PART I. FINANCIAL INFORMATION This section provides the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [ITEM 1. Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations and comprehensive income, stockholders' deficit, and cash flows, along with detailed notes explaining the company's accounting policies, debt, equity, commitments, and other financial information for the periods ended June 30, 2024 and 2023 [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, including assets, liabilities, and stockholders' deficit, as of June 30, 2024, and December 31, 2023 Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2024 | December 31, 2023 | | :-------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $134,197 | $115,424 | | Total current assets | $262,917 | $288,689 | | Total assets | $367,369 | $393,796 | | Total current liabilities | $303,236 | $336,434 | | Total liabilities | $403,488 | $433,292 | | Total stockholders' deficit | $(36,119) | $(39,496) | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) This section details the company's financial performance, including revenue, expenses, and net income (loss), for the three and six months ended June 30, 2024 and 2023 Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $103,123 | $106,421 | $209,868 | $211,933 | | Cost of revenue | $42,180 | $39,348 | $85,095 | $78,691 | | Gross profit | $60,943 | $67,073 | $124,773 | $133,242 | | Operating income (loss) | $(775) | $10,295 | $2,587 | $20,980 | | Net income (loss) | $(1,148) | $4,268 | $169 | $9,907 | | Basic EPS | $(0.01) | $0.05 | $0.00 | $0.11 | | Diluted EPS | $(0.01) | $0.05 | $0.00 | $0.11 | [Unaudited Condensed Consolidated Statements of Stockholders' Deficit](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Deficit) This section outlines changes in the company's equity, including additional paid-in capital and accumulated deficit, for the periods presented Stockholders' Deficit Highlights (in thousands) | Metric | June 30, 2024 | June 30, 2023 | | :----------------------------------- | :------------ | :------------ | | Total Stockholders' Deficit, end of period | $(36,119) | $(62,061) | | Additional Paid-in Capital, end of period | $172,951 | $161,391 | | Accumulated Deficit, end of period | $(202,041) | $(218,362) | | Stock-based compensation expense (Six Months) | $4,963 | $5,925 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the company's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2024 and 2023 Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $17,345 | $21,749 | | Net cash provided by (used in) investing activities | $7,798 | $(1,140) | | Net cash provided by (used in) financing activities | $1,074 | $(3,348) | | Cash, cash equivalents and restricted cash at end of period | $134,626 | $123,970 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements [NOTE 1 — NATURE OF BUSINESS AND BASIS OF PRESENTATION](index=9&type=section&id=NOTE%201%20%E2%80%94%20NATURE%20OF%20BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) This note describes the company's core business as an enterprise software support provider and the basis for preparing its financial statements - The Company is a global provider of end-to-end enterprise software support, products, and services, offering unified solutions to run, manage, support, customize, configure, connect, protect, monitor, and optimize clients' enterprise application, database, and technology software platforms[13](index=13&type=chunk)[96](index=96&type=chunk) - The unaudited condensed consolidated financial statements are prepared in conformity with U.S. GAAP and include all significant intercompany balances and transactions[110](index=110&type=chunk) [NOTE 2 — LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES](index=9&type=section&id=NOTE%202%20%E2%80%94%20LIQUIDITY%20AND%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note discusses the company's liquidity position, working capital, and significant accounting policies, including future accounting pronouncement adoptions - As of June 30, 2024, the Company had a working capital deficit of **$40.3 million** and a net loss of **$1.1 million** for the three months ended June 30, 2024, but believes its **$134.6 million** in cash, cash equivalents, and restricted cash, plus future operating cash flows, will be sufficient to meet anticipated needs for at least **12 months**[46](index=46&type=chunk)[112](index=112&type=chunk)[130](index=130&type=chunk) - The working capital deficit is considered less meaningful due to **$240.4 million** of deferred revenue in current liabilities, where historical service fulfillment costs are approximately **41%** of related deferred revenue[47](index=47&type=chunk)[130](index=130&type=chunk) - The Company will adopt ASU 2023-07 (Segment Reporting) for the year ending December 31, 2024, and ASU 2023-09 (Income Taxes) for annual periods beginning after December 15, 2024, and is assessing their impact on disclosures[62](index=62&type=chunk)[559](index=559&type=chunk) [NOTE 3 - DEFERRED CONTRACT COSTS AND DEFERRED REVENUE](index=10&type=section&id=NOTE%203%20-%20DEFERRED%20CONTRACT%20COSTS%20AND%20DEFERRED%20REVENUE) This note details the company's deferred contract costs and deferred revenue, including activity and remaining performance obligations Deferred Contract Costs Activity (in thousands) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :----------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Beginning of period | $38,984 | $39,299 | $41,493 | $40,726 | | Capitalized commissions during the period | $3,235 | $5,555 | $5,739 | $8,717 | | Amortized deferred contract costs | $(4,912) | $(4,748) | $(9,925) | $(9,337) | | End of period | $37,307 | $40,106 | $37,307 | $40,106 | Deferred Revenue Activity (in thousands) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :----------------------------------------- | :------------------------------- | :------------------------------- |

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 ...

