Rimini Street(RMNI) - 2025 Q1 - Quarterly Results

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]