Quarterly revenue of $97.9 million, up 11.4% year over year
Gross margin of 62.0%, up from 61.5% year over year
Quarterly Billings of $97.7 million, up 20.6% year over year
Operating Cash Flow of $45.8, up 87.2% year over year
2,884 Active Clients at March 31, 2022, up 13.1% 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 first quarter ended March 31, 2022.

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“For the first quarter, we achieved record revenue, record first quarter invoicing and delivered a Revenue Retention Rate of 94% on subscription revenue, up from 91% last year,” stated Seth A. Ravin, Rimini Street co-founder, CEO and chairman of the board. “We continued to fill key regional operations and sales roles, closed some of the largest sales transactions in our history during the quarter, and remain focused on growing and maturing our global marketing and sales operations for increased new client acquisition and the cross-sale of new services to existing clients.”

“For the first quarter, we delivered solid income statement and balance sheet results, including a higher year over year gross margin, operating income and Non-GAAP Operating Income. We ended the quarter with more than $158 million in cash, driven by strong first quarter operating cash flow of $45.8 million,” stated Michael L. Perica, Rimini Street chief financial officer. “Additionally, during the quarter, we initiated a common stock repurchase plan of up to $15 million and completed $3.2 million of repurchases during the quarter. The Company is also evaluating other financial options at this time that include an early prepayment of $10 million on its term loan with a principal value of approximately $86 million. There is no prepayment penalty on the term loan.”

First Quarter 2022 Financial Highlights

• Revenue was $97.9 million for the 2022 first quarter, an increase of 11.4% compared to $87.9 million for the same period last year.
• U.S. revenue was $52.3 million, an increase of 9.9% compared to $47.6 million for the same period last year.
• International revenue was $45.6 million, an increase of 13.1% compared to $40.3 million for the same period last year.
• Annualized Recurring Revenue was $384.9 million for the 2022 first quarter, an increase of 10.2% compared to $349.3 million for the same period last year.
• Active Clients as of March 31, 2022 were 2,884, an increase of 13.1% compared to 2,550 Active Clients as of March 31, 2021.
• Revenue Retention Rate was 94% for the trailing twelve months ended March 31, 2022 and 91% for the comparable period ended March 31, 2021.
• Subscription revenue of $96.2 million, which accounted for 98.3% of total revenue for the three months ended March 31, 2022 compared to subscription revenue of $87.3 million, which accounted for 99.4% of total revenue for the same period last year.
• Gross margin was 62.0% for the 2022 first quarter compared to 61.5% for the same period last year.
• Operating income was $5.9 million for the 2022 first quarter compared to $1.9 million for the same period last year.
• Non-GAAP Operating Income was $12.1 million for the 2022 first quarter compared to $9.3 million for the same period last year.
• Net income was $3.1 million for the 2022 first quarter compared to a net loss of $3.6 million for the same period last year.
• Non-GAAP Net Income was $9.2 million for the 2022 first quarter compared to $8.5 million for the same period last year.
• Adjusted EBITDA for the 2022 first quarter was $12.9 million compared to $10.7 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 $0.04 and $0.03, respectively, for the 2022 first quarter compared to a net loss per share of $0.13 for the same period last year.
• Employee count as of March 31, 2022 was 1,681, a year-over-year increase of 12.0%.

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.”

First Quarter 2022 Company Highlights

• Announced representative new clients who switched to, or existing clients who expanded their agreements with, Rimini Street, including:
  • Yarra Valley Water, the largest water utility in Melbourne, Australia
  • Staffmark Group, a leading staffing and recruitment firm in the United States
  • Breastscreen Victoria, an Australian government funded breast cancer organization
  • ICTSI, a global port operator headquartered in the Philippines
• Closed more than 10,000 support cases and delivered nearly 18,000 tax, legal and regulatory updates to clients across 33 countries, while achieving an average client satisfaction rating on the Company’s support delivery of 4.9 out of 5.0 (where 5.0 is rated excellent).
• Appointed Oracle, IBM and VMWare technology marketing veteran Jeff Spicer as executive vice president and chief marketing officer.
• Announced the Company has combined its North America and Latin America Theatres into a single Americas Theatre and new Theatre leadership team with Emmanuel Richard promoted to senior vice president and general manager.
• Former Oracle, IBM, HP and Lenovo senior executive, Kevin Hooper, joined Rimini Street as group vice president and GM of Americas central region.
• Rimini Street Korea recognized as a Top 100 in Korea Workplace including a Best CEO award for Seth Ravin and Best Workplaces for Women.
• Presented at numerous CIO and IT and procurement leader events worldwide.
• The Rimini Street Foundation supported charities across the globe through its giving program, donated employee time to community projects and launched the RMNI LOVE $50,000 Grant Program to benefit charities in Rimini Street's hometown of Las Vegas, USA.

