Rimini Street, Inc. (Nasdaq: RMNI), a global provider of
end-to-end enterprise software support, products, and services, the
leading third-party support provider for Oracle and SAP software,
and a Salesforce and AWS partner, today announced results for the
2023 fourth quarter and fiscal year ended December 31, 2023.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240228214663/en/
Rimini Street Announces Fiscal Fourth
Quarter and Annual 2023 Financial and Operating Results (Graphic:
Business Wire)
Fourth Quarter 2023 Financial Highlights
- Revenue was $112.1 million for the 2023 fourth quarter, an
increase of 3.2% compared to $108.6 million for the same period
last year.
- Annualized Recurring Revenue was $432.3 million for the 2023
fourth quarter, an increase of 2.9% compared to $420.0 million for
the same period last year.
- Active Clients as of December 31, 2023 were 3,038, an increase
of 0.6% compared to 3,020 Active Clients as of December 31,
2022.
- Revenue Retention Rate was 90% and 92% for the trailing 12
months ended December 31, 2023 and 2022, respectively.
- Gross margin was 61.0% for the 2023 fourth quarter compared to
64.5% for the same period last year.
- Operating income was $11.5 million for the 2023 fourth quarter
compared to an operating loss of $5.6 million for the same period
last year.
- Non-GAAP Operating Income was $19.3 million for the 2023 fourth
quarter compared to $15.0 million for the same period last
year.
- Net income was $9.4 million for the 2023 fourth quarter
compared to a net loss of $5.3 million for the same period last
year.
- Non-GAAP Net Income was $17.1 million for the 2023 fourth
quarter compared to $15.3 million for the same period last
year.
- Adjusted EBITDA for the 2023 fourth quarter was $21.3 million
compared to $18.3 million for the same period last year.
- Basic and diluted earnings per share attributable to common
stockholders was a net earnings per share of $0.10 and $0.10,
respectively, for the 2023 fourth quarter compared to a basic and
diluted net loss per share of $0.06 and $0.06, respectively, for
the same period last year.
Full Year 2023 Financial Highlights
- Revenue was $431.5 million for 2023, an increase of 5.3%
compared to $409.7 million for 2022.
- Gross margin was 62.3% for 2023 compared to 62.8% for
2022.
- Operating income was $43.8 million for 2023 compared to $8.1
million for 2022.
- Non-GAAP Operating Income was $66.1 million for 2023 compared
to $49.8 million for 2022.
- Net income was $26.1 million for 2023 compared to a net loss of
$2.5 million for 2022.
- Basic and diluted net earnings per share attributable to common
stockholders was a net earnings per share of $0.29 and $0.29,
respectively, for 2023 compared to a basic and diluted net loss per
share of $0.03 and $0.03, respectively for 2022.
- Non-GAAP Net Income was $48.4 million for 2023 compared to
$39.2 million for 2022.
- Adjusted EBITDA was $71.9 million for 2023 compared to $52.3
million for 2022.
Reconciliations of the non-GAAP financial measures provided in
this press release to their most directly comparable GAAP financial
measures are provided in the financial tables included at the end
of this press release. An explanation of these measures, why we
believe they are meaningful and how they are calculated is also
included under the heading “About Non-GAAP Financial Measures and
Certain Key Metrics.”
Fourth Quarter 2023 Company Highlights
- Announced representative new clients who switched to, or
existing clients who expanded their agreements with, Rimini Street,
including:
- MYOB – Australian SaaS provider selected Rimini Street’s Rimini
ONE™ for comprehensive support and managed services for its Siebel
platform, aiming to streamline operations and enhance system
reliability.
- Pacific Textiles – Hong Kong-based global leader in the textile
manufacturing industry selected Rimini Support™ for its SAP S/4HANA
system, enabling faster, more comprehensive IT support that
significantly reduces costs and improves system uptime.
- santec – a Japanese-based global photonics company, leveraged
Rimini Consult™ for SAP to guide and support a major corporate
restructuring by splitting the company into four separate
entities.
- Announced Rimini Consult™ for Salesforce®, an expansion of its
Salesforce services, offering comprehensive consulting services to
maximize client ROI and leverage the Salesforce platform
effectively.
- Announced the general availability of support, managed, and
consulting services for Salesforce ClickSoftware, extending the
life and value of client deployments beyond the December 31, 2023
end-of-life deadline.
- Closed nearly 7,900 support cases and delivered more than
11,200 tax, legal and regulatory updates to clients across 32
countries, while achieving an average client satisfaction rating on
the Company’s support delivery of 4.9 out of 5.0 (where 5.0 is
rated excellent).
