Thursday, November 3, 2022

Rimini Street Announces Fiscal Third Quarter 2022 Financial and Operating Results

 LAS VEGAS - Thursday, 03. November 2022 AETOSWire 


Financial Highlights Include:

Quarterly revenue of $101.9 million, up 6.6% year over year

Revenue Retention Rate of 94%, up from 93% year over year

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


(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 financial and operating results 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,” stated 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,” stated Michael L. Perica, Rimini Street chief financial 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 connection with a lawsuit Rimini Street filed against Oracle in 2014 where Oracle filed counterclaims, Oracle withdrew certain of its counterclaims and all its claims against Rimini Street and our CEO, Seth A. Ravin, for monetary relief of any kind under any legal theory in the litigation. Rimini Street’s remaining claims and Oracle’s remaining counterclaims seeking only equitable relief are presently scheduled to be tried in 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 today for additional information and disclosures regarding litigation with Oracle.


Third Quarter 2022 Financial Highlights


Revenue was $101.9 million for the 2022 third quarter, an increase of 6.6% compared to $95.6 million for the same period last year.


U.S. revenue was $53.4 million, an increase of 5.8% compared to $50.5 million for the same period last year.


International revenue was $48.5 million, an increase of 7.4% compared to $45.2 million for the same period last year.


Annualized Recurring Revenue was $399.8 million for the 2022 third quarter, an increase of 6.2% compared to $376.6 million for the same period last year.


Active Clients as of September 30, 2022 were 3,010, an increase of 7.8% compared to 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 period ended September 30, 2021.


Subscription revenue of $99.9 million, which accounted for 98.1% of total revenue for the 2022 third quarter compared to subscription revenue of $94.1 million, which accounted for 98.4% of total revenue for the same period last year.


Gross margin was 61.5% for the 2022 third quarter compared to 65.1% for the same period last year.


Operating income was $2.0 million for the 2022 third quarter compared to $7.5 million for the same period last year.


Non-GAAP Operating Income was $10.7 million for the 2022 third quarter compared to $16.5 million for the same period last year.


Net loss was $0.4 million for the 2022 third quarter compared to net income of $1.9 million for the same period last year.


Non-GAAP Net Income was $8.3 million for the 2022 third quarter compared to $13.0 million for the same period last year.


Adjusted EBITDA for the 2022 third quarter was $10.0 million compared to $15.9 million for the same period last year.


Basic and diluted net income (loss) per share attributable to common stockholders was a per share result of $0.00 for the 2022 third quarter compared to a net loss per share of $0.08 for the same period last year.


Cash and short-term investments of $129.7 million at September 30, 2022, an increase of 26% compared to $103.0 million at September 30, 2021.


Employee count as of September 30, 2022 was 1,871, a year-over-year increase of 17.3%.


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.”


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