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Rimini Street, the third-party support thorn in Oracle's side, has reported increased revenue and operating profit in 2017 – but complained unspecified covenants have prevented it from investing in sales staff or marketing.
The Las Vegas-based biz's financial numbers for the year ended December 31, 2017 – which are the first full-year results since it was listed on the NASDAQ – show a 33 per cent boost in revenue year-on-year to $212.6m.
Cent - Growth - Income - Profit - Percentage
There was also a 58 per cent growth in operating income, to $22m, and a gross profit percentage of 61 per cent, up from 58 per cent in 2016. Overall, the organization, which has been locked in an expensive legal tussle with Oracle, made a net loss of $53.3m in 2017, compared to the previous year's $22.9m loss.
Although chief exec Seth Ravin boasted on Thursday of a "growing demand" for Rimini's services, the biz reported that it was unable to plow the extra dosh into its operations the way it wanted to during 2017.
Ravin - Rimini - Street - Ability - Growth
According to Ravin, Rimini Street was "limited in our ability to invest for growth by the terms of the existing credit facility" that put a spending covenant on investment in sales and marketing.
This meant the biz only spent $66.8m – 31 per cent of its revenues – on these operations in fiscal 2017. Compare that to $79.2m (45 per cent) of $160.2m the year before.
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Ravin described the drop from 45 to 31 per cent as "startling" for a business trying to grow, noting that the firm "ended 2017 with less sales reps than we did coming into 2016." It was "very challenging" trying...
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