LAS VEGAS - Thursday, 04. May 2023 AETOSWire
Financial Highlights Include:
Quarterly revenue of $105.5 million, up 7.8% year over year
Gross margin of 62.7% compared to prior year of 62.0%
Net income of $5.6 million, up 82.7% year over year
(BUSINESS WIRE) -- Rimini Street, Inc. (Nasdaq: RMNI), a global provider of end-to-end enterprise software support, products and services, the leading third-party support provider for Oracle and SAP software, and a Salesforce and AWS partner, today announced financial and operating results for the first quarter ended March 31, 2023.
“For the first quarter of 2023, we were pleased to both complete the launch of our expanded solutions portfolio and sell the full portfolio to name-brand organizations globally. This expanded portfolio will allow us to meet the needs of a significantly larger market of organizations with $200 million or more in annual revenue or budget," stated Seth A. Ravin, Rimini Street co-founder, president, CEO and chairman of the board. “One of the new premier solutions launched in the first quarter was our end-to-end, ‘turnkey’ outsourcing offering - Rimini ONE™ - which provides organizations a one-vendor solution for their current and evolving enterprise software needs and leverages Rimini Street’s unique, industry-leading value, reliability, responsiveness and engineering capability. We have already signed more than 100 Rimini ONE clients and believe our significantly expanded solutions portfolio will increase sales to new and existing clients, improve subscription renewals and extensions and expand client lifetime value.”
“We were pleased with our first quarter performance in revenue, gross margin, net income, Adjusted EBITDA, and Revenue Retention Rate on subscription revenue and exceeded first quarter 2023 guidance,” stated Michael L. Perica, Rimini Street chief financial officer. “Additionally, we maintained a strong balance sheet with cash and U.S. government-backed securities of $135 million and reduced debt $10 million year over year from $87 million to $77 million, resulting in net cash at quarter end of $58 million. We are also issuing guidance today for the second quarter and reaffirming full year 2023 guidance and our continued commitment to increasing profitability and re-accelerating revenue growth.”
Select First Quarter 2023 Financial Highlights
Revenue was $105.5 million for the 2023 first quarter, an increase of 7.8% compared to $97.9 million for the same period last year.
U.S. revenue was $53.4 million, an increase of 2.2% compared to $52.3 million for the same period last year.
International revenue was $52.1 million, an increase of 14.1% compared to $45.6 million for the same period last year.
Annualized Recurring Revenue was $408.3 million for the 2023 first quarter, an increase of 6.1% compared to $384.9 million for the same period last year.
Revenue Retention Rate was 92% for the trailing twelve months ended March 31, 2023 and 94% for the comparable period ended March 31, 2022.
Subscription revenue of $102.1 million, which accounted for 96.8% of total revenue for the 2023 first quarter compared to subscription revenue of $96.2 million, which accounted for 98.3% of total revenue for the same period last year.
Gross margin was 62.7% for the 2023 first quarter compared to 62.0% for the same period last year.
Operating income was $10.7 million for the 2023 first quarter compared to $5.9 million for the same period last year.
Non-GAAP Operating Income was $15.4 million for the 2023 first quarter compared to $12.1 million for the same period last year.
Net income was $5.6 million for the 2023 first quarter compared to net income of $3.1 million for the same period last year.
Non-GAAP Net Income was $10.4 million for the 2023 first quarter compared to $9.2 million for the same period last year.
Adjusted EBITDA for the 2023 first quarter was $16.6 million compared to $12.9 million for the same period last year.
Basic and diluted net income per share attributable to common stockholders was a per share result of $0.06 for the 2023 first quarter compared to net income per basic share of $0.04 and net income per diluted share of $0.03 for the same period last year.
Cash and short-term investments of $135.0 million at March 31, 2023, a decrease of 14.6% compared to $158.0 million at March 31, 2022.
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, why we believe they are meaningful and how they are calculated is also included under the heading “About Non-GAAP Financial Measures and Certain Key Metrics.”