First Quarter Financial Highlights Include:
Gross margin of 61.0% compared to 59.8% in the prior year
Net Income of $3.4 million compared to $1.3 million in the prior year
Billings of $79.4 million, up 7.2% year over year
Adjusted EBITDA of $15.3 million compared to $10.7 million in the prior year
LAS VEGAS--(BUSINESS WIRE)--Rimini Street, Inc. (Nasdaq: RMNI), a global provider of end-to-end enterprise software support and innovation solutions, and the leading third-party support provider for Oracle, SAP and VMware software, today announced results for the fiscal first quarter ended March 31, 2025.
Select First Quarter 2025 Financial Results
- Revenue was $104.2 million for the 2025 first quarter, a decrease of 2.4% compared to $106.7 million for the same period last year.
- U.S. revenue was $50.1 million for the 2025 first quarter, a decrease of 6.9% compared to $53.8 million for the same period last year.
- International revenue was $54.1 million for the 2025 first quarter, an increase of 2.2% compared to $52.9 million for the same period last year.
- Subscription revenue was $99.0 million, which accounted for 95.0% of total revenue for the 2025 first quarter, compared to subscription revenue of $103.9 million, which accounted for 97.4% of total revenue for the same period last year.
- Annualized Recurring Revenue was $396.2 million for the 2025 first quarter, a decrease of 4.7% compared to $415.8 million for the same period last year.
- Active Clients as of March 31, 2025 were 3,092, an increase of 1.7% compared to 3,040 Active Clients as of March 31, 2024.
- Revenue Retention Rate was 88% for the trailing twelve months ended March 31, 2025 and 89% for the comparable period ended March 31, 2024.
- Billings was $79.4 million for the 2025 first quarter, an increase of 7.2% compared to $74.1 million for the same period last year.
- Gross margin was 61.0% for the 2025 first quarter compared to 59.8% for the same period last year.
- Operating income was $9.4 million for the 2025 first quarter compared to $3.4 million for the same period last year.
- Non-GAAP Operating Income was $14.5 million for the 2025 first quarter compared to $8.8 million for the same period last year.
- Net income was $3.4 million for the 2025 first quarter compared to $1.3 million for the same period last year.
- Non-GAAP Net Income was $8.4 million for the 2025 first quarter compared to $6.8 million for the same period last year.
- Adjusted EBITDA for the 2025 first quarter was $15.3 million compared to $10.7 million for the same period last year.
- Basic and diluted earnings per share attributable to common stockholders was $0.04 for the 2025 first quarter compared to $0.01 for the same period last year.
- Cash and cash equivalents were $122.6 million at March 31, 2025 compared to $129.0 million at March 31, 2024.
Select First Quarter 2025 Operating Results
-
Announced representative new clients that switched to, or existing clients that expanded their agreements with, Rimini Street, including the following:
- Pan Ocean, a global bulk carrier, selected Rimini Street to provide support for its highly customized Oracle EBS platform. The decision enabled the company to avoid a costly, disruptive move to the cloud and to consolidate multiple maintenance contracts for greater savings and ease.
- Hitachi Vantara, a leader in data infrastructure, intelligent data management and AI powered hybrid cloud solutions, selected Rimini Support™ for Oracle as part of its IT cost-savings efforts and to receive better, more comprehensive support for its mission-critical systems with expertise in areas such as JAVA and Oracle licensing.
- Announced partnership with Workday to provide Application Management Services for Workday’s suite of products. Organizations can now rely on Rimini Manage™ to seamlessly manage and streamline day-to-day operations and help address costs and staffing needs to drive better business outcomes.
- Announced a strategic partnership with T-Systems North America to deliver an integrated approach to enterprise IT support, enabling clients to optimize their technology investments while benefiting from industry-leading service quality, infrastructure expertise and cloud capabilities.
- Announced Rimini Protect™ Advanced Hypervisor Security for VMware, Nutanix and all other Linux-based Hypervisors - powered by Vali Cyber AI/ML security technology - to safeguard against ransomware and other vulnerabilities.
