MANILA, Philippines – 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, has announced results for the third quarter ended September 30, 2021.

“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

  1. 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.
  2. U.S. revenue was $50.5 million, an increase of 4.8% compared to $48.2 million for the same period last year.
  3. International revenue was $45.2 million, an increase of 31.4% compared to $34.4 million for the same period last year.
  4. 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.
  5. 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.
  6. Revenue Retention Rate was 93% for the trailing 12 months ended September 30, 2021 and 92% for the comparable period ended September 30, 2020.
  7. Subscription revenue accounted for 98.4% of total revenue.
  1. Gross margin was 65.1% for the 2021 third quarter compared to 61.2% for the same period last year.
  2. Operating income was $7.5 million for the 2021 third quarter compared to $4.5 million for the same period last year.
  3. Non-GAAP Operating Income was $16.5 million for the 2021 third quarter compared to $10.5 million for the same period last year.
  4. 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.
  1. Non-GAAP Net Income was $13.0 million for the 2021 third quarter compared to $9.3 million for the same period last year.
  2. Adjusted EBITDA for the 2021 third quarter was $15.9 million compared to $11.0 million for the same period last year.
  3. 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.
  4. Employee count as of September 30, 2021 was 1,595, a year-over-year increase of 15.2%.
  5. 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.”

Third Quarter 2021 Company Highlights

  • Announced that T-Mobile, with more than $68 billion in annual revenue and over 104 million customers, relies on Rimini Street as its trusted partner to support its SAP system and to help enable enhanced customer experiences as a competitive differentiator.
  • Announced that the County of Fresno, the largest agriculture producing County in the U.S., saved $800,000 on its Oracle support enabling it to increase funding for community-focused projects and critical support initiatives for its residents.
  • Announced that Origin Energy, a leading energy provider in Australia with more than four million customers, switched to Rimini Street Support for its Oracle software portfolio, enabling the organization to accelerate its innovation initiatives.
  • Announced the extension of the Company’s award-winning, mission-critical, application management, security and migration services beyond proprietary databases to leading open source database platforms, providing companies with an enterprise class, global “turnkey” service option from a single provider.
  • Closed over 9,500 support cases and delivered more than 18,000 tax, legal and regulatory updates for 27 countries, with a year-to-date total of more than 65,000 updates in 43 countries. Also, achieved an average client satisfaction rating on the Company’s support delivery of 4.9 out of 5.0 and the average of the Company’s client onboarding services achieved a rating record of 4.9 out of 5.0 (where 5.0 is “excellent”).
  • Introduced board members Jay Snyder and Katrinka McCallum, who bring a combined 50+ years of technology experience to Rimini Street’s Board of Directors.
  • Recognized with seven Stevie Awards for Technical Innovation, Excellence in Customer Service, Global Growth and Corporate Responsibility including a Gold award for the Company’s proprietary AI Support Platform that reduces the average time to resolve client cases by 23%.
  • Awarded the Grand Prize for Best Customer Support by the Japan Institute of Information Technology for the Company’s unique and innovative support model which includes its patent-pending AI technologies and platform.
  • Named in the Top 20 of the 2021 UK’s Best Workplaces for Women, ranking for the Company’s innovation, values and leadership effectiveness.
  • Announced that Rimini Street India’s managing director was honored in the Top 25 of India’s Best Leaders in Times of Crisis by Great Place to Work® India for his leadership during the COVID-19 pandemic.
  • Presented at CIO, IT and finance leader conferences including Quartz Connect CIO Summit, ITWC Digital Transformation Toronto and HMG Live Phoenix Digital CIO Executive Leadership Summit.
  • Supported charities around the world through the Rimini Street Foundation, including partnering with the American Red Cross to address needs stemming from U.S. weather disasters.

2021 Business Outlook

The Company is guiding to a revenue range of $95.8 million to $96.8 million for the 2021 fourth quarter and narrowing its full year 2021 revenue guidance from $370 million to $380 million to be in the range of $371 million to $372 million.

Webcast and Conference Call Information

Rimini Street will host a conference call and webcast to discuss the third quarter 2021 results and select fourth quarter 2021 performance to-date commentary at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on November 3, 2021. A live webcast of the event will be available on Rimini Street’s Investor Relations site at https://investors.riministreet.com/news-events/events. Dial-in participants can access the conference call by dialing (800) 708-4540 in the U.S. and Canada and enter the code 50234628. A replay of the webcast will be available for at least 90 days 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 in 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.

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