Rimini Street Announces Fiscal Third Quarter 2022 Financial and Operating Results

Financial Highlights Include:

Quarterly income of $101.9 million, up 6.6% 12 months over 12 months

Revenue Retention Rate of 94%, up from 93% 12 months over 12 months

3,010 Active Clients at September 30, 2022, up 7.8% 12 months over 12 months

Rimini Street, Inc. (Nasdaq: RMNI), a worldwide supplier of enterprise software program merchandise and providers, the main third-party help supplier for Oracle and SAP software program merchandise and a Salesforce companion, at present introduced monetary and working outcomes for the third quarter ended September 30, 2022.

“Though global macro environment challenges including currency exchange rate headwinds negatively impacted third quarter financial and operating results, we achieved multi-million-dollar sales wins in diverse industries, strong subscription renewals and extensions, a continued increase in cross-sales of our expanded solutions portfolio to existing clients, and we maintained our excellent, industry-leading client satisfaction rating for cases and onboarding,” acknowledged Seth A. Ravin, Rimini Street co-founder, CEO and chairman of the board. “We believe Rimini Street’s portfolio of IT solutions provides the services many organizations need today around their enterprise software systems, and provides industry-leading value, ROI and proven engineering capability. We remain focused on actions and investments to take advantage of market opportunities and re-accelerate growth.”

“For the third quarter, we achieved record revenue of $101.9 million, a higher year over year Revenue Retention Rate of 94% on subscription revenue and delivered a gross margin greater than 61% while making significant investments and changes focused on supporting sales and delivery of our expanded portfolio of services globally,” acknowledged Michael L. Perica, Rimini Street chief monetary officer. “Also during the quarter, Rimini Street repurchased 200,000 common shares at a cost of $992,000.”

Subsequent to the third quarter, on October 21, 2022, in reference to a lawsuit Rimini Street filed in opposition to Oracle in 2014 the place Oracle filed counterclaims, Oracle withdrew sure of its counterclaims and all its claims in opposition to Rimini Street and our CEO, Seth A. Ravin, for financial aid of any variety below any authorized concept within the litigation. Rimini Street’s remaining claims and Oracle’s remaining counterclaims searching for solely equitable aid are presently scheduled to be tried within the United States Federal Court for the District of Nevada on November 29, 2022. Please see Rimini Street’s Quarterly Report on SEC Form 10-Q filed at present for extra info and disclosures concerning litigation with Oracle.

Third Quarter 2022 Financial Highlights

• Revenue was $101.9 million for the 2022 third quarter, a rise of 6.6% in comparison with $95.6 million for a similar interval final 12 months.
• U.S. income was $53.4 million, a rise of 5.8% in comparison with $50.5 million for a similar interval final 12 months.
• International income was $48.5 million, a rise of seven.4% in comparison with $45.2 million for a similar interval final 12 months.
• Annualized Recurring Revenue was $399.8 million for the 2022 third quarter, a rise of 6.2% in comparison with $376.6 million for a similar interval final 12 months.
• Active Clients as of September 30, 2022 had been 3,010, a rise of seven.8% in comparison with 2,793 Active Clients as of September 30, 2021.
• Revenue Retention Rate was 94% for the trailing twelve months ended September 30, 2022 and 93% for the comparable interval ended September 30, 2021.
• Subscription income of $99.9 million, which accounted for 98.1% of complete income for the 2022 third quarter in comparison with subscription income of $94.1 million, which accounted for 98.4% of complete income for a similar interval final 12 months.
• Gross margin was 61.5% for the 2022 third quarter in comparison with 65.1% for a similar interval final 12 months.
• Operating revenue was $2.0 million for the 2022 third quarter in comparison with $7.5 million for a similar interval final 12 months.
• Non-GAAP Operating Income was $10.7 million for the 2022 third quarter in comparison with $16.5 million for a similar interval final 12 months.
• Net loss was $0.4 million for the 2022 third quarter in comparison with web revenue of $1.9 million for a similar interval final 12 months.
• Non-GAAP Net Income was $8.3 million for the 2022 third quarter in comparison with $13.0 million for a similar interval final 12 months.
• Adjusted EBITDA for the 2022 third quarter was $10.0 million in comparison with $15.9 million for a similar interval final 12 months.
• Basic and diluted web revenue (loss) per share attributable to frequent stockholders was a per share results of $0.00 for the 2022 third quarter in comparison with a web loss per share of $0.08 for a similar interval final 12 months.
• Cash and short-term investments of $129.7 million at September 30, 2022, a rise of 26% in comparison with $103.0 million at September 30, 2021.
• Employee depend as of September 30, 2022 was 1,871, a year-over-year enhance of 17.3%.

