Rimini Street, Inc. (RMNI) Misses Q2 EPS by 14c, Revenues Beat; Raises FY20 Revenue Guidance

August 5, 2020 5:39 PM EDT

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Rimini Street, Inc. (NASDAQ: RMNI) reported Q2 EPS of ($0.05), $0.14 worse than the analyst estimate of $0.09. Revenue for the quarter came in at $78.4 million versus the consensus estimate of $77.8 million.

Second Quarter 2020 Financial Highlights

  • Revenue was $78.4 million for the 2020 second quarter, an increase of 12.2% compared to $69.9 million for the same period last year.
  • Annualized Subscription Revenue was $311 million for the 2020 second quarter, an increase of 12.0% compared to $278 million for the same period last year.
  • Active Clients as of June 30, 2020 were 2,159, an increase of 13.9% compared to 1,896 Active Clients as of June 30, 2019.
  • Revenue Retention Rate was 92% for both the trailing 12 months ended June 30, 2020 and for the comparable period ended June 30, 2019.
  • Gross margin was 61.2% for the 2020 second quarter compared to 64.2% for the same period last year.
  • Operating income was $5.1 million for the 2020 second quarter compared to $7.2 million for the same period last year.
  • Non-GAAP Operating Income was $9.7 million for the 2020 second quarter compared to $8.4 million for the same period last year.
  • Net income was $3.5 million for the 2020 second quarter compared to $6.1 million for the same period last year.
  • Non-GAAP Net Income was $8.1 million for the 2020 second quarter compared to $7.3 million for the same period last year.
  • Adjusted EBITDA for the 2020 second quarter was $9.6 million compared to $8.5 million for the same period last year.
  • Basic and diluted net income (loss) per share attributable to common stockholders was a net loss per share of $(0.05) for the 2020 second quarter compared to a break even result for the same period last year.
  • Employee count as of June 30, 2020 was 1,343, a year-over-year increase of 14%.

“For the second quarter, we continued to execute well against our strategic growth plan. We achieved record quarterly revenue, within guidance, delivered quarterly gross margin above guidance, maintained a revenue retention rate over 90 percent, produced another quarter of net income, generated $17.9 million of operating cash flow and further strengthened the balance sheet with record total cash of $73.0 million at quarter end,” stated Seth A. Ravin, Rimini Street co-founder, CEO and chairman of the board. “Prior to the pandemic, we were making investments to meet increasing global demand for our expanded product and service portfolio. We have since accelerated our investments to take advantage of additional demand driven by the pandemic and global economic slowdown. Today, we issue guidance for third quarter revenue growth, raise the low-end of 2020 revenue guidance and affirm our commitment to the long-term goals of improving free cash flow and growing GAAP profitability.”

GUIDANCE:

Rimini Street, Inc. sees Q3 2020 revenue of $78.5-80.5 million, versus the consensus of $78.87 million.

Rimini Street, Inc. sees FY2020 revenue of $314-320 million, versus the consensus of $316.96 million.

The Company is currently providing third quarter 2020 revenue guidance to be in the range of $78.5 million to $80.5 million. The Company is also raising the low-end of full year revenue guidance from $310 million to $314 million and currently providing full year 2020 revenue guidance to be in the range of $314 million to $320 million.

For earnings history and earnings-related data on Rimini Street, Inc. (RMNI) click here.



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