Rimini Street, Inc. (RMNI) Misses Q2 EPS by 9c, Revenues Beat; Raises FY19 Revenue Outlook, Affirms Q3 Revenue Guidance

August 8, 2019 5:06 PM EDT

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Rimini Street, Inc. (NASDAQ: RMNI) reported Q2 EPS of ($0.03), $0.09 worse than the analyst estimate of $0.06. Revenue for the quarter came in at $68 million versus the consensus estimate of $66.58 million.

Second Quarter 2019 Financial Highlights

  • Revenue was $68.0 million for the 2019 second quarter, an increase of 8.5% compared to $62.6 million for the same period last year.
  • Annualized Subscription Revenue was approximately $270 million for the 2019 second quarter, an increase of 10% compared to $246 million for the same period last year.
  • Active Clients as of June 30, 2019 were 1,896, an increase of 17% compared to 1,622 Active Clients as of June 30, 2018.
  • Revenue Retention Rate was 91.7% for the trailing 12 months ended June 30, 2019 compared to 93.2% for the comparable period ended June 30, 2018.
  • Gross margin was 63.2% for the 2019 second quarter compared to 58.4% for the same period last year.
  • Operating income was $5.2 million for the 2019 second quarter compared to an operating loss of $6.0 million for the same period last year.
  • Non-GAAP Operating Income was $6.4 million for the 2019 second quarter compared to $4.2 million for the same period last year.
  • Net income was $4.1 million for the 2019 second quarter compared to a net loss of $25.4 million for the same period last year.
  • Non-GAAP Net Income was $5.3 million for the 2019 second quarter compared to a Non-GAAP Net Loss of $7.8 million for the same period last year.
  • Adjusted EBITDA for the 2019 second quarter was $6.5 million compared to $3.8 million for the same period last year.
  • Basic and diluted earnings per share attributable to common stockholders was a net loss per share of $0.03 per share for the 2019 second quarter compared to a net loss per share of $0.43 per share for the same period last year.

“During the second quarter, we improved sales bookings 17 percent year-over-year, expanded sales capacity 21 percent year-to-date, and continued to invest in sales productivity and effectiveness,” stated Seth A. Ravin, Rimini Street co-founder, CEO and Chairman of the Board. “We also continued to invest in new enterprise software products and services such as our Application Management Services for SAP, and expanded operations in Eastern Europe, Latin America and Southeast Asia to address growing demand for our services.”

“Revenue in the second quarter exceeded the high end of our guidance range, and gross margin remained above our full year guidance during the quarter. We managed sales and marketing, and general and administrative spend within our quarter guidance range,” stated Tom Sabol, Rimini Street CFO. “We remain committed to the long-term goals of strong free cash flow and achieving sustained GAAP profitability.”

GUIDANCE:

Rimini Street, Inc. sees Q3 2019 revenue of $69-70 million, versus the consensus of $68.06 million.

Rimini Street, Inc. sees FY2019 revenue of $265-270 million, versus the consensus of $272.75 million.

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



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