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
fiscal first quarter ended March 31, 2024.
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Rimini Street Announces Fiscal First
Quarter 2024 Financial and Operating Results (Graphic: Business
Wire)
Select First Quarter 2024 Financial Highlights
- Revenue was $106.7 million for the 2024 first quarter, an
increase of 1.2% compared to $105.5 million for the same period
last year.
- U.S. revenue was $53.8 million for the 2024 first quarter, an
increase of 0.7% compared to $53.4 million for the same period last
year.
- International revenue was $52.9 million for the 2024 first
quarter, an increase of 1.6% compared to $52.1 million for the same
period last year.
- Annualized Recurring Revenue was $415.8 million for the 2024
first quarter, an increase of 1.8% compared to $408.3 million for
the same period last year.
- Active Clients as of March 31, 2024 were 3,040, an increase of
1.1% compared to 3,007 Active Clients as of March 31, 2023.
- Revenue Retention Rate was 89% for the trailing twelve months
ended March 31, 2024 and 92% for the comparable period ended March
31, 2023.
- Subscription revenue was $103.9 million, which accounted for
97.4% of total revenue for the 2024 first quarter, compared to
subscription revenue of $102.1 million, which accounted for 96.8%
of total revenue for the same period last year.
- Gross margin was 59.8% for the 2024 first quarter compared to
62.7% for the same period last year.
- Operating income was $3.4 million for the 2024 first quarter
compared to $10.7 million for the same period last year.
- Non-GAAP Operating Income was $8.8 million for the 2024 first
quarter compared to $15.4 million for the same period last
year.
- Net income was $1.3 million for the 2024 first quarter compared
to $5.6 million for the same period last year.
- Non-GAAP Net Income was $6.8 million for the 2024 first quarter
compared to $10.4 million for the same period last year.
- Adjusted EBITDA for the 2024 first quarter was $10.7 million
compared to $16.6 million for the same period last year.
- Basic and diluted earnings per share attributable to common
stockholders was $0.01 for the 2024 first quarter compared to $0.06
for the same period last year.
- Cash and short-term investments of $129.0 million at March 31,
2024 compared to $135.0 million at March 31, 2023.
Subsequent Events
On April 30, 2024, the Company refinanced its Original Credit
Facility, which had an outstanding principal balance of $70.9
million, with a new five-year senior secured credit facility (“2024
Credit Facility”) consisting of a $75.0 million term loan and a
$35.0 million revolving line of credit. For the term loan, the
Company has a choice of interest rates between (a) SOFR and (b) a
Base Rate (as defined in the 2024 Credit Facility), in each case
plus an applicable margin. The applicable margin is based on the
Company’s Consolidated Total Leverage Ratio (as defined in the 2024
Credit Facility) and whether the Company elects SOFR (ranging from
2.75% to 3.5%) or Base Rate (ranging from 1.75% to 2.5%). The
revolving line of credit bears interest on the unused portion of
the credit line at rates of 25 to 40 basis points, depending on the
Company’s Consolidated Total Leverage Ratio. Annual minimum
principal payments over the five-year term for the 2024 Credit
Facility are 5%, 5%, 7.5%, 7.5%, and 10%, respectively, with the
remaining balance due at the end of the original term. Capital One
led the financing that includes lenders US Bank and TD Bank.
Subsequent to the quarter and the hiring of our new General
Manager for the EMEA Theatre, Martyn Hoogakker, who joined us from
Adobe, we announced the hiring of our new Chief Revenue Officer,
Steven Hershkowitz, who joined us following extensive sales
strategy and leadership experience with HP, Cisco and other
companies.
Select First Quarter 2024 Operating Highlights
- Announced representative new clients who switched to, or
existing clients who expanded their agreements with, Rimini Street,
including:
- Nexen Corporation, a global automotive parts manufacturer and
logistics service provider, who selected Rimini Support™ for
SAP.
- GES, a global trade show production provider, who chose Rimini
Support™ for Oracle EBS for comprehensive support.
- Announced the launch of Rimini Custom™, a new software support
offering that expands Rimini Street’s award-winning services to a
broader scope of enterprise software.
- Announced the appointment of former Rimini Street client and
award-winning IT executive Trude Van Horn as CIO: Rimini Street
Appoints Gertrude Van Horn as CIO.
- Celebrated the 10-year anniversary of continuous business
growth in Japan: Rimini Street Japan Celebrates 10 Years of
Extraordinary Client Service and Regional Success.
- Shared the findings of the Foundry Oracle Database survey,
“Forces Driving the Future of Your Oracle Database Roadmap,” which
highlighted that most customers are satisfied with their current
releases but are concerned with the cost, effort and upgrades
required to maintain and support their existing investments.
- Closed over 8,100 support cases and delivered more than 42,000
tax, legal and regulatory updates to clients across 29 countries,
while achieving an average client satisfaction rating on the
Company’s support delivery and onboarding services of more than 4.9
out of 5.0 (where 5.0 is rated excellent).
- Recognized with prestigious culture awards including Great
Place to Work© Certifications in France, UK and USA for the second
consecutive year, and ranked 8th in Nation by Best Workplaces™
Korea.
