On November 1, 2023, Rimini Street Inc (RMNI, Financial), 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 (RMNI, Financial) 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.
