LAS VEGAS - Rimini Street, Inc. (Nasdaq: RMNI), a global provider of end-to-end enterprise software support, products and services, the leading third-party support provider for Oracle and SAP software, and a Salesforce and AWS partner, today announced financial and operating results for the fiscal third quarter ended September 30, 2023. 

“For the third quarter of 2023, we saw our end-to-end ERP outsourcing solution, Rimini ONE, and our solutions for SAP products continue to gain traction globally, driven in part by the current macro-economic environment where we believe our expanded, full service portfolio is increasingly valued by prospects and clients and in part by the further maturing of our go-to-market execution,” stated Seth A. Ravin, Rimini Street’s co-founder, president, CEO and chairman of the board.

Select Third Quarter 2023 Financial Highlights

• Revenue was $107.5 million for the 2023 third quarter, an increase of 5.4% compared to $101.9 million for the same period last year.
• U.S. revenue was $55.7 million, an increase of 4.3% compared to $53.4 million for the same period last year.
• International revenue was $51.7 million, an increase of 6.6% compared to $48.5 million for the same period last year.
• Annualized Recurring Revenue was $416.3 million for the 2023 third quarter, an increase of 4.1% compared to $399.8 million for the same period last year.
• Revenue Retention Rate was 94% for both the trailing twelve months ended September 30, 2023 and September 30, 2022, respectively.
• Subscription revenue was $104.1 million, which accounted for 96.9% of total revenue for the 2023 third quarter, compared to subscription revenue of $99.9 million, which accounted for 98.1% of total revenue for the same period last year.
• Billings was $60.5 million for the 2023 third quarter, an increase of 21.7% compared to $49.7 million for the same period last year.
• Gross margin was 62.7% for the 2023 third quarter compared to 61.5% for the same period last year.
• Operating income was $11.2 million for the 2023 third quarter compared to $2.0 million for the same period last year.
• Non-GAAP Operating Income was $16.5 million for the 2023 third quarter compared to $10.7 million for the same period last year.
• Net income was $6.8 million for the 2023 third quarter compared to a net loss of $0.4 million for the same period last year.
• Non-GAAP Net Income was $12.1 million for the 2023 third quarter compared to $8.3 million for the same period last year.
• Adjusted EBITDA for the 2023 third quarter was $18.2 million compared to $10.0 million for the same period last year.
• Basic and diluted net income per share attributable to common stockholders was $0.08 for the 2023 third quarter compared to basic and diluted net loss per share of $0.00 for the same period last year.
• Cash and short-term investments of $128.1 million at September 30, 2023 compared to $129.7 million at September 30, 2022.

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.”

Select Third Quarter 2023 Operating Highlights

• Announced Gachon University Gil Medical Center, South Korea’s pioneering health provider and leading research-center hospital, has selected Rimini Support™ for Oracle Database, leading to both stability and improvement in its mission-critical IT operations that serve the needs of 1.5 million patients annually.
• Expanded Rimini Support™ for SAP products and Industry Solutions, while reaffirming its guarantee of 15 additional years of support and managed services for fifteen SAP products, including SAP ECC and S/4HANA.
• Announced the availability and expansion of Rimini Manage™ services for SAP Cloud Products, providing additional application managed services to help SAP cloud licensees benefit from improved productivity, better predictability and increased business value.
• Shared findings of the sponsored Censuswide Buyers Sentiment Survey, “Organizations Want More Control Over Their IT Budget,” which highlighted the deep concerns shared by more than 600 U.S-based CIOs and CTOs of vendor subscription-based licensing model due to lack of ROI and fear of vendor lock-in.
• Closed over 8,400 support cases and delivered over 4,000 tax, legal and regulatory updates to clients across 20 countries, while achieving an average client satisfaction rating on the Company’s support delivery and onboarding services of more than 4.9 out of 5.0 (where 5.0 is rated excellent).
• Recognized with Great Place to Work© Certifications in India and Australia, and awarded UK’s Best Workplace for Women™ for Medium Companies.
• Announced Gartner IT Symposium fall conference schedule, where Rimini Street has or will participate, present, and lead discussion groups, with events held in Orlando, Barcelona, and Tokyo.
• Rimini Street Foundation celebrated its 500th charitable donation, continuing the mission to “leave the world a better place.”

2023 Business Outlook

The Company is continuing to suspend guidance until there is more clarity around impacts from current litigation activity before the U.S. Federal courts in the Company’s ongoing litigation with Oracle.

Webcast and Conference Call Information

Rimini Street will host a conference call and webcast to discuss the third quarter 2023 results and potentially select fourth quarter 2023 performance-to-date commentary at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on November 1, 2023. A live webcast of the event will be available on Rimini Street’s Investor Relations site atRimini Street IR events link and directly via the webcast link. Dial-in participants can access the conference by registering from the dial-in registration link. 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.