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Rimini Street says Q3 revenue up 17 percent

The company filled key executive roles in the third quarter and closed more than 7,500 support tickets.

Written by Larry Dignan, Contributor Nov. 8, 2018 at 1:59 p.m. PT

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Rimini Street said it had 1,732 active enterprise software support clients at the end of its third quarter as revenue was up 17 percent from a year ago.

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The company said it also paid down debt, hired key executives and invested in its sales capacity.

Rimini reported a third quarter net loss of $48.4 million, or 85 cents a share, on revenue of $62.6 million. The loss was largely due to a non-cash charge related to paying off debt. On a non-GAAP basis, Rimini reported a profit of $6.7 million.

Wall Street was looking for Rimini to report a non-GAAP third quarter loss of 18 cents a share on revenue of $63 billion. The company, however, appears to be followed by one analyst.

Nevertheless, Rimini is worth following given that it provides third party support for SAP and Oracle. Rimini has enabled enterprises to prolong investments in legacy systems. Rimini has also partnered with Salesforce to provide support.

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CEO Seth Ravin said the company has upped its marketing spend to build out the company. Rimini also said it closed more than 7,500 support cases across 41 countries in the quarter.

In the third quarter, annualized subscription revenue was about $250 million. The revenue retention rate was 92 percent for the trailing 12 months ended Sept. 30, down from 94.5 percent for the same period a year ago.

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As for the outlook, Rimini said fourth quarter revenue will be between $63 million and $65 million with 2018 sales of $248 million to $250 million.