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 results for the fiscal second quarter ended June 30, 2024.

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Select Second Quarter 2024 Financial Highlights

• Revenue was $103.1 million for the 2024 second quarter, a decrease of 3.1% compared to $106.4 million for the same period last year.
• U.S. revenue was $51.5 million for the 2024 second quarter, a decrease of 4.7% compared to $54.0 million for the same period last year.
• International revenue was $51.7 million for the 2024 second quarter, a decrease of 1.5% compared to $52.4 million for the same period last year.
• Annualized Recurring Revenue was $399.4 million for the 2024 second quarter, a decrease of 2.6% compared to $410.1 million for the same period last year.
• Active Clients as of June 30, 2024 were 3,007, a decrease of 0.6% compared to 3,026 Active Clients as of June 30, 2023.
• Revenue Retention Rate was 88% for the trailing twelve months ended June 30, 2024 and 94% for the comparable period ended June 30, 2023.
• Subscription revenue was $99.9 million, which accounted for 96.8% of total revenue for the 2024 second quarter, compared to subscription revenue of $102.5 million, which accounted for 96.3% of total revenue for the same period last year.
• Gross margin was 59.1% for the 2024 second quarter compared to 63.0% for the same period last year.
• Operating income (loss) was an operating loss of $(0.8) million for the 2024 second quarter compared to operating income of $10.3 million for the same period last year.
• Non-GAAP Operating Income was $6.4 million for the 2024 second quarter compared to $14.9 million for the same period last year.
• Net income (loss) was a net loss of $(1.1) million for the 2024 second quarter compared to net income of $4.3 million for the same period last year.
• Non-GAAP Net Income was $6.1 million for the 2024 second quarter compared to $8.8 million for the same period last year.
• Adjusted EBITDA for the 2024 second quarter was $8.8 million compared to $15.8 million for the same period last year.
• Basic and diluted earnings (loss) per share attributable to common stockholders was a loss per share of $(0.01) for the 2024 second quarter compared to earnings per share of $0.05 for the same period last year.
• Cash and short-term investments of $134.2 million at June 30, 2024 compared to $140.7 million at June 30, 2023.
• Reorganization Costs of $3.2 million were incurred during the second quarter of 2024 as the Company began a process to evaluate and optimize its cost structure through a headcount reduction. The Company expects to incur additional reorganization costs during the third quarter of 2024. During the second quarter of 2024, the Company paid 0.3 million of the reorganization costs.
• Additionally, after careful consideration, the Company has decided to wind down the offering of services for Oracle PeopleSoft products. This includes the Company’s Rimini Support™, Rimini Manage™ and Rimini Consult™ services. As the Company provides services for Oracle PeopleSoft products to clients globally, the wind-down process is expected to take place over several phases and will likely take a year or longer before the Company is able to cease providing all Oracle PeopleSoft services. Revenue related to providing services for Oracle PeopleSoft products accounted for approximately $36.1 million, or 8%, of fiscal year 2023 revenue and $16.6 million, or 8%, of first half 2024 revenue, respectively.

Select Second Quarter 2024 Operating Highlights

• Announced representative new clients who switched to, or existing clients who expanded their agreements with, Rimini Street, including:
  • Ricoh Company Ltd., a global leader in image processing and digital transformation solutions, has selected Rimini Support™ and Rimini Protect™, for Oracle EBS and Oracle Database environments.
  • Sunway Group, Malaysia’s leading conglomerate, has selected Rimini ONE™, Rimini Street’s powerful combination of Rimini Support™ and Rimini Manage™ services, for their Oracle JD Edwards platform.
  • Americanas Group, a leading Brazilian retailer, has selected Rimini Manage™, to drive operational efficiencies across SAP ECC 6, S/4HANA and RISE platforms.
  • Pacific Healthcare Group, the leading sales and marketing services organization for the Southeast Asian healthcare industry, has selected Rimini Support™ for Oracle Technology and Oracle Database.
• Announced the launch of Rimini Support™, Rimini Protect™ and Rimini Consult™ services for VMware Products in a first-of-its-kind comprehensive third-party offering.
• Announced the appointment of proven Senior Executive Steve Hershkowitz as new EVP and Chief Revenue Officer (CRO).
• Announced the appointment of seasoned SaaS and Professional Services Executive Martyn Hoogakker as GVP and General Manager for the EMEA Region.
• Shared the independent survey findings of nearly 3,000 global CFOs and CIOs revealing a common focus on and prioritization of results and ROI from IT investments, to manage increasing organizational complexity and rising IT costs.
• Honored with two prestigious Stevie® 2024 Awards, a Silver Stevie for Front-Line Customer Service Team of the Year, and a Bronze Stevie for Woman of the Year in Customer Service awarded to Robin Weiss, VP of Oracle Application Support Services.
• Recognized by India’s Great Mid-Size Workplaces 2024 as top 20th in Nation for “Excelling People Practices” and “High Trust Culture.”
• Recognized by TrustRadius as winner of four 2024 Top Rated Awards, for Implementation Services, Consulting and Advisory Services, IT Professional Services, and Managed IT Services categories.
• Closed nearly 7,700 support cases and delivered close to 2,800 tax, legal and regulatory updates to clients across 23 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).

2024 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 second quarter 2024 results and potentially select third quarter 2024 performance-to-date commentary at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on July 31, 2024. 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 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. 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.

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.”