Rimini Street共同創辦人、執行長、董事長Seth A. Ravin表示：「在第三季，我們持續看到業績不斷改善，這歸功於過去18個月在全球銷售能力、生產力和基礎設施領域的投資。我們仍繼續擴大全球能力以及新產品和服務，並在杜拜開設辦事處以服務海灣地區的客戶，並宣佈在全球提供SAP應用程式管理服務(Application Management Services)。此外，今天我們宣佈在全球推出針對Oracle資料庫和應用程式的應用程式管理服務。」”
Rimini Street財務長Tom Sabol表示：「第三季營收、銷售和行銷以及一般性行政開支都在我們的季度指引範圍之內，而第三季和年初至今的毛利潤率均超出我們此前提供的指引範圍。我們依然致力於公司的長期目標，包括營收成長、強勁的自由現金流，以及獲致永續的GAAP獲利能力。」
- 宣佈全球汽車製造商現代-起亞汽車選擇Rimini Street為其全球資料庫資產組合提供支援和維護服務。
- 針對Peoplesoft、JD Edwards、SAP和Oracle E-Business Suite 產品，為全球客戶提供逾1.5萬項稅負、法律和監管方面的更新
◦ 全球SAP支援團隊獲年度客戶服務團隊(Customer Service Team of the Year) Stevie ABA金牌獎和 Stevie IBA銀牌獎；
◦ 年度公司 |電腦服務Stevie ABA金牌獎和Stevie IBA金牌獎；
◦ 在客戶銷售和服務獎 (Customer Sales and Service Awards) 中榮獲四項大獎，包括年度里程碑金牌獎和年度客戶服務傑出表現獎。
- 參加了13場資訊長、財務長和IT採購領導人活動，包括紐約CFO.org，IDC在墨西哥巴亞爾塔港舉行的CIO Empowerment會議，Gartner在達拉斯舉行的ITAM Summit，以及東京的Japan Information Systems User Association。
Rimini Street今日宣佈，Thomas Sabol辭去財務長一職，將於2019年11月15日生效。他將在其居住地所在州尋求其他機會。此前擔任公司副總裁和公司主計長的Stanley Mbugua被任命為集團副總裁兼會計長，2019年11月5日生效。公司正積極招聘新財務長。Ravin先生表示：「我要感謝Tom過去三年來在領導公司財務方面的貢獻，其中包括成功完成多項重大的再融資交易，以及協助公司在2017年上市。我們希望他在新職位上一切順利。」
Rimini Street將於東部時間2019年11月7日下午5點/太平洋時間下午2點舉行電話會議和網播，討論2019年第三季業績。可至Rimini Street投資人關係網站https://investors.riministreet.com/events-and-presentations/upcoming-and-past-events觀看會議現場網播。美國和加拿大的參與者可致電(855) 213-3942並輸入代碼8398042來收聽電話會議。會後將提供網播的重播，為期至少90天。
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, Annualized Subscription 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 (loss), EBITDA, and adjusted EBITDA. 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.
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.
Annualized Subscription 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 Annualized Subscription 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 (Loss) is net income (loss) adjusted to exclude: litigation costs and related recoveries, net, post-judgment interest in litigation awards, write-off of deferred debt financing costs, extinguishment charges upon payoff of credit facility, stock-based compensation expense, and gain from change in fair value of embedded derivatives. 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.
Write-off of Deferred Debt Financing Costs: The write-off of deferred financing costs related to certain costs that were expensed in 2018 due to an unsuccessful debt financing.
Extinguishment charges upon payoff of Credit Facility: These costs included interest expense and other debt financing expenses, including the make-whole applicable premium and the write-off of debt discount and issuance costs that resulted from the payoff of our former credit facility on July 19, 2018. Since these amounts related to our debt financing structure, we have excluded them since they do not relate to the day-to-day operations or our core business of serving our clients. Extinguishment Charges Upon Payoff of Credit Facility: These costs included interest expense and other debt financing expenses, including the make-whole applicable premium and the write-off of debt discount and issuance costs that resulted from the payoff of our former credit facility on July 19, 2018. Since these amounts related to our debt financing structure, we have excluded them since they do not relate to the day-to-day operations or our core business of serving our clients.
Gain from Change in Fair Value of Embedded Derivatives: Our former credit facility included features that were determined to be embedded derivatives requiring bifurcation and accounting as separate financial instruments. We have determined to exclude the gains and losses on embedded derivatives related to the change in fair value of these instruments given the financial nature of this fair value requirement. We were not able to manage these amounts as part of our business operations, nor were the costs core to servicing our clients, so we have excluded them.
Other Debt Financing Expenses: Other debt financing expenses included non-cash write-offs (including write-offs due to payoff), accretion, amortization of debt discounts and issuance costs, and collateral monitoring and other fees payable in cash related to our former credit facility. Since these amounts related to our debt financing structure, we have excluded them since they do not relate to the day-to-day operations or our core business of serving our clients.
EBITDA is net income (loss) 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, write-off of deferred debt financing costs, post-judgment interest in litigation awards, write-off of deferred debt financing costs, stock-based compensation expense, gain from change in fair value of embedded derivatives, and other debt financing expenses, as discussed above.