Rimini Street Inc

For the period ended Jun 30, 2024. Filed Jul 31, 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.

Jun 30, 2024 · Filed Jul 31, 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)

	June 30,	December 31,
	2024	2023
ASSETS
Current assets:
Cash and cash equivalents	$134,197	$115,424
Restricted cash	429	428
Accounts receivable, net of allowance of $1,000 and $656, respectively	86,961	119,430
Deferred contract costs, current	16,686	17,934
Short-term investments	—	9,826
Prepaid expenses and other	24,644	25,647
Total current assets	262,917	288,689
Long-term assets:
Property and equipment, net of accumulated depreciation and amortization of $19,764 and $18,231, respectively	10,667	10,496
Operating lease right-of-use assets	7,477	5,941
Deferred contract costs, noncurrent	20,621	23,559
Deposits and other	4,152	6,109
Deferred income taxes, net	61,535	59,002
Total assets	$367,369	$393,796
LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Current maturities of long-term debt	$3,093	$5,912
Accounts payable	4,523	5,997
Accrued compensation, benefits and commissions	32,109	38,961
Other accrued liabilities	18,559	18,128
Operating lease liabilities, current	4,504	4,321
Deferred revenue, current	240,448	263,115
Total current liabilities	303,236	336,434
Long-term liabilities:
Long-term debt, net of current maturities	68,731	64,228
Deferred revenue, noncurrent	22,345	23,859
Operating lease liabilities, noncurrent	7,526	6,841
Other long-term liabilities	1,650	1,930
Total liabilities	403,488	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 90,698 and 89,595 shares, respectively	9	9
Additional paid-in capital	172,951	167,988
Accumulated other comprehensive loss	(5,922)	(4,167)
Accumulated deficit	(202,041)	(202,210)
Treasury stock, at cost	(1,116)	(1,116)
Total stockholders' deficit	(36,119)	(39,496)
Total liabilities and stockholders' deficit	$367,369	$393,796

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(In thousands, except per share amounts)

	Three Months EndedJune 30,		Six Months EndedJune 30,
	2024	2023	2024	2023
Revenue	$103,123	$106,421	$209,868	$211,933
Cost of revenue	42,180	39,348	85,095	78,691
Gross profit	60,943	67,073	124,773	133,242
Operating expenses:
Sales and marketing	37,377	37,284	76,518	71,763
General and administrative	19,531	18,865	37,933	37,092
Reorganization costs	3,208	—	3,208	59
Litigation costs and related recoveries:
Professional fees and other costs of litigation	1,602	629	4,527	3,348
Litigation costs and related recoveries, net	1,602	629	4,527	3,348
Total operating expenses	61,718	56,778	122,186	112,262
Operating income (loss)	(775)	10,295	2,587	20,980
Non-operating income and (expenses):
Interest expense	(1,483)	(1,387)	(2,824)	(2,726)
Other income (expenses), net	1,492	280	2,457	809
Income (loss) before income taxes	(766)	9,188	2,220	19,063
Income taxes	(382)	(4,920)	(2,051)	(9,156)
Net income (loss)	(1,148)	4,268	169	9,907
Other comprehensive income
Foreign currency translation gain (loss)	(573)	(89)	(1,564)	50
Derivative instrument and other adjustments, net of tax	(491)	937	(191)	162
Comprehensive income (loss)	$(2,212)	$5,116	$(1,586)	$10,119
Net income (loss) attributable to common stockholders	$(1,148)	$4,268	$169	$9,907
Net income (loss) per share attributable to common stockholders:
Basic	$(0.01)	$0.05	$—	$0.11
Diluted	$(0.01)	$0.05	$—	$0.11
Weighted average number of shares of Common Stock outstanding:
Basic	90,495	88,903	90,125	88,797
Diluted	90,495	89,274	90,822	89,251

Unaudited Condensed Consolidated Statements of Stockholders' Deficit

	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Common Stock, Shares
Beginning of period	89,931	88,883	89,595	88,517
Exercise of stock options for cash	—	3	—	57
Restricted stock units vested	767	372	1,103	684
Issuance of Common Stock	—	75	—	75
Retired shares of Common Stock	—	(248)	—	(248)
End of period	90,698	89,085	90,698	89,085
Total Stockholders' Deficit, beginning of period	$(36,312)	$(70,119)	$(39,496)	$(77,170)
Common Stock, Amount
Beginning of period	9	9	9	9
Exercise of stock options for cash	—	—	—	—
Restricted stock units vested	—	—	—	—
Retired shares of Common Stock	—	—	—	—
End of period	9	9	9	9
Additional Paid-in Capital
Beginning of period	170,546	158,449	167,988	156,401
Stock based compensation expense	2,405	3,948	4,963	5,925
Exercise of stock options for cash	—	8	—	79
Restricted stock units vested	—	—	—	—
Retired shares of Common Stock	—	(1,014)	—	(1,014)
End of period	172,951	161,391	172,951	161,391
Accumulated Other Comprehensive Loss
Beginning of period	(4,858)	(4,831)	(4,167)	(4,195)
Other comprehensive income (loss)	(1,064)	848	(1,755)	212
End of period	(5,922)	(3,983)	(5,922)	(3,983)
Accumulated Deficit
Beginning of period	(200,893)	(222,630)	(202,210)	(228,269)
Net income (loss)	(1,148)	4,268	169	9,907
End of period	(202,041)	(218,362)	(202,041)	(218,362)
Treasury Stock	(1,116)	(1,116)	(1,116)	(1,116)
Total Stockholders' Deficit, end of period	$(36,119)	$(62,061)	$(36,119)	$(62,061)

Unaudited Condensed Consolidated Statements of Cash Flows

	Six Months Ended June 30,
	2024	2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$169	$9,907
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	4,963	5,925
Depreciation and amortization	1,733	1,249
Accretion and amortization of debt discount and issuance costs	434	483
Deferred income taxes	(2,557)	4,415
Amortization and accretion related to operating right of use assets	2,222	2,237
Changes in operating assets and liabilities:
Accounts receivable	29,910	31,050
Prepaid expenses, deposits and other	2,058	(1,096)
Deferred contract costs	4,186	620
Accounts payable	(1,452)	(3,551)
Accrued compensation, benefits, commissions and other liabilities	(7,033)	(17,262)
Deferred revenue	(17,288)	(12,228)
Net cash provided by operating activities	17,345	21,749
CASH FLOWS USED IN INVESTING ACTIVITIES:
Capital expenditures	(2,028)	(2,095)
Payment for purchases of investments	(7,458)	(14,666)
Proceeds from maturities of investments	10,948	15,621
Proceeds from sale of investments	6,336	—
Net cash provided by (used in) investing activities	7,798	(1,140)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the 2024 Credit Facility	2,938	—
Principal payments on the Original Credit Facility	(1,688)	(2,250)
Payments to repurchase and retire Common Stock	—	(1,014)
Principal payments on capital leases	(176)	(163)
Proceeds from exercise of employee stock options	—	79
Net cash provided by (used in) financing activities	1,074	(3,348)
Effect of foreign currency translation changes	(7,443)	(2,725)
Net change in cash, cash equivalents and restricted cash	18,774	14,536
Cash, cash equivalents and restricted cash at beginning of period	115,852	109,434
Cash, cash equivalents and restricted cash at end of period	$134,626	$123,970

Unaudited Condensed Consolidated Statements of Cash Flows, Continued

	Six Months Ended June 30,
	2024	2023
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	$2,378	$2,256
Cash paid for income taxes	1,621	3,656
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Increase in payables for capital expenditures	$118	$112

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.