Rimini Street reports Q1 revenue, EPS above expectations, reiterates year outlook

Rimini said it reached a record number of active clients, 2,550, and that its annualized recurring revenue rose to $349 million.

Las Vegas-based Rimini Street, the provider of support software for Oracle and SAP installations, this afternoon reported Q1 revenue and profit that topped Wall Street's expectations, and an outlook that was slightly below consensus, and reiterated its year revenue outlook. 

Rimini Street stock was unchanged in late trading following the report at $7.70. 

CEO and co-founder Seth Ravin said the company ""For remain[s] on track to achieve our strategic growth plan to achieve $1 billion in annual revenue by 2026."

The company had "record" revenue in the quarter, noted Ravin, and a record for its active number of clients, 2,550.

Ravin called the company's "billings" growth "strong" at 24.2%, and called out the company's gross profit margin of 61%. 

"We also continued making investments to take advantage of growing global demand for Rimini Street's expanded breadth of support solutions, including our Support, Application Management, Security, Interoperability, Monitoring and Professional services," said Ravin.

Revenue in the three months ended in March rose 12.6%, year over year, to $87.9 million, yielding a net profit of 11 cents a share, excluding some costs.

Analysts had been modeling $88.2 million and 8 cents per share.

Rimini Street's annualized recurring revenue rose by 12.8%, year over year, to $349 million, it said. 

For the current quarter, the company sees revenue of $88.5 million to $90.5 million. That compares to consensus for $90.5 million.

For the full year, the company reiterated its forecast for  revenue in a range of $370 million to $380 million, versus consensus of $374.9 million.