Rimini Street Announces Fiscal First Quarter 2021 Financial Results
Rimini Street, Inc. (Nasdaq: RMNI) reported first-quarter financial results for 2021, achieving a record revenue of $87.9 million, up 12.6% year-over-year. The active client count reached 2,550, a 22.8% increase year-over-year, with strong billings growth of 24.2%. Despite this growth, the company reported a net loss of $3.6 million compared to a net income of $2.5 million in the previous year. Cash on hand was a record $153 million, and the company reaffirmed its full-year guidance of $370 million to $380 million in revenue.
- Record revenue of $87.9 million for Q1 2021, up 12.6% YoY
- Active clients increased to 2,550, up 22.8% YoY
- Strong billings growth of 24.2%
- Record cash of $153 million as of March 31, 2021
- Guidance maintained for Q2 and full year 2021 revenue between $370 million and $380 million
- Net loss of $3.6 million in Q1 2021 compared to net income of $2.5 million in Q1 2020
- Basic and diluted net loss per share of $0.13, up from a loss of $0.06 YoY
- Revenue retention rate declined to 91% from 92% YoY
- Operating income decreased to $1.9 million from $3.7 million YoY
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, 2021.
Rimini Street Announces Fiscal First Quarter 2021 Financial Results (Graphic: Business Wire)
“For the first quarter, we remain on track to achieve our strategic growth plan to achieve
“We further strengthened the balance sheet with record cash of
First Quarter 2021 Financial Highlights
-
Revenue was
$87.9 million for the 2021 first quarter, an increase of12.6% compared to$78.0 million for the same period last year. -
Annual Recurring Revenue was
$349 million for the 2021 first quarter, an increase of12.8% compared to$310 million for the same period last year. -
Active Clients as of March 31, 2021 were 2,550, an increase of
22.8% compared to 2,077 Active Clients as of March 31, 2020. -
Revenue Retention Rate was
91% for the trailing 12 months ended March 31, 2021 and92% for the comparable period ended March 31, 2020. -
Gross margin was
61.5% for the 2021 first quarter compared to61.3% for the same period last year. -
Operating income was
$1.9 million for the 2021 first quarter compared to$3.7 million for the same period last year. -
Non-GAAP Operating Income was
$9.3 million for the 2021 first quarter compared to$8.9 million for the same period last year. -
Net loss was
$3.6 million for the 2021 first quarter compared to net income of$2.5 million for the same period last year. -
Non-GAAP Net Income was
$8.5 million for the 2021 first quarter compared to$7.7 million for the same period last year. -
Adjusted EBITDA for the 2021 first quarter was
$10.7 million compared to$9.2 million for the same period last year. -
Basic and diluted net loss per share attributable to common stockholders was a net loss per share of
$0.13 for the 2021 first quarter compared to a net loss per share of$0.06 for the same period last year. -
Employee count as of March 31, 2021 was 1,501, a year-over-year increase of
15.3% . -
Completed a follow-on public offering of 7.75 million shares of the Company’s common stock, with net proceeds to the Company of approximately
$57 million . -
On January 5, 2021, completed the buyback of
$10 million face-value of Series A preferred stock for an approximate10% discount to face-value (par); no make-whole payments were required. The purchased preferred shares were retired. -
On April 16, 2021, completed the buyback of
$60 million face-value of Series A preferred stock, plus make-whole of approximately$2.3 million , reducing the outstanding Series A preferred liquidation value to approximately$87 million as of April 16, 2021. The purchased preferred shares were retired.
