Quarterly revenue of $66.3 million, up 11% year over year
Quarterly gross margin of 64%, up from 61% year over year
1,852 active clients at March 31, 2019, up 17% year over year
LAS VEGAS, May 9, 2019 – Rimini Street, Inc. (Nasdaq: RMNI), a global provider of enterprise software products and services, the leading third-party support provider for Oracle and SAP software products and a Salesforce partner, today announced results for the first quarter ended March 31, 2019.
"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 guidance range, 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."
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.
Reconciliations of the non-GAAP financial measures provided in this press release to their most directly comparable GAAP financial measures are provided in the financial tables included at the end of this press release. An explanation of these measures and how they are calculated is also included under the heading "About Non-GAAP Financial Measures and Certain Key Metrics."
First Quarter 2019 Company Highlights
- Announced that EBSCO Industries chose Rimini Street Application Management Services for Salesforce to maximize the value and ROI of their Salesforce investment.
- Announced the Supreme Court ruled unanimously in the Company's favor, ordering Oracle to return approximately $12.8 million in non-taxable expenses plus interest and other costs to Rimini Street. Oracle paid the amounts in April.
- Announced strong government client momentum in the ANZ region, with more than 10 Australian government agencies switching to Rimini Street support.
- Won nine Company awards, including a Gold Stevie award for Innovation in Customer Service, and a Gold One Planet award for Customer Service Team of the Year.
- Closed a record number of support cases, nearly 8,000, and scored a 4.8 in client satisfaction (where 5.0 is excellent).
- Delivered more than 20,000 tax, legal and regulatory updates to clients globally for Peoplesoft, JD Edwards, SAP and Oracle E-Business Suite products.
- Presented at 12 CIO and IT procurement leader events including Government ICT in London, England, NRF in New York, and Gartner's EAA Summit in Tokyo, Japan.
2019 Revenue Guidance
The Company is currently providing second quarter 2019 revenue guidance to be in the range of approximately $66.5 million to $67.5 million and reiterating full year 2019 revenue guidance to be in the range of approximately $265 million to $280 million.
Webcast and Conference Call Information
Rimini Street will host a conference call and webcast to discuss the first quarter 2019 results at 5:00 p.m. Eastern / 2:00 p.m. Pacific time on May 9, 2019. A live webcast of the event will be available on Rimini Street's Investor Relations site at https://investors.riministreet.com/events-and-presentations/upcoming-and-past-events. Dial in participants can access the conference call by dialing (855) 213-3942 in the U.S. and Canada and enter the code 1939675. A replay of the webcast will be available for at least 90 days following the event.
Company's Use of Non-GAAP Financial Measures
This press release contains certain "non-GAAP financial measures." Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. This non-GAAP information supplements, and is not intended to represent a measure of performance in accordance with disclosures required by U.S. generally accepted accounting principles, or GAAP. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. A reconciliation of GAAP to non-GAAP results is included in the financial tables included in this press release. Presented under the heading "About Non-GAAP Financial Measures and Certain Key Metrics" is a description and explanation of our non-GAAP financial measures.