Reconciliations of the non-GAAP monetary measures offered on this press launch to their most instantly comparable GAAP monetary measures are offered within the monetary tables included on the finish of this press launch. An rationalization of those measures, why we imagine they’re significant and how they’re calculated can also be included below the heading “About Non-GAAP Financial Measures and Certain Key Metrics.”

Third Quarter 2022 Operating Highlights

• Announced consultant new purchasers who switched to, or present purchasers who expanded their agreements with, Rimini Street, together with:
  

• Launched Rimini Protect ™ Security Suite – an revolutionary suite of safety options for Oracle and SAP environments
• Closed 8,829 help circumstances and delivered 7,917 tax, authorized and regulatory updates to purchasers throughout 43 nations, whereas reaching a median consumer satisfaction score on the Company’s help supply of greater than 4.9 out of 5.0 (the place 5.0 is rated glorious).
• Achieved recognition as a Best Workplaces ™ for Women by Great Place to Work ™ UK and certification as a Great Place to Work ® in each USA and ANZ areas with nicely above common sentiments and participation scores in opposition to the nationwide averages within the respective nations.
• Presented and participated in 43 CIO and IT chief occasions worldwide together with Rimini Street-hosted “Street Smart” thought management occasions in Brazil, France, Israel, Korea and USA.
• Provided monetary help to 21 charities and devoted 330 worker hours to 10 charities in Australia, Brazil, Canada, France, Israel, Korea, Mexico, UK and USA via the self-funded Rimini Street Foundation.

2022 Business Outlook

The Company is guiding to a income vary of $103 million to $105 million for the 2022 fourth quarter and tightening its full 12 months 2022 income steerage to be within the vary of $404 million to $406 million.

Webcast and Conference Call Information

Rimini Street will host a convention name and webcast to debate the third quarter 2022 outcomes and choose fourth quarter 2022 efficiency to-date commentary at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on November 2, 2022. A stay webcast of the occasion might be accessible on Rimini Street’s Investor Relations web site at https://investors.riministreet.com/events. Dial-in members can entry the convention name by dialing (888) 999-2501 or (848-280-6480). A replay of the webcast might be accessible for one 12 months following the occasion.

Company’s Use of Non-GAAP Financial Measures

This press launch comprises sure “non-GAAP financial measures.” Non-GAAP monetary measures usually are not primarily based on a complete set of accounting guidelines or ideas. This non-GAAP info dietary supplements and isn’t supposed to signify a measure of efficiency in accordance with disclosures required by U.S. usually accepted accounting ideas, or GAAP. Non-GAAP monetary measures must be thought-about along with, and not as an alternative choice to or superior to, monetary measures decided in accordance with GAAP. A reconciliation of GAAP to non-GAAP outcomes is included within the monetary tables inside this press launch. Presented below the heading “About Non-GAAP Financial Measures and Certain Key Metrics” is an outline and rationalization of our non-GAAP monetary measures.

About Rimini Street, Inc.

Rimini Street, Inc. (Nasdaq: RMNI) is a worldwide supplier of enterprise software program merchandise and providers, the main third-party help supplier for Oracle and SAP software program merchandise and a Salesforce companion. The Company presents premium, ultra-responsive and built-in software administration and help providers that allow enterprise software program licensees to avoid wasting important prices, unlock assets for innovation and obtain higher business outcomes. To date, over 4,900 Fortune 500, Fortune Global 100, midmarket, public sector and different organizations from a broad vary of industries have relied on Rimini Street as their trusted software enterprise software program merchandise and providers supplier. To study extra, please go to http://www.riministreet.com, comply with @riministreet on Twitter and discover Rimini Street on Facebook and LinkedIn. (IR-RMNI)

