Rimini Street (RMNI) Q4 2024 earnings summary

Executive summary

• Q4 billings grew 7.1% year-over-year to $172.1 million, with 22 new client sales over $1 million TCV and active clients up 1.4% to 3,081.

• Expanded offerings in VMware support and ServiceNow partnerships, and launched new database security solutions.

• Implemented Hunter-Farmer sales model and reorganized sales teams to drive new logo acquisition and cross-selling.

• Litigation with Oracle saw a favorable appellate court decision, with ongoing efforts to recover $58.5 million in legal fees paid.

• Guidance remains suspended due to ongoing Oracle litigation.

Financial highlights

• Q4 2024 revenue was $114.2 million (up 1.9% YoY); full-year revenue was $428.8 million (down 0.6% YoY).

• Q4 gross margin was 63.7% (non-GAAP: 64%); full-year gross margin was 60.9% (non-GAAP: 61.3%).

• Q4 net income was $6.7 million ($0.07 per diluted share); full-year net loss was $36.3 million ($0.40 per diluted share).

• Adjusted EBITDA for Q4 was $20 million; full-year was $53.1 million.

• Cash and short-term investments at year-end were $88.8 million, down from $125.3 million prior year.

Outlook and guidance

• Guidance remains suspended due to ongoing Oracle litigation; management expects to resume guidance in 2025 as legal clarity improves.

• Management expresses confidence in returning to growth and higher profitability, citing improved sales execution and pipeline.