純収益：8,250万ドル（前年比19.3％増）
計算上の請求額：6,830万ドル（前年比33.3％増）
2020年9月30日時点の顧客数：2,365社（前年比16.4％増）
2020年11月5日、ラスベガス – エンタープライズソフトウェア製品を対象としたサポートサービスを世界的に提供する、OracleおよびSAPソフトウェアの第三者保守サポートの業界リーダーで、Salesforceのパートナーであるリミニストリート （Nasdaq：RMNI）は、本日、2020年9月30日に終了した2020年度第3四半期の業績を発表しました。
「第3四半期は、当社の戦略的成長計画に対して引き続き順調な業績でした。予想を上回る過去最大の四半期収益、過去最大の請求と受注、前年比33.3%増の計算上の請求額、予想を上回る四半期売上総利益率を達成しました。また、90％を超える収益継続率の確保、連続した四半期の純利益の創出、期末における記録的な総計8,370万ドルのキャッシュによるバランスシートのさらなる強化、前年同期比51.7%増の3,180万ドルの営業キャッシュフローの計上を行うことができました」とリミニストリートの共同設立者、CEO、取締役会長のSeth A. Ravinは述べています。「また、新しいAMSサービスを含む、リミニストリートのサポートソリューションに対する世界的な需要の高まりとパンデミックや世界が直面する経済的な課題による需要の増加に対応するために継続的な投資を行いました。当社は本日、第4四半期の収益に関する予想を発表します。また、2020年の収益予想範囲を引き上げ、フリーキャッシュフローの向上とGAAP収益性の成長という長期目標への継続的な取り組みをお約束します。」
2020年第3四半期の財務ハイライト
- 2020年第3四半期の純収益は、前年同期の6,920万ドルから3％増の8,250万ドル。
- 2020年第3四半期の年間経常収益は、前年同期の2億7,500万ドルから6％増の3億2,700万ドル。
- 2020年9月30日現在の契約顧客数は、2019年9月30日の2,032社から4％増の2,365社。
- 2020年9月30日までの12ヶ月の収益維持率は、2019年9月30日までの同期間と変わらず92％。
- 2020年第3四半期の売上総利益率は、前年同期5％に対し61.2％。
- 2020年第3四半期の営業利益は、前年同期220万ドルに対し450万ドル。
- 2020年第3四半期の非GAAPベースの営業利益は、前年同期710万ドルに対し1,050万ドル。
- 2020年第3四半期の純利益は、前年同期140万ドルに対し330万ドル。
- 2020年第3四半期の非GAAPベースの純利益は、前年同期630万ドル対し930万ドル。
- 2020年第3四半期の調整後EBITDAは、前年同期730万ドルに対し1,100万ドル。
- 2020年第3四半期の普通株主に帰属する一株あたりの当期純利益および潜在株式調整後利益は、前年同期の08ドルの純損失に対し0.05ドルの純損失。
- 2020年9月30日時点の従業員数は、前年比13％増の1,384人。
- 第3四半期の決算後、当社はシリーズA優先株の額面500万ドルを、額面金額の約10％割引の金額で買い戻しました。支払いは全額不要であり、購入した優先株式は消却しました。
本プレスリリース記載の非GAAPベースの財務指標を、最も直接的に対応するGAAPベースの財務指標に合わせて調整した数値を本プレスリリース末尾の財務諸表に掲載しております。これらの指標の意義に関する当社の見解と計算方法については、英文リリースの「About Non-GAAP Financial Measures and Certain Key Metrics」の項目をご覧ください。
2020年第3四半期の企業活動における注目点
- 当社の普通株式約610万株の追加株式売出しを行い、純利益は約2,510万ドルとなりました。
- 2020年10月1日、当社の成長の次の段階をサポートするために、経験豊富な財務リーダーであるMichael L.Pericaをエグゼクティブバイスプレジデント兼CFOに任命したことを発表しました。
- OracleまたはSAPからリミニストリートの保守サポートに切り替えた、またはリミニストリートのサブスクリプションサービスを拡大した、以下の新規および既存のお客様の成功事例を発表しました。
- Hyundai-Kia Motors：世界有数の自動車メーカー。当社との保守サポート契約を全世界の海外支店および関連会社に拡大しました。
- Vedacit：ブラジルを拠点とする建材の大手メーカー
- エフピコ：日本最大のプラスチック製食品容器および包装資材メーカー
- Green Cargo：スウェーデンの鉄道貨物輸送の公営企業。保守サポート契約を更新しました。
- Rassini NHK Automotive：ブラジルの自動車部品および付属品メーカー
- Elders：オーストラリアを代表する農業関連企業
- 46か国で8,300件を超えるサポートケースをクローズし、38か国のクライアントに1万4,000件を超える税務、法律、規制に関するアップデートを提供。当社のサポート提供に関する顧客満足度の平均評価は、0ポイント中4.8ポイント以上を達成（最高点5.0ポイント)。
- 業界をリードするお客様向けのサービス応答保証のさらなる強化を発表しました。新しいSLAでは、応答時間が優先度1の非常に重大なケースでは15分から10分に、優先度2の深刻なケースでは30分から15分に短縮されました。
- スティービー®アワードの「Company of the Year（年間最優秀企業）」、「Employer of the Year（年間最優秀経営者）」、「Innovation of the Year（年間最優秀イノベーション）」で金賞など、クライアントサービスと企業の製品および従業員エンゲージメントのイノベーションにおける卓越性に対して8つの賞を受賞しました。
- ワシントンC.のCXOsync、ボストンのIDG Future IT、MIT Sloan CIO Digital Learning Seriesなど、世界中で開催されたCIO、CFO、ITおよびプロキュアメントリーダーを対象とした15のバーチャルイベントで講演しました。
- リミニストリートファンデーションを通じて世界中の32の慈善団体に寄付しました。
