In This Article:
-
Revenue: $104.7 million, a year-over-year decrease of 2.6%.
-
Annualized Recurring Revenue: $401.5 million, a year-over-year decrease of 3.6%.
-
Revenue Retention Rate: 89% for service subscriptions.
-
Operating Expenses: Cost optimization plan to reduce net operating costs by $35 million annually.
-
Sales and Marketing Expenses: 34.2% of revenue for the third quarter.
-
General and Administrative Expenses: 15.8% of revenue excluding litigation costs.
-
Net Loss: $43.1 million or negative 47 per diluted share.
-
Non-GAAP Net Income: $19.9 million or 22 per diluted share.
-
Adjusted EBITDA: $13.7 million or 13.1% of revenue.
-
Cash and Short-Term Investments: $119.5 million as of September 30th, 2024.
-
Operating Cash Flow: Decreased by $18.5 million compared to the prior year quarter.
-
Deferred Revenue: $223.3 million as of September 30th, 2024.
-
Backlog: $574.6 million as of September 30th, 2024.
-
Oracle Peoplesoft Revenue: $24.9 million or 8% of revenue for the first nine months ended September 30th, 2024.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Rimini Street Inc (NASDAQ:RMNI) achieved a 7.7% year-over-year improvement in quarterly billings, indicating positive momentum in sales.
-
The company has formed a strategic partnership with ServiceNow, which is expected to enhance its enterprise software offerings and provide significant cost savings and transformation value to clients.
-
Rimini Street Inc (NASDAQ:RMNI) has successfully implemented a cost optimization plan, achieving $14.9 million in net annualized reductions, with a target of $35 million by Q1 2025.
-
The company reported strong new client acquisition, with 19 new client sales transactions in the quarter, each with a total contract value over $1 million.
-
Rimini Street Inc (NASDAQ:RMNI) has a high client satisfaction score of 4.9 out of 5, reflecting the quality and responsiveness of its services.
Negative Points
-
Rimini Street Inc (NASDAQ:RMNI) experienced a 2.6% year-over-year decrease in revenue for Q3 2024, partly due to the wind down of Oracle Peoplesoft services.
-
The company is facing ongoing litigation with Oracle, which has resulted in a $58.5 million payment for attorney's fees and costs, impacting financial results.
-
Revenue retention rate for service subscriptions was 89%, indicating some challenges in retaining clients.
-
Operating expenses remain elevated due to ongoing legal and compliance costs associated with the Oracle litigation.
-
Rimini Street Inc (NASDAQ:RMNI) has suspended guidance for future financial results due to uncertainties related to litigation outcomes and their potential impacts.