Rimini Street(US:RMNI)2024-07-31 11:00PART 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 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 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 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 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 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 This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements NOTE 1 — NATURE OF BUSINESS AND BASIS OF PRESENTATION 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 platforms1396 - The unaudited condensed consolidated financial statements are prepared in conformity with U.S. GAAP and include all significant intercompany balances and transactions110 NOTE 2 — LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES 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 months46112130 - 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 revenue47130 - 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 disclosures62559 NOTE 3 - DEFERRED CONTRACT COSTS AND DEFERRED REVENUE 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 | | :----------------------------------------- | :------------------------------- | :------------------------------- |