Quarterly revenue of $68.0 million, up 8.5% year over year
Quarterly gross margin of 63.2%, up from 58.4% year over year
1,896 active clients at June 30, 2019, up 17% year over year
LAS VEGAS, August 8, 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 second quarter ended June 30, 2019.
"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."
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.
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."
Second Quarter 2019 Company Highlights
- Announced that BrandSafway, who has been using Rimini Street Support for Oracle products since 2014, expanded their services to include Rimini Street Application Management Services for Salesforce.
- Expanded investment and operations in key regions around the world including:
◦ Eastern Europe, launching sales in Poland and further building on its presence in Russia
◦ Latin America, launching a new subsidiary and opening a new office in Mexico
◦ Southeast Asia, launching a new subsidiary in Singapore, the appointment of Andrew Seow as regional general manager of Southeast Asia
and Greater China, and opening of a new office in Singapore.
- Closed over 8,000 support cases, and scored an overall average of 4.8 in client satisfaction (where 5.0 is excellent).
- Delivered more than 7,000 tax, legal and regulatory updates to clients globally for PeopleSoft, JD Edwards, SAP and Oracle E-Business Suite products.
- Announced Rimini Street's senior vice president of Global Client Onboarding, Nancy Lyskawa, won a gold Stevie award for Female Executive of the Year.
- Presented at 28 CIO, CFO and IT procurement leader events including Gartner Symposium in Toronto Canada, Landmark Ventures CIO Summit in New York, CFO.org in Atlanta and Dallas, and Gartner's IT Infrastructure, Operations & Cloud Strategies Conference in Mexico City.
2019 Revenue Guidance
The Company is currently providing third quarter 2019 revenue guidance to be in the range of $69 million to $70 million and raising the low end of the full year 2019 revenue guidance from $265 million to $270 million, while maintaining the high end of the range at $280 million.
Webcast and Conference Call Information
Rimini Street will host a conference call and webcast to discuss the second quarter 2019 results at 5:00 p.m. Eastern / 2:00 p.m. Pacific time on August 8, 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 6675226. 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, and 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.