LAS VEGAS--(BUSINESS WIRE)--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 ONETM, 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 at Rimini 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.

About Rimini Street, Inc.

Rimini Street, Inc. (Nasdaq: RMNI), a Russell 2000® Company, is 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. The Company has operations globally and offers a comprehensive family of unified solutions to run, manage, support, customize, configure, connect, protect, monitor, and optimize enterprise application, database, and technology software, and enables clients to achieve better business outcomes, significantly reduce costs and reallocate resources for innovation. To date, over 5,300 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 enterprise software solutions provider. To learn more, please visit riministreet.com, and connect with Rimini Street on Twitter, Instagram, 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 “anticipate,” “believe,” “continue,” “could,” “currently,” “estimate,” “expect,” “future,” “intend,” “may,” “might,” “outlook,” “plan,” “possible,” “potential,” “predict,” “project,” “seem,” “seek,” “should,” “will,” “would” 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, adverse developments in and costs associated with defending pending litigation or any new litigation, including the disposition of pending motions to appeal and any new claims; additional expenses to be incurred in order to comply with injunctions against certain of our business practices and the impact on future period revenue and costs; changes in the business environment in which Rimini Street operates, including the impact of any recessionary economic trends and changes in foreign exchange rates, as well as general financial, economic, regulatory and political conditions affecting the industry in which we operate and the industries in which our clients operate; the evolution of the enterprise software management and support landscape and our ability to attract and retain clients and further penetrate our client base; significant competition in the software support services industry; customer adoption of our expanded portfolio of products and services and products and services we expect to introduce; our ability to sustain or achieve revenue growth or profitability, manage our cost of revenue and accurately forecast revenue; estimates of our total addressable market and expectations of client savings relative to use of other providers; variability of timing in our sales cycle; risks relating to retention rates, including our ability to accurately predict retention rates; the loss of one or more members of our management team; our ability to attract and retain qualified employees and key personnel; challenges of managing growth profitably; 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; the impact of environmental, social and governance (ESG) matters; risks associated with global operations; 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 regulations; our ability to maintain an effective system of internal control over financial reporting; our ability to maintain, protect and enhance our brand and intellectual property; 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 tax reserves; 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 transition to SOFR or other interest rate benchmarks; the sufficiency of our cash and cash equivalents to meet our liquidity requirements; the amount and timing of repurchases, if any, under our stock repurchase program and our ability to enhance stockholder value through such program; uncertainty as to the long-term value of Rimini Street’s equity securities; catastrophic events that disrupt our business or that of our clients; and those discussed under the heading “Risk Factors” in Rimini Street’s Quarterly Report on Form 10-Q filed on November 1, 2023, 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.

© 2023 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.