2020年収益予想
当社は、2020年第4四半期の収益予想を8,250万ドルから8,350万ドルの範囲としています。当社はまた、通年の収益予想を3億1,400万ドルから3億2,000万ドルの範囲から引き上げ、3億2,150万ドルから3億2,250万ドルの範囲としています。
ウェブキャストおよびカンファレンスコールによる情報の提供
リミニストリートは、2020年11月5日、東部標準時午後5時、太平洋標準時午後2時より、カンファレンスコールとウェブキャストを実施し、2020年度第3四半期業績及び2020年第4四半期の現時点における概要について説明します。本イベントのライブウェブキャストは、リミニストリートのIR（投資家情報）サイト（https://investors.riministreet.com）でご視聴いただけます。カンファレンスコールに参加される場合は、米国またはカナダの（800）708-4540をダイヤルし、「コード49989778」を入力してください。当該イベント終了後、ウェブキャストの再生を90日間以上公開いたします。
非GAAPベースの財務指標の使用について
本プレスリリースには、「非GAAPベースの財務指標」が含まれています。非GAAPベースの財務指標は、包括的な会計規則や会計原則に基づくものではありません。この非GAAPベースの情報は補足情報として掲載するものであり、GAAP（一般に認められた米国会計原則）で義務付けられる開示要件に則る業績指標の明示を意図するものではありません。非GAAPベースの財務指標はGAAPに従って算定された財務指標の追加情報とみなすべきものであり、その代替情報またはそれに優先する情報とみなすべきものではありません。本プレスリリースの財務諸表では、GAAPベースの数値を非GAAPベースで調整した数値で掲載しています。また、「About Non-GAAP Financial Measures and Certain Key Metrics」の項目で、当社の非GAAPベース財務指標についてご説明しています。
RIMINI STREET, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
| ASSETS | September 30, 2020 |
December 31, 2019 | |||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 83,410 | $ | 37,952 | |||
| Restricted cash | 333 | 436 | |||||
| Accounts receivable, net of allowance of $889 and $1,608, respectively | 67,335 | 111,574 | |||||
| Deferred contract costs, current | 13,075 | 11,754 | |||||
| Prepaid expenses and other | 11,569 | 15,205 | |||||
| Total current assets | 175,722 | 176,921 | |||||
| Long-term assets: | |||||||
| Property and equipment, net of accumulated depreciation and amortization of $11,041 and $9,847, respectively | 4,988 | 3,667 | |||||
| Operating lease right-of-use assets | 16,585 | — | |||||
| Deferred contract costs, noncurrent | 19,847 | 16,295 | |||||
| Deposits and other | 1,624 | 3,089 | |||||
| Deferred income taxes, net | 1,546 | 1,248 | |||||
| Total assets | $ | 220,312 | $ | 201,220 | |||
| LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 3,969 | $ | 2,303 | |||
| Accrued compensation, benefits and commissions | 35,574 | 27,918 | |||||
| Other accrued liabilities | 17,034 | 23,347 | |||||
| Operating lease liabilities, current | 4,309 | — | |||||
| Deferred revenue, current | 179,512 | 205,771 | |||||
| Total current liabilities | 240,398 | 259,339 | |||||
| Long-term liabilities: | |||||||
| Deferred revenue, noncurrent | 24,785 | 29,727 | |||||
| Operating lease liabilities, noncurrent | 13,256 | — | |||||
| Accrued PIK dividends payable | 1,182 | 1,156 | |||||
| Other long-term liabilities | 2,234 | 2,275 | |||||
| Total liabilities | 281,855 | 292,497 | |||||
| Redeemable Series A Preferred Stock: | |||||||
| Authorized 180 shares; issued and outstanding 159 shares and 155 as of September 30, 2020 and December 31, 2019, respectively. Liquidation preference of $158,729, net of discount of $19,213 and $155,231, net of discount of $23,915, as of September 30, 2020 and December 31, 2019, respectively | 139,516 | 131,316 | |||||