Forward-Looking Statements

Certain statements included on this communication usually are not historic details however are forward-looking statements for functions of the secure harbor provisions below The Private Securities Litigation Reform Act of 1995. Forward-looking statements usually are accompanied by phrases corresponding to “may,” “should,” “would,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “seem,” “seek,” “continue,” “future,” “will,” “expect,” “outlook” or different comparable phrases, phrases or expressions. These forward-looking statements embrace, however usually are not restricted to, statements concerning our expectations of future occasions, future alternatives, world growth and different progress initiatives and our investments in such initiatives. These statements are primarily based on varied assumptions and on the present expectations of administration and usually are not predictions of precise efficiency, nor are these statements of historic details. These statements are topic to a variety of dangers and uncertainties concerning Rimini Street’s business, and precise outcomes might differ materially. These dangers and uncertainties embrace, however usually are not restricted to, the quantity and timing of repurchases, if any, below our inventory repurchase program and our capacity to boost stockholder worth via such program; the impression of our credit score facility’s ongoing debt service obligations and monetary and operational covenants on our business and associated rate of interest threat, together with uncertainty from the discontinuance of LIBOR and transition to another rate of interest benchmarks; the length of and financial, operational and monetary impacts on our business of the COVID-19 pandemic, in addition to the actions taken by governmental authorities, purchasers or others in response to the pandemic; adjustments within the business surroundings by which Rimini Street operates, together with the impression of any recessionary financial tendencies, together with inflation, rising rates of interest and adjustments in international trade charges, in addition to common monetary, financial, regulatory and political situations affecting the trade by which Rimini Street operates and the industries by which our purchasers function; the evolution of the enterprise software program administration and help panorama going through our purchasers and prospects and our capacity to draw and retain purchasers and additional penetrate our consumer base; catastrophic occasions that disrupt our business or that of our present and potential purchasers, together with terrorism and geopolitical actions particular to a global area; adversarial developments in and prices related to defending pending litigation or any new litigation; our want and capacity to lift further fairness or debt financing on favorable phrases and our capacity to generate money flows from operations to assist fund elevated funding in our progress initiatives; the sufficiency of our money and money equivalents to fulfill our liquidity necessities, together with below our credit score facility; our capacity to take care of an efficient system of inside management over monetary reporting and our capacity to remediate any recognized materials weaknesses in our inside controls; adjustments in legal guidelines and laws, together with adjustments in tax legal guidelines or unfavorable outcomes of tax positions we take, or a failure by us to ascertain enough reserves for tax occasions; aggressive product and pricing exercise; challenges of managing progress profitably; buyer adoption of our merchandise and providers, together with our Application Management Services (AMS) choices, along with different merchandise and providers we anticipate to introduce sooner or later; the lack of a number of members of Rimini Street’s administration crew; our capacity to draw and retain certified staff and key personnel; uncertainty as to the long-term worth of Rimini Street’s fairness securities; the consequences of seasonal tendencies on our outcomes of operations, together with the contract renewal cycles for vendor equipped software program help and managed providers; our capacity to stop unauthorized entry to our info know-how programs and different cybersecurity threats, defend the confidential info of our staff and purchasers and adjust to privateness and information safety laws; and these mentioned below the headings “Risk Factors” and “Cautionary Note About Forward-Looking Statements” in Rimini Street’s Quarterly Report on Form 10-Q filed on November 2, 2022, and as up to date on occasion by Rimini Street’s future Annual Reports on Form 10-Okay, Quarterly Reports on Form 10-Q, Current Reports on Form 8-Okay, and different filings by Rimini Street with the Securities and Exchange Commission. In addition, forward-looking statements present Rimini Street’s expectations, plans or forecasts of future occasions and views as of the date of this communication. Rimini Street anticipates that subsequent occasions and developments will trigger Rimini Street’s assessments to vary. However, whereas Rimini Street might elect to replace these forward-looking statements sooner or later sooner or later, Rimini Street particularly disclaims any obligation to take action, besides as required by regulation. These forward-looking statements shouldn’t be relied upon as representing Rimini Street’s assessments as of any date subsequent to the date of this communication.

© 2022 Rimini Street, Inc. All rights reserved. “Rimini Street” is a registered trademark of Rimini Street, Inc. within the United States and different nations, and Rimini Street, the Rimini Street brand, and combos thereof, and different marks marked by TM are emblems of Rimini Street, Inc. All different emblems stay the property of their respective house owners, and except in any other case specified, Rimini Street claims no affiliation, endorsement, or affiliation with any such trademark holder or different corporations referenced herein.

About Non-GAAP Financial Measures and Certain Key Metrics

To present buyers and others with further info concerning Rimini Street’s outcomes, we’ve got disclosed the next non-GAAP monetary measures and sure key metrics. We have described under Active Clients, Annualized Recurring Revenue and Revenue Retention Rate, every of which is a key operational metric for our business. In addition, we’ve got disclosed the next non-GAAP monetary measures: non-GAAP working revenue, non-GAAP web revenue, EBITDA, adjusted EBITDA and Billings. Rimini Street has offered within the tables above a reconciliation of every non-GAAP monetary measure used on this earnings launch to probably the most instantly comparable GAAP monetary measure. Due to a valuation allowance for our deferred tax belongings, there have been no tax results related to any of our non-GAAP changes. These non-GAAP monetary measures are additionally described under.

