Core Viewpoint - Rimini Street, Inc. (RMNI) is experiencing undervaluation despite reporting recurrent revenue, a diverse client base, and international growth opportunities. The company has announced a stock repurchase program which may enhance stock demand and lower capital costs [1][6][20]. Group 1: Financial Performance - As of June 30, 2024, RMNI reported annualized recurring revenue of $399 million, with a market capitalization below $300 million. The company has over 3,000 active clients, including 74 Fortune 500 companies [3][4]. - The company has positive free cash flow and net income, with a conservative forecast suggesting significant undervaluation [1][3]. - The expected EPS growth for the year ending 2025 is projected at 5.7% year-over-year [2]. Group 2: Business Model and Client Base - RMNI offers a portfolio of enterprise software solutions and managed services, including partnerships with major vendors like SAP, IBM, and Salesforce. The company aims to optimize clients' technologies through its Rimini ONE service [2][3]. - The client base is well-diversified, with a significant portion of revenue generated from international markets. Approximately 50% of revenue comes from the United States, with the remainder from foreign jurisdictions [4][20]. Group 3: Strategic Initiatives - The company is reallocating resources and optimizing its cost structure, which may enhance future net profit margins. This includes ceasing services for Oracle PeopleSoft products, which accounted for 8% of total revenue in 2023 [5][20]. - RMNI has authorized an increase in its stock repurchase program from $15 million to $50 million over the next four years, which could lower the weighted average cost of capital (WACC) and potentially increase stock prices [6][7]. Group 4: Risks and Challenges - Ongoing litigation with Oracle poses risks, including potential fines and impacts on net income growth. The company has faced lawsuits for over ten years, but fines have been relatively small [15][16]. - Changes in pricing agreements with enterprise software vendors could negatively affect revenue and free cash flow margins. The company may need to adjust pricing models in response to competitive pressures [18][20]. - The sale of shares by a large shareholder could increase market volatility and downward pressure on stock prices, which may deter potential investors [19][20].

Rimini Street (RMNI) came out with quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.10 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -30%. A quarter ago, it was expected that this company would post earnings of $0.12 per share when it actually produced earnings of $0.07, delivering a surprise of -41.67%. Over the last four quarters, the company h ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Rimini Street Announces Fiscal Second Quarter 2024 Financial and Operating Results LAS VEGAS, July 31, 2024 – Rimini Street, Inc. (Nasdaq: RMNI), a global provider of end-to-end enterprise software support, products and services, the leading third-party support provider for Oracle and SAP software, and a Salesforce and AWS partner, today announced results for the fiscal second quarter ended June 30, 2024. Rimini Street will host a conference call and webcast to discuss the ...

In general, investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Debt investments are classified as available-for-sale and gains and losses are recorded using the specific identification method. Changes in fair value are recorded in the operating statement. Fair value is calculated based on publicly available market information. To estimate fair value for the Company's interest rate swap agreement as of Jun ...