Financial Data and Key Metrics Changes - Net billings for Q4 2023 were flat compared to Q4 2022 at $160.7 million, while full-year billings increased by 2.3% to $418.5 million [19] - Revenue for Q4 2023 was $112.1 million, a 3.2% increase year-over-year, and for the full year 2023, revenue was $431.5 million, up 5.3% [29] - Gross margin for Q4 2023 was 61% and 62.3% for the full year, compared to 64.5% and 62.8% respectively in the prior year [30] - Net income attributable to shareholders for Q4 was $9.4 million or $0.10 per diluted share, and for the full year 2023 was $26.1 million or $0.29 per diluted share [63] Business Line Data and Key Metrics Changes - The Rimini Custom service was launched, allowing clients to request custom support solutions for a broader set of enterprise software [24] - The company reported strong demand for its end-to-end ERP outsourcing solutions, particularly for SAP products and Salesforce AMS solutions [23] Market Data and Key Metrics Changes - Clients in the United States represented 51% of total revenue, while international clients accounted for 49% for both Q4 and full year 2023 [29] - The revenue retention rate for service subscriptions was 90%, with over 79% of subscription revenue being non-cancelable for at least 12 months [58] Company Strategy and Development Direction - The company is focused on developing a Rimini Smart Path roadmap to help clients allocate IT resources effectively [20] - Rimini Street aims to position itself as a trusted partner for mission-critical IT services, consolidating vendor management for clients [52] - The company is investing in expanding its global infrastructure to support new product lines and enhance service delivery [40] Management's Comments on Operating Environment and Future Outlook - Management has suspended guidance on future financial results due to ongoing litigation with Oracle, emphasizing the need for clarity before making projections [37] - The company is confident in its actions and investments to accelerate growth and enhance shareholder value, despite potential risks from litigation outcomes [56] Other Important Information - The company ended the fiscal year with a cash balance of $115.4 million and reduced its term loan principal from $78.3 million to $72.6 million [64] - Deferred revenue as of December 31, 2023, was approximately $287 million, down from $300 million the previous year [65] Q&A Session Summary Question: How does the company plan to manage operating expenses in light of suspended revenue guidance? - Management indicated that they are not looking to reduce costs but will continue to invest in expanding the sales force and global infrastructure to support growth [40][41] Question: What is driving the deceleration in international business growth? - Management noted challenges in the ANZ and EMEA regions but has taken steps to address these issues with new leadership [70] Question: How is the company managing its employee count while reducing non-GAAP operating expenses? - The company hires on a just-in-time basis, minimizing costs by waiting for contracts to be signed before hiring [46] Question: What are the expectations for legal expenses in 2024? - Legal expenses are expected to be more moderate in 2024 compared to 2023, as there are no trials scheduled for the year [98] Question: How is the company addressing customer churn and retention? - Management acknowledged some larger cancellations but emphasized that many clients are still engaged with other products [42][105]

Company Overview - Rimini Street is a global provider of end-to-end enterprise software support, products, and services for Oracle and SAP software, as well as a Salesforce and AWS partner[5] - The company's mission is to provide extraordinary technology solutions powered by extraordinary people to achieve each client's strategic, operational, and financial goals[168] - Rimini Street has served over 5,500 clients, including more than 180 Fortune 500 and Global 100 companies[154, 168] Market Opportunity - Rimini Street targets organizations with revenues or budgets over US$200 million[16] - The total serviceable addressable market (SAM) for Rimini Street's current offerings is $33.7 billion[32] - The company estimates a $14.8 billion SAM for Enterprise Software Support and a $4.2 billion SAM for Rimini: Protect, Connect and Consult[127, 128] Financial Performance - Rimini Street's revenue has grown from $281.1 million in 2019 to $431.5 million in 2023[77] - The company achieved an Adjusted EBITDA of $71.9 million in 2023[77] - Rimini Street's revenue retention rate has been consistently high, with 92% in 2022 and 2023[73] Client Value Proposition - Clients can save up to 90% in total maintenance costs with Rimini Street[106] - Rimini Street guarantees no required upgrades for a minimum of fifteen (15) years[36] - The company achieves an average client satisfaction rating on support cases of 4.9/5.0[154, 188]

