Welcome to our dedicated page for Rimini Street news (Ticker: RMNI), a resource for investors and traders seeking the latest updates and insights on Rimini Street stock.
Corporate Overview
Rimini Street (RMNI) is an independent provider specializing in end-to-end enterprise software support. Established in 2005, the company offers an extensive range of services that enable clients to run, manage, support, customize, configure, connect, protect, monitor, and optimize their enterprise applications encompassing both Oracle and SAP systems. Leveraging a subscription-based model, Rimini Street delivers cost-effective support programs that challenge traditional vendor-based support fees, which has resonated strongly with IT executives, including CIOs and CFOs, particularly in a landscape characterized by tight IT budgets and increasing cost pressures.
Service Offerings and Business Model
At its core, Rimini Street's business model is built on delivering comprehensive support solutions designed to replace the more expensive annual support contracts offered by the original software vendors. The company provides a unified family of support services for enterprise resource planning (ERP), customer relationship management (CRM), product lifecycle management, and various technology software systems. This approach enables client companies to access award-winning support services without the burden of escalating traditional fees. By offering a subscription model, Rimini Street ensures predictable and scalable cost structures while maintaining a focus on quality and continuity in service delivery.
Operational Excellence and Market Position
Rimini Street is recognized for its rigorous operational standards and a well-honed support methodology that distinguishes it within the competitive landscape. The company’s service model is driven by in-depth technical expertise, comprehensive maintenance protocols, and proactive risk management practices aimed at maximizing the performance of enterprise software environments. Its offerings are underpinned by extensive industry knowledge and a commitment to addressing the ever-evolving challenges faced by modern businesses. Widely acknowledged by prominent industry analysts and independent research organizations, the company has consistently been identified as a credible and robust alternative in the enterprise software support market.
Industry Recognition and Client Base
Over the years, Rimini Street has built a reputation for its innovative approach to software support and has attracted a diverse clientele that spans across both domestic and international markets. Its business model, recognized by industry analysts at firms such as Gartner, Forrester, and Nucleus, emphasizes a value proposition centered on cost-efficiency, enhanced service quality, and strategic IT flexibility. This recognition is a testament to the company’s ability to adapt to evolving market demands while maintaining a focus on core operational strengths and customer satisfaction.
Comprehensive Support Solutions
The portfolio of services offered by Rimini Street extends far beyond simple maintenance. The company integrates customization, configuration, and optimization services into a unified support framework that helps clients sustain and improve the performance of their enterprise applications. This holistic view of support not only ensures immediate operational continuity but also contributes to long-term IT resilience for its clients. By focusing on a collaborative, client-centered approach, Rimini Street addresses both current challenges and complex IT landscape requirements with precision and reliability.
Global Reach and Client-Centric Approach
While a significant portion of Rimini Street’s revenue is generated within the United States, the company has also established a credible presence in various international markets. Its ability to tailor support services to meet the diverse needs of clients across different regions speaks to the versatility and adaptability of its business model. The company’s focus on creating deep, long-term partnerships is evident in its commitment to consistent service delivery and the strategic management of enterprise application environments on a global scale.
Key Industry Keywords and Insights
In discussing Rimini Street, it is essential to highlight industry-specific terms such as enterprise software support, subscription-based service, and cost-effective IT optimization. These keywords not only underscore the operational focus of the company but also illustrate its role in a broader market context where businesses increasingly seek innovative ways to manage software environments while mitigating rising costs.
Competitive Landscape and Value Proposition
- Cost Efficiency: By offering support at approximately half the cost of traditional vendor support fees, Rimini Street presents a compelling value proposition for organizations looking to optimize their IT budgets.
- Technical Expertise: The company’s deep-rooted technical knowledge and strong support framework enable it to address complex software maintenance challenges, ensuring high-quality service delivery.
- Client Focus: With a robust international client base, Rimini Street’s approach is characterized by proactive customer engagement and a tailored service model designed to meet the unique needs of each organization.
- Industry Recognition: The consistent acknowledgment by independent industry analysts and research firms reinforces the company’s authority and trustworthiness in the enterprise software support market.
Understanding the Business Impact
For organizations that rely heavily on enterprise software applications, Rimini Street’s service offerings provide a strategic advantage by ensuring system stability, operational continuity, and a cost-effective alternative to traditional support contracts. The comprehensive nature of its services and the company’s proactive approach to support make it a critical component for enterprises aiming to maintain competitive operational efficiency in a challenging economic climate.
