LAS VEGAS--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 Fourth Quarter and Annual 2023 Financial and Operating Results (Graphic: Business Wire)

Fourth Quarter 2023 Financial Highlights

· Revenue was $112.1 million for the 2023 fourth quarter, an increase of 3.2% compared to $108.6 million for the same period last year.
· Annualized Recurring Revenue was $432.3 million for the 2023 fourth quarter, an increase of 2.9% compared to $420.0 million for the same period last year.
· Active Clients as of December 31, 2023 were 3,038, an increase of 0.6% compared to 3,020 Active Clients as of December 31, 2022.
· Revenue Retention Rate was 90% and 92% for the trailing 12 months ended December 31, 2023 and 2022, respectively.
· Gross margin was 61.0% for the 2023 fourth quarter compared to 64.5% for the same period last year.
· Operating income was $11.5 million for the 2023 fourth quarter compared to an operating loss of $5.6 million for the same period last year.
· Non-GAAP Operating Income was $19.3 million for the 2023 fourth quarter compared to $15.0 million for the same period last year.
· Net income was $9.4 million for the 2023 fourth quarter compared to a net loss of $5.3 million for the same period last year.
· Non-GAAP Net Income was $17.1 million for the 2023 fourth quarter compared to $15.3 million for the same period last year.
· Adjusted EBITDA for the 2023 fourth quarter was $21.3 million compared to $18.3 million for the same period last year.
· Basic and diluted earnings per share attributable to common stockholders was a net earnings per share of $0.10 and $0.10, respectively, for the 2023 fourth quarter compared to a basic and diluted net loss per share of $0.06 and $0.06, respectively, for the same period last year.

Full Year 2023 Financial Highlights

· Revenue was $431.5 million for 2023, an increase of 5.3% compared to $409.7 million for 2022.
· Gross margin was 62.3% for 2023 compared to 62.8% for 2022.
· Operating income was $43.8 million for 2023 compared to $8.1 million for 2022.
· Non-GAAP Operating Income was $66.1 million for 2023 compared to $49.8 million for 2022.
· Net income was $26.1 million for 2023 compared to a net loss of $2.5 million for 2022.
· Basic and diluted net earnings per share attributable to common stockholders was a net earnings per share of $0.29 and $0.29, respectively, for 2023 compared to a basic and diluted net loss per share of $0.03 and $0.03, respectively for 2022.
· Non-GAAP Net Income was $48.4 million for 2023 compared to $39.2 million for 2022.
· Adjusted EBITDA was $71.9 million for 2023 compared to $52.3 million for 2022.

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 2023 Company Highlights

· Announced representative new clients who switched to, or existing clients who expanded their agreements with, Rimini Street, including:
- MYOB - Australian SaaS provider selected Rimini Street’s Rimini ONE™ for comprehensive support and managed services for its Siebel platform, aiming to streamline operations and enhance system reliability.
- Pacific Textiles - Hong Kong-based global leader in the textile manufacturing industry selected Rimini Support™ for its SAP S/4HANA system, enabling faster, more comprehensive IT support that significantly reduces costs and improves system uptime.
- santec - a Japanese-based global photonics company, leveraged Rimini Consult™ for SAP to guide and support a major corporate restructuring by splitting the company into four separate entities.
· Announced Rimini Consult™ for Salesforce®, an expansion of its Salesforce services, offering comprehensive consulting services to maximize client ROI and leverage the Salesforce platform effectively.
· Announced the general availability of support, managed, and consulting services for Salesforce ClickSoftware, extending the life and value of client deployments beyond the December 31, 2023 end-of-life deadline.
· Closed nearly 7,900 support cases and delivered more than 11,200 tax, legal and regulatory updates to clients across 32 countries, while achieving an average client satisfaction rating on the Company’s support delivery of 4.9 out of 5.0 (where 5.0 is rated excellent).
· Recognized with prestigious culture awards: Great Place to Work® Certifications in Singapore and Japan and ranked among the Top 50 of India’s Best Workplaces™ in the IT & IT-BPM category.

Business Outlook

The Company is continuing to suspend guidance until there is more clarity around impacts from current litigation activity before the U.S. Federal courts in the Company’s ongoing litigation with Oracle.

Webcast and Conference Call Information

Rimini Street will host a conference call and webcast to discuss the fourth quarter and full year 2023 results and offer commentary on 2024 at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on February 28, 2024. A live webcast of the event will be available on Rimini Street’s Investor Relations site at Rimini Street IR events link and directly via the webcast link. Dial-in participants can access the conference call by dialing 1-800-836-8184. A replay of the webcast will be available for one year 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 within 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.