Exhibit 99.1 FOR IMMEDIATE RELEASE Rimini Street Announces Fiscal Fourth Quarter and Annual 2023 Financial and Operating Results LAS VEGAS, February 28, 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 2023 fourth quarter and fiscal year ended December 31, 2023. Rimini Street Announces Fiscal Four ...

Financial Performance - Rimini Street generated revenue of $431.5 million for the year ended December 31, 2023, representing a year-over-year increase of 5%[35]. - The company recorded net income of $26.1 million for the year ended December 31, 2023, compared to a net loss of $2.5 million in 2022[35]. - Revenue increased from $409.7 million for the year ended December 31, 2022, to $431.5 million for the year ended December 31, 2023, representing a 5% year-over-year growth[181]. - International revenue increased from $194.3 million in 2022 to $211.5 million in 2023, representing a 9% growth[195]. - The company recorded a net income of $26.1 million for the year ended December 31, 2023, with an accumulated deficit of $202.2 million[171]. Client Base and Market Presence - As of December 31, 2023, Rimini Street supported over 3,030 active clients globally, including 73 Fortune 500 companies[34]. - Approximately 51% of Rimini Street's revenue in 2023 was generated in the United States, while 49% came from international business[35]. - Approximately 49% of the company's revenue for the year ended December 31, 2023, was generated outside of the United States, with Japan representing 10% of total revenue[86]. - As of December 31, 2023, the company supported over 3,030 active clients globally, including 73 Fortune 500 companies and 20 Fortune Global 100 companies[81]. - The company has developed a comprehensive portfolio of over 20 solutions across six product suites, covering more than 40,000 SKUs from major vendors including Oracle, SAP, Salesforce, Microsoft, and IBM[87]. Service Offerings and Innovations - Rimini Street's Solutions Portfolio includes managed services for Oracle, SAP, IBM, Salesforce, and open-source database software[24]. - The company offers Rimini ONE™, a comprehensive outsourcing solution designed to extend the operating lifespan of clients' existing technologies by a minimum of 15 years[24]. - Rimini Support™ provides 24x7x365 mission-critical support with a guaranteed 10-minute response time for service requests[27]. - The company offers its Rimini Support solutions at approximately 50% of the annual fees charged by software vendors for base support, providing substantial cost savings for clients[56]. - AI applications developed by the company have accelerated case resolution times by an average of 23% and reduced urgent cases by approximately 29%[63]. Operational Capabilities - The company employs over 2,120 professionals across various global locations, enhancing its service delivery capabilities[34]. - The company employs over 1,280 support engineers with an average of over 20 years of industry experience, providing 24/7 support across more than 130 countries[77]. - The company has a rigorous software development lifecycle compliant with ISO 9001:2015 standards, ensuring timely and accurate delivery of updates[66]. - The company has achieved ISO 9001 and ISO 27001 certifications, ensuring high-quality service and information security management[101][103]. Strategic Goals and Market Positioning - The company aims to address the complexity of hybrid IT environments by consolidating services and support with a limited number of service providers[39]. - The company plans to expand its support services to additional software vendors and products to address the growing needs of its clients[55]. - The company intends to launch new enterprise software support solutions to address various business needs, enhancing its service offerings[91]. - The company plans to expand its global business by increasing its direct sales force and utilizing strategic marketing partnerships[86]. - The company’s marketing programs target senior