| Stockholders’ Deficit: | |||||||
| Preferred Stock, $0.0001 par value per share. Authorized 99,820 shares (excluding
180 shares of Series A Preferred Stock); no other series has been designated |
— | — | |||||
| Common Stock, $0.0001 par value. Authorized 1,000,000 shares; issued and outstanding 76,207 and 67,503 shares as of September 30, 2020 and December 31, 2019, respectively | 8 | 7 | |||||
| Additional paid-in capital | 105,587 | 93,484 | |||||
| Accumulated other comprehensive loss | (1,320) | (1,429) | |||||
| Accumulated deficit | (305,334) | (314,655) | |||||
| Total stockholders’ deficit | (201,059) | (222,593) | |||||
| Total liabilities, redeemable preferred stock and stockholders’ deficit | $ | 220,312 | $ | 201,220 | |||
RIMINI STREET, INC.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Revenue | $ | 82,518 | $ | 69,182 | $ | 238,952 | $ | 204,924 | |||||||
| Cost of revenue | 31,991 | 25,915 | 92,627 | 74,786 | |||||||||||
| Gross profit | 50,527 | 43,267 | 146,325 | 130,138 | |||||||||||
| Operating expenses: | |||||||||||||||
| Sales and marketing | 29,195 | 26,756 | 84,443 | 77,610 | |||||||||||
| General and administrative | 13,025 | 11,041 | 38,159 | 34,659 | |||||||||||
| Litigation costs and related recoveries: | |||||||||||||||
| Professional fees and other costs of litigation | 3,773 | 3,642 | 9,247 | 6,127 | |||||||||||
| Litigation appeal refunds | — | — | — | (12,775) | |||||||||||
| Insurance costs and recoveries, net | — | (339) | 1,062 | 4,000 | |||||||||||
| Litigation costs and related recoveries, net | 3,773 | 3,303 | 10,309 | (2,648) | |||||||||||
| Total operating expenses | 45,993 | 41,100 | 132,911 | 109,621 | |||||||||||
| Operating income | 4,534 | 2,167 | 13,414 | 20,517 | |||||||||||
| Non-operating income and (expenses): | |||||||||||||||
| Interest expense | (10) | (27) | (35) | (375) | |||||||||||
| Other income (expenses), net | 54 | (329) | (731) | (629) | |||||||||||
| Income before income taxes | 4,578 | 1,811 | 12,648 | 19,513 | |||||||||||
| Income tax expense | (1,272) | (451) | (3,327) | (1,777) | |||||||||||
| Net income | $ | 3,306 | $ | 1,360 | $ | 9,321 | $ | 17,736 | |||||||
| Net loss attributable to common stockholders | $ | (3,439) | $ | (5,159) | $ | (10,743) | $ | (1,133) | |||||||
| Net loss per share attributable to common stockholders: | |||||||||||||||
| Basic and diluted | $ | (0.05) | $ | (0.08) | $ | (0.15) | $ | (0.02) | |||||||
| Weighted average number of shares of Common Stock outstanding: | |||||||||||||||
| Basic and diluted | 72,377 | 66,696 | 69,521 | 65,625 | |||||||||||
RIMINI STREET, INC.
