Rimini Street Announces Fiscal 2017 Q2 Financial Results
Revenue of $52 million, up 37% year over year
Annualized subscription revenue of $208 million, up 37% year over year
Deferred revenue of $170 million, up 29% year over year
Year to date gross profit of 63%, up from 58% year over year
Announced signing of definitive merger agreement with GP Investments Acquisition Corp.
LAS VEGAS, August 10, 2017 - Rimini Street, Inc. ("Rimini Street" or the "Company") a global provider of enterprise software products and services, and a leading independent support provider for Oracle and SAP products, today announced results for its fiscal 2017 Q2 ending June 30, 2017.
2017 Q2 Financial Highlights
Fiscal 2017 Q2 marked Rimini Street’s 46th consecutive quarter of sequential revenue growth. Results included record quarterly revenue of $52 million, a quarterly increase of 37% year over year, and annualized subscription revenue of $208 million, up 37% year over year. Additional 2017 Q2 financial highlights include:
- Deferred revenue of $170 million, an increase of 29% year over year
- Revenue retention rate of 94% for the 12 months ended June 30, 2017
- Gross profit for the first six months of 2017 of 63%, up from 58% for the same period a year ago
Rimini Street signed 100 new clients in the quarter and ended the quarter with over 1,330 active clients, an increase of 39% year over year, and increased its worldwide employee headcount by 17% year over year to a total of 909 professionals, as of June 30, 2017.
2017 Q2 Business Highlights
- Announced a definitive merger agreement with GP Investments Acquisition Corp. (NASDAQ: GPIA) which will result in the combined company trading on NASDAQ Global Markets under the new ticker symbol "RMNI" at closing. The merger is expected to close in September 2017 and will provide the combined company with additional resources to strengthen its balance sheet, pay down debt, gain access to public capital, and expand its service offerings and capabilities worldwide.
- Expanded availability of support for six new database products including IBM DB2, Microsoft SQL Server and SAP's Sybase family of database products. The Company now services a portfolio of 19 product lines.
- Launched Rimini Street Advanced Database Security, a next-generation security solution that protects databases from both known and unknown vulnerabilities.
- Recognized as a "Top Workplace" by the Bay Area News Group for the fourth time based on Company culture, work environment, communication policies and employee benefits.
- Certified as a Tier 1 Vendor in Israel for Application Support Outsourcing by analyst firm STKI, and cited as the fastest-growing IT vendor in Israel and the only independent software support provider to achieve STKI Tier 1 Vendor status.
- Honored with seven Stevie awards in the 2017 American Business Awards program, including Most Innovative Tech Company of the Year.
- Recognized by the 2017 Asia-Pacific Stevie Awards for Innovation in Customer Service Management, Planning & Practice, distinguishing the achievements of Rimini Street's Global Support Department in customer service and innovation.
- Made the San Francisco Business Times' "Top Software Companies in the Greater Bay Area" list for the second consecutive year.
- Closed a Company record number of support cases in one quarter with over 7,000 cases closed across 44 countries, and again achieved an average client satisfaction score of 4.8 out of 5.0 (where 5.0 is "excellent"). The Company also averaged less than five minutes response time for all Priority 1 cases.
- Presented at 19 CIO and IT and procurement leader events worldwide, including Gartner's CIO Summits in Canada and Germany, and IDC's CIO Summits in Korea and New Zealand.
- Funded and staffed numerous Rimini Street Foundation charitable activities in communities around the world.
"Rimini Street continued to execute its global business plan with a relentless focus on delivering high quality, ultra-responsive support to its global clients, while expanding its product and service portfolio, growing its global workforce and delivery capabilities, and achieving record quarterly revenue with our 46th consecutive quarter of revenue growth," said Seth Ravin, Rimini Street CEO. "Following the completion of our signed merger agreement with GP Investments Acquisition Corp., we expect to further execute against our business plan with the increased global resources and capabilities we believe will result from a combination of the two companies."
About Rimini Street, Inc.
Rimini Street is a global provider of enterprise software products and services, and the leading independent software support provider for Oracle and SAP products. The company has redefined enterprise software support services since 2005 with an innovative, award-winning program that enables licensees of IBM, Microsoft, Oracle, SAP and other enterprise software vendors to save up to 90 percent on total support costs. Clients can remain on their current software release without any required upgrades for a minimum of 15 years. Over 1,330 global Fortune 500, midmarket, public sector and other organizations from a broad range of industries currently rely on Rimini Street as their trusted, independent support provider. To learn more, please visit http://www.riministreet.com, follow @riministreet on Twitter and find Rimini Street on Facebook and LinkedIn.
Certain statements included in this communication are not historical facts but are forward- looking statements within the meaning of the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding the proposed transaction between GPIA and Rimini Street, including the anticipated future results and benefits to Rimini Street following the transaction, the expected timing of the closing of the transaction and the likelihood and ability of the parties to successfully consummate the proposed transaction. These statements are based on various assumptions and on the current expectations of Rimini Street management and are not predictions, nor are these statements of historical facts. These statements are subject to a number of risks and uncertainties, and actual results may differ materially. These risks and uncertainties include, but are not limited to, the inability of GPIA and Rimini Street to successfully or timely consummate the proposed transaction, including the risk that the required approvals are not obtained or that the approval of the stockholders of GPIA or the stockholders of Rimini Street for the transaction is not obtained; failure to realize the anticipated benefits of the transaction, including as a result of a delay in consummating the transaction or a delay or difficulty in integrating the businesses of GPIA and Rimini Street; and the inability to realize the expected amount and timing of cost savings and operating synergies resulting from the proposed transaction. There may be additional risks that Rimini Street does not presently know or that Rimini Street currently believes are immaterial that could also cause actual results to differ from those contained in the 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 communication. These forward-looking statements should not be relied upon as representing Rimini Street's assessments as of any date subsequent to the date of this communication.
© 2017 Rimini Street, Inc. All rights reserved. “Rimini Street” is a registered trademark of Rimini Street, Inc. in the United States and other countries, and Rimini Street, the Rimini Street logo, and combinations thereof, and other marks marked by TM are trademarks of Rimini Street, Inc. All other trademarks remain the property of their respective owners, and unless otherwise specified, Rimini Street claims no affiliation, endorsement, or association with any such trademark holder or other companies referenced herein.