Rimini Street Announces Fiscal Third Quarter 2021 Financial Results

LAS VEGAS–(BUSINESS WIRE)–Rimini Street, Inc. (Nasdaq: RMNI), a global provider of enterprise software products and services, the leading third-party support provider for Oracle and SAP software products and a Salesforce partner, today announced results for the third quarter ended September 30, 2021.

Rimini Street 3Q Earnings highlights: record revenue, strong revenue retention and 2,793 active clients globally. $RMNI

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“For the third quarter, we achieved record revenue of $95.6 million, up 15.9% year over year and at the high end of our guidance range and achieved a strong Revenue Retention Rate of 93%, up from 92% last year, on subscription revenue,” stated Seth A. Ravin, Rimini Street co-founder, CEO and chairman of the board. “We see growing demand for Rimini Street’s expanding portfolio of enterprise software support solutions as we continue building and maturing our go to market capability to launch, sell and deliver our full solutions portfolio to new and existing clients globally and prepare the Company for billion-dollar annual revenue operations by 2026.”

“For the third quarter, we delivered solid income statement and balance sheet results. We delivered a higher year over year gross margin, operating income and Non-GAAP Operating Income and ended the quarter with more than $103 million in cash,” stated Michael L. Perica, Rimini Street chief financial officer. “Additionally, during the quarter, we redeemed the remaining Series A Preferred Stock, with the five-year term loan transaction financed by Capital One and Fifth Third commercial banks for $90 million at a rate of LIBOR + 1.75% to 2.50%. The Company has taken certain one-time cash and non-cash charges in the third quarter related to the closing of the financing transaction and the go-forward annual financing costs have been reduced by $24 million compared to fiscal year 2020.”

Third Quarter 2021 Financial Highlights

• Revenue was $95.6 million for the 2021 third quarter, an increase of 15.9% compared to $82.5 million for the same period last year.
• U.S. revenue was $50.5 million, an increase of 4.8% compared to $48.2 million for the same period last year.
• International revenue was $45.2 million, an increase of 31.4% compared to $34.4 million for the same period last year.
• Annualized Recurring Revenue was $376.6 million for the 2021 third quarter, an increase of 15.3% compared to $326.6 million for the same period last year.
• Active Clients as of September 30, 2021 were 2,793, an increase of 18.1% compared to 2,365 Active Clients as of September 30, 2020.
• Revenue Retention Rate was 93% for the trailing 12 months ended September 30, 2021 and 92% for the comparable period ended September 30, 2020.
• Subscription revenue accounted for 98.4% of total revenue.
• Gross margin was 65.1% for the 2021 third quarter compared to 61.2% for the same period last year.
• Operating income was $7.5 million for the 2021 third quarter compared to $4.5 million for the same period last year.
• Non-GAAP Operating Income was $16.5 million for the 2021 third quarter compared to $10.5 million for the same period last year.
• Net income was $1.9 million for the 2021 third quarter compared to net income of $3.6 million for the same period last year.
• Non-GAAP Net Income was $13.0 million for the 2021 third quarter compared to $9.3 million for the same period last year.
• Adjusted EBITDA for the 2021 third quarter was $15.9 million compared to $11.0 million for the same period last year.
• Basic and diluted net loss per share attributable to common stockholders was a net loss per share of $0.08 for the 2021 third quarter compared to a net loss per share of $0.04 for the same period last year.
• Employee count as of September 30, 2021 was 1,595, a year-over-year increase of 15.2%.
• On July 20, 2021, the Company completed the buyback of $87.8 million face-value of Series A preferred stock, plus dividends payable of approximately $0.6 million, thereby redeeming the Series A preferred stock in full. The transaction was funded by a five-year term loan commercial bank financing of $90 million by lenders Capital One and Fifth Third Bank at a rate of LIBOR + 1.75% to 2.50%.

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.”