- Closed over 7,200 support cases and delivered over 10,000 tax, legal and regulatory updates to clients across 28 countries, while achieving an average client satisfaction rating on the Company’s support delivery and onboarding services of 4.9 out of 5.0 (where 5.0 is rated excellent).
- Winner of Business Intelligence Group’s 2025 Best AI-based Customer Service Solution of the Year Award, for our patented and proprietary, human-first, AI-enhanced enterprise software support and processes solution.
- Honored with Great Place to Work® award for Korea’s Most Respected CEO to Rimini Street’s CEO Seth Ravin and Best Workplaces™ certifications in Israel, Japan, Korea, Singapore, UK and USA, celebrating Rimini Street’s commitment to an extraordinary workplace culture of fairness and togetherness.
- Honored with two prestigious Stevie® 2025 Awards, a Silver Stevie for Front-Line Customer Service Team of the Year and a Bronze Stevie for Best Customer Satisfaction Strategy.
- Celebrated the 10th anniversary of the Rimini Street Foundation with a $100,000 RMNI LOVE Grant Program, inviting certified charities in select cities to apply for one of ten $10,000 grants.
2025 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 first quarter 2025 results and select second quarter 2025 performance-to-date commentary at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on May 1, 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.”
About Rimini Street, Inc.
Rimini Street, Inc. (Nasdaq: RMNI), a Russell 2000® Company, is a global provider of end-to-end enterprise software support and innovation solutions and the leading third-party support provider for Oracle, SAP and VMware software. The Company offers a comprehensive portfolio of unified solutions to run, manage, support, customize, configure, connect, protect, monitor, and optimize enterprise application, database, and technology software. The Company has signed thousands of contracts with Fortune Global 100, Fortune 500, midmarket, public sector and government organizations who selected Rimini Street as their trusted, proven mission-critical enterprise software solutions provider, achieving better operational outcomes and realizing billions of US dollars in savings used to fund AI and other innovation investments.
To learn more, please visit www.riministreet.com, and connect with Rimini Street on X, Facebook, Instagram, and LinkedIn.
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,” “assume,” “believe,” “continue,” “could,” “currently,” “estimate,” “expect,” “forecast,” “future,” “intend,” “may,” “might,” “outlook,” “plan,” “possible,” “goal,” “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; any expenses to be incurred to comply with any injunction ordered by the courts relating to the Rimini II litigation matter and the impact on future period revenue and costs incurred related to these efforts; changes in the business environment in which Rimini Street operates, including the impact of any recessionary macro-economic trends, heightened geopolitical tensions 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 educate the market to attract and retain clients and further penetrate our client base; significant competition in the software support services industry and our intentions with respect to our pricing model; customer adoption of our expanded portfolio of products and services and products and services we expect to introduce; our expectations regarding new product offerings, partnerships and alliance programs, including but not limited to our partnership with ServiceNow; our ability to grow our revenue and accurately forecast revenue, along with the results of any efforts to manage costs in light of current revenue expectations and expansion of our offerings; the expected impact of reductions in our workforce during the last and current fiscal year and associated reorganization costs; 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 additional qualified personnel; our business plan, our ability to grow in the future and our ability to achieve and maintain profitability; our plans to wind-down the offering of services for Oracle PeopleSoft products; the volatility of our stock price and related compliance with stock exchange requirements; our need and ability to raise 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; risks associated with global operations; our ability to prevent unauthorized access to our information technology systems and other cybersecurity threats; any deficiencies associated with generative artificial intelligence (AI) technologies potentially used by us or used by our third-party vendors and service providers; our ability to protect the confidential information of our employees and clients and to 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; tariff costs (including tariff relief or the ability to mitigate tariffs, in light of new or increased tariffs imposed by the United States government and the potential for retaliatory trade measures by affected countries); a failure by us to establish adequate tax reserves; our ability to realize benefits from our net operating losses; any negative impact of environmental, social and governance matters on our reputation or business and the exposure of our business to additional costs or risks from our reporting on such matters; our ability to maintain our good standing with the United States government and international governments and capture new contracts with governmental entities; our credit facility’s ongoing debt service obligations and financial and operational covenants on our business and related interest rate risk; 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 May 1, 2025, 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.