- Recognized with prestigious culture awards: Great Place to
Work® Certifications in Singapore and Japan and ranked among the
Top 50 of India’s Best Workplaces™ in the IT & IT-BPM
category.
Business Outlook
The Company is continuing to suspend guidance until there is
more clarity around impacts from current litigation activity before
the U.S. Federal courts in the Company’s ongoing litigation with
Oracle.
Webcast and Conference Call Information
Rimini Street will host a conference call and webcast to discuss
the fourth quarter and full year 2023 results and offer commentary
on 2024 at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on
February 28, 2024. A live webcast of the event will be available on
Rimini Street’s Investor Relations site at Rimini Street IR events
link and directly via the webcast link. Dial-in participants can
access the conference call by dialing 1-800-836-8184. A replay of
the webcast will be available for one year following the event.
Company’s Use of Non-GAAP Financial Measures
This press release contains certain “non-GAAP financial
measures.” Non-GAAP financial measures are not based on a
comprehensive set of accounting rules or principles. This non-GAAP
information supplements and is not intended to represent a measure
of performance in accordance with disclosures required by U.S.
generally accepted accounting principles, or GAAP. Non-GAAP
financial measures should be considered in addition to, and not as
a substitute for or superior to, financial measures determined in
accordance with GAAP. A reconciliation of GAAP to non-GAAP results
is included in the financial tables within this press release.
Presented under the heading “About Non-GAAP Financial Measures and
Certain Key Metrics” is a description and explanation of our
non-GAAP financial measures.
About Rimini Street, Inc.
Rimini Street, Inc. (Nasdaq: RMNI), a Russell 2000® Company, is
a global provider of end-to-end enterprise software support,
products and services, the leading third-party support provider for
Oracle and SAP software and a Salesforce and AWS partner. The
Company has operations globally and offers a comprehensive family
of unified solutions to run, manage, support, customize, configure,
connect, protect, monitor, and optimize enterprise application,
database, and technology software, and enables clients to achieve
better business outcomes, significantly reduce costs and reallocate
resources for innovation. To date, over 5,500 Fortune 500, Fortune
Global 100, midmarket, public sector, and other organizations from
a broad range of industries have relied on Rimini Street as their
trusted enterprise software solutions provider. To learn more,
please visit riministreet.com, and connect with Rimini Street on
Twitter, Instagram, Facebook and LinkedIn. (IR-RMNI)
Forward-Looking Statements
Certain statements included in this communication are not
historical facts but are forward-looking statements for purposes of
the safe harbor provisions under The Private Securities Litigation
Reform Act of 1995. Forward-looking statements generally are
accompanied by words such as “anticipate,” “believe,” “continue,”
“could,” “currently,” “estimate,” “expect,” “future,” “intend,”
“may,” “might,” “outlook,” “plan,” “possible,” “potential,”
“predict,” “project,” “seem,” “seek,” “should,” “will,” “would” or
other similar words, phrases or expressions. These forward-looking
statements include, but are not limited to, statements regarding
our expectations of future events, future opportunities, global
expansion and other growth initiatives and our investments in such
initiatives. These statements are based on various assumptions and
on the current expectations of management and are not predictions
of actual performance, nor are these statements of historical
facts. These statements are subject to a number of risks and
uncertainties regarding Rimini Street’s business, and actual
results may differ materially. These risks and uncertainties
include, but are not limited to, adverse developments in and costs
associated with defending pending litigation or any new litigation,
including the disposition of pending motions to appeal and any new
claims; additional expenses to be incurred in order to comply with
injunctions against certain of our business practices and the
impact on future period revenue and costs; changes in the business
environment in which Rimini Street operates, including the impact
of any recessionary economic trends and changes in foreign exchange
rates, as well as general financial, economic, regulatory and
political conditions affecting the industry in which we operate and
the industries in which our clients operate; the evolution of the
enterprise software management and support landscape and our
ability to attract and retain clients and further penetrate our
client base; significant competition in the software support
services industry; customer adoption of our expanded portfolio of
products and services and products and services we expect to
introduce; our ability to sustain or achieve revenue growth or
profitability, manage our cost of revenue and accurately forecast
revenue; estimates of our total addressable market and expectations
of client savings relative to use of other providers; variability
of timing in our sales cycle; risks relating to retention rates,
