Rimini Street Announces Fiscal First Quarter 2021 Financial Results

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Quarterly income of $87.9 million, up 12.6% 12 months over 12 months

Gross Margin of 61.5%, up from 61.3% 12 months over 12 months

Quarterly Billings of $81.0 million, up 24.2% 12 months over 12 months

2,550 lively purchasers at March 31, 2021, up 22.8% 12 months over 12 months

LAS VEGAS — Rimini Street, Inc. (Nasdaq: RMNI), a worldwide supplier of enterprise software program services, the main third-party assist supplier for Oracle and SAP software program merchandise and a Salesforce associate, as we speak introduced outcomes for the primary quarter ended March 31, 2021.

“For the primary quarter, we stay on monitor to attain our strategic development plan to attain $1 billion in annual income by 2026. We achieved file income of $87.9 million, up 12.6% 12 months over 12 months, a file lively consumer rely of two,550, up 22.8% 12 months over 12 months, ended the quarter with sturdy billings development of 24.2% and delivered a gross margin better than 61%,” acknowledged Seth A. Ravin, Rimini Road co-founder, CEO and chairman of the board. “We additionally continued making investments to benefit from rising world demand for Rimini Road’s expanded breadth of assist options, together with our Help, Utility Administration, Safety, Interoperability, Monitoring and Skilled providers.”

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“We additional strengthened the stability sheet with file money of $153 million at March 31, 2021 and generated $24.5 million of working money circulation for the quarter,” acknowledged Michael L. Perica, Rimini Road chief monetary officer. “At the moment, we’re issuing steering for the second quarter ending June 30, 2021, sustaining full 12 months 2021 steering and re-affirming our continued dedication to the long-term objectives of accelerating working money circulation and rising GAAP profitability.”

First Quarter 2021 Monetary Highlights

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Reconciliations of the non-GAAP monetary measures offered on this press launch to their most instantly comparable GAAP monetary measures are offered within the monetary tables included on the finish of this press launch. An evidence of those measures, why we imagine they’re significant and the way they’re calculated can also be included underneath the heading “About Non-GAAP Monetary Measures and Sure Key Metrics.”

First Quarter 2021 Firm Highlights

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2021 Income Steerage

The Firm is offering second quarter 2021 income steering to be within the vary of $88.5 million to $90.5 million. The Firm is sustaining full 12 months income steering to be within the vary of $370 million to $380 million.

Webcast and Convention Name Data

Rimini Road will host a convention name and webcast to debate the primary quarter 2021 outcomes and choose second quarter 2021 efficiency to-date commentary at 5:00 p.m. Japanese Time / 2:00 p.m. Pacific Time on Could 10, 2021. A stay webcast of the occasion will probably be accessible on Rimini Road’s Investor Relations website athttps://investors.riministreet.com. Dial-in members can entry the convention name by dialing (800) 773-2954 within the U.S. and Canada and enter the code 50137607. A replay of the webcast will probably be accessible for at the least 90 days following the occasion.

Firm’s Use of Non-GAAP Monetary Measures

This press launch incorporates sure “non-GAAP monetary measures.” Non-GAAP monetary measures are usually not primarily based on a complete set of accounting guidelines or rules. This non-GAAP info dietary supplements, and isn’t meant to signify a measure of efficiency in accordance with disclosures required by U.S. usually accepted accounting rules, or GAAP. Non-GAAP monetary measures ought to be thought-about along with, and never as an alternative choice to or superior to, monetary measures decided in accordance with GAAP. A reconciliation of GAAP to non-GAAP outcomes is included within the monetary tables included on this press launch. Introduced underneath the heading “About Non-GAAP Monetary Measures and Sure Key Metrics” is an outline and clarification of our non-GAAP monetary measures.

About Rimini Road, Inc.

Rimini Road, Inc. (Nasdaq: RMNI) is a worldwide supplier of enterprise software program services, the main third-party assist supplier for Oracle and SAP software program merchandise and a Salesforce associate. The Firm presents premium, ultra-responsive and built-in software administration and assist providers that allow enterprise software program licensees to avoid wasting important prices, unlock assets for innovation and obtain higher enterprise outcomes. Thus far, greater than 4,000 Fortune 500, Fortune World 100, midmarket, public sector and different organizations from a broad vary of industries have relied on Rimini Road as their trusted software enterprise software program services supplier. To be taught extra, please go to https://www.riministreet.com, observe @riministreet on Twitter and discover Rimini Road on Facebook and LinkedIn. (IR-RMNI)