The major function of utilizing non-GAAP measures is to supply supplemental info that administration believes might show helpful to buyers and to allow buyers to judge our leads to the identical means administration does. We additionally current the non-GAAP monetary measures as a result of we imagine they help buyers in evaluating our efficiency throughout reporting durations on a constant foundation, in addition to evaluating our outcomes in opposition to the outcomes of different corporations, by excluding objects that we don’t imagine are indicative of our core working efficiency. Specifically, administration makes use of these non-GAAP measures as measures of working efficiency; to organize our annual working funds; to allocate assets to boost the monetary efficiency of our business; to judge the effectiveness of our business methods; to supply consistency and comparability with previous monetary efficiency; to facilitate a comparability of our outcomes with these of different corporations, lots of which use comparable non-GAAP monetary measures to complement their GAAP outcomes; and in communications with our board of administrators regarding our monetary efficiency. Investors must be conscious nevertheless, that not all corporations outline these non-GAAP measures persistently.

Billings represents the change in deferred income for the present interval plus income for the present interval.

Active Client is a definite entity that purchases our providers to help a particular product, together with an organization, an academic or authorities establishment, or a business unit of an organization. For instance, we depend as two separate lively purchasers when help for 2 completely different merchandise is being offered to the identical entity. We imagine that our capacity to increase our lively purchasers is an indicator of the expansion of our business, the success of our gross sales and advertising and marketing actions, and the worth that our providers convey to our purchasers.

Annualized Recurring Revenue is the quantity of subscription income acknowledged throughout a fiscal quarter and multiplied by 4. This provides us a sign of the income that may be earned within the following 12-month interval from our present consumer base assuming no cancellations or worth adjustments happen throughout that interval. Subscription income excludes any non-recurring income, which has been insignificant thus far.

Revenue Retention Rate is the precise subscription income (dollar-based) acknowledged over a 12-month interval from clients that had been purchasers on the day previous to the beginning of such 12-month interval, divided by our Annualized Recurring Revenue as of the day previous to the beginning of the 12-month interval.

Non-GAAP Operating Income is working revenue adjusted to exclude: litigation prices and associated recoveries, web, stock-based compensation expense and impairment cost associated to working right-of-use belongings. The exclusions are mentioned in additional element under.

Non-GAAP Net Income is web revenue adjusted to exclude: litigation prices and associated recoveries, web, loss on change in truthful worth of redeemable warrants, stock-based compensation expense and impairment cost associated to working right-of-use belongings. These exclusions are mentioned in additional element under.

Specifically, administration is excluding the next objects from its non-GAAP monetary measures, as relevant, for the durations offered:

Litigation Costs and Related Recoveries, Net: Litigation prices and the related insurance and enchantment recoveries relate to exterior prices of litigation actions. These prices and recoveries replicate the continuing litigation we’re concerned with, and don’t relate to the day-to-day operations or our core business of serving our purchasers.

Gain (loss) on Change in Fair Value of Redeemable Warrants: We have excluded the beneficial properties and losses on redeemable warrants associated to the change in truthful worth of those devices given the monetary nature of this truthful worth requirement. We usually are not in a position to handle these quantities as a part of our business operations nor are the prices core to servicing our purchasers and subsequently we’ve got excluded them.

Stock-Based Compensation Expense: Our compensation technique contains the usage of stock-based compensation to draw and retain staff. This technique is principally aimed toward aligning the worker pursuits with these of our stockholders and to realize long-term worker retention, somewhat than to encourage or reward operational efficiency for any explicit interval. As a consequence, stock-based compensation expense varies for causes which can be usually unrelated to operational selections and efficiency in any explicit interval.

Impairment Charges Related to Operating Lease Right-of-Use Assets: This pertains to an impairment cost associated to our leased belongings for a portion of one among our areas as we not use the house.

EBITDA is web revenue adjusted to exclude: curiosity expense, revenue tax expense, and depreciation and amortization expense.

Adjusted EBITDA is EBITDA adjusted to exclude: litigation prices and associated recoveries, web, acquire (loss) on change in truthful worth of redeemable warrants, stock-based compensation expense and impairment cost associated to working right-of-use belongings, as mentioned above.

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