Rimini Street (RMNI) reported strong second quarter results with record revenue of $91.6 million, a 16.9% year-over-year increase. Annual Recurring Revenue reached $362.1 million, up 16.4%. The company achieved a gross margin of 62.2% and an impressive billings growth of 44.4%. Active clients rose by 22.5% to 2,645. Operating cash flow generated was $22.7 million. The company maintains full-year guidance of $370 million to $380 million in revenue, aiming for $1 billion by 2026.
Rimini Street (Nasdaq: RMNI) announced the successful closure of a $90 million senior secured credit facility, aimed at enhancing financial flexibility. Approximately $88 million from this financing was allocated to redeem Series A Preferred stock, while the remainder will cover transaction costs. The facility includes lenders Capital One and Fifth Third Bank, with loans bearing interest at LIBOR plus a margin of 1.75% to 2.50%. This transaction is expected to yield annual savings of approximately $24 million, significantly reducing the company's financing costs.
Rimini Street, Inc. (Nasdaq: RMNI) will report its second quarter 2021 earnings on August 4, 2021, after market close. The company, a leader in third-party support for Oracle and SAP software, will hold a conference call at 5:00 p.m. ET to discuss its financial results. Rimini Street provides enterprise software support services that help organizations save costs and enhance business performance. With over 4,000 clients globally, including Fortune 500 companies, Rimini Street continues to solidify its position in the enterprise software market.
Rimini Street (Nasdaq: RMNI) announced a $90 million senior secured credit facility, with $88 million earmarked for redeeming Series A Preferred stock. This transaction is expected to close on July 20, 2021, pending standard conditions. The new financing will reduce the company's capital costs significantly, saving approximately $24 million in annual interest. Additionally, it will decrease the fully diluted share count by about 9%, potentially increasing earnings per share. The facility includes financial covenants to maintain liquidity and leverage ratios.
Rimini Street, Inc. (Nasdaq: RMNI) announces the County of Fresno transitioned to its support services for Oracle software. This shift will save the county $800,000 annually in Oracle support costs, allowing for reduced service rates and increased funding for community projects. The county can now maximize their Oracle investment for 15 years without the need for expensive upgrades. Rimini Street offers faster response times and expert support, significantly enhancing the county’s IT operation efficiency and compliance with legislative requirements.
Rimini Street, Inc. (Nasdaq: RMNI) has appointed Daniel Benad as group vice president and regional general manager for the OCEANIA region. In this role, he will oversee all business operations in Australia, New Zealand, and the South Pacific. Benad, who joined Rimini Street in 2020, takes over from Emmanuelle Hose, now managing the EMEA region. The company aims to enhance its growth strategy to achieve $1 billion in annual revenue by 2026, supporting over 160 organizations in the region with enterprise software solutions.
Rimini Street, Inc. (Nasdaq: RMNI) has appointed Emmanuelle Hose as group vice president and theatre general manager for Europe, Middle East, and Africa (EMEA). Hose, who previously managed the Oceania region, aims to drive revenue growth and expand the client base in EMEA. The company supports over 300 organizations in the region. Emphasizing the importance of maximizing existing enterprise application value, Hose will ensure clients can effectively fund digital transformation amidst rising demand for third-party support services.
Rimini Street (Nasdaq: RMNI) announced that quantiQ, a leading Brazilian chemical distributor, has switched to Rimini Street Support for SAP S/4HANA, resulting in a 75% cost saving on support. This financial relief will enable quantiQ to invest in innovations like a new customer portal and automated processes to enhance operational efficiency. Rimini Street's support promises enhanced service quality and faster response times, thus positioning quantiQ as a leader in digital transformation within its industry.
Rimini Street (Nasdaq: RMNI) announced that IATA, the commercial aviation trade association, has opted for Rimini Street's support and Application Management Services for its SAP applications. This strategic move aims to enhance IATA's IT service delivery, reduce costs, and improve operational scalability as the aviation sector recovers from the COVID-19 pandemic. IATA's IT director highlighted the swift and seamless onboarding process, noting immediate improvements in support and management, demonstrating trust in Rimini Street’s capabilities to meet evolving business demands.
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