RIMINI STREET Reports Q2 FY2023 Earnings Results on June 30, 2023
August 9, 2023
🌥️Earnings Overview
RIMINI STREET ($NASDAQ:RMNI) announced their second quarter FY2023 earnings results on June 30 2023, indicating total revenue of USD 106.4 million, a 5.2% increase from the same quarter in FY2022. Net income for Q2 of FY2023 was reported to be USD 4.3 million – a tremendous increase from the 0.1 million the company made in the same quarter of FY2022.
Stock Price
On Wednesday, June 30, 2023, RIMINI STREET reported their financial results for the second Quarter of the fiscal year 2023. The stock opened at $2.8 and closed at $2.6, a drop of 5.7% from the previous closing price of $2.8.
However, despite the optimism, actual results did not meet the expected targets due to the global economic downturn in the second quarter. This caused RIMINI STREET’s stock to be adversely affected by the market fluctuations. Despite the drop in stock price, RIMINI STREET was still able to achieve its financial objectives for Q2 FY2023. Overall, despite the stock dropping in value, RIMINI STREET is still in a good position to continue building on their success in the coming quarters. Investors should take comfort in the fact that the company was able to meet its financial goals despite a difficult economic landscape. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rimini Street. More…
| Total Revenues | Net Income | Net Margin |
| 422.49 | 4.23 | 5.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rimini Street. More…
| Operations | Investing | Financing |
| -4.13 | -23.86 | -6.18 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rimini Street. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 370.86 | 432.92 | -0.7 |
Key Ratios Snapshot
Some of the financial key ratios for Rimini Street are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.9% | 23.2% | 4.6% |
| FCF Margin | ROE | ROA |
| -2.1% | -18.5% | 3.3% |
Analysis
As part of GoodWhale’s analysis of RIMINI STREET‘s financials, we used our Star Chart to evaluate their performance in various categories. The results showed they were strong in growth and profitability, yet weak in assets and dividend. We also gave RIMINI STREET a health score of 7/10, indicating that considering their cashflows and debt, the company is capable of paying off debt and funding future operations. Based on our analysis, we were able to classify RIMINI STREET as a ‘gorilla’ – a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Given the company’s strong financials and competitive advantage, we anticipate that long-term value investors would be particularly interested in RIMINI STREET as a potential investment opportunity. More…
Peers
The company was founded in 2005 and is headquartered in Las Vegas, Nevada. The company competes with LSI Software SA, GuoChuang Software Co Ltd, and Netcall PLC.
– LSI Software SA ($LTS:0LVM)
LSI Software SA is a Chilean software company with a market cap of 33.55M as of 2022. The company has a Return on Equity of 4.75%. LSI Software SA is a provider of software solutions for the banking, retail, and telecommunications industries.
– GuoChuang Software Co Ltd ($SZSE:300520)
GuoChuang Software Co Ltd is a Chinese software company with a market cap of 4.26B as of 2022. The company has a Return on Equity of 5.98%. GuoChuang Software Co Ltd specializes in developing accounting software for small and medium-sized enterprises.
– Netcall PLC ($LSE:NET)
National plc is a publicly traded company with a market cap of 129.3 million as of 2022. The company has a return on equity of 5.46%. National plc is engaged in the provision of telecommunication services. The company offers a variety of services such as voice, data, and video services.
Summary
Investors in RIMINI STREET have seen mixed performance in the second quarter of FY2023 as the company reported total revenue of USD 106.4 million, a 5.2% increase from the same period last year, and net income of USD 4.3 million, a dramatic improvement over the 0.1 million reported in Q2 of FY2022. Despite this increased profitability, however, the company’s stock price moved down on June 30th. Investors should be cautious in evaluating the potential of RIMINI STREET as a long-term investment, considering the potential volatility of the stock in the upcoming quarters.
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