Rimini Street Inc

For the period ended Sep 30, 2024. Filed Oct 30, 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.

Sep 30, 2024 · Filed Oct 30, 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)

	September 30,	December 31,
	2024	2023
ASSETS
Current assets:
Cash and cash equivalents	$119,494	$115,424
Restricted cash	429	428
Accounts receivable, net of allowance of $1,053 and $656, respectively	66,996	119,430
Deferred contract costs, current	16,637	17,934
Short-term investments	—	9,826
Prepaid expenses and other	25,190	25,647
Total current assets	228,746	288,689
Long-term assets:
Property and equipment, net of accumulated depreciation and amortization of $20,794 and $18,231, respectively	10,431	10,496
Operating lease right-of-use assets	6,895	5,941
Deferred contract costs, noncurrent	20,836	23,559
Deposits and other	4,743	6,109
Deferred income taxes, net	72,191	59,002
Total assets	$343,842	$393,796
LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Current maturities of long-term debt	$3,093	$5,912
Accounts payable	4,559	5,997
Accrued compensation, benefits and commissions	33,867	38,961
Other accrued liabilities	74,284	18,128
Operating lease liabilities, current	4,384	4,321
Deferred revenue, current	202,281	263,115
Total current liabilities	322,468	336,434
Long-term liabilities:
Long-term debt, net of current maturities	67,959	64,228
Deferred revenue, noncurrent	21,033	23,859
Operating lease liabilities, noncurrent	6,806	6,841
Other long-term liabilities	2,350	1,930
Total liabilities	420,616	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 90,841 and 89,595 shares, respectively	9	9
Additional paid-in capital	175,125	167,988
Accumulated other comprehensive loss	(5,651)	(4,167)
Accumulated deficit	(245,141)	(202,210)
Treasury stock, at cost	(1,116)	(1,116)
Total stockholders' deficit	(76,774)	(39,496)
Total liabilities and stockholders' deficit	$343,842	$393,796

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

(In thousands, except per share amounts)

	Three Months EndedSeptember 30,		Nine Months EndedSeptember 30,
	2024	2023	2024	2023
Revenue	$104,672	$107,453	$314,540	$319,386
Cost of revenue	41,135	40,110	126,230	118,802
Gross profit	63,537	67,343	188,310	200,584
Operating expenses:
Sales and marketing	35,781	35,593	112,299	107,356
General and administrative	16,528	18,384	54,460	55,475
Reorganization costs	1,431	—	4,639	59
Litigation costs and related recoveries:
Litigation expense	58,512	—	58,512	—
Professional fees and other costs of litigation	879	2,127	5,406	5,475
Litigation costs and related recoveries, net	59,391	2,127	63,918	5,475
Total operating expenses	113,131	56,104	235,316	168,365
Operating income (loss)	(49,594)	11,239	(47,006)	32,219
Non-operating income and (expenses):
Interest expense	(1,577)	(1,413)	(4,401)	(4,139)
Other income (expenses), net	(642)	990	1,814	1,799
Income (loss) before income taxes	(51,813)	10,816	(49,593)	29,879
Income taxes	8,713	(4,015)	6,662	(13,171)
Net income (loss)	(43,100)	6,801	(42,931)	16,708
Other comprehensive income
Foreign currency translation gain (loss)	1,555	(1,061)	(9)	(1,011)
Derivative instrument and other adjustments, net of tax	(1,284)	140	(1,475)	302
Comprehensive income (loss)	$(42,829)	$5,880	$(44,415)	$15,999
Net income (loss) attributable to common stockholders	$(43,100)	$6,801	$(42,931)	$16,708
Net income (loss) per share attributable to common stockholders:
Basic	$(0.47)	$0.08	$(0.48)	$0.19
Diluted	$(0.47)	$0.08	$(0.48)	$0.19
Weighted average number of shares of Common Stock outstanding:
Basic	90,776	89,228	90,343	88,942
Diluted	90,776	89,357	90,343	89,322

Unaudited Condensed Consolidated Statements of Stockholders' Deficit

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Common Stock, Shares
Beginning of period	90,698	89,085	89,595	88,517
Exercise of stock options for cash	—	—	—	57
Restricted stock units vested	143	238	1,246	922
Issuance of Common Stock	—	—	—	75
Retired shares of Common Stock	—	—	—	(248)
End of period	90,841	89,323	90,841	89,323
Total Stockholders' Deficit, beginning of period	$(36,119)	$(62,061)	$(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	172,951	161,391	167,988	156,401
Stock based compensation expense	2,174	3,131	7,137	9,056
Exercise of stock options for cash	—	—	—	79
Restricted stock units vested	—	—	—	—
Retired shares of Common Stock	—	—	—	(1,014)
End of period	175,125	164,522	175,125	164,522
Accumulated Other Comprehensive Loss
Beginning of period	(5,922)	(3,983)	(4,167)	(4,195)
Other comprehensive income (loss)	271	(921)	(1,484)	(709)
End of period	(5,651)	(4,904)	(5,651)	(4,904)
Accumulated Deficit
Beginning of period	(202,041)	(218,362)	(202,210)	(228,269)
Net income (loss)	(43,100)	6,801	(42,931)	16,708
End of period	(245,141)	(211,561)	(245,141)	(211,561)
Treasury Stock	(1,116)	(1,116)	(1,116)	(1,116)
Total Stockholders' Deficit, end of period	$(76,774)	$(53,050)	$(76,774)	$(53,050)

Unaudited Condensed Consolidated Statements of Cash Flows

	Nine Months Ended September 30,
	2024	2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$(42,931)	$16,708
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation expense	7,137	9,056
Depreciation and amortization	2,650	2,001
Accretion and amortization of debt discount and issuance costs	600	728
Deferred income taxes	(12,951)	6,263
Amortization and accretion related to operating right of use assets	3,359	3,347
Changes in operating assets and liabilities:
Accounts receivable	51,058	54,112
Prepaid expenses, deposits and other	(196)	(4,339)
Deferred contract costs	4,020	674
Accounts payable	(1,390)	(2,551)
Accrued compensation, benefits, commissions and other liabilities	48,297	(14,702)
Deferred revenue	(60,822)	(57,684)
Net cash provided by (used in) operating activities	(1,169)	13,613
CASH FLOWS USED IN INVESTING ACTIVITIES:
Capital expenditures	(2,698)	(3,654)
Payment for purchases of investments	(7,458)	(24,118)
Proceeds from maturities of investments	10,948	23,614
Proceeds from sale of investments	6,336	—
Net cash provided by (used in) investing activities	7,128	(4,158)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the 2024 Credit Facility	2,938	—
Principal payments on the Original Credit Facility	(2,625)	(3,938)
Payments to repurchase and retire Common Stock	—	(1,014)
Principal payments on capital leases	(267)	(247)
Proceeds from exercise of employee stock options	—	79
Net cash provided by (used in) financing activities	46	(5,120)
Effect of foreign currency translation changes	(1,934)	(5,109)
Net change in cash, cash equivalents and restricted cash	4,071	(774)
Cash, cash equivalents and restricted cash at beginning of period	115,852	109,434
Cash, cash equivalents and restricted cash at end of period	$119,923	$108,660

Unaudited Condensed Consolidated Statements of Cash Flows, Continued

	Nine Months Ended September 30,
	2024	2023
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	$3,789	$3,409
Cash paid for income taxes	2,662	4,164
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Increase in payables for capital expenditures	$34	$669

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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.