GAAP to Non-GAAP Reconciliations
(In thousands)
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Non-GAAP operating income reconciliation: | |||||||||||||||
| Operating income | $ | 4,534 | $ | 2,167 | $ | 13,414 | $ | 20,517 | |||||||
| Non-GAAP adjustments: | |||||||||||||||
| Litigation costs and related recoveries, net | 3,773 | 3,303 | 10,309 | (2,648) | |||||||||||
| Stock-based compensation expense | 2,189 | 1,621 | 5,425 | 3,829 | |||||||||||
| Non-GAAP operating income | $ | 10,496 | $ | 7,091 | $ | 29,148 | $ | 21,698 | |||||||
| Non-GAAP net income reconciliation: | |||||||||||||||
| Net income | $ | 3,306 | $ | 1,360 | $ | 9,321 | $ | 17,736 | |||||||
| Non-GAAP adjustments: | |||||||||||||||
| Litigation costs and related recoveries, net | 3,773 | 3,303 | 10,309 | (2,648) | |||||||||||
| Post-judgment interest in litigation awards | — | — | — | (212) | |||||||||||
| Stock-based compensation expense | 2,189 | 1,621 | 5,425 | 3,829 | |||||||||||
| Non-GAAP net income | $ | 9,268 | $ | 6,284 | $ | 25,055 | $ | 18,705 | |||||||
| Non-GAAP Adjusted EBITDA reconciliation: | |||||||||||||||
| Net income | $ | 3,306 | $ | 1,360 | $ | 9,321 | $ | 17,736 | |||||||
| Non-GAAP adjustments: | |||||||||||||||
| Interest expense | 10 | 27 | 35 | 375 | |||||||||||
| Income tax expense | 1,272 | 451 | 3,327 | 1,777 | |||||||||||
| Depreciation and amortization expense | 434 | 496 | 1,321 | 1,462 | |||||||||||
| EBITDA | 5,022 | 2,334 | 14,004 | 21,350 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||
| Litigation costs and related recoveries, net | 3,773 | 3,303 | 10,309 | (2,648) | |||||||||||
| Post-judgment interest in litigation awards | — | — | — | (212) | |||||||||||
| Stock-based compensation expense | 2,189 | 1,621 | 5,425 | 3,829 | |||||||||||
| Adjusted EBITDA | $ | 10,984 | $ | 7,258 | $ | 29,738 | $ | 22,319 | |||||||
| Calculated Billings: | |||||||||||||||
| Revenue | $ | 82,518 | $ | 69,182 | $ | 238,952 | $ | 204,924 | |||||||
| Deferred revenue, current and noncurrent, as of the end of the period | 204,297 | 186,925 | 204,297 | 186,925 | |||||||||||
| Deferred revenue, current and noncurrent, as of the beginning of the period | 218,506 | 204,845 | 235,498 | 196,706 | |||||||||||
| Change in deferred revenue | (14,209) | (17,920) | (31,201) | (9,781) | |||||||||||
| Calculated billings | $ | 68,309 | $ | 51,262 | $ | 207,751 | $ | 195,143 | |||||||
About Non-GAAP Financial Measures and Certain Key Metrics
To provide investors and others with additional information regarding Rimini Street’s results, we have disclosed the following non-GAAP financial measures and certain key metrics. We have described below Active Clients, Annual Recurring Revenue and Revenue Retention Rate, each of which is a key operational metric for our business. In addition, we have disclosed the following non-GAAP financial measures: non-GAAP operating income, non-GAAP net income, EBITDA, adjusted EBITDA and Calculated Billings. Rimini Street has provided in the tables above a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. Due to a valuation allowance for our deferred tax assets, there were no tax effects associated with any of our non-GAAP adjustments. These non-GAAP financial measures are also described below.
