• Quarterly revenue of $101.2 million, up 10.5% year over year
• Gross margin of 63.1%, up from 62.2% year over year
• Quarterly Billings of $101.6 million, down 5.3% year over year
• 2,905 Active Clients at June 30, 2022, up 9.8% year over year

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 second quarter ended June 30, 2022.

“For the second quarter, we had many positive financial and operational achievements, including strong subscription renewals and extensions, increased cross-sales of our expanded solution portfolio to existing clients and we maintained our excellent, industry-leading client satisfaction rating of more than 4.9 out of 5.0 for cases and onboarding,” stated Seth A. Ravin, Rimini Street co-founder, CEO and chairman of the board. “However, in line with other companies, we faced global macro environment and currency exchange rate headwinds that impacted revenue growth by 1%. We believe that the macro environment will ultimately benefit our business, and we are addressing it and other opportunities with changes that include my return to oversee global revenue operations to re-accelerate growth.” 

“For the second quarter, we achieved record revenue of $101.2 million and a record Revenue Retention Rate of 95% on subscription revenue, a gross margin greater than 63%, generated $15 million of operating cash flow, a record end of quarter cash balance of more than $160 million and delivered solid operating income, Non-GAAP Operating Income and Adjusted EBITDA results,” stated Michael L. Perica, Rimini Street chief financial officer. “Additionally, during the quarter, we increased our common stock repurchase plan from $15 million over two years to $50 million over four years and prepaid $5 million of our term loan without any early prepayment penalty.”

Second Quarter 2022 Financial Highlights

• Revenue was $101.2 million for the 2022 second quarter, an increase of 10.5% compared to $91.6 million for the same period last year.
• U.S. revenue was $53.9 million, an increase of 8.8% compared to $49.6 million for the same period last year.
• International revenue was $47.3 million, an increase of 12.5% compared to $42.1 million for the same period last year.
• Annualized Recurring Revenue was $396.7 million for the 2022 second quarter, an increase of 9.6% compared to $362.1 million for the same period last year.
• Active Clients as of June 30, 2022 were 2,905, an increase of 9.8% compared to 2,645 Active Clients as of June 30, 2021.
• Revenue Retention Rate was 95% for the trailing twelve months ended June 30, 2022 and 94% for the comparable period ended June 30, 2021.
• Subscription revenue of $99.2 million, which accounted for 98.0% of total revenue for the 2022 second quarter compared to subscription revenue of $90.5 million, which accounted for 98.8% of total revenue for the same period last year.
• Gross margin was 63.1% for the 2022 second quarter compared to 62.2% for the same period last year.
• Operating income was $5.7 million for the 2022 second quarter compared to $4.6 million for the same period last year.
• Non-GAAP Operating Income was $11.9 million for the 2022 second quarter compared to $9.8 million for the same period last year.
• Net income was $0.1 million for the 2022 second quarter compared to a net income of $6.8 million for the same period last year.
• Non-GAAP Net Income was $6.4 million for the 2022 second quarter compared to $8.4 million for the same period last year.
• Adjusted EBITDA for the 2022 second quarter was $11.0 million compared to $9.9 million for the same period last year.
• Basic and diluted net income (loss) per share attributable to common stockholders was a net income per share of $0.00 and $0.00, respectively, for the 2022 second quarter compared to a net loss per share of $0.06 for the same period last year.
• Cash balance (not including restricted cash) of $160.2 million at June 30, 2022, an increase of 45% compared to $110.4 million for the same period last year.
• Employee count as of June 30, 2022 was 1,834, a year-over-year increase of 17.9%.

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.”

Second Quarter 2022 Company Highlights

• Announced representative new clients who switched to, or existing clients who expanded their agreements with, Rimini Street, including:
  • Labeyrie Fine Foods, a French fine food manufacturer
  • Sajo Systems, an affiliate of Sajo Group, a major fisheries company in Korea, that supports IT, logistics and assets
  • SK Networks, South Korean household appliances and electronic goods merchant
  • AllianceCorp Manufacturing, Malaysia integrated contract manufacturing solutions for precision parts
  • Lwart, a pioneer in oil recycling in Latin America
  • E-LAND Innople, an IT affiliate of the South Korean conglomerate E-Land Group
  • State Library of Victoria, Australia’s oldest library
• Closed more than 9,411 support cases and delivered nearly 9,813 tax, legal and regulatory updates to clients across 30 countries, while achieving an average client satisfaction rating on the Company’s support delivery of more than 4.9 out of 5.0 (where 5.0 is rated excellent).
• Recognized in UK’s Best Workplaces™ and Ranked among the UK’s Best Workplaces™ for Wellbeing by Great Place to Work®
• Presented and participated in almost 30 CIO and IT leader events worldwide.
• The Rimini Street Foundation provided financial aid to 25 charities and dedicated 350 employee hours to 7 charities in Malaysia, Singapore, and USA. In May, the Foundation celebrated the winners of its $50,000 RMNI LOVE Grant Program, supporting 5 notable charities in Las Vegas with a donation of $10,000 each. For Pride Month in June, The Rimini Street Foundation proudly contributed $10,000 to OutRight Action International, a global organization advocating for equal rights for the LGBTIQ community.

2022 Business Outlook

The Company is guiding to a revenue range of $100.5 million to $102.5 million for the 2022 third quarter and we are maintaining full year 2022 revenue guidance to be in the range of $402 million to $411 million.

Webcast and Conference Call Information

Rimini Street will host a conference call and webcast to discuss the second quarter 2022 results and select third quarter 2022 performance to-date commentary at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on August 3, 2022. A live webcast of the event will be available on Rimini Street’s Investor Relations site at https://investors.riministreet.com. Dial-in participants can access the conference call by dialing (888) 999-2501 in the U.S. and Canada. 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.