2022 Business Outlook

The Company is guiding to a revenue range of $98.5 million to $99.5 million for the 2022 second quarter and we are raising 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 first quarter 2022 results and select second quarter 2022 performance to-date commentary at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on May 4, 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 (866) 374-5140 in the U.S. and Canada and enter the code 44249106#. 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 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.

About Rimini Street, Inc.

Rimini Street, Inc. (Nasdaq: RMNI) is 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. The Company offers premium, ultra-responsive and integrated application management and support services that enable enterprise software licensees to save significant costs, free up resources for innovation and achieve better business outcomes. To date, nearly 4,700 Fortune 500, Fortune Global 100, midmarket, public sector and other organizations from a broad range of industries have relied on Rimini Street as their trusted application enterprise software products and services provider. To learn more, please visit http://www.riministreet.com, follow @riministreet on Twitter and find Rimini Street on Facebook and LinkedIn. (IR-RMNI)

Forward-Looking Statements

Certain statements included in this communication are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “may,” “should,” “would,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “seem,” “seek,” “continue,” “future,” “will,” “expect,” “outlook” or other similar words, phrases or expressions. These forward-looking statements include, but are not limited to, statements regarding our expectations of future events, future opportunities, global expansion and other growth initiatives and our investments in such initiatives. These statements are based on various assumptions and on the current expectations of management and are not predictions of actual performance, nor are these statements of historical facts. These statements are subject to a number of risks and uncertainties regarding Rimini Street’s business, and actual results may differ materially. These risks and uncertainties include, but are not limited to, the amount and timing of repurchases, if any, under our stock repurchase program and our ability to enhance stockholder value through such program; the impact of our credit facility’s ongoing debt service obligations and financial and operational covenants on our business and related interest rate risk, including uncertainty from the discontinuance of LIBOR and transition to any other interest rate benchmarks; the duration of and operational and financial impacts on our business of the COVID-19 pandemic and related economic impact, as well as the actions taken by governmental authorities, clients or others in response to the continuance of the pandemic; catastrophic events that disrupt our business or that of our current and prospective clients, including terrorism and geopolitical actions specific to an international region; changes in the business environment in which Rimini Street operates, including inflation and interest rates, and general financial, economic, regulatory and political conditions affecting the industry in which Rimini Street operates; adverse developments in pending litigation or any new litigation; our need and ability to raise additional equity or debt financing on favorable terms and our ability to generate cash flows from operations to help fund increased investment in our growth initiatives; the sufficiency of our cash and cash equivalents to meet our liquidity requirements, including under our credit facility; our ability to maintain an effective system of internal control over financial reporting and our ability to remediate any identified material weaknesses in our internal controls; changes in laws and regulations, including changes in tax laws or unfavorable outcomes of tax positions we take, or a failure by us to establish adequate reserves for tax events; competitive product and pricing activity; challenges of managing growth profitably; the customer adoption of our recently introduced products and services, including our Application Management Services (AMS) offerings, in addition to other products and services we expect to introduce in the future; the loss of one or more members of Rimini Street’s management team; our ability to attract and retain qualified personnel; uncertainty as to the long-term value of Rimini Street’s equity securities; the effects of seasonal trends on our results of operations, including the contract renewal cycles for vendor supplied software support and managed services; our ability to prevent unauthorized access to our information technology systems and other cybersecurity threats, protect the confidential information of our employees and clients and comply with privacy and data protection regulations; and those discussed under the headings “Risk Factors” and “Cautionary Note About Forward-Looking Statements” in Rimini Street’s Quarterly Report on Form 10-Q filed on May 4, 2022, and as updated from time to time by Rimini Street’s future Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings by Rimini Street with the Securities and Exchange Commission. In addition, forward-looking statements provide Rimini Street’s expectations, plans or forecasts of future events and views as of the date of this communication. Rimini Street anticipates that subsequent events and developments will cause Rimini Street’s assessments to change. However, while Rimini Street may elect to update these forward-looking statements at some point in the future, Rimini Street specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Rimini Street’s assessments as of any date subsequent to the date of this communication.

© 2022 Rimini Street, Inc. All rights reserved. “Rimini Street” is a registered trademark of Rimini Street, Inc. in the United States and other countries, and Rimini Street, the Rimini Street logo, and combinations thereof, and other marks marked by TM are trademarks of Rimini Street, Inc. All other trademarks remain the property of their respective owners, and unless otherwise specified, Rimini Street claims no affiliation, endorsement, or association with any such trademark holder or other companies referenced herein.