Rimini Street (RMNI) Q4 2024 earnings summary

Executive summary

• Achieved positive momentum in Q4 2024 with 22 new client sales over $1 million TCV, a 7.1% YoY improvement in billings, and active clients rising 1.4% to 3,081.

• Expanded offerings with new VMware support, ServiceNow partnership, and new database security solutions, targeting ERP modernization and automation.

• Implemented a Hunter-Farmer sales model in the Americas, reorganized sales teams by industry, and invested in global sales support and solution engineering.

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

• U.S. revenue fell 6.5% while international revenue rose 10.5% in Q4 2024 compared to prior year.

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 billings reached $172.1 million (up 7.1% YoY); full year billings were $423 million (up from $418.5 million YoY).

• Gross margin for Q4 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/diluted share); full year net loss was $36.3 million ($(0.40)/diluted share).

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

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

Outlook and guidance

• Guidance remains suspended due to ongoing litigation with Oracle; 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 strength.