LAS VEGAS--Rimini Street, Inc. (Nasdaq: RMNI), a global provider of enterprise software products and services, the leading third-party support provider for Oracle and SAP software products and a Salesforce partner, today announced results for the fourth quarter and fiscal year ended December 31, 2021.

“For the fourth quarter and full year 2021, we achieved a unique combination of record revenue exceeding our guidance, margin expansion, strong revenue retention and cash flow generation,” stated Seth A. Ravin, Rimini Street co-founder, CEO and chairman of the board. “We continue to see a strong opportunity for Rimini Street’s expanding portfolio of enterprise software support solutions and continue building and maturing our go to market capability to launch, sell and deliver our full solutions portfolio to new and existing clients globally.”

“We produced another consecutive quarter of net income, further strengthened the balance sheet with record cash of $119.6 million at year end 2021 and today announced a common stock repurchase plan of up to $15 million,” stated Michael L. Perica, Rimini Street chief financial officer. “Additionally, for the full year, we achieved record net income, Adjusted EBITDA, operating cash flow and cash generation. We are also issuing guidance today for the first quarter and full year 2022 revenue and affirming our continued commitment to the long-term goals of increasing operating cash flow and growing earnings per share.”

Fourth Quarter 2021 Financial Highlights

· Revenue was $99.3 million for the 2021 fourth quarter, an increase of 13.0% compared to $87.8 million for the same period last year.
· Annual Recurring Revenue was $393 million for the 2021 fourth quarter, an increase of 12.6% compared to $349 million for the same period last year.
· Active Clients as of December 31, 2021 were 2,849, an increase of 14.6% compared to 2,487 Active Clients as of December 31, 2020.
· Revenue Retention Rate was 92% for both the trailing 12 months ended December 31, 2021 and for the comparable period ended December 31, 2020.
· Gross margin was 65.1% for the 2021 fourth quarter compared to 61.8% for the same period last year.
· Operating income was $12.7 million for the 2021 fourth quarter compared to $4.5 million for the same period last year.
· Non-GAAP Operating Income was $19.4 million for the 2021 fourth quarter compared to $11.9 million for the same period last year.
· Net income was $70.1 million for the 2021 fourth quarter compared to net income of $2.5 million for the same period last year.
· Non-GAAP Net Income was $77.8 million for the 2021 fourth quarter compared to $11.1 million for the same period last year.
· Adjusted EBITDA for the 2021 fourth quarter was $19.3 million compared to $12.9 million for the same period last year.
· Basic and diluted earnings per share attributable to common stockholders was $0.81 and $0.77, respectively for the 2021 fourth quarter compared to a basic and diluted net loss per share of $(0.06) for the same period last year.
· Employee count as of December 31, 2021 was 1,666, a year-over-year increase of 16.9%.

Full Year 2021 Financial Highlights

· Revenue was $374.4 million for 2021, an increase of 14.6% compared to $326.8 million for 2020.
· Gross margin was 63.6% for 2021 compared to 61.4% for 2020.
· Operating income was $26.8 million for 2021 compared to $17.9 million for 2020.
· Non-GAAP Operating Income was $55.0 million for 2021 compared to $41.1 million for 2020.
· Net income was $75.2 million for 2021 compared to net income of $11.6 million for 2020.
· Basic and diluted net earnings per share attributable to common stockholders was $0.54 per share and $0.51 per share, respectively for 2021 compared to a basic and diluted net loss per share of $(0.21) per share for 2020.
· Non-GAAP Net Income was $107.6 million for 2021 compared to $36.2 million for 2020.
· Adjusted EBITDA was $55.8 million for 2021 compared to $42.6 million for 2020.

Reconciliations of the non-GAAP financial measures provided in this press release to their most directly comparable GAAP financial measures are provided in the financial tables included at the end of this press release. An explanation of these measures, why we believe they are meaningful and how they are calculated is also included under the heading “About Non-GAAP Financial Measures and Certain Key Metrics.”

Fourth Quarter 2021 Company Highlights

· Announced that the U.S. Patent Office granted the Company a new patent for Rimini Street Artificial Intelligence Support Applications, which reduced case resolution times by an average of 23% and helps the Company deliver an industry-leading client experience. For the fourth quarter, the Company achieved an average client satisfaction rating on the Company’s support delivery of 4.9 out of 5.0 and achieved an average 4.9 out of 5.0 for the Company’s client onboarding services (where 5.0 is “excellent”).
· Announced representative new clients who switched to, or existing clients who expanded their agreements with, Rimini Street, including:
。CHG Healthcare, the largest private healthcare staffing firm in the U.S.;
。DPaschoal Group, Brazil’s leading automotive parts and service retail chain;
。Korean Air, South Korea’s largest air carrier and a leading global airline;
。Philippine Airlines, the flagship carrier airline of the Philippines;
。Open Universities Australia, the leading online higher education marketplace in Australia;
。Mitsubishi Corporate Life Sciences, a leading food ingredients manufacturer in Japan; and
。ENEX, a leading furniture manufacturer in South Korea.
· Closed more than 9,700 support cases and delivered nearly 31,000 tax, legal and regulatory updates for 32 countries.
· Announced the appointment of Eric Helmer as chief technology officer (CTO), the establishment of the Office of the Chief Technology Officer (OCTO), Kevin Mease as chief product officer (CPO), Bill Carslay as GVP & GM, Global Professional Services, Frank Reneke as GVP & GM, Oracle Services, Jennifer Perry as GVP & GM, SAP Services, Emmanuel Richard to SVP & Theatre GM, North America and Gala Lyne to GVP & Regional GM, North America - East.
· Honored with Frost & Sullivan Best Practices Award for “Third-Party Enterprise Software Support Services Company of the Year.”
· Awarded the 2021 People’s Choice Stevie® Awards for Favorite Computer Services Company
· Rimini Street UK recognized in the top 10 for the 2021 UK’s Best Workplaces™, ranking favorably for the Company’s corporate social responsibility, job security and employee engagement program.
· Presented at numerous CIO and IT and procurement leader events worldwide.
· Supported charities around the world through the self-funded Rimini Street Foundation, providing financial contributions, volunteer hours and in-kind donations to further the Company’s mission of equal opportunity for all.

Business Outlook

The Company is providing first quarter 2022 revenue guidance to be in the range of $95.0 million to $96.0 million and full year 2022 revenue guidance to be in the range of $400.0 million to $410.0 million.

Webcast and Conference Call Information

Rimini Street will host a conference call and webcast to discuss the fourth quarter and full year 2021 results and select first quarter 2022 performance to-date commentary at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on March 2, 2022. A live webcast of the event will be available on Rimini Street’s Investor Relations site at https://investors.riministreet.com. Dial-in participants can access the conference call by dialing (800) 708-4540 in the U.S. and Canada and enter the code 50279188. A replay of the webcast will be available for at least 90 days following the event.

Company’s Use of Non-GAAP Financial Measures

This press release contains certain “non-GAAP financial measures.” Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. This non-GAAP information supplements and is not intended to represent a measure of performance in accordance with disclosures required by U.S. generally accepted accounting principles, or GAAP. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures determined in accordance with GAAP. A reconciliation of GAAP to non-GAAP results is included in the financial tables included in this press release. Presented under the heading “About Non-GAAP Financial Measures and Certain Key Metrics” is a description and explanation of our non-GAAP financial measures.