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Ahead-Trying Statements

Sure statements included on this communication are usually not historic info however are forward-looking statements for functions of the protected harbor provisions underneath The Non-public Securities Litigation Reform Act of 1995. Ahead-looking statements usually are accompanied by phrases akin to “could,” “ought to,” “would,” “plan,” “intend,” “anticipate,” “imagine,” “estimate,” “predict,” “potential,” “appear,” “search,” “proceed,” “future,” “will,” “anticipate,” “outlook” or different comparable phrases, phrases or expressions. These forward-looking statements embody, however are usually not restricted to, statements relating to our expectations of future occasions, future alternatives, world growth and different development initiatives and our investments in such initiatives. These statements are primarily based on numerous assumptions and on the present expectations of administration and are usually not predictions of precise efficiency, nor are these statements of historic info. These statements are topic to numerous dangers and uncertainties relating to Rimini Road’s enterprise, and precise outcomes could differ materially. These dangers and uncertainties embody, however are usually not restricted to, the period of and operational and monetary impacts on our enterprise of the COVID-19 pandemic and associated financial impression, in addition to the actions taken by governmental authorities, purchasers or others in response to the COVID-19 pandemic; catastrophic occasions that disrupt our enterprise or that of our present and potential purchasers, modifications within the enterprise setting by which Rimini Road operates, together with inflation and rates of interest, and basic monetary, financial, regulatory and political circumstances affecting the business by which Rimini Road operates; adversarial developments in pending litigation or within the authorities inquiry or any new litigation; our want and talent to boost further fairness or debt financing on favorable phrases and our capability to generate money flows from operations to assist fund elevated funding in our development initiatives; the sufficiency of our money and money equivalents to fulfill our liquidity necessities; the phrases and impression of our excellent 13.00% Sequence A Most popular Inventory; our capability to take care of an efficient system of inner management over monetary reporting, and our capability to remediate recognized materials weaknesses in our inner controls, together with in relation to the accounting remedy of our warrants; modifications in taxes, legal guidelines and laws; aggressive product and pricing exercise; difficulties of managing development profitably; the client adoption of our not too long ago launched services, together with our Utility Administration Companies (AMS), Rimini Road Superior Database Safety, and providers for Salesforce Gross sales Cloud and Service Cloud merchandise, along with different services we anticipate to introduce within the close to future; the lack of a number of members of Rimini Road’s administration staff; uncertainty as to the long-term worth of Rimini Road’s fairness securities; and people mentioned underneath the heading “Danger Elements” in Rimini Road’s Quarterly Report on Type 10-Q filed on Could 10, 2021, and as up to date every so often by Rimini Road’s future Annual Studies on Type 10-Okay, Quarterly Studies on Type 10-Q, Present Studies on Type 8-Okay, and different filings by Rimini Road with the Securities and Change Fee. As well as, forward-looking statements present Rimini Road’s expectations, plans or forecasts of future occasions and views as of the date of this communication. Rimini Road anticipates that subsequent occasions and developments will trigger Rimini Road’s assessments to alter. Nonetheless, whereas Rimini Road could elect to replace these forward-looking statements in some unspecified time in the future sooner or later, Rimini Road particularly disclaims any obligation to take action, besides as required by regulation. These forward-looking statements shouldn’t be relied upon as representing Rimini Road’s assessments as of any date subsequent to the date of this communication.

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© 2021 Rimini Road, Inc. All rights reserved. “Rimini Road” is a registered trademark of Rimini Road, Inc. in america and different international locations, and Rimini Road, the Rimini Road brand, and mixtures thereof, and different marks marked by TM are logos of Rimini Road, Inc. All different logos stay the property of their respective homeowners, and except in any other case specified, Rimini Road claims no affiliation, endorsement, or affiliation with any such trademark holder or different corporations referenced herein.

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About Non-GAAP Monetary Measures and Sure Key Metrics

To offer traders and others with further info relating to Rimini Road’s outcomes, we have now disclosed the next non-GAAP monetary measures and sure key metrics. We’ve got described under Energetic Purchasers, Annual Recurring Income and Income Retention Fee, every of which is a key operational metric for our enterprise. As well as, we have now disclosed the next non-GAAP monetary measures: non-GAAP working earnings, non-GAAP internet earnings, EBITDA, adjusted EBITDA and Billings. Rimini Road has offered within the tables above a reconciliation of every non-GAAP monetary measure used on this earnings launch to probably the most instantly comparable GAAP monetary measure. As a result of a valuation allowance for our deferred tax belongings, there have been no tax results related to any of our non-GAAP changes. These non-GAAP monetary measures are additionally described under.

