Rimini Street Inc (RMNI) Reports 5.4% Revenue Growth in Q3 2023
Q3 2023 revenue reached $107.5 million, marking a 5.4% increase year-over-year.
Net income for Q3 2023 was $6.8 million, compared to a net loss of $0.4 million in the same period last year.
Operating income was $11.2 million for Q3 2023, a significant increase from $2.0 million in Q3 2022.
Annualized Recurring Revenue was $416.3 million for Q3 2023, a 4.1% increase year-over-year.
On November 1, 2023, Rimini Street Inc (NASDAQ:RMNI), a leading provider of enterprise software support, products, and services, announced its financial results for the third quarter ended September 30, 2023. The company reported a revenue of $107.5 million for Q3 2023, marking a 5.4% increase compared to $101.9 million for the same period last year. The company's net income turned positive, reaching $6.8 million compared to a net loss of $0.4 million in Q3 2022.
Financial Highlights
U.S. revenue for Q3 2023 was $55.7 million, a 4.3% increase compared to $53.4 million for the same period last year. International revenue was $51.7 million, marking a 6.6% increase year-over-year. The company's Annualized Recurring Revenue was $416.3 million for Q3 2023, a 4.1% increase compared to $399.8 million for the same period last year. The Revenue Retention Rate remained steady at 94% for both the trailing twelve months ended September 30, 2023, and September 30, 2022.
Subscription revenue accounted for 96.9% of total revenue for Q3 2023, amounting to $104.1 million. This compares to subscription revenue of $99.9 million, which accounted for 98.1% of total revenue for the same period last year. Billings for Q3 2023 were $60.5 million, a 21.7% increase year-over-year.
Operating Income and Net Income
Operating income for Q3 2023 was $11.2 million, a significant increase from $2.0 million for the same period last year. Non-GAAP Operating Income was $16.5 million for Q3 2023, compared to $10.7 million for the same period last year. Net income for Q3 2023 was $6.8 million, compared to a net loss of $0.4 million for the same period last year. Non-GAAP Net Income was $12.1 million for Q3 2023, compared to $8.3 million for the same period last year.
Balance Sheet and Cash Flow
As of September 30, 2023, the company had cash and short-term investments of $128.1 million, compared to $129.7 million at September 30, 2022. The company's gross margin was 62.7% for Q3 2023, compared to 61.5% for the same period last year.
Business Outlook
Rimini Street Inc (NASDAQ:RMNI) has suspended its guidance due to ongoing litigation with Oracle. The company will provide more clarity around the impacts from this litigation activity in future announcements.
Explore the complete 8-K earnings release (here) from Rimini Street Inc for further details.
This article first appeared on GuruFocus.
