Rimini Street, Inc. (NASDAQ:RMNI) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 05:00 pm ET
Ladies and gentlemen thank you for standing by and welcome to the Rimini Street's Third Quarter 2019 Earnings Conference Call. [Operator Instructions].
I would now like to hand the conference over to your speaker today Dean Pohl. Thank you. Please go ahead sir.
Thank you, Operator I'd like to welcome everyone to Rimini Street's Third Quarter 2019 Earnings Conference Call. On the call with me today is Seth Ravin our CEO; and Tom Sabol our CFO. Today we issued our third quarter 2019 earnings press release which can be found on our website. A reconciliation of GAAP to non-GAAP financial measures has been provided in the table following the financial statements in this press release. An explanation of these measures and why we believe they are meaningful is also included in the press release under the heading About Non-GAAP Financial Measures and Certain Key Metrics. A copy of the press release and financial tables including the GAAP to non-GAAP reconciliation and other supplemental financial information can be viewed and downloaded from the Investor Relations section of our website under Investor Events. As a reminder today's discussion will include forward-looking statements that reflect our current outlook. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from statements made today. We encourage you to review our most recent SEC filings including our Form 10-Q for the third quarter of 2019 which was filed today for a discussion of risks that may affect our results or stock price. Before taking questions we'll begin with prepared remarks.
With that I'd like to turn the call over to Seth.
Thank you, Dean and thank you everyone for joining us today. In the third quarter we continued to see improving performance from investments made over the past 18 months in global sales capacity productivity and infrastructure. We also continued expanding our global capabilities in new product and service offerings opening operations in Dubai to serve the Gulf region and announced the global availability of Application Management Services for SAP. In addition today we announced the global availability of Application Management Services for Oracle database and applications. The third quarter ended September 30 2019 we generated revenue of $69 million with a year-over-year increase of 10.1% with annualized subscription revenue of $274 million. Gross margin for the quarter was 62.4%. Revenue retention rate for subscriptions which is substantially all of our current revenue mix remained above 90% with more than 70% of subscription revenue noncancelable for at least 12 months on a rolling basis. We ended the quarter with 2032 active clients representing a year-over-year net increase of 17%. The quarter included several notable sales wins including leading auto manufacturer Hyundai-Kia Motors who switched to Rimini Street for support and maintenance of its global database portfolio.
Our active client count included nearly 100 Fortune 500 and Fortune Global 100 companies. The quarter-end employee count totaled 1220 a year-over-year increase of approximately 12%. For the third quarter our global service delivery