including our ability to accurately predict retention rates; the
loss of one or more members of our management team; our ability to
attract and retain additional qualified personnel, including sales
personnel, and retain key personnel; challenges of managing growth
profitably; our need and ability to raise additional equity or debt
financing on favorable terms and our ability to generate cash flows
from operations to help fund increased investment in our growth;
risks associated with global operations; our ability to prevent
unauthorized access to our information technology systems and other
cybersecurity threats, protect the confidential information of our
employees and clients and comply with privacy regulations; our
ability to maintain an effective system of internal control over
financial reporting; our ability to maintain, protect and enhance
our brand and intellectual property; changes in laws and
regulations, including changes in tax laws or unfavorable outcomes
of tax positions we take, or a failure by us to establish adequate
tax reserves; the impact of environmental, social and governance
(ESG) matters; our credit facility’s ongoing debt service
obligations and financial and operational covenants on our business
and related interest rate risk, including uncertainty from the
transition to SOFR or other interest rate benchmarks; the
sufficiency of our cash and cash equivalents to meet our liquidity
requirements; the amount and timing of repurchases, if any, under
our stock repurchase program and our ability to enhance stockholder
value through such program; uncertainty as to the long-term value
of Rimini Street’s equity securities; catastrophic events that
disrupt our business or that of our clients; and those discussed
under the heading “Risk Factors” in Rimini Street’s Annual Report
on Form 10-K filed on February 28, 2024, and as updated from time
to time by Rimini Street’s future Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and
other filings by Rimini Street with the Securities and Exchange
Commission. In addition, forward-looking statements provide Rimini
Street’s expectations, plans or forecasts of future events and
views as of the date of this communication. Rimini Street
anticipates that subsequent events and developments will cause
Rimini Street’s assessments to change. However, while Rimini Street
may elect to update these forward-looking statements at some point
in the future, Rimini Street specifically disclaims any obligation
to do so, except as required by law. These forward-looking
statements should not be relied upon as representing Rimini
Street’s assessments as of any date subsequent to the date of this
communication.
© 2024 Rimini Street, Inc. All rights reserved. “Rimini Street”
is a registered trademark of Rimini Street, Inc. in the United
States and other countries, and Rimini Street, the Rimini Street
logo, and combinations thereof, and other marks marked by TM are
trademarks of Rimini Street, Inc. All other trademarks remain the
property of their respective owners, and unless otherwise
specified, Rimini Street claims no affiliation, endorsement, or
association with any such trademark holder or other companies
referenced herein.
RIMINI STREET, INC.
Unaudited Condensed
Consolidated Balance Sheets
(In thousands, except per share
amounts)
ASSETS
December 31,
2023
December 31, 2022
Current assets:
Cash and cash equivalents
$
115,424
$
109,008
Restricted cash
428
426
Accounts receivable, net of allowance of
$656 and $723, respectively
119,430
116,093
Deferred contract costs, current
17,934
17,218
Short-term investments
9,826
20,115
Prepaid expenses and other
25,647
18,846
Total current assets
288,689
281,706
Long-term assets:
Property and equipment, net of accumulated
depreciation and amortization of $18,231 and $15,441,
respectively
10,496
6,113
Operating lease right-of-use assets
5,941
7,142
Deferred contract costs, noncurrent
23,559
23,508
Deposits and other
6,109
7,057
Deferred income taxes, net
59,002
65,515
Total assets
$
393,796
$
391,041
LIABILITIES, REDEEMABLE
PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Current maturities of long-term debt
$
5,912
$
4,789
Accounts payable
5,997
8,040
Accrued compensation, benefits and
commissions
38,961
37,459
Other accrued liabilities
18,128
32,676
Operating lease liabilities, current
4,321
4,223
Deferred revenue, current
263,115
265,840
Total current liabilities
336,434
353,027
Long-term liabilities:
Long-term debt, net of current
maturities
64,228
70,003
Deferred revenue, noncurrent
23,859
34,081
Operating lease liabilities,
noncurrent
6,841
9,094
Other long-term liabilities
1,930
2,006
Total liabilities
433,292
468,211
Stockholders’ deficit:
Preferred Stock, $0.0001 par value per
share. Authorized 99,820 shares (excluding 180 shares of Series A
Preferred Stock); no other series has been designated
—
—
Common Stock, $0.0001 par value.
Authorized 1,000,000 shares; issued and outstanding 89,595 and
88,517 shares, respectively
9
9
Additional paid-in capital
167,988
156,401
Accumulated other comprehensive loss
(4,167
)
(4,195
)
Accumulated deficit
(202,210
)
(228,269
)
Treasury stock
(1,116
)
(1,116
)
Total stockholders’ deficit
(39,496
)
(77,170
)
Total liabilities, redeemable preferred
stock and stockholders’ deficit
$
393,796
$
391,041
RIMINI STREET, INC.