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 2021 Company Highlights
-
Appointed three new regional general managers of North America to accelerate growth and help achieve the Company’s
$1 billion in annual revenue by 2026 goal. Also announced the appointment of Phil Cullen to the newly created role of senior vice president for Global Operations. -
Announced several new clients globally who made the switch from vendor support to Rimini Street Support to extend the life and ROI of their existing enterprise software including:
- Homeplus Co., a Korean grocery and outlet retailer;
- Nottinghamshire County Council, serving a local population of more than 800,000 in the UK;
- Ampol Limited, Australia’s largest petrol and convenience network;
- Poplar Co. Ltd, a national convenience store chain in Japan;
- Kent County Council, the largest County Council in England; and
- Hankook Tire, a leading global tire company headquartered in Korea.
- Also announced that Iguatemi, Brazil’s leading shopping center management company, extended its SAP support agreement with Rimini Street to include Application Management Services (AMS) for SAP, enabling them to benefit from an integrated, one provider approach to their SAP landscape.
- Closed nearly 10,000 support cases and delivered over 32,000 tax, legal and regulatory updates for 36 countries. Also achieved an average client satisfaction rating on the Company’s support delivery of 4.9 out of 5.0 (where 5.0 is “excellent”).
- Released an Oracle Database survey report which highlights that top challenges with Oracle Database include cost, quality and value of vendor support - issues resolved with Rimini Street Support.
- Announced that the Company is now an approved supplier on the New Zealand Government Marketplace, enabling agencies to more easily procure Rimini Street’s services.
- Awarded a Best and Brightest Companies to Work For® Grand Trophy for delivering exceptional HR practices and commitment to the Company’s employees across the U.S.
- Honored with a Stevie® Sales & Customer Service award in the “Best Use of Technology in Customer Service” category for Rimini Street’s innovative AI Support Applications.
- Presented at 10 CIO, IT and finance leader conferences globally.
- Supported more than 25 charities around the world through the Rimini Street Foundation, providing financial contributions, personal protective equipment and hygiene essentials to regions in great need.
2021 Revenue Guidance
The Company is providing second quarter 2021 revenue guidance to be in the range of
Webcast and Conference Call Information
Rimini Street will host a conference call and webcast to discuss the first quarter 2021 results and select second quarter 2021 performance to-date commentary at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on May 10, 2021. 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 (800) 773-2954 in the U.S. and Canada and enter the code 50137607. 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 included in 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, more than 4,000 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 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 COVID-19 pandemic; catastrophic events that disrupt our business or that of our current and prospective clients, 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 in the government inquiry 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; the terms and impact of our outstanding
© 2021 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. |
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Unaudited Condensed Consolidated Balance Sheets |
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(In thousands, except per share amounts) |
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ASSETS |
March 31,
|
|
December 31,
|
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Current assets: |
|
|
|
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Cash and cash equivalents |
$ |
153,163 |
|
|
$ |
87,575 |
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Restricted cash |
334 |
|
|
334 |
|
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Accounts receivable, net of allowance of |
83,928 |
|
|
117,937 |
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Deferred contract costs, current |
13,989 |
|
|
13,918 |
|
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Prepaid expenses and other |
15,746 |
|
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FAQ
What were Rimini Street's Q1 2021 revenue results?
Rimini Street reported Q1 2021 revenue of $87.9 million, a 12.6% increase year-over-year.
What is Rimini Street's net loss for Q1 2021?
Rimini Street reported a net loss of $3.6 million for Q1 2021, compared to a net income of $2.5 million for the same period last year.
How many active clients does Rimini Street have as of Q1 2021?
As of March 31, 2021, Rimini Street had 2,550 active clients, a 22.8% increase year-over-year.
What guidance did Rimini Street provide for Q2 2021?
Rimini Street provided revenue guidance for Q2 2021 in the range of $88.5 million to $90.5 million.
What is Rimini Street's revenue retention rate for Q1 2021?
The revenue retention rate for Rimini Street was 91% for the trailing 12 months ended March 31, 2021.
Rimini Street, Inc. (DE)
NASDAQ:RMNIRMNI RankingsRMNI Latest NewsRMNI Stock Data
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Software - Application
Services-business Services, Nec
United States of America
LAS VEGAS
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