Third party software support company Rimini Street delivered revenue growth of 20 percent in the second quarter and had 1,622 active clients.
Rimini had a second quarter net loss of $25.4 million, or 43 cents a share, on revenue of $62.6 million. The non-GAAP loss in the quarter was $7.8 million. the company didn't break out a per share figure.
Wall Street was looking for second quarter sales of $60.64 million and a net loss of $4.17 million.
Rimini isn't widely covered on Wall Street, but that fact could change since it refinanced its debt structure to give it more money for sales and marketing.
The company refinanced its credit facility with a $140 million private placement. The key item in the deal was removing covenants and fees that expanded as Rimini grew.
CEO Seth Ravin said:
Completion of the refinancing allows us to aggressively invest in global sales, marketing and service delivery capacity and capabilities in order to drive future revenue. Based on our 13 year track record of sales performance, we expect these investments to lead to growth and improved operating leverage in 2019 and beyond.
Cowen analyst J. Derrick Wood said in a research note that Rimini's move to swap its restrictive debt structure for convertible bonds lowered the company's total interest costs from 17.5 percent to 13 percent. Those savings can now be reinvested.
Rimini ended the quarter with annualized subscription revenue of $246 million.