© 2025 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.
|
RIMINI STREET, INC. Unaudited Condensed Consolidated Balance Sheets (In thousands, except per share amounts) |
|||||||
|
ASSETS |
March 31, |
|
December 31, |
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
122,574 |
|
|
$ |
88,792 |
|
|
Restricted cash |
|
1,203 |
|
|
|
430 |
|
|
Accounts receivable, net of allowance of $762 and $653, respectively |
|
74,362 |
|
|
|
130,784 |
|
|
Deferred contract costs, current |
|
16,596 |
|
|
|
17,076 |
|
|
Prepaid expenses and other |
|
20,422 |
|
|
|
19,194 |
|
|
Total current assets |
|
235,157 |
|
|
|
256,276 |
|
|
Long-term assets: |
|
|
|
||||
|
Property and equipment, net of accumulated depreciation and amortization of $21,898 and $21,305, respectively |
|
9,585 |
|
|
|
9,891 |
|
|
Operating lease right-of-use assets |
|
7,004 |
|
|
|
7,161 |
|
|
Deferred contract costs, noncurrent |
|
20,534 |
|
|
|
22,084 |
|
|
Deposits and other |
|
4,631 |
|
|
|
5,068 |
|
|
Deferred income taxes, net |
|
66,119 |
|
|
|
68,583 |
|
|
Total assets |
$ |
343,030 |
|
|
$ |
369,063 |
|
|
LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT |
|||||||
|
Current liabilities: |
|
|
|
||||
|
Current maturities of long-term debt |
$ |
3,093 |
|
|
$ |
3,093 |
|
|
Accounts payable |
|
4,815 |
|
|
|
5,275 |
|
|
Accrued compensation, benefits and commissions |
|
28,127 |
|
|
|
33,586 |
|
|
Other accrued liabilities |
|
20,520 |
|
|
|
20,688 |
|
|
Operating lease liabilities, current |
|
3,869 |
|
|
|
3,967 |
|
|
Deferred revenue, current |
|
234,806 |
|
|
|
257,983 |
|
|
Total current liabilities |
|
295,230 |
|
|
|
324,592 |
|
|
Long-term liabilities: |
|
|
|
||||
|
Long-term debt, net of current maturities |
|
81,412 |
|
|
|
82,187 |
|
|
Deferred revenue, noncurrent |
|
21,617 |
|
|
|
23,214 |
|
|
Operating lease liabilities, noncurrent |
|
6,842 |
|
|
|
7,064 |
|
|
Other long-term liabilities |
|
1,625 |
|
|
|
1,451 |
|
|
Total liabilities |
|
406,726 |
|
|
|
438,508 |
|
|
Stockholders' deficit: |
|
|
|
||||
|
Preferred Stock, $0.0001 par value per share. Authorized 99,820 shares (excluding 180 shares of Series A Preferred Stock); no other series has been designated |
|
— |
|
|
|
— |
|
|
Common Stock, $0.0001 par value. Authorized 1,000,000 shares; issued and outstanding 91,351 and 91,120 shares, respectively |
|
9 |
|
|
|
9 |
|
|
Additional paid-in capital |
|
180,241 |
|
|
|
177,533 |
|
|
Accumulated other comprehensive loss |
|
(7,698 |
) |
|
|
(7,389 |
) |
|
Accumulated deficit |
|
(235,132 |
) |
|
|
(238,482 |
) |
|
Treasury stock |
|
(1,116 |
) |
|
|
(1,116 |
) |
|
Total stockholders' deficit |
|
(63,696 |
) |
|
|
(69,445 |
) |
|
Total liabilities and stockholders' deficit |
$ |
343,030 |
|
|
$ |
369,063 |
|
