Group 1: Earnings Performance - Rimini Street reported quarterly earnings of $0.09 per share, matching the Zacks Consensus Estimate, and an increase from $0.07 per share a year ago [1] - The company posted revenues of $104.2 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.12%, but down from $106.75 million year-over-year [2] - Over the last four quarters, Rimini Street has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2][3] Group 2: Stock Performance and Outlook - Rimini Street shares have increased approximately 32.2% since the beginning of the year, contrasting with a decline of 5.3% in the S&P 500 [3] - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $0.09 for the upcoming quarter and $0.37 for the current fiscal year [4][7] - The estimate revisions trend for Rimini Street is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Group 3: Industry Context - The Internet - Software industry, to which Rimini Street belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Rimini Street (RMNI) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Company Participants Dean Pohl - VP of Investor Relations & TreasurerSeth Ravin - Founder, Chairman, CEO & PresidentMichael Perica - EVP, CFO & Principal Accounting OfficerBrian Kinstlinger - MD, Director of Research & Head of Technology ResearchCole Erskine - Vice President - Equity Research Operator Good afternoon, ladies and gentlemen, and welcome to the Rimini Street Q1 twenty twenty five Earnings Conference Call. At this time, all line ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $104.2 million, a year-over-year decrease of 2.4% [18] - Annualized recurring revenue was $396.2 million, a year-over-year decrease of 4.7% [18] - Billings for Q1 were $79.4 million, up 7.2% year-over-year [19] - Gross margin for Q1 was 61% of revenue, compared to 59.8% for the prior year [19] - Net income attributable to shareholders for Q1 was $3.4 million, or $0.04 per diluted share, compared to $0.01 per diluted share in the prior year [22] Business Line Data and Key Metrics Changes - Operating expenses as a percentage of revenue declined by 5.8% year-over-year due to cost optimization efforts [8] - Professional fees and other litigation costs were $1.9 million for Q1, down from $2.9 million in the prior year [22] - PeopleSoft revenue was approximately $7 million, or 7% of revenue, down from $8.2 million, or 8% of revenue, in the prior year [26] Market Data and Key Metrics Changes - Clients in the United States represented 48% of total revenue, while international clients represented 52% [18] - The EMEA and Asia Pacific regions led geographically in billings growth [8] Company Strategy and Development Direction - The company is focused on expanding global alliances and partnerships to drive sales leverage [9] - New partnerships with ServiceNow, Workday, and T Systems North America were announced to enhance service offerings [10][11] - The company is continuing to wind down services for Oracle's PeopleSoft product, with a significant reduction in related clients and revenue [25] Management's Comments on Operating Environment and Future Outlook - Management believes that the current macroeconomic environment, including deglobalization trends, will ultimately benefit the business [16] - The company is confident in its ability to reaccelerate growth and improve profitability despite ongoing litigation with Oracle [17] - Management has suspended guidance until there is more clarity regarding the impacts of current litigation activity [26] Other Important Information - The company ended Q1 2025 with a cash balance and short-term investments of $122.6 million, down from $129 million in the prior year [24] - Deferred revenue as of March 31, 2025, was $256.4 million, compared to $254.3 million in the prior year [24] Q&A Session Summary Question: Which of the three partnerships discussed has the largest long-term potential? - Management indicated that the ServiceNow partnership has substantial global potential and is expected to have a meaningful impact by 2026 [29][32] Question: Can you size the maintenance from Oracle and SAP generated from the federal government? - Management stated that the opportunity in the U.S. Federal Government is significant, potentially in the billions of dollars annually [34][36] Question: Is the company confident in crossing the year-over-year growth mark this year, excluding PeopleSoft impacts? - Management expressed confidence in achieving positive revenue growth despite the headwinds from the PeopleSoft wind down [37][40] Question: What areas will the continued cost-saving measures come from? - Management confirmed that cost-saving measures will focus on streamlining internal operations and reducing administrative costs [44][46] Question: Are there any macroeconomic factors that could negatively impact growth? - Management noted that while there are potential cost pressures, the overall macro environment is seen as a net positive for the business [48][51]

Rimini Street (RMNI) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Speaker0 Good afternoon, ladies and gentlemen, and welcome to the Rimini Street Q1 twenty twenty five Earnings Conference Call. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press 0 for the operator. This call is being recorded today, Thursday, 05/01/2025. I would now like to turn the confe ...

