Rimini Street Announces Preliminary Fiscal 2016 Q2 Financial Results
Revenue of $39.1 million, up 41% year over year
Deferred revenue of $128.5 million, up 41% year over year
Billings of $56.4 million, up 74% year over year
1,451 signed clients to date, up 34% year over year
LAS VEGAS, July 14, 2016 - Rimini Street, Inc., the leading global provider of independent enterprise software support services for SAP SE's (NYSE:SAP) Business Suite, BusinessObjects and HANA Database software and Oracle Corporation's (NYSE:ORCL) Siebel, PeopleSoft, JD Edwards, E-Business Suite, Oracle Database, Oracle Middleware, Hyperion, Oracle Retail and Oracle Agile PLM software, today announced preliminary financial results for its fiscal 2016 Q2 ending June 30, 2016.
Continued Record Results with Accelerating Growth
Rimini Street’s second fiscal quarter of 2016 included an all-time quarterly record of 107 new client transactions worldwide, up 98% year over year. Total clients signed as of June 30, 2016 increased by 34% year over year to 1,451.
The Company’s annual revenue has been growing at an average rate of 37% since 2010, which has increased to an average rate of 38% since 2012. At the close of its fiscal 2016 Q2, ending June 30 2016, the Company’s quarterly revenue increased 41% year over year to $39.1 million and its annual run-rate revenue approached $160 million. Fiscal 2016 Q2 also marked the Company’s 42nd consecutive quarter of growth since its inception in 2005.
Other notable results include:
- Deferred revenue as of June 30, 2016 increased 41% year over year to $128.5 million.
- Billings for 2016 Q2 increased 74% year over year, to $56.4 million.
- Total signed clients to date as of June 30, 2016 increased 34% year over year to 1,451.
- Employee count as of June 30, 2016 increased 33% year over year to 781.
The above information is preliminary and subject to the completion of quarter-end financial processes and review.
Rimini Street 2016 Q2 Notable Achievements:
- Closed a new $125 million financing round led by Colbeck and a syndicate of lenders that will help fuel the acceleration of Rimini Street's global growth and product expansion plans.
- Appointed several new senior executives around the world, including Keith Costello as senior vice president, Global Client Engagement, to support the Company's continued, fast-paced global expansion.
- Launched support for its 12th product line, SAP HANA Database, expanding the options available for SAP licensees to switch to Rimini Street's award-winning support.
- Closed nearly 5,000 support cases across 30 countries, and achieved an average client satisfaction score of 4.8 out of 5.0 (where 5 is “excellent”) for service delivery and resolution.
- Delivered more than 115,000 tax, legal and regulatory updates to date worldwide through Rimini Street’s patent-pending research technology, methodology and ISO 9001-certified development process.
- Completed the annual ISO 27001 third party audit process, once again achieving a perfect audit score with zero non-conformities.
- Conducted an Executive Briefing roadshow, meeting with CIOs to show them how to navigate the challenges and costs associated with SAP's roadmap by switching to Rimini Street support, and how Rimini Street can enable their innovation agility goals by creating an opportunity to redirect their budget and resources towards digital technologies that support business demands today.
- Presented and featured at 15 CIO and procurement leader conferences around the world, including Forrester's Forum for Business Technology Leaders in the United States, Gartner's IT Management Summit in Japan, and IDC's CIO Summit in Australia.
- Presented at the Needham Emerging Technology Conference in the United States.
"Our strong fiscal 2016 Q2 results are a reflection of the global market's fast-growing, accelerating demand for Rimini Street's ultra-responsive, premium level enterprise software support services. We over-achieved against our fiscal 2016 Q2 new and renewal sales plan, and all of our service delivery operational metrics," said Seth Ravin, Rimini Street CEO. "IT budgets remain largely flat to only single-digit growth, and CIO's need to cut excessive spending on ERP systems to free up additional budget funds for innovation that will enable growth, while at the same time obtaining more comprehensive, relevant and value-driven ERP system support. Rimini Street is meeting this market demand with support solutions for Oracle and SAP products that reduce a licensee's total maintenance costs by up to 90%, while providing a breadth of premium support services and responsiveness that far exceeds that of standard software vendor maintenance offerings."
About Rimini Street, Inc.
Rimini Street is the global leader in providing independent enterprise software support services. The company has redefined enterprise support services since 2005 with an innovative, award-winning program that enables Oracle and SAP licensees to save up to 90 percent on total support costs. Clients can remain on their current software release without any required upgrades for at least 15 years. Over 1,400 global, Fortune 500, midmarket, and public sector organizations from a broad range of industries have selected Rimini Street as their trusted, independent support provider. To learn more, please visit http://www.riministreet.com.
This press release may contain forward-looking statements. The words “believe,” “may,” “will,” “plan,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties, and are based on various assumptions. If the risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Rimini Street assumes no obligation to update any forward-looking statements or information, which speak only as of the date of this press release.
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