- Welcomed the 3rd year of the RMNI LOVE Grant Program, selecting
London as the host city for 2024.
2024 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 first quarter 2024 results and potentially select second
quarter 2024 performance-to-date commentary at 5:00 p.m. Eastern
Time / 2:00 p.m. Pacific Time on May 2, 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.
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.”
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 Quarterly
Report on Form 10-Q filed on May 2, 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
March 31, 2024
December 31, 2023
Current assets:
Cash and cash equivalents
$
129,005
$
115,424
Restricted cash
428
428
Accounts receivable, net of allowance of
$629 and $656, respectively
78,785
119,430
Deferred contract costs, current
17,215
17,934
Short-term investments
—
9,826
Prepaid expenses and other
22,948
25,647
Total current assets
248,381
288,689
Long-term assets:
Property and equipment, net of accumulated
depreciation and amortization of $19,030 and $18,231,
respectively
10,713
10,496
Operating lease right-of-use assets
5,257
5,941
Deferred contract costs, noncurrent
21,769
23,559
Deposits and other
5,506
6,109
Deferred income taxes, net
59,569
59,002
Total assets
$
351,195
$
393,796
LIABILITIES, REDEEMABLE
PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Current maturities of long-term debt
$
5,914
$
5,912
Accounts payable
3,612
5,997
Accrued compensation, benefits and
commissions
31,005
38,961
Other accrued liabilities
17,959
18,128
Operating lease liabilities, current
4,357
4,321
Deferred revenue, current
229,988
263,115
Total current liabilities
292,835
336,434
Long-term liabilities:
Long-term debt, net of current
maturities
62,781
64,228
Deferred revenue, noncurrent
24,318
23,859
Operating lease liabilities,
noncurrent
5,815
6,841
Other long-term liabilities
1,758
1,930
Total liabilities
387,507
433,292
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 89,931 and
89,595 shares, respectively
9
9
Additional paid-in capital
170,546
167,988
Accumulated other comprehensive loss
(4,858
)
(4,167
)
Accumulated deficit
(200,893
)
(202,210
)
Treasury stock, at cost
(1,116
)
(1,116
)
Total stockholders' deficit
(36,312
)
(39,496
)
Total liabilities and stockholders'
deficit
$
351,195
$
393,796
RIMINI STREET, INC.
Unaudited Condensed
Consolidated Statements of Operations
(In thousands, except per share
amounts)
Three Months Ended
March 31,
2024
2023
Revenue
$
106,745
$
105,512
Cost of revenue
42,914
39,343
Gross profit
63,831
66,169
Operating expenses:
Sales and marketing
39,141
34,479
General and administrative
18,401
18,227
Reorganization costs
—
59
Litigation costs and related
recoveries:
Professional fees and other costs of
litigation
2,926
2,719
Litigation costs and related recoveries,
net
2,926
2,719
Total operating expenses
60,468
55,484
Operating income
3,363
10,685
Non-operating income and
(expenses):
Interest expense
(1,341
)
(1,339
)
Other income (expenses), net
964
528
Income before income taxes
2,986
9,874
Income taxes
(1,669
)
(4,235
)
Net income
$
1,317
$
5,639
Net income attributable to common
stockholders
$
1,317
$
5,639
Net income per share attributable to
common stockholders:
Basic
$
0.01
$
0.06
Diluted
$
0.01
$
0.06
Weighted average number of shares of
Common Stock outstanding:
Basic
89,754
88,690
Diluted
90,560
89,061
RIMINI STREET, INC.
GAAP to Non-GAAP
Reconciliations
(In thousands)
Three Months Ended
March 31,
2024
2023
Non-GAAP operating income
reconciliation:
Operating income
$
3,363
$
10,685
Non-GAAP adjustments:
Litigation costs and related recoveries,
net
2,926
2,719
Stock-based compensation expense
2,558
1,976
Reorganization costs
—
59
Non-GAAP operating income
$
8,847
$
15,439
Non-GAAP net income
reconciliation:
Net income
$
1,317
$
5,639
Non-GAAP adjustments:
Litigation costs and related recoveries,
net
2,926
2,719
Stock-based compensation expense
2,558
1,976
Reorganization costs
—
59
Non-GAAP net income
$
6,801
$
10,393
Non-GAAP Adjusted EBITDA
reconciliation:
Net income
$
1,317
$
5,639
Non-GAAP adjustments:
Interest expense
1,341
1,339
Income taxes
1,669
4,235
Depreciation and amortization expense
873
613
EBITDA
5,200
11,826
Non-GAAP adjustments:
Litigation costs and related recoveries,
net
2,926
2,719
Stock-based compensation expense
2,558
1,976
Reorganization costs
—
59
Adjusted EBITDA
$
10,684
$
16,580
Calculated Billings:
Revenue
$
106,745
$
105,512
Deferred revenue, current and noncurrent,
end of the period
254,306
287,381
Deferred revenue, current and noncurrent,
beginning of the period
286,974
299,921
Change in deferred revenue
(32,668
)
(12,540
)
Calculated billings
$
74,077
$
92,972
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 and reorganization costs. 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 and reorganization costs. 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.
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
and reorganization costs, as discussed above.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240502994935/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