Unaudited Condensed
Consolidated Statements of Operations
(In thousands, except per share
amounts)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Revenue
$
112,111
$
108,621
$
431,496
$
409,662
Cost of revenue
43,712
38,563
162,513
152,385
Gross profit
68,399
70,058
268,983
257,277
Operating expenses:
Sales and marketing
34,983
39,181
142,339
143,018
General and administrative
17,568
18,100
73,044
75,367
Impairment charges related to operating
lease right-of-use assets
—
3,013
—
3,013
Reorganization costs
—
2,525
59
2,525
Litigation costs and related
recoveries:
Litigation settlement expense
2,743
—
2,743
—
Professional fees and other costs of
litigation
1,558
12,817
7,033
25,654
Insurance costs and recoveries, net
—
—
—
(389
)
Litigation costs and related recoveries,
net
4,301
12,817
9,776
25,265
Total operating expenses
56,852
75,636
225,218
249,188
Operating income (loss)
11,547
(5,578
)
43,765
8,089
Non-operating income and
(expenses):
Interest expense
(1,383
)
(1,296
)
(5,522
)
(4,271
)
Other income (expenses), net
1,189
2,684
2,989
(13
)
Income (loss) before income taxes
11,353
(4,190
)
41,232
3,805
Income taxes
(2,002
)
(1,082
)
(15,173
)
(6,285
)
Net income (loss)
$
9,351
$
(5,272
)
$
26,059
$
(2,480
)
Net income (loss) attributable to common
stockholders
$
9,351
$
(5,272
)
$
26,059
$
(2,480
)
Net income (loss) per share attributable
to common stockholders:
Basic
$
0.10
$
(0.06
)
$
0.29
$
(0.03
)
Diluted
$
0.10
$
(0.06
)
$
0.29
$
(0.03
)
Weighted average number of shares of
Common Stock outstanding:
Basic
89,462
88,355
89,073
87,672
Diluted
89,695
88,355
89,536
87,672
RIMINI STREET, INC.
GAAP to Non-GAAP
Reconciliations
(In thousands)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Non-GAAP operating income
reconciliation:
Operating income (loss)
$
11,547
$
(5,578
)
$
43,765
$
8,089
Non-GAAP adjustments:
Litigation costs and related recoveries,
net
4,301
12,817
9,776
25,265
Stock-based compensation expense
3,465
2,242
12,522
10,895
Impairment charges related to operating
lease right-of-use assets
—
3,013
—
3,013
Reorganization costs
—
2,525
59
2,525
Non-GAAP operating income
$
19,313
$
15,019
$
66,122
$
49,787
Non-GAAP net income
reconciliation:
Net income (loss)
$
9,351
$
(5,272
)
$
26,059
$
(2,480
)
Non-GAAP adjustments:
Litigation costs and related recoveries,
net
4,301
12,817
9,776
25,265
Stock-based compensation expense
3,465
2,242
12,522
10,895
Impairment charges related to operating
lease right-of-use assets
—
3,013
—
3,013
Reorganization costs
—
2,525
59
2,525
Non-GAAP net income
$
17,117
$
15,325
$
48,416
$
39,218
Non-GAAP Adjusted EBITDA
reconciliation:
Net income (loss)
$
9,351
$
(5,272
)
$
26,059
$
(2,480
)
Non-GAAP adjustments:
Interest expense
1,383
1,296
5,522
4,271
Income taxes
2,002
1,082
15,173
6,285
Depreciation and amortization expense
826
633
2,827
2,504
EBITDA
13,562
(2,261
)
49,581
10,580
Non-GAAP adjustments:
Litigation costs and related recoveries,
net
4,301
12,817
9,776
25,265
Stock-based compensation expense
3,465
2,242
12,522
10,895
Impairment charges related to operating
lease right-of-use assets
—
3,013
—
3,013
Reorganization costs
—
2,525
59
2,525
Adjusted EBITDA
$
21,328
$
18,336
$
71,938
$
52,278
Calculated Billings:
Revenue
$
112,111
$
108,621
$
431,496
$
409,662
Deferred revenue, current and noncurrent,
end of the period
286,974
299,921
286,974
299,921
Deferred revenue, current and noncurrent,
beginning of the period
238,399
248,187
299,921
300,268
Change in deferred revenue
48,575
51,734
(12,947
)
(347
)
Calculated billings
$
160,686
$
160,355
$
418,549
$
409,315
About Non-GAAP Financial Measures and Certain Key
Metrics
To provide investors and others with additional information
regarding Rimini Street’s results, we have disclosed the following
non-GAAP financial measures and certain key metrics. We have
described below Active Clients, Annualized Recurring Revenue and
Revenue Retention Rate, each of which is a key operational metric
for our business. In addition, we have disclosed the following
non-GAAP financial measures: non-GAAP operating income, non-GAAP
net income, EBITDA, Adjusted EBITDA and Billings. Rimini Street has
provided in the tables above a reconciliation of each non-GAAP
financial measure used in this earnings release to the most
directly comparable GAAP financial measure. Due to a valuation
allowance for our deferred tax assets, there were no tax effects
associated with any of our non-GAAP adjustments. These non-GAAP
financial measures are also described below.
