Overview

* Rimini Street ( RMNI ) 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/Mis Actual Consensu

s s

Estimate

Q2 Beat $104.11 $103.10

Revenue mln mln (4

Analysts

)

Q2 Net $30.26

Income mln

Q2 Gross $62.85

Profit mln

Q2 $41.20

Operatin mln

g Income

Q2 $40.80

Pretax mln

Profit

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 ( RMNI ) 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:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)