Financial Performance - Gross margin for Q1 2025 was 61.0%, up from 59.8% in the prior year[5] - Net income for Q1 2025 was $3.4 million, compared to $1.3 million in the prior year[5] - Revenue for Q1 2025 was $104.2 million, a decrease of 2.4% compared to $106.7 million in the same period last year[5] - Total revenue for Q1 2025 was $104,204, a decrease of 2.3% from $106,745 in Q1 2024[19] - Gross profit for Q1 2025 was $63,534, slightly down from $63,831 in Q1 2024[19] - Operating income increased significantly to $9,361 in Q1 2025, compared to $3,363 in Q1 2024, representing a 178.5% increase[19] - Net income for Q1 2025 was $3,350, up from $1,317 in Q1 2024, marking a 153.5% increase[19] - Non-GAAP operating income for Q1 2025 was $14,450, compared to $8,847 in Q1 2024, reflecting a 63.5% increase[21] - Adjusted EBITDA for Q1 2025 was $15.3 million, compared to $10.7 million in the prior year[5] - Adjusted EBITDA for Q1 2025 was $15,303, up from $10,684 in Q1 2024, indicating a 43.5% increase[21] Revenue Composition - Subscription revenue accounted for 95.0% of total revenue in Q1 2025, down from 97.4% in the prior year[5] - Annualized Recurring Revenue decreased by 4.7% to $396.2 million in Q1 2025 compared to $415.8 million in the same period last year[5] - Annualized Recurring Revenue is calculated based on subscription revenue recognized during the quarter, providing insight into future revenue potential[27] Client Metrics - Active clients increased by 1.7% to 3,092 as of March 31, 2025[5] - Active clients increased, indicating growth in the company's business and effectiveness of sales and marketing strategies[26] Billings and Deferred Revenue - Billings increased by 7.2% year over year to $79.4 million in Q1 2025[5] - The company reported a calculated billings of $79,430 for Q1 2025, an increase from $74,077 in Q1 2024[21] - Deferred revenue at the end of the period was $256,423, compared to $254,306 at the end of Q1 2024, showing a positive trend in revenue recognition[21] Guidance and Litigation - The company is suspending guidance until there is more clarity around impacts from ongoing litigation with Oracle[6] Revenue Retention - Revenue retention rate was 88% for the trailing twelve months ended March 31, 2025, down from 89% for the comparable period[5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number: 001-37397 Rimini Street, Inc. (Exact name of registrant as specified in its charter) Delaware 36-4880301 (State or other jurisdiction ...

