Shares of Rimini Street, the Las Vegas-based provider of support software for Oracle and SAP installations, soared in late trading after the company's Q3 revenue and profit topped expectations, and raised its year outlook.
Rimini provides support software to enterprises that competes with the support offerings of Oracle or SAP for the software giants' own programs. During the quarter, Rimini said it won new businesses with companies that switched from using Oracle or SAP to using Rimini's support offering, and noted several had increase their subscription buying with the company.
Co-founder, CEO and chairman Seth Ravin said in prepared remarks that the company during the quarter "continued making investments to take advantage of growing global demand for Rimini Street's support solutions, including our new AMS [Application Management Services for Oralce] services, and additional demand driven by the pandemic and global economic challenges."
The company had 2,365 active clients in the quarter, up 16.4% from the year-earlier period. Annual recurring revenue rose 18.6% to $327 million.
Rimini's revenue retention rate was 92% in the trailing twelve-month period, it said.
Rimini's revenue in the three months ended in September rose 19.3%, year over year, to $82.5 million, yielding a net loss per share of 5 cents. That compares to Wall Street's average estimate for $79.7 million and a net profit per share of 7 cents.
For the current quarter, the company sees revenue in a range of $82.5 million to $83. 5 million, ahed of consensus for $81.99 million.
The full-year outlook for $321.5 million to $322.5 million, is up from a prior forecast for $314 million to $320 million.
Rimini has for a decade been involved in litigation with Oracle, which has objected to the way that Rimini provides support for Oracle software. Rimini paid $35.4 million dollars in damages following a jury's award of that amount. A jury is to decide damages in a second suit. More details are available in Rimini's 10-Q filing.
Rimini shares are up 15% at $3.70, and were up over 20% at one point this evening.