The first function of utilizing non-GAAP measures is to supply supplemental info that administration believes could show helpful to traders and to allow traders to judge our leads to the identical approach administration does. We additionally current the non-GAAP monetary measures as a result of we imagine they help traders in evaluating our efficiency throughout reporting intervals on a constant foundation, in addition to evaluating our outcomes in opposition to the outcomes of different corporations, by excluding gadgets that we don’t imagine are indicative of our core working efficiency. Particularly, administration makes use of these non-GAAP measures as measures of working efficiency; to organize our annual working finances; to allocate assets to reinforce the monetary efficiency of our enterprise; to judge the effectiveness of our enterprise methods; to supply consistency and comparability with previous monetary efficiency; to facilitate a comparability of our outcomes with these of different corporations, a lot of which use comparable non-GAAP monetary measures to complement their GAAP outcomes; and in communications with our board of administrators regarding our monetary efficiency. Traders ought to be conscious nevertheless, that not all corporations outline these non-GAAP measures persistently.

Billings represents the change in deferred income for the present interval plus income for the present interval.

Energetic Consumer is a definite entity that purchases our providers to assist a particular product, together with an organization, an academic or authorities establishment, or a enterprise unit of an organization. For instance, we rely as two separate lively purchasers when assist for 2 completely different merchandise is being offered to the identical entity. We imagine that our capability to broaden our lively purchasers is an indicator of the expansion of our enterprise, the success of our gross sales and advertising and marketing actions, and the worth that our providers carry to our purchasers.

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Annual Recurring Income is the quantity of subscription income acknowledged throughout a fiscal quarter and multiplied by 4. This provides us a sign of the income that may be earned within the following 12-month interval from our current consumer base assuming no cancellations or value modifications happen throughout that interval. Subscription income excludes any non-recurring income, which has been insignificant up to now.

Income Retention Fee is the precise subscription income (dollar-based) acknowledged over a 12-month interval from clients that had been purchasers on the day previous to the beginning of such 12-month interval, divided by our Annual Recurring Income as of the day previous to the beginning of the 12-month interval.

Non-GAAP Working Earnings is working earnings adjusted to exclude: litigation prices and associated recoveries, internet, stock-based compensation expense and impairment cost associated to working right-of-use belongings. The exclusions are mentioned in additional element under.

Non-GAAP Web Earnings is internet earnings adjusted to exclude: litigation prices and associated recoveries, internet, loss on change in honest worth of redeemable warrants, stock-based compensation expense and impairment cost associated to working right-of-use belongings. These exclusions are mentioned in additional element under.

Particularly, administration is excluding the next gadgets from its non-GAAP monetary measures, as relevant, for the intervals offered:

Litigation Prices and Associated Recoveries, Web: Litigation prices and the related insurance coverage and attraction recoveries relate to outdoors prices of litigation actions. These prices and recoveries replicate the continued litigation we’re concerned with, and don’t relate to the day-to-day operations or our core enterprise of serving our purchasers.

Loss on Change in Truthful Worth of Redeemable Warrants: We’ve got decided to exclude the beneficial properties and losses on redeemable warrants associated to the change in honest worth of those devices given the monetary nature of this honest worth requirement. We’re not in a position to handle these quantities as a part of our enterprise operations nor are the prices core to servicing our purchasers and have excluded them.

Inventory-Primarily based Compensation Expense: Our compensation technique contains the usage of stock-based compensation to draw and retain staff. This technique is principally geared toward aligning the worker pursuits with these of our stockholders and to attain long-term worker retention, quite than to inspire or reward operational efficiency for any specific interval. In consequence, stock-based compensation expense varies for causes which are usually unrelated to operational choices and efficiency in any specific interval.

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Impairment cost associated to working lease right-of-use belongings: This pertains to an impairment cost associated to our leased belongings for a portion of one among our areas as we now not use the area.

EBITDA is internet earnings adjusted to exclude: curiosity expense, earnings tax expense, and depreciation and amortization expense.

Adjusted EBITDA is EBITDA adjusted to exclude: litigation prices and associated recoveries, internet, loss on change in honest worth on redeemable warrants, stock-based compensation expense and impairment cost associated to working right-of-use belongings, as mentioned above.

View supply model on businesswire.com: https://www.businesswire.com/news/home/20210510005029/en/

Contacts

Investor Relations Contact
Dean Pohl
Rimini Road, Inc.
+1 925 523-7636
dpohl@riministreet.com

Media Relations Contact
Michelle McGlocklin
Rimini Road, Inc.
+1 925 523-8414
mmcglocklin@riministreet.com