Core Insights - Waratek has named Rimini Street as its exclusive Pinnacle Partner, recognizing its premier global capability in the third-party support market [1][3] - Rimini Street has been instrumental in shaping innovation at Waratek over the past seven years, leveraging its extensive experience in implementing and supporting Waratek's solutions [3][5] - The partnership allows Rimini Street to provide unique protection for Java SE 5-based applications, which are still in use despite vendor support having ended a decade ago [3] Company Overview - Waratek, based in Dublin, Ireland, specializes in active security platforms that secure business-critical applications by fixing vulnerabilities in real-time [7] - Rimini Street, a Nasdaq-listed company, is a leading provider of end-to-end enterprise software support and innovation solutions, particularly known for its third-party support for Oracle, SAP, and VMware software [8] - Rimini Street has signed thousands of contracts with major organizations, achieving significant operational savings and enabling investments in AI and other innovations [8] Partnership Dynamics - As the Pinnacle Partner, Rimini Street has developed exclusive expertise in creating custom rules for the Waratek engine, unmatched by any other company [2][4] - Rimini Street's team of over 75 security professionals provides continuous support and innovation, ensuring a seamless user experience for clients [5] - Customer feedback plays a crucial role in driving continuous innovation and enhancing the security of enterprise software [6]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $114.2 million, a year-over-year increase of 1.9%, while full-year revenue was $428.8 million, a decrease of 0.6% [23] - Annualized recurring revenue (ARR) was $414.8 million for Q4 2024, a year-over-year decrease of 4.1% [24] - Billings for Q4 2024 were $172.1 million, up 7.1% year-over-year, while full-year billings were $423 million, an increase of 1.1% [25] - Gross margin was 63.7% for Q4 2024 and 60.9% for the full year, compared to 61% and 62.3% for the prior year respectively [26] - Net income attributable to shareholders for Q4 was $6.7 million, or $0.07 per diluted share, compared to $0.10 per diluted share in the prior year [33] Business Line Data and Key Metrics Changes - The company achieved 22 new client sales transactions in Q4 with total contract value (TCV) over $1 million [11] - PeopleSoft revenue was $8 million for Q4 2024, representing 7% of total revenue, compared to $8.5 million in Q4 2023 [37] Market Data and Key Metrics Changes - Client revenue for Q4 2024 within the United States represented 47%, while international clients represented 53% [23] - The billings improvement was led by the LatAm, EMEA, and Asia-Pacific regions [12] Company Strategy and Development Direction - The company is focusing on a new go-to-market strategy in the Americas, adopting a hunter-farmer sales model to drive growth [13] - Strategic partnerships, such as with ServiceNow, are aimed at providing enterprise application modernization solutions without costly upgrades [17] - The company is expanding its services to more software products, particularly VMware, which is expected to drive significant growth [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth and higher profitability, indicating that the company is on the "upside of the U" in terms of recovery [44][82] - The company is currently suspending guidance until there is more clarity around ongoing litigation with Oracle, but expects to return to providing guidance in 2025 [38][76] Other Important Information - The company has been involved in litigation with Oracle for over 15 years, with recent positive developments in the Rimini II case [19] - The company ended Q4 2024 with a cash balance of $88.8 million, down from $125.3 million in the prior year [35] Q&A Session Summary Question: Can you talk about the changes you've made in sales and the pipeline? - Management indicated that they believe they are on the path to recovery and have seen positive metrics in sales execution and pipeline growth [44][82] Question: How has the litigation impacted the pipeline? - Management acknowledged that the litigation had an impact on the pipeline but expressed optimism about future growth following recent court decisions [47] Question: Can you clarify the cost savings mentioned? - Management clarified that the $22 million in net annualized savings is as of the midpoint of Q1 2025, with a net reduction of $18 million by the end of Q4 2024 [49][51] Question: What areas are contributing to the strength in billings? - Management noted that the strength in billings is due to improved execution globally, with notable performance outside the U.S. [61] Question: What is the status of the partnership with ServiceNow? - Management stated that the partnership is progressing well, with significant pipeline development and alignment of teams [87] Question: What are the expectations for VMware's contribution to sales? - Management expressed excitement about VMware's potential, indicating it will be a substantive part of sales in 2025 [90]

Rimini Street, Inc. (NASDAQ:RMNI) Q4 2024 Earnings Conference Call February 27, 2025 5:00 PM ET Company Participants Dean Pohl - Vice President, Treasurer and Investor Relations Seth Ravin - CEO, President & Chairman of the Board Michael Perica - EVP & Chief Financial Officer Conference Call Participants Brian Kinstlinger - AGP Jared Jungjohann - TD Cowen Jeff Van Rhee - Craig-Hallum Richard Baldry - ROTH Capital Operator Good afternoon, ladies and gentlemen, and welcome to the Rimini Street Q4 2024 Earning ...

Core Insights - Rimini Street (RMNI) reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, but down from $0.19 per share a year ago, representing an earnings surprise of 9.09% [1] - The company achieved revenues of $114.21 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 16.43% and showing an increase from $112.11 million year-over-year [2] - Rimini Street shares have increased approximately 21% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $96.07 million, and for the current fiscal year, it is $0.34 on revenues of $386.46 million [7] - The estimate revisions trend for Rimini Street is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which Rimini Street belongs, is currently ranked in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]