LAS VEGAS -Friday 15 March 2019 [ AETOS Wire ]
Quarterly revenue of $67.7 million, up 17% year over year
Fiscal year revenue of $252.8 million, up 19% year over year
Fiscal year gross margin of 62.0%, up from 61.0% in 2017
Fiscal year operating income of $25.4 million, up 15% year over year
1,802 active clients at fiscal year-end, up 15% year over year
Signed largest client contract in Company history, approximately $26 million over 3 years
(BUSINESS WIRE)-- 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 both the fourth quarter and fiscal year ended December 31, 2018.
“We ended fiscal 2018 on a high note by signing the largest client contract in Company history and achieved record revenue and billings for the fourth quarter and fiscal year,” stated Seth A. Ravin, Rimini Street co-founder, CEO and Chairman of the Board. “Additionally, we improved our balance sheet and made significant investments in new products and services, support capabilities, geographic expansion and sales and marketing infrastructure. We continue to see growing global demand for our enterprise software support products and services, and plan to continue making significant investments in 2019 to support growth.”
“Revenue in the fourth quarter and full fiscal year 2018 exceeded the high end of our guidance range and gross margin increased while managing sales and marketing spend within our guidance range,” stated Tom Sabol, Rimini Street CFO. “In addition, we reduced our total debt obligations by $133 million to less than $3 million, reduced expected financing related costs by approximately $95 million through 2021, and eliminated all debt-related operating covenants from our prior credit facility with the closing of our Series A preferred stock transaction in July 2018, and ended the year with increased cash. In addition to our focus on revenue growth and gross margin expansion, we remain committed to the long-term goals of improving free cash flow and eventually achieving GAAP profitability.”
Fourth Quarter 2018 Financial Highlights
Revenue was $67.7 million for the 2018 fourth quarter, an increase of 17% compared to $57.9 million for the same period last year.
Annualized Subscription Revenue was approximately $269 million for the 2018 fourth quarter, an increase of 16% compared to $232 million for the same period last year.
Active Clients as of December 31, 2018 were 1,802, an increase of 15% compared to 1,566 Active Clients as of December 31, 2017.
Gross margin was 64.4% for the 2018 fourth quarter compared to 57.0% for the same period last year.
Operating income was $3.6 million for the 2018 fourth quarter compared to $4.3 million for the same period last year.
Non-GAAP Operating Income was $10.0 million for the 2018 fourth quarter compared to $5.6 million for the same period last year.
Net income was $2.3 million for the 2018 fourth quarter compared to a net loss of $3.9 million for the same period last year.
Basic and diluted net loss per share attributable to common stockholders was $0.06 per share for the 2018 fourth quarter compared to a net loss of $0.07 per share for the same period last year.
Non-GAAP Net Income was $8.7 million for the 2018 fourth quarter compared to Non-GAAP Net Loss of $8.5 million for the same period last year.
Adjusted EBITDA for the 2018 fourth quarter was $9.9 million compared to $6.0 million for the same period last year.
Full Year 2018 Financial Highlights
Revenue was $252.8 million for 2018, an increase of 19% compared to $212.6 million for 2017.
Revenue Retention Rate was 91% for the year ended December 31, 2018.
Gross margin increased to 62.0% for 2018 compared to 61.0% for 2017.
Operating income was $25.4 million for 2018 compared to $22.0 million for 2017.
Non-GAAP Operating Income was $31.0 million for 2018 compared to $29.8 million for 2017.
Net loss was $68.0 million for 2018 compared to a net loss of $53.3 million for 2017.
Basic and diluted net loss per share attributable to common stockholders was $1.28 per share for 2018 compared to a net loss of $1.65 for 2017.
Non-GAAP Net Loss was $8.7 million for 2018 compared to $32.9 million for 2017.
Adjusted EBITDA was $31.3 million for 2018 compared to $32.1 million for the 2017.
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.”
2018 Company Highlights
Signed the largest client contract in Company history for approximately $26 million over three years.
Expanded operations and investment in the Asia-Pacific region, launching Rimini Street New Zealand Limited, and opening a new office in Auckland to address the growing demand for the Company’s services.
Hired several new senior executives, including Anthony DeShazor, senior vice president and chief client officer, Mark Armstrong, group vice president and general manager, EMEA Theatre, and Tim DeLisle, group vice president and general manager, North America Theatre.
Announced the extension of our award-winning support model and global capabilities to SaaS products with the launch of services for Salesforce Sales Cloud and Service Cloud products.
Launched and sold Rimini Street Mobility and Rimini Street Analytics solutions that cost-effectively modernize ERP systems with the latest features and capabilities without requiring expensive upgrades of the ERP software.
Added to the US Russell 2000® Index.
Closed a record number of support cases – nearly 30,000 across 55 countries – and delivered nearly 50,000 tax, legal and regulatory updates while achieving an average client satisfaction rating on the Company’s support delivery of 4.8 out of 5.0 (where 5.0 is rated excellent).
Saved clients approximately $3 billion in total maintenance costs since the Company’s inception.
Achieved a flawless ISO 9001 audit for the seventh consecutive year, and a flawless ISO 27001 audit for the fifth consecutive year for the Company’s information security management framework.
Honored with 33 company awards, including 21 awards for delivering outstanding customer service, and a Stevie American Business Award for Company of the Year.
Recognized as a Bay Area “Top Workplace” by the Bay Area News Group for the fifth time.
Presented at 51 CIO and IT and procurement leader events worldwide, including Gartner’s IT Symposiums in Orlando, Florida, Brazil, Japan, Australia and Spain, IDC’s CIO Summit in South Korea, Gartner CIO & IT Executive Summit in Canada, and IDG’s IT Roadmap Conference in Washington D.C.
Partnered with 56 charities around the world through the Rimini Street Foundation, providing financial contributions, in-kind donations and more than 1,200 employee volunteer hours.
On March 4, 2019, the U.S. Supreme Court issued a unanimous decision, ruling that Oracle must return $12.8 million in non-taxable expenses (plus interest) that Rimini Street paid to Oracle in 2016. This refund is in addition to the $21.5 million that Oracle previously returned to Rimini Street on March 31, 2018, following a decision and order by the U.S. Ninth Circuit Court of Appeals. In addition, Rimini Street is still seeking the return of an additional $28.5 million paid to Oracle, among other requested relief, from the U.S. Ninth Circuit Court of Appeals.
On March 7, 2019, the Company closed a follow-on Series A preferred stock financing with a face value of $6.5 million. The Company will continue to evaluate potential new financings from time to time, including additional issuances of up to $3.5 million of its Series A preferred stock.
2019 Revenue Guidance
The Company is currently providing first quarter 2019 revenue guidance to be in the range of approximately $64.5 million to $66.0 million, and for 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 fourth quarter and full year 2018 results at 5:00 p.m. Eastern / 2:00 p.m. Pacific time on March 14, 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 9980865. A replay of the webcast will be available for at least 90 days following the event.
To view the full press release, click HERE.
Investor Relations Contact
Rimini Street, Inc.
+1 203 347-4446
Media Relations Contact
Rimini Street, Inc.
+1 925 523-8414
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