Rimini Street, Inc. (RMNI) Tops Q1 EPS by 4c, Revenues Beat; Affirms Q2 Revenue Guidance Above Consensus, Offers FY19 Revenue Outlook

May 9, 2019 5:08 PM EDT

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Rimini Street, Inc. (NASDAQ: RMNI) reported Q1 EPS of $0.07, $0.04 better than the analyst estimate of $0.03. Revenue for the quarter came in at $66.3 million versus the consensus estimate of $65.44 million.

First Quarter 2019 Financial Highlights

  • Revenue was $66.3 million for the 2019 first quarter, an increase of 11% compared to $59.8 million for the same period last year.
  • Annualized Subscription Revenue was approximately $265 million for the 2019 first quarter, an increase of 11% compared to $239 million for the same period last year.
  • Active Clients as of March 31, 2019 were 1,852, an increase of 17% compared to 1,581 Active Clients as of March 31, 2018.
  • Revenue Retention Rate was 92.0% for the trailing 12 months ended March 31, 2019 compared to 93.0% for the comparable period ended March 31, 2018.
  • Gross margin was 64.0% for the 2019 first quarter compared to 60.6% for the same period last year.
  • Operating income was $12.7 million for the 2019 first quarter compared to $25.2 million for the same period last year.
  • Non-GAAP Operating Income was $7.8 million for the 2019 first quarter compared to $6.1 million for the same period last year.
  • Net income was $11.8 million for the 2019 first quarter compared to a net income of $3.5 million for the same period last year.
  • Non-GAAP Net Income was $6.7 million for the 2019 first quarter compared to Non-GAAP Net Loss of $16.3 million for the same period last year.
  • Adjusted EBITDA for the 2019 first quarter was $8.1 million compared to $6.7 million for the same period last year.
  • Basic earnings per share attributable to common stockholders was $0.07 per share for the 2019 first quarter compared to $0.06 per share for the same period last year. Diluted earnings per share attributable to common stockholders was $0.07 per share for the 2019 first quarter compared to $0.05 per share for the same period last year.

"During the first quarter, we made meaningful progress expanding sales capacity, improving our global service delivery model and launching and selling Salesforce.com and other new support services that increase our total addressable market," stated Seth A. Ravin, Rimini Street co-founder, CEO and Chairman of the Board. "Additionally, in March we prevailed against Oracle in the U.S. Supreme Court with a unanimous decision. Oracle was ordered to return approximately $12.8 million plus interest and other costs to Rimini Street, which Oracle paid in April."

"Revenue in the first quarter exceeded the high end of our guidance range and we achieved a better than expected gross margin of 64%," stated Tom Sabol, Rimini Street CFO. "We managed sales and marketing and general and administrative spend within our guidancerange, completed an additional Series A Preferred financing round to fund new product and service launches and further strengthen our balance sheet. We remain committed to the long-term goals of improving free cash flow and achieving GAAP profitability."

GUIDANCE:

Rimini Street, Inc. sees Q2 2019 revenue of $66.5-67.5 million, versus the consensus of $66.07 million.

Rimini Street, Inc. sees FY2019 revenue of $265-280 million, versus the consensus of $271.12 million.

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



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