Rimini Street Announces Fiscal Fourth Quarter and Annual 2024 Financial and Operating Results (Graphic: Business Wire)

Rimini Street, Inc. (Nasdaq: RMNI), a global provider of end-to-end enterprise software support and innovation solutions, the leading third-party support provider for Oracle, SAP and VMware software, today announced results for the 2024 fourth quarter and fiscal year ended December 31, 2024.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250227716952/en/

Select Fourth Quarter 2024 Financial Results

• Revenue was $114.2 million for the 2024 fourth quarter, an increase of 1.9% compared to $112.1 million for the same period last year.
• U.S. revenue was $53.1 million for the 2024 fourth quarter, a decrease of 6.5% compared to $56.8 million for the same period last year.
• International revenue was $61.1 million for the 2024 fourth quarter, an increase of 10.5% compared to $55.3 million for the same period last year.
• Subscription revenue was $109.1 million, which accounted for 95.5% of total revenue for the 2024 fourth quarter, compared to subscription revenue of $108.1 million, which accounted for 96.4% of total revenue for the same period last year.
• Annualized Recurring Revenue was $414.8 million for the 2024 fourth quarter, a decrease of 4.1% compared to $432.3 million for the same period last year.
• Active Clients as of December 31, 2024 were 3,081, an increase of 1.4% compared to 3,038 Active Clients as of December 31, 2023.
• Revenue Retention Rate was 88% and 90% for the trailing 12 months ended December 31, 2024 and 2023, respectively.
• Gross margin was 63.7% for the 2024 fourth quarter compared to 61.0% for the same period last year.
• Operating income was $14.9 million for the 2024 fourth quarter compared to an operating income of $11.5 million for the same period last year.
• Non-GAAP Operating Income was $19.1 million for the 2024 fourth quarter compared to $19.3 million for the same period last year.
• Net income was $6.7 million for the 2024 fourth quarter compared to $9.4 million for the same period last year.
• Non-GAAP Net Income was $10.8 million for the 2024 fourth quarter compared to $17.1 million for the same period last year.
• Adjusted EBITDA for the 2024 fourth quarter was $20.0 million compared to $21.3 million for the same period last year.
• Basic and diluted earnings per share attributable to common stockholders was a net earnings per share of $0.07 and $0.07, respectively, for the 2024 fourth quarter compared to a basic and diluted net earnings per share of $0.10 and $0.10, respectively, for the same period last year.
• Cash and short-term investments of $88.8 million at December 31, 2024 compared to $125.3 million at December 31, 2023.
• Reorganization Costs of $1.1 million were incurred during the fourth quarter of 2024 as the Company continued a process to optimize its cost structure.

Select Full Year 2024 Financial Results

• Revenue was $428.8 million for 2024, a decrease of 0.6% compared to $431.5 million for 2023.
• Gross margin was 60.9% for 2024 compared to 62.3% for 2023.
• Operating loss was $32.1 million for 2024 compared to operating income of $43.8 million for 2023.
• Non-GAAP Operating Income was $47.7 million for 2024 compared to $66.1 million for 2023.
• Net loss was $36.3 million for 2024 compared to net income of $26.1 million for 2023.
• Non-GAAP Net Income was $43.6 million for 2024 compared to $48.4 million for 2023.
• Adjusted EBITDA was $53.1 million for 2024 compared to $71.9 million for 2023.
• Basic and diluted net earnings per share attributable to common stockholders was a net loss per share of $0.40 and $0.40, respectively, for 2024 compared to a basic and diluted net earnings per share of $0.29 and $0.29, respectively for 2023.

Select Fourth Quarter 2024 Operating Results

• Announced representative new clients that switched to, or existing clients that expanded their agreements with, Rimini Street, including the following:
  • Gunung Raja Paksi (GRP), an Indonesian leader in Steel production, has selected Rimini Support™ for SAP to cover its S/4HANA systems and Smart Factory Project, gaining competitive edge by redirecting savings and IT resources towards its Industry 4.0 initiatives.
  • Bumhan Mecatec, a leading South Korea chemical process equipment supplier, switched back to Rimini Support™ for Oracle EBS and Database systems, and the savings from the switch are funding transformative projects, such as AI-powered Innovation that increased productivity and profitability.
• Announced ServiceNow and Rimini Street to partner on new enterprise software model to unlock value in existing ERP systems for net-new innovation, digital growth and scale - Transformation without Disruption - combining ServiceNow’s AI Platform with Rimini Street’s proven enterprise software support.
• Announced expansion of Rimini Protect™ for Database Security Solutions, providing even more extensive security and compliance capabilities for most common commercial and open-source databases, including for Oracle, SAP, IBM, PostgreSQL and more.
• Announced expansion of Rimini Connect™, Suite of Interoperability Solutions, with a new management console that provides single-pane-of-glass configuration and management.
• Announced VMware customer survey, and 79% of respondents stated their perpetually licensed software meets their business needs, and 99% would consider to continue to utilize current software if they could acquire support, indicating a strong demand for Rimini Custom™ VMware support, launched May 2024.
• Closed over 6,900 support cases and delivered over 8,300 tax, legal and regulatory updates to clients across 22 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).

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 fourth quarter and full year 2024 results and offer commentary on 2025 at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on February 27, 2025. A live webcast of the event will be available on Rimini Street’s Investor Relations site at Rimini Street IR events link and directly via the webcast link. Dial-in participants can access the conference call by dialing 1-800-836-8184. 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.

Reconciliations of the non-GAAP financial measures included in this press release and described below 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.”