Rimini Street Announces Fiscal Fourth Quarter and Annual 2020 Financial Results
Rimini Street (Nasdaq: RMNI) reported strong financial results for Q4 and FY 2020, achieving a 15.4% increase in quarterly revenue to $87.8 million and a 16.3% growth for the year to $326.8 million. The company maintained a Revenue Retention Rate of over 90% and generated $42.1 million in operating cash flow, a 107% year-over-year improvement. With record cash of $87.6 million at year-end, Rimini continues to invest in leadership additions and innovative support solutions, targeting $1 billion in annual revenue by 2026.
- Quarterly revenue increased by 15.4% to $87.8 million.
- Annual revenue grew by 16.3% to $326.8 million.
- Operating cash flow improved by 107% year-over-year to $42.1 million.
- Record cash of $87.6 million at year-end 2020.
- Active clients rose by 20.6% to 2,487.
- Operating income decreased from $22.1 million in 2019 to $17.9 million in 2020.
- Gross margin decreased to 61.4% in 2020 from 62.6% in 2019.
- Net income declined to $13.0 million from $17.5 million in the previous year.
- Basic and diluted net loss per share attributable to common stockholders increased to $(0.19) in 2020 from $(0.12) in 2019.
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 fourth quarter and fiscal year ended December 31, 2020.
Rimini Street Announces Fiscal Fourth Quarter and Annual 2020 Financial Results (Graphic: Business Wire)
“For the fourth quarter and full year 2020, we continued to execute well against our strategic growth plan to achieve
“We produced another consecutive quarter of net income, further strengthened the balance sheet with record cash of
Additional details about the Company’s strategic growth plans and operations were presented during Rimini Street’s Investor Day 2021 on February 1, 2021, and the video and slide presentation materials can be found here on the Company’s Investor Relations page through January 2022.
Fourth Quarter 2020 Financial Highlights
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Revenue was
$87.8 million for the 2020 fourth quarter, an increase of15.4% compared to$76.1 million for the same period last year. -
Annual Recurring Revenue was
$349 million for the 2020 fourth quarter, an increase of15.4% compared to$302 million for the same period last year. -
Active Clients as of December 31, 2020 were 2,487, an increase of
20.6% compared to 2,063 Active Clients as of December 31, 2019. -
Revenue Retention Rate was
92% for both the trailing 12 months ended December 31, 2020 and for the comparable period ended December 31, 2019. -
Gross margin was
61.8% for the 2020 fourth quarter compared to60.2% for the same period last year. -
Operating income was
$4.5 million for the 2020 fourth quarter compared to$1.6 million for the same period last year. -
Non-GAAP Operating Income was
$11.9 million for the 2020 fourth quarter compared to$5.1 million for the same period last year. -
Net income was
$3.7 million for the 2020 fourth quarter compared to a net loss of$(0.2) million for the same period last year. -
Non-GAAP Net Income was
$11.1 million for the 2020 fourth quarter compared to$3.3 million for the same period last year. -
Adjusted EBITDA for the 2020 fourth quarter was
$12.9 million compared to$4.7 million for the same period last year. -
Basic and diluted net loss per share attributable to common stockholders was
$(0.04) for the 2020 fourth quarter compared to$(0.10) for the same period last year. -
Employee count as of December 31, 2020 was 1,425, a year-over-year increase of
12% .
Full Year 2020 Financial Highlights
-
Revenue was
$326.8 million for 2020, an increase of16.3% compared to$281.1 million for 2019. -
Gross margin was
61.4% for 2020 compared to62.6% for 2019. -
Operating income was
$17.9 million for 2020 compared to$22.1 million for 2019. -
Non-GAAP Operating Income was
$41.1 million for 2020 compared to$26.8 million for 2019. -
Net income was
$13.0 million for 2020 compared to net income of$17.5 million for 2019. -
Basic and diluted net loss per share attributable to common stockholders was
$(0.19) per share for 2020 compared to$(0.12) for 2019. -
Non-GAAP Net Income was
$36.2 million for 2020 compared to$22.0 million for 2019. -
Adjusted EBITDA was
$42.6 million for 2020 compared to$27.0 million for 2019. -
During the third quarter, the Company completed a follow-on public offering of approximately 6.1 million shares of common stock, with net proceeds to the Company of approximately
$25.1 million . -
During the fourth quarter, the Company repurchased
$5 million face-value of Series A preferred and subsequent to the fourth quarter close, the Company repurchased an additional$10 million , for a total of$15 million face-value of Series A preferred stock at an approximate10% discount to face-value; no make-whole payments were required and such 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.”