executives, emphasizing the unique benefits of its offerings and positioning it as a thought leader in the enterprise application support market[74]. Competition and Market Challenges - The company faces strong competition from major players such as Accenture, IBM, and Oracle in its Rimini Manage, Rimini Protect, and Rimini Connect solutions[106][107]. - The company faces significant competition from enterprise software vendors like Oracle and SAP, which may have more resources and broader customer relationships[169]. - The company has faced ongoing litigation with Oracle since 2010, resulting in a total judgment paid to Oracle of approximately $89.9 million after appeals[128]. - The ongoing litigation with Oracle poses a risk to the company's revenue, as Oracle products are a significant portion of its income[123]. - The ongoing litigation with Oracle has resulted in challenges in acquiring new clients and renewing existing contracts, potentially impacting future revenue growth[159]. Risks and Legal Issues - The company’s financial health and operational results are subject to various risks, including ongoing litigation and market competition, which could adversely affect its performance[120][123]. - The company is self-insured for costs related to current or future intellectual property litigation, which may affect financial stability[161]. - The company continues to face risks of additional litigation from Oracle, which could distract management and reduce client interest[164]. - The outcome of ongoing litigation may affect the company's stock price and ability to raise additional financing[160]. - The company has been subject to a permanent injunction since November 2018, which restricts certain support processes found to infringe Oracle copyrights[129]. Cybersecurity and Compliance - Cybersecurity threats are increasing, and any compromise of data security measures could lead to client dissatisfaction and reputational harm[1]. - The company employs various measures to mitigate cybersecurity risks, but remains vulnerable to advanced persistent threats that could materially affect business operations[205]. - Compliance with privacy and security laws, such as the General Data Protection Regulation, could result in fines of up to 4% of global annual revenue or €20 million for serious infringements[208]. - A successful phishing incident in 2021 resulted in unauthorized sharing of client addresses and billing data, although it did not significantly impact business relationships[204]. Human Resources and Management - The senior management team has over 150 years of combined experience in the enterprise software and services industry, enhancing the company's market leadership[83]. - The company has experienced challenges in attracting and retaining qualified personnel, particularly in competitive markets like the San Francisco Bay Area[179]. - The company’s client success managers play a crucial role in client retention and satisfaction, overseeing onboarding and account management processes[68]. - The company has received multiple employee satisfaction awards, including the "2023 Top Workplaces USA" award, reflecting its strong client-centric culture[98]. Future Outlook and Growth Strategy - The company intends to continue investing significantly in expanding sales and marketing operations, enhancing service offerings, and entering new markets[172]. - The company must effectively price its products and services to attract new clients while retaining existing ones without compromising profitability[181]. - The company’s growth strategy includes expanding sales to clients outside the United States, exposing it to global operational risks[1]. - The company may need to incur additional debt or raise capital if operating cash flows are insufficient to fund growth[183]. - The company recognizes revenue from subscriptions over the contract term, which may not immediately reflect sales fluctuations in financial results[1].

Rimini Street, Inc. (NASDAQ:RMNI) Q3 2023 Earnings Conference Call November 1, 2023 5:00 PM ET Company Participants Dean Pohl - Vice President, Investor Relations Seth Ravin - CEO and President Michael Perica - EVP & Chief Financial Officer Conference Call Participants Derrick Wood - Cowen Jeff Van Rhee - Craig-Hallum Brian Kinstlinger - Alliance AGP Operator Good day and thank you for standing by and welcome to the Rimini Street Third Quarter 2023 Earnings Call. At this time, all participants are in a list ...