Q1 2024 Rimini Street Inc Earnings Call Transcript
Key Points
- Rimini Street Inc (RMNI) reported a year-over-year revenue increase of 1.2% in Q1 2024, reaching $106.7 million.
- The company's annualized recurring revenue grew by 1.8% year-over-year to $415.8 million.
- Rimini Street Inc (RMNI) continues to expand its global operations, now serving clients in nearly 150 countries with over 2100 employees.
- The company successfully refinanced its outstanding term loan, securing a new five-year senior secured credit facility which includes a $75 million term loan and a $35 million revolving line of credit.
- Rimini Street Inc (RMNI) has a strong client satisfaction score, averaging 4.9 out of 5, and a robust global presence with operations across 21 countries.
- Q1 2024 billings decreased by 20% year-over-year to $74.1 million, attributed to challenges in closing new client sales and unfavorable FX movements.
- The company's gross margin declined to 59.8% in Q1 2024 from 62.7% in the previous year, due to ongoing investments in expanding the global engineering team.
- Sales and marketing expenses increased as a percentage of revenue to 36.7% in Q1 2024, up from 32.7% in the prior year, partly due to costs associated with a sales kickoff training conference.
- Rimini Street Inc (RMNI) is facing ongoing litigation with Oracle, which has led to uncertainties and suspended guidance on future financial results.
- The company reported a decrease in revenue retention rate for service subscriptions to 89%, indicating some challenges in maintaining existing client relationships.
Good day and thank you for standing by, and welcome to the Rimini Street First Quarter 2024 earnings call. At this time, all participants are in a listen only mode by the speakers' presentation, there will be a question and answer session. Should you have a question, press star followed by the number one on your touchtone phone. You will hear upfront that your hand has been raised. We advise that today's conference call is being recorded. I would now like to hand the conference over to your speaker today, Dean Pohl, Vice President Treasurer and Investor Relations. Please go.
Yes.
Thank you, operator. I'd like to welcome everyone to Rimini Street's First Quarter 2024 earnings conference call. On the call with me today is Seth Ravin, our CEO and President, and Michael Precor, our CFO. Today, we issued our earnings press release for the first quarter and fiscal year ended March 31st, 2024, a copy of which can be found on our website under Investor Relations. A reconciliation of GAAP to non-GAAP financial
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