Full Year 2020 Company Highlights
- Celebrated the 15th anniversary of the Company’s founding in 2005 to redefine the enterprise software support market and bring choice and value to software licensees around the world.
-
Saved clients more than
$5 billion in total maintenance costs since the Company’s inception. - Launched the global availability of Rimini Street Support for SAP S/4HANA, extending the Company’s award-winning support services to S/4HANA licensees.
-
Announced the new patent pending Rimini Street Artificial Intelligence Support Applications, a result of the Company’s continued investment in optimizing support processes and ensuring global service delivery outcomes at scale. Using the AI Applications, Rimini Street has been able to deliver a better client experience and reduce software issue resolution times by
23% . - Further enhanced the Company’s industry-leading service response guarantee for clients, shortening response times for critical Priority 1 cases from 15 minutes to 10 minutes and for serious Priority 2 cases from 30 minutes to 15 minutes.
- Closed more than 33,000 support cases and delivered nearly 89,000 tax, legal and regulatory updates for 58 countries, including more than 6,000 emergency updates related specifically to the global pandemic.
- Achieved a record average client satisfaction rating on the Company’s support delivery of 4.9 out of 5.0 (where 5.0 is “excellent”), an increase from an average of 4.8/5.0 in 2019.
-
Appointed two new senior executive leaders to support the Company’s next phase of growth including:
- Gerard Brossard to the newly created role of executive vice president and chief operating officer (COO); and
- Michael L. Perica as executive vice president and chief financial officer (CFO).
- Expanded the Company’s investment in Mexico and Central America, including the appointment of Alejandro González to the newly created role of general manager for the region.
- Announced a whole-of-government volume sourcing agreement with the Australian government, designed to make the procurement process faster, easier and more cost-effective for agencies to access Rimini Street’s support services.
- Awarded three Brazilian public sector contracts to support Oracle and SAP software as part of the government’s initiative to deliver transparency, efficiency, economy and optimization of public resources.
- Announced that leading global automobile manufacturer, Hyundai-Kia Motors, significantly expanded its use of Rimini Street Oracle Database support to include its overseas branches and affiliates worldwide.
-
Announced that Green Cargo, the Swedish state-owned rail logistics operator, and Airservices Australia, Australia’s air navigation service provider, renewed their support agreements to continue to receive the Company’s ultra-responsive, high-quality support. Also announced many new clients from around the world including:
- Pulse Electronics, a leading components manufacturer;
- Hypera Pharma, Brazil’s largest pharmaceutical company;
- Metropolitan Water Reclamation District of Greater Chicago, a water treatment and management company serving more than 10 million customers;
- Vedacit, a leading manufacturer of construction products in Brazil;
- FP Corporation, Japan’s largest manufacturer of disposable food containers;
- Rassini Automotive, a leading automotive parts and accessories manufacturer in Brazil;
- Elders, an Australian agribusiness;
- Downies Collectables, an Australian coin and collectables retailer;
- The Iyo Bank, a major regional bank in Japan;
- Supreme Electronics, a leading Taiwanese electronic components distributor;
- Kamigumi, Japan’s leading transportation and logistics company;
- Proton, a leading Malaysian auto manufacturer;
- Kakao, a South Korean internet and mobile messaging company;
- Productos Chata, a leading food manufacturer based in Mexico;
- Nadro, Mexico’s leading distributor of pharmaceuticals; and
-
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FAQ
What were Rimini Street's revenue results for Q4 2020?
Rimini Street reported a revenue of $87.8 million for Q4 2020, marking a 15.4% increase from the previous year.What is Rimini Street's revenue retention rate as of December 31, 2020?
The revenue retention rate was 92% for the trailing 12 months ended December 31, 2020.What guidance has Rimini Street provided for FY 2021?
Rimini Street issued guidance affirming its commitment to increasing operating cash flow and growing GAAP profitability for FY 2021.How many active clients does Rimini Street have as of December 31, 2020?
As of December 31, 2020, Rimini Street had 2,487 active clients, an increase of 20.6% from the previous year.What targets does Rimini Street have for revenue by 2026?
Rimini Street aims to achieve $1 billion in annual revenue by 2026.
