Rimini Street has reported results for the fourth quarter and for the fiscal year ended December 31, 2019 on Friday.
“We experienced improved performance from investments in global sales, the launch of new products and services and expanded geographic operations. We continue to see growing global demand for our enterprise software products and services, and plan to continue making investments in 2020 to support growth,”stated Seth Ravin, Rimini Street co-founder, CEO and chairman of the board.
Rimini Street’s fourth-quarter results have noted that the company’s revenue was $76.1 million, an increase of 11.7 percent compared to $68.1 million for the 2018 fourth quarter. The company’s annualized subscription revenue was approximately $302 million for the 2019 fourth quarter, an increase of 11.4 percent compared to $271 million for the 2018 fourth quarter.
The company reported that its active clients, as of December 31, 2019, were 2,063, increasing 14.5 percent compared to 1,802 Active Clients as of December 31, 2018. Rimini’s street revenue retention rate was marked at 92 percent for the trailing 12 months ended December 31, 2019 compared to 91 percent for the comparable period ended December 31, 2018.
Rimini Street’s gross margin was 60.2 percent for the 2019 fourth quarter compared to 64.6 percent for the 2018 fourth quarter. Its operating income was $1.6 million for the 2019 fourth quarter compared to $6.6 million for the 2018 fourth quarter and non-GAAP operating income was $5.1 million for the 2019 fourth quarter compared to $13.0 million for the 2018 fourth quarter.
The company’s net loss was $0.2 million for the 2019 fourth quarter compared to net income of $5.4 million for the 2018 fourth quarter and non-GAAP net income was $3.3 million for the 2019 fourth quarter compared to $11.8 million for the 2018 fourth quarter.
Rimini Street’s adjusted EBITDA for the 2019 fourth quarter was $4.7 million compared to $13.0 million for the 2018 fourth quarter; basic and diluted earnings per share attributable to common stockholders was a net loss per share of $0.10 for the 2019 fourth quarter compared to a net loss per share of $0.01 for the 2018 fourth quarter.
For Rimini Street's fiscal year results, revenue was $281.1 million for 2019, an increase of 10.9 percent compared to $253.5 million for 2018. Gross margin increased to 62.6 percent for 2019 compared to 62.1 percent for 2018. The company’s operating income was $22.1 million for 2019 compared to $29.5 million for 2018.
Rimini Street reported a non-GAAP operating income of $26.8 million for 2019 compared to $35.2 million for 2018 and net income was $17.5 million for 2019 compared to a net loss of $64.0 million for 2018. In addition, the company’s basic and diluted net loss per share attributable to common stockholders was $0.12 for 2019 compared to a net loss of $1.22 for 2018.
The company announced a non-GAAP net income of $22.0 million for 2019 compared to Non-GAAP Net Loss of $4.7 million for 2018 and adjusted EBITDA was $27.0 million for 2019 compared to $35.3 million for 2018.
“For 2019, we achieved record fourth quarter and fiscal year revenue that exceeded management guidance, increased our gross margin, and continued to improve our balance sheet with reduced debt and increased cash,” Ravin added.
About Rimini Street, Inc.
Rimini Street, Inc. (Nasdaq: RMNI) is 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.
The Company offers premium, ultra-responsive and integrated application management and support services that enable enterprise software licensees to save significant costs, free up resources for innovation and achieve better business outcomes. More than 2,000 global Fortune 500, midmarket, public sector and other organizations from a broad range of industries rely on Rimini Street as their trusted application enterprise software products and services provider.
