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 second quarter ended June 30, 2021.
“For the second quarter, we executed well and remain on track to achieve our strategic growth plan of $1 billion in annual revenue by 2026. We achieved record revenue of $91.6 million, up 16.9% year over year and above the high-end of our guidance range. We also ended the quarter with strong year over year billings growth of 44.4%, a gross margin over 62% and an active client count that grew by 22.5%,” stated Seth A. Ravin, Rimini Street co-founder, CEO and chairman of the board. “In addition, our revenue retention rate grew to 94%, cross-sales continued to grow as a percent of billings and we achieved year over year billings growth in all three U.S. regions.”
“For the second quarter, we generated $22.7 million of operating cash flow and ended with more than $110 million in cash,” stated Michael L. Perica, Rimini Street chief financial officer. “During the quarter, we also completed a $60 million buyback of Series A Preferred Stock. Subsequent to the second quarter, on July 20, 2021, we redeemed and retired the remaining Series A Preferred Stock, with the transaction funded by commercial bank financing of $90 million at a rate of LIBOR + 1.75% to 2.50% on a five-year term loan. Accordingly, go-forward annual financing costs have been reduced by $24 million compared to fiscal year 2020. Today, we are issuing guidance for the third quarter ending September 30, 2021, maintaining full year 2021 guidance and re-affirming our continued commitment to the long-term goals of increasing top-line growth, operating cash flow and profitability.”
Second Quarter 2021 Financial Highlights
- Revenue was $91.6 million for the 2021 second quarter, an increase of 16.9% compared to $78.4 million for the same period last year.
- Annual Recurring Revenue was $362.1 million for the 2021 second quarter, an increase of 16.4% compared to $311.2 million for the same period last year.
- Active Clients as of June 30, 2021 were 2,645 an increase of 22.5% compared to 2,159 Active Clients as of June 30, 2020.
- Revenue Retention Rate was 94% for the trailing 12 months ended June 30, 2021 and 92% for the comparable period ended June 30, 2020.
- Gross margin was 62.2% for the 2021 second quarter compared to 61.2% for the same period last year.
- Operating income was $4.6 million for the 2021 second quarter compared to $5.1 million for the same period last year.
- Non-GAAP Operating Income was $9.8 million for the 2021 second quarter compared to $9.7 million for the same period last year.
- Net income was $6.8 million for the 2021 second quarter compared to net income of $2.9 million for the same period last year.
- Non-GAAP Net Income was $8.4 million for the 2021 second quarter compared to $8.1 million for the same period last year.
- Adjusted EBITDA for the 2021 second quarter was $9.9 million compared to $9.6 million for the same period last year.
- Basic and diluted net loss per share attributable to common stockholders was a net loss per share of $0.06 for the 2021 second quarter compared to a net loss per share of $0.06 for the same period last year.
- Employee count as of June 30, 2021 was 1,556, a year-over-year increase of 15.9%.
- On April 16, 2021, completed the buyback of $60 million face-value of Series A preferred stock, plus make-whole of approximately $2.3 million.
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.”
Second Quarter 2021 Company Highlights
- Announced that leading Brazilian chemical distributor quantiQ, switched to Rimini Street Support for its SAP S/4HANA implementation, saving an estimated 75% in total annual support costs which enabled the organization to invest in intelligent automation and RFID capabilities to further its business and maintain its competitive edge.
- Announced that the International Air Transport Association (IATA) in Montreal, Canada, switched to Rimini Street for integrated support and application management services for its SAP applications, enabling the organization to improve productivity and free up resources to focus on pandemic recovery and expansion.
- Promoted and appointed Emmanuelle Hose to group vice president and theatre general manager for Europe, Middle East and Africa, and Daniel Benad to group vice president and regional general manager for Australia, New Zealand and South Pacific, to support and capitalize on the growing demand for Rimini Street’s third-party support solutions in these respective regions.
- Closed nearly 10,000 support cases and delivered more than 15,000 tax, legal and regulatory updates for 35 countries. Also achieved an average client satisfaction rating on the Company’s support delivery of 4.9 out of 5.0 (where 5.0 is “excellent”).
- Announced results of a global CFO survey report, revealing that CFOs and financial leaders prioritize digital transformation investments and want to cut spending on non-essential IT investments, including major ERP reimplementation and migration projects that lack clear value and strong ROI.
- Honored with four Stevie American Business Awards including a gold award for the Company’s innovative AI platform for delivering excellence in customer service, as well as awards for Company of the Year, Corporate Social Responsibility Program of the Year and Customer Service Team of the Year.
- 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.
- Announced that Rimini Street’s India operations earned the designation of a Great Place to Work-CertifiedTM company based on the Company’s high-trust culture, employee engagement programs, training and career development and creating a positive work environment for all.
- Presented at 11 CIO, IT and finance leader conferences globally including Gartner CFO and Finance Leader Conference, MIT CIO Symposium and CIO Connect.
- Supported more than 30 charities around the world through the Rimini Street Foundation giving programs.
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