Rimini Street beats Q2 revenue estimates, swings to profit
Overview
Rimini Street fiscal Q2 revenue rises 1%, beating analyst expectations
Net income for fiscal Q2 reaches $30.3 mln, reversing last year's loss
Co received $37.9 mln in legal cost recovery from Oracle settlement
Outlook
Company plans to reinitiate guidance at Analyst Day for Q4
Result Drivers
GROSS MARGIN IMPROVEMENT - Gross margin increased to 60.4% from 59.1% a year ago, indicating better cost management
INTERNATIONAL GROWTH - International revenue rose by 6.4%, offsetting a 4.5% decline in U.S. revenue
CLIENT RETENTION - Revenue retention rate improved to 90% from 88% in the previous year, reflecting stronger client retention
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $104.11 mln | $103.10 mln (4 Analysts) |
Q2 Net Income |
| $30.26 mln |
|
Q2 Gross Profit |
| $62.85 mln |
|
Q2 Operating Income |
| $41.20 mln |
|
Q2 Pretax Profit |
| $40.80 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Rimini Street Inc is $6.25, about 25.6% above its July 30 closing price of $4.65
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nBw1vl2yya