The primary purpose of using non-GAAP measures is to provide
supplemental information that management believes may prove useful
to investors and to enable investors to evaluate our results in the
same way management does. We also present the non-GAAP financial
measures because we believe they assist investors in comparing our
performance across reporting periods on a consistent basis, as well
as comparing our results against the results of other companies, by
excluding items that we do not believe are indicative of our core
operating performance. Specifically, management uses these non-GAAP
measures as measures of operating performance; to prepare our
annual operating budget; to allocate resources to enhance the
financial performance of our business; to evaluate the
effectiveness of our business strategies; to provide consistency
and comparability with past financial performance; to facilitate a
comparison of our results with those of other companies, many of
which use similar non-GAAP financial measures to supplement their
GAAP results; and in communications with our board of directors
concerning our financial performance. Investors should be aware
however, that not all companies define these non-GAAP measures
consistently.
Billings represents the change in deferred revenue for
the current period plus revenue for the current period.
Active Client is a distinct entity that purchases our
services to support a specific product, including a company, an
educational or government institution, or a business unit of a
company. For example, we count as two separate active clients when
support for two different products is being provided to the same
entity. We believe that our ability to expand our active clients is
an indicator of the growth of our business, the success of our
sales and marketing activities, and the value that our services
bring to our clients.
Annualized Recurring Revenue is the amount of
subscription revenue recognized during a fiscal quarter and
multiplied by four. This gives us an indication of the revenue that
can be earned in the following 12-month period from our existing
client base assuming no cancellations or price changes occur during
that period. Subscription revenue excludes any non-recurring
revenue, which has been insignificant to date.
Revenue Retention Rate is the actual subscription revenue
(dollar-based) recognized over a 12-month period from customers
that were clients on the day prior to the start of such 12-month
period, divided by our Annualized Recurring Revenue as of the day
prior to the start of the 12-month period.
Non-GAAP Operating Income is operating income adjusted to
exclude: litigation costs and related recoveries, net, stock-based
compensation expense, reorganization costs and impairment charge
related to operating right-of-use assets. The exclusions are
discussed in further detail below.
Non-GAAP Net Income is net income adjusted to exclude:
litigation costs and related recoveries, net, stock-based
compensation expense, reorganization costs and impairment charge
related to operating right-of-use assets. These exclusions are
discussed in further detail below.
Specifically, management is excluding the following items from
its non-GAAP financial measures, as applicable, for the periods
presented:
Litigation Costs and Related Recoveries, Net:
Litigation costs and the associated insurance and appeal recoveries
relate to outside costs of litigation activities. These costs and
recoveries reflect the ongoing litigation we are involved with, and
do not relate to the day-to-day operations or our core business of
serving our clients.
Stock-Based Compensation Expense: Our
compensation strategy includes the use of stock-based compensation
to attract and retain employees. This strategy is principally aimed
at aligning the employee interests with those of our stockholders
and to achieve long-term employee retention. As a result,
stock-based compensation expense varies for reasons that are
generally unrelated to operational decisions in any particular
period.
Impairment Charges Related to Operating Lease
Right-of-Use Assets: This relates to impairment charges on our
leased assets for a portion of one of our locations as we no longer
use the space and have revised our estimated loss.
Reorganization Costs: The costs consist
primarily of severance costs associated with the Company’s
reorganization plan.
EBITDA is net income adjusted to exclude: interest
expense, income taxes, and depreciation and amortization
expense.
Adjusted EBITDA is EBITDA adjusted to exclude: litigation
costs and related recoveries, net, stock-based compensation
expense, impairment charges related to operating right-of-use
assets and reorganization costs, as discussed above.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240228214663/en/
Investor Relations Contact
Dean Pohl Rimini Street, Inc. +1 925 523-7636
dpohl@riministreet.com Media Relations
Contact Janet Ravin Rimini Street, Inc. +1 702 285-3532
pr@riministreet.com
Rimini Street (NASDAQ:RMNI)
過去 株価チャート
から 5 2024 まで 6 2024
Rimini Street (NASDAQ:RMNI)
過去 株価チャート
から 6 2023 まで 6 2024