The primary purpose of using non-GAAP measures is to provide supplemental information that management believes may prove useful to investors and to enable investors to evaluate our results in the same way management does. We also present the non-GAAP financial measures because we believe they assist investors in comparing our performance across reporting periods on a consistent basis, as well as comparing our results against the results of other companies, by excluding items that we do not believe are indicative of our core operating performance. Specifically, management uses these non-GAAP measures as measures of operating performance; to prepare our annual operating budget; to allocate resources to enhance the financial performance of our business; to evaluate the effectiveness of our business strategies; to provide consistency and comparability with past financial performance; to facilitate a comparison of our results with those of other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results; and in communications with our board of directors concerning our financial performance. Investors should be aware however, that not all companies define these non-GAAP measures consistently.
Calculated Billings represents the change in deferred revenue for the current period plus revenue for the current period.
Active Client is a distinct entity that purchases our services to support a specific product, including a company, an educational or government institution, or a business unit of a company. For example, we count as two separate active clients when support for two different products is being provided to the same entity. We believe that our ability to expand our active clients is an indicator of the growth of our business, the success of our sales and marketing activities, and the value that our services bring to our clients.
Annual Recurring Revenue is the amount of subscription revenue recognized during a fiscal quarter and multiplied by four. This gives us an indication of the revenue that can be earned in the following 12-month period from our existing client base assuming no cancellations or price changes occur during that period. Subscription revenue excludes any non-recurring revenue, which has been insignificant to date.
Revenue Retention Rate is the actual subscription revenue (dollar-based) recognized over a 12-month period from customers that were clients on the day prior to the start of such 12-month period, divided by our Annual Recurring Revenue as of the day prior to the start of the 12-month period.
Non-GAAP Operating Income is operating income adjusted to exclude: litigation costs and related recoveries, net, and stock-based compensation expense. The exclusions are discussed in further detail below.
Non-GAAP Net Income is net income adjusted to exclude: litigation costs and related recoveries, net, post-judgment interest in litigation awards, and stock-based compensation expense. These exclusions are discussed in further detail below.
Specifically, management is excluding the following items from its non-GAAP financial measures, as applicable, for the periods presented:
Litigation Costs and Related Recoveries, Net: Litigation costs and the associated insurance and appeal recoveries relate to outside costs of litigation activities. These costs and recoveries reflect the ongoing litigation we are involved with, and do not relate to the day-to-day operations or our core business of serving our clients.
Stock-Based Compensation Expense: Our compensation strategy includes the use of stock-based compensation to attract and retain employees. This strategy is principally aimed at aligning the employee interests with those of our stockholders and to achieve long-term employee retention, rather than to motivate or reward operational performance for any particular period. As a result, stock-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.
Post-judgment interest in litigation awards: Post-judgment interest resulted from our appeals of ongoing litigation and does not relate to the day-to-day operations or our core business of serving our clients.
EBITDA is net income adjusted to exclude: interest expense, income tax expense, and depreciation and amortization expense.
Adjusted EBITDA is EBITDA adjusted to exclude: litigation costs and related recoveries, net, post-judgment interest in litigation awards, and stock-based compensation expense, as discussed above.
