Rimini Street Inc

For the period ended Mar 31, 2024. Filed May 2, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2024 · Filed May 2, 2024

RMNI$5.41+3.6%Stored close · as of Nov 9, 2026

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Contents

ITEM 1. Financial Statements

Unaudited Condensed Consolidated Balance Sheets

(In thousands, except per share amounts)

	March 31,	December 31,
	2024	2023
ASSETS
Current assets:
Cash and cash equivalents	$129,005	$115,424
Restricted cash	428	428
Accounts receivable, net of allowance of $629 and $656, respectively	78,785	119,430
Deferred contract costs, current	17,215	17,934
Short-term investments	—	9,826
Prepaid expenses and other	22,948	25,647
Total current assets	248,381	288,689
Long-term assets:
Property and equipment, net of accumulated depreciation and amortization of $19,030 and $18,231, respectively	10,713	10,496
Operating lease right-of-use assets	5,257	5,941
Deferred contract costs, noncurrent	21,769	23,559
Deposits and other	5,506	6,109
Deferred income taxes, net	59,569	59,002
Total assets	$351,195	$393,796
LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Current maturities of long-term debt	$5,914	$5,912
Accounts payable	3,612	5,997
Accrued compensation, benefits and commissions	31,005	38,961
Other accrued liabilities	17,959	18,128
Operating lease liabilities, current	4,357	4,321
Deferred revenue, current	229,988	263,115
Total current liabilities	292,835	336,434
Long-term liabilities:
Long-term debt, net of current maturities	62,781	64,228
Deferred revenue, noncurrent	24,318	23,859
Operating lease liabilities, noncurrent	5,815	6,841
Other long-term liabilities	1,758	1,930
Total liabilities	387,507	433,292
Commitments and contingencies (Note 8)
Stockholders’ deficit:
Preferred stock; $0.0001 par value. Authorized 99,820 (excluding 180 shares of Series A Preferred Stock) no other series has been designated	—	—
Common stock; $0.0001 par value. Authorized 1,000,000 shares; issued and outstanding 89,931 and 89,595 shares, respectively	9	9
Additional paid-in capital	170,546	167,988
Accumulated other comprehensive loss	(4,858)	(4,167)
Accumulated deficit	(200,893)	(202,210)
Treasury stock, at cost	(1,116)	(1,116)
Total stockholders' deficit	(36,312)	(39,496)
Total liabilities and stockholders' deficit	$351,195	$393,796

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income

(In thousands, except per share amounts)

	Three Months EndedMarch 31,
	2024	2023
Revenue	$106,745	$105,512
Cost of revenue	42,914	39,343
Gross profit	63,831	66,169
Operating expenses:
Sales and marketing	39,141	34,479
General and administrative	18,401	18,227
Reorganization costs	—	59
Litigation costs and related recoveries:
Professional fees and other costs of litigation	2,926	2,719
Litigation costs and related recoveries, net	2,926	2,719
Total operating expenses	60,468	55,484
Operating income	3,363	10,685
Non-operating income and (expenses):
Interest expense	(1,341)	(1,339)
Other income (expenses), net	964	528
Income before income taxes	2,986	9,874
Income taxes	(1,669)	(4,235)
Net income	1,317	5,639
Other comprehensive income
Foreign currency translation gain (loss)	(991)	139
Derivative instrument and other adjustments, net of tax	300	(775)
Comprehensive income	$626	$5,003
Net income attributable to common stockholders	$1,317	$5,639
Net income per share attributable to common stockholders:
Basic	$0.01	$0.06
Diluted	$0.01	$0.06
Weighted average number of shares of Common Stock outstanding:
Basic	89,754	88,690
Diluted	90,560	89,061

Unaudited Condensed Consolidated Statements of Stockholders' Deficit

	Three Months Ended March 31,
	2024	2023
Common Stock, Shares
Beginning of period	89,595	88,517
Exercise of stock options for cash	—	54
Restricted stock units vested	336	312
End of period	89,931	88,883
Total Stockholders' Deficit, beginning of period	$(39,496)	$(77,170)
Common Stock, Amount
Beginning of period	9	9
Exercise of stock options for cash	—	—
Restricted stock units vested	—	—
End of period	9	9
Additional Paid-in Capital
Beginning of period	167,988	156,401
Stock based compensation expense	2,558	1,976
Exercise of stock options for cash	—	72
Restricted stock units vested	—	—
End of period	170,546	158,449
Accumulated Other Comprehensive Loss
Beginning of period	(4,167)	(4,195)
Other comprehensive loss	(691)	(636)
End of period	(4,858)	(4,831)
Accumulated Deficit
Beginning of period	(202,210)	(228,269)
Net income	1,317	5,639
End of period	(200,893)	(222,630)
Treasury Stock	(1,116)	(1,116)
Total Stockholders' Deficit, end of period	$(36,312)	$(70,119)

Unaudited Condensed Consolidated Statements of Cash Flows

	Three Months Ended March 31,
	2024	2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$1,317	$5,639
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	2,558	1,976
Depreciation and amortization	873	613
Accretion and amortization of debt discount and issuance costs	243	240
Deferred income taxes	(759)	496
Amortization and accretion related to operating right of use assets	1,112	1,147
Changes in operating assets and liabilities:
Accounts receivable	39,763	26,945
Prepaid expenses, deposits and other	3,517	(425)
Deferred contract costs	2,509	1,427
Accounts payable	(2,342)	(2,087)
Accrued compensation, benefits, commissions and other liabilities	(8,422)	(14,844)
Deferred revenue	(29,281)	(12,484)
Net cash provided by operating activities	11,088	8,643
CASH FLOWS USED IN INVESTING ACTIVITIES:
Capital expenditures	(1,172)	(1,029)
Payment for purchases of investments	(7,458)	(7,713)
Proceeds from sale of investments	17,284	8,396
Net cash provided by (used in) investing activities	8,654	(346)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on the Original Credit Facility	(1,688)	(1,125)
Principal payments on capital leases	(87)	(47)
Proceeds from exercise of employee stock options	—	71
Net cash used in financing activities	(1,775)	(1,101)
Effect of foreign currency translation changes	(4,386)	(35)
Net change in cash, cash equivalents and restricted cash	13,581	7,161
Cash, cash equivalents and restricted cash at beginning of period	115,852	109,434
Cash, cash equivalents and restricted cash at end of period	$129,433	$116,595

Unaudited Condensed Consolidated Statements of Cash Flows, Continued

	Three Months Ended March 31,
	2024	2023
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	$1,068	$1,112
Cash paid for income taxes	502	2,794
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Increase in payables for capital expenditures	$7	$—

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