Rimini Street Reports Robust Q4 Earnings: A Tale of Growth and Transformation

March 12, 2020

Rimini Street, Inc. (Nasdaq: RMNI), the third-party support provider that keeps Oracle and SAP customers on their toes, has unveiled its fiscal fourth quarter and full-year results for 2019, and let?s just say the numbers are as enticing as a fresh batch of cookies at a bake sale.

Quarterly Highlights: Revenue Steal the Show

For Q4, Rimini Street reported a revenue of $76.1 million, marking an impressive 11.7% year-over-year increase compared to the $68.1 million from the same quarter in 2018. This surpasses the EPS consensus and certainly sets the stage for future growth. The company also boasted a fiscal year revenue of $281.1 million, a commendable 10.9% increase from the previous year.

Gross Margins and Client Growth

While we are at it, let?s address the gross margin, which stood at 62.6% for the fiscal year?up from 62.1% in 2018. It?s a bit like fine wine; it just gets better with age. The number of active clients surged to 2,063, an increase of 14.5% year-over-year. Clearly, companies are flocking to Rimini Street like it?s the last boat leaving the harbor.

Accounting Changes: A Financial Facelift

However, it?s not all sunshine and rainbows. During Q4, Rimini adopted ASU No. 2014-09, which had a ripple effect through its financial statements. The adoption led to a revision of previously reported figures, including a revenue boost of $1.8 million for the nine months ending September 30, 2019. It?s like finding unexpected cash in your pocket?always a pleasant surprise!

Investor Insights: A Look Ahead

Seth A. Ravin, CEO and co-founder, expressed optimism about the company?s trajectory, noting that 2019 marked a record quarter and fiscal year. If 2019 was a blockbuster movie, the sequel looks poised to be just as thrilling. Rimini Street plans to keep investing in its global sales and geographic expansion in 2020, signaling that they are not just resting on their laurels.

Final Thoughts: What Lies Ahead?

As Rimini Street continues to shake up the enterprise software support landscape, its impressive financials suggest that the company is not just riding a wave but actively creating new ones. For investors keeping an eye on earnings surprises, Rimini Street may very well become a stock to watch as it navigates through 2020 and beyond. With a solid revenue forecast and a client base that?s expanding, it?s hard to argue against the potential for continued growth in a sector that?s ripe for disruption.