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Rimini Street Inc (RMNI)
NASDAQ:RMNI
Top Page
Rimini Street
(NASDAQ:RMNI)
47Neutral
Positive Factors
Financial Performance
Operating margin was above the estimate, demonstrating continued benefits from restructuring efforts.
Legal Developments
The Appeals Court vacated the district court’s prior opinion which ruled broadly against RMNI, marking a significant legal win for Rimini Street.
Strategic Partnerships
New partnerships with NOW, WDAY & T-Systems are encouraging.
Negative Factors
Business Growth
The wind-down of the PeopleSoft business is viewed as a headwind to RMNI's medium-term growth profile.
Rimini Street (RMNI) vs. S&P 500 (SPY)
Market Cap
$306.56M
Dividend YieldN/A
Average Volume (3M)243.41K
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth-1.51%
EPS Growth-255.14%
CountryUS
Employees2,000
SectorTechnology
Sector Strength66
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.10
Shares Outstanding91,785,000
10 Day Avg. Volume249,096
30 Day Avg. Volume243,408
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.97
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.14
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.75Price Target Upside42.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Rimini Street Business Overview & Revenue Model
Company DescriptionRimini Street, Inc. provides enterprise software products, services, and support for various industries. The company offers software support services for Oracle and SAP enterprise software products. It sells its solutions primarily through direct sales organizations in North America, Latin America, Europe, Africa, the Middle East, Asia, and the Asia-Pacific. Rimini Street, Inc. was incorporated in 2005 and is headquartered in Las Vegas, Nevada.
How the Company Makes MoneyRimini Street makes money primarily through its subscription-based support services for enterprise software. The company's revenue model revolves around offering annual contracts for its support services, which are typically priced at a significant discount compared to the software vendors' own support offerings. Key revenue streams for Rimini Street include support services for Oracle, SAP, and other enterprise software platforms. The company also benefits from long-term client relationships and a growing base of customers who seek to cut costs while maintaining robust software support. Rimini Street's earnings are further bolstered by its focus on expanding its service offerings and geographical reach, ensuring a continuous influx of new business opportunities.
Rimini Street Financial Statement Overview
Summary
Rimini Street faces significant financial challenges with negative profitability, high debt levels, and cash flow difficulties. Stabilizing revenue and improving cash flows are critical for restoring financial health.Income Statement
Rimini Street's income statement shows a decline in profitability with negative EBIT and Net Income margins in the TTM (Trailing-Twelve-Months). Gross Profit Margin remains stable, but the decrease in revenue compared to the previous year indicates growth challenges.45
Neutral
Balance Sheet
The balance sheet indicates financial instability with negative stockholders' equity and a high debt-to-equity ratio. The equity ratio is negative, highlighting financial risk and potential solvency concerns.30
Negative
Cash Flow
The cash flow statement reveals negative free cash flow and operating cash flow in the TTM (Trailing-Twelve-Months), indicating liquidity issues. However, there is a slight improvement in free cash flow compared to the previous year, suggesting better cash management.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 428.75M | 431.50M | 409.66M | 374.43M | 326.78M | Gross Profit |
| 261.02M | 268.98M | 257.28M | 237.97M | 200.57M | EBIT |
| -32.13M | 53.60M | 30.84M | 26.77M | 25.34M | EBITDA |
| -22.18M | 50.42M | 10.58M | 23.39M | 18.05M | Net Income Common Stockholders |
| -36.27M | 26.06M | -2.48M | 75.22M | 11.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 88.79M | 125.25M | 129.12M | 119.57M | 87.58M | Total Assets |
| 369.06M | 393.80M | 391.04M | 391.26M | 279.94M | Total Debt |
| 96.63M | 81.66M | 88.11M | 100.06M | 19.93M | Net Debt |
| 7.84M | -33.76M | -20.90M | -19.51M | -67.64M | Total Liabilities |
| 438.51M | 433.29M | 468.21M | 471.65M | 480.87M | Stockholders Equity |
| -69.44M | -39.50M | -77.17M | -80.39M | -200.94M |
| Cash Flow | Free Cash Flow | |||
| -42.23M | 5.25M | 30.57M | 64.84M | 40.62M | Operating Cash Flow |
| -38.85M | 12.47M | 34.90M | 66.94M | 42.10M | Investing Cash Flow |
| 6.45M | 3.08M | -24.45M | -2.11M | -1.48M | Financing Cash Flow |
| 14.02M | -6.89M | -13.57M | -26.57M | 6.38M |
Rimini Street Technical Analysis
Neutral
3.33
Price Trends
3.52
Negative
3.17
Positive
2.56
Positive
Market Momentum
-0.02
Negative
47.53
Neutral
46.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMNI, the sentiment is Neutral. The current price of 3.33 is above the 20-day moving average (MA) of 3.32, below the 50-day MA of 3.52, and above the 200-day MA of 2.56, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.53 is Neutral, neither overbought nor oversold. The STOCH value of 46.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RMNI.