Financial Data and Key Metrics Changes - Annualized recurring revenue was $415.8 million for Q1 2024, a year-over-year increase of 1.8% [14] - Revenue for Q1 2024 was $106.7 million, a year-over-year increase of 1.2% [66] - Billings for Q1 2024 were $74.1 million, a decrease of 20% compared to the prior year [14] - Gross margin was 59.8% of revenue for Q1 2024, down from 62.7% in the prior year [14] - Net income attributable to shareholders for Q1 2024 was $1.3 million or $0.01 per diluted share, compared to $0.06 per diluted share in the prior year [21] Business Line Data and Key Metrics Changes - Revenue retention rate for service subscriptions was 89%, with more than 76% of subscription revenue non-cancelable for at least 12 months [14] - Sales and marketing expenses as a percentage of revenue were 36.7% for Q1 2024, compared to 32.7% in the prior year [20] - Non-GAAP operating margin was 8.3% of revenue for Q1 2024, down from 14.6% in the prior year [21] Market Data and Key Metrics Changes - Clients within the United States represented 50.4% of total revenue, while international clients represented 49.6% for Q1 2024 [66] - The total revenue measures on a constant currency basis were negatively impacted by 0.8% due to FX movements [66] Company Strategy and Development Direction - The company is focusing on hiring, training, and building out new solution sales capabilities globally [58] - There is a strong demand for a reliable partner for mission-critical transaction system services, which could significantly reduce IT spending [60] - The company is in the process of refocusing on its core product offerings after distractions from new product launches [29] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand market remains strong despite challenges in new client sales [29] - The company is continuing to suspend guidance on future financial results until there is more clarity around litigation impacts [70] - Management expressed confidence in taking the right actions to accelerate growth and enhance shareholder value [65] Other Important Information - The company ended Q1 2024 with a cash balance of $129 million, down from $135 million in the prior year [17] - Deferred revenue as of March 31, 2024, was $254.3 million, compared to $287.4 million from the prior year [17] - The company refinanced its outstanding term loan with a new five-year senior secured credit facility [22] Q&A Session Summary Question: What are the reasons for the decline in retention rate and customer count growth? - Management indicated that the retention rate decline was influenced by larger deals rotating out and that the customer count growth was impacted by a focus on cross-selling existing services rather than acquiring new logos [84][76] Question: How is the initial reception for Rimini Custom? - The launch has been complex, but there is strong interest from customers looking for support solutions, particularly in light of recent market changes [39] Question: What are the key drivers for customer acquisition and churn? - The company is seeing increased awareness of its offerings among CFOs, which is driving demand, while churn is influenced by generational changes and shifts in IT procurement [41][100] Question: Has litigation impacted deal closings or retention? - Management acknowledged that there may be some impact on sales due to ongoing litigation with Oracle, but specific data to quantify this is not available [105] Question: What are the expectations for gross margins moving forward? - Management expects continued pressure on gross margins as the company scales to meet new client engagements, but is also working to improve efficiencies [67][19]

Rimini Street Announces Fiscal First Quarter 2024 Financial and Operating Results page 2 | --- | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|----------------|-------|--------------------| | ASSETS \nCurrent assets: | | March 31, 2024 | | December 31, 2023 | | Cash and cash equivalents | $ | 129,005 | $ | 115,424 | | Restricted cash | | | 428 | 428 | | Accou ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Rimini Street Announces Fiscal First Quarter 2024 Financial and Operating Results LAS VEGAS, May 2, 2024 – Rimini Street, Inc. (Nasdaq: RMNI), a global provider of end-to-end enterprise software support, products and services, the leading third-party support provider for Oracle and SAP software, and a Salesforce and AWS partner, today announced results for the fiscal first quarter ended March 31, 2024. Select First Quarter 2024 Financial Highlights Subsequent Events On Apr ...

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, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1700 S. Pavilion Center Drive, Suite 330, Las Vegas, NV 89 ...

Rimini Street, Inc. (NASDAQ:RMNI) Q4 2023 Earnings Conference Call February 28, 2024 5:00 PM ET Company Participants Dean Pohl - Vice President, Treasurer & Investor Relations Seth Ravin - Chief Executive Officer & President Michael Perica - Chief Financial Officer Conference Call Participants Brian Kinstlinger - Alliance Global Partners Daniel Hibshman - Craig-Hallum Operator Good day, and thank you for standing by. Welcome to Rimini Street Fourth Quarter 2023 Earnings Call. At this time, all participants ...

Rimini Street LEGAL DISCLAIMER Forward-Looking Statements Company Overview Rimini Street (Nasdaq: RMNI) is a global provider of end-to-end enterprise software support, products and services for Oracle and SAP software and a Salesforce and AWS partner. The Company offers a comprehensive family of unified solutions to run, manage, support, customize, configure, connect, protect, monitor, and optimize clients' enterprise application, database, and technology software platforms. Property of Rimini Street ©2024 ...