHM), a leading global provider of technology consulting and digital solutions to enterprises across industries, announced a partnership with Cisco to deliver an AI-driven Security Service Edge (SSE) offering for global enterprises. The joint offering will help enterprises reduce security complexity, improve visibility and control, deliver seamless user access, and strengthen resilience as they scale cloud, hybrid work, and AI adoption.

The partnership combines Tech Mahindra’s global managed services, integration, and delivery expertise with Cisco’s industry-leading Security Service Edge (SSE) platform (Cisco Secure Access) to provide unified, cloud-native security and seamless zero-trust access across users, devices, networks, and locations. For Tech Mahindra, the partnership strengthens its cybersecurity portfolio with differentiated, high-value managed security services, expands its addressable market, and accelerates pipeline growth in cloud security.

Saket Singh, SVP & Business Head – Digital Core Services (Cloud, Infrastructure, Network and Cyber Security Services), Tech Mahindra, said, “As enterprises increasingly operate in hybrid and distributed environments, security must evolve from siloed controls to unified, cloud-native platforms. Fragmented tools, inconsistent user experiences, and rising threats are creating visibility and control gaps as applications are accessed from anywhere. Through our partnership with Cisco, we are combining advanced SSE capabilities with Tech Mahindra’s managed services expertise to simplify operations, strengthen zero-trust enforcement, and deliver consistent, AI-powered protection at scale.”

By integrating a secure web gateway, cloud access security broker (CASB), zero trust network access (ZTNA), firewall-as-a-service, data loss prevention (DLP), and much more into a single platform, the offering simplifies security operations and delivers AI-powered protection. Enterprises benefit from end-to-end visibility, faster deployment, and a streamlined path to modernizing their security architecture while accelerating secure cloud adoption and cyber resilience. Additionally, as enterprises inevitably step into the agentic era, this solution provides robust and rapidly expanding protections for the use of generative AI and AI agents.

Raj Chopra, SVP & Chief Product Officer, Cisco Security Business Group, said, “Enterprises don’t need another tool to stitch into an already complex security stack. They need a simpler way to secure how work actually happens across users, devices, applications, clouds, and increasingly AI agents. Cisco Secure Access brings zero trust, identity context, and AI-powered protection into one cloud-delivered platform, helping teams enforce policy consistently while giving users seamless access from anywhere. Together with Tech Mahindra’s global managed services and integration expertise, we can help organizations modernize security operations, accelerate secure cloud and AI adoption, and move with confidence in the agentic era.”

The integrated SSE solution reinforces Tech Mahindra and Cisco’s leadership in unified cloud-security, helping enterprises simplify secure access, strengthen resilience and accelerate digital transformation in an increasingly distributed and AI-driven world.

 

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SOURCE Tech Mahindra

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