Rimini Street Risk Analysis
Rimini Street disclosed 48 risk factors in its most recent earnings report. Rimini Street reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rimini Street Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $853.06M | 50.49 | -7.57% | ― | 3.82% | -251.96% | |
72 Outperform | $1.54B | 187.88 | 2.81% | ― | 22.75% | -47.45% | |
72 Outperform | $1.97B | 16.81 | 18.83% | ― | 8.74% | 150.66% | |
61 Neutral | $1.47B | ― | -6.48% | ― | 10.75% | 56.37% | |
60 Neutral | $10.83B | 10.47 | -6.71% | 2.99% | 7.73% | -12.97% | |
57 Neutral | $1.27B | ― | -6.36% | ― | 4.18% | 27.11% | |
47 Neutral | $306.56M | ― | 43.74% | ― | -1.51% | -255.14% |
* Technology Sector Average
Performance Comparison
RMNI
Rimini Street
3.36
1.00
42.37%
JAMF
Jamf Holding
11.29
-8.66
-43.41%
OPFI
OppFi
11.61
8.51
274.52%
SEMR
SEMrush Holdings
10.00
-5.29
-34.60%
CXM
Sprinklr
8.03
-4.33
-35.03%
MLNK
MeridianLink
17.23
0.45
2.68%
Rimini Street Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -6.20%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented both positive and negative aspects. There were significant achievements in cost optimization, gross margin improvement, and strategic partnerships. However, these were offset by a decline in revenue and ongoing challenges with Oracle litigation and PeopleSoft wind-down. While growth opportunities exist, revenue and recurring revenue declines are concerning.Q1-2025 Updates
Positive Updates
Improved Gross Margin
Gross margin for Q1 2025 improved to 61% compared to 59.8% in the prior year, highlighting operational leverage.
Cost Optimization Success
Operating expenses and cost of revenue as a percent of revenue declined by 5.8% year-over-year due to cost optimization efforts.
Positive Cash Flow
Operating cash flow increased by $33.7 million compared to $11.1 million in the prior year first quarter.
Strategic Partnerships
Announced new partnerships with ServiceNow, Workday, and T-Systems North America, enhancing service offerings and market reach.
Increase in Billings
Billings increased by 7.2% year-over-year, driven by new subscriptions and professional services.
Negative Updates
Revenue Decline
Revenue for Q1 2025 was $104.2 million, a year-over-year decrease of 2.4%.
Annualized Recurring Revenue Decrease
Annualized recurring revenue decreased by 4.7% year-over-year to $396.2 million.
Oracle Litigation Ongoing
Continued litigation with Oracle poses uncertainty, with ongoing legal proceedings affecting financial outlook.
PeopleSoft Wind-Down
Continued wind-down of PeopleSoft services, with revenue declining from $8.2 million to $7.0 million year-over-year.
FX Impacts on Revenue
Foreign exchange movements negatively impacted total revenue by 1% during the quarter.
Company Guidance
During Rimini Street's Q1 2025 earnings call, the company reported a revenue of $104.2 million, marking a 2.4% year-over-year decrease. However, billings grew 7.2% to $79.4 million, driven by new subscriptions and professional services, particularly in the EMEA and Asia Pacific regions. The gross margin improved to 61% from 59.8% in the prior year. Operating expenses as a percentage of revenue declined, with sales and marketing expenses dropping to 32.9%. The company reported a non-GAAP net income of $8.4 million, or $0.09 per diluted share, up from $0.08 per share in the prior year. Rimini Street is investing in partnerships, including with ServiceNow, Workday, and T-Systems North America, to drive future growth. The company is also navigating ongoing litigation with Oracle, which remains a significant factor in its business outlook.Rimini Street Corporate Events
Business Operations and StrategyFinancial Disclosures
Rimini Street Reports Improved Q1 2025 Financial Results
Positive
May 1, 2025
Rimini Street announced its fiscal first quarter 2025 financial results, highlighting a gross margin of 61.0% and a net income of $3.4 million, both showing improvements from the prior year. Despite a slight revenue decline, the company reported increased billings and adjusted EBITDA, alongside strategic partnerships and client expansions, positioning it strongly in the enterprise software support industry.
Spark’s Take on RMNI Stock
According to Spark, TipRanks’ AI Analyst, RMNI is a Neutral.
Rimini Street’s overall stock score reflects significant financial challenges, including negative profit margins and cash flow issues, which are major concerns. Technical analysis shows mixed signals with potential for improvement, but valuation remains unattractive due to a negative P/E ratio. While the earnings call provided some positive strategic insights, these are counterbalanced by revenue declines and litigation costs.
To see Spark’s full report on RMNI stock, click here.
Business Operations and StrategyFinancial Disclosures
Rimini Street Reports Q4 2024 Financial Results
Neutral
Feb 27, 2025
Rimini Street announced its financial results for the fourth quarter and full year of 2024, reporting a slight increase in quarterly revenue to $114.2 million, up 1.9% year-over-year, but a decrease in annual revenue to $428.8 million, down 0.6% from 2023. The company highlighted new client acquisitions and expansions, including partnerships with Gunung Raja Paksi and Bumhan Mecatec, and announced collaborations with ServiceNow and expansions in their database security and interoperability solutions. Despite a decrease in net income and cash reserves, Rimini Street continues to focus on innovation and client satisfaction, achieving a high client satisfaction rating and closing numerous support cases globally.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.