Rimini Street, Inc. · NASDAQ:RMNI
Rimini Street — Investor Presentation (March 2023)
36 slides from Rimini Street's investor presentation, Mar 21, 2023
Slide 1: Investor Presentation Revised March 21, 2023
Investor Presentation Revised March 21, 2023 Property of Rimini Street ©2023 | Proprietary and Confidential 1
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER @ 2023 Rimini Street, Inc. All rights reserved. “Rimini Street” is a registered trademark of Rimini Street, Inc. in the United States and other countries, and Rimini Street, the Rimini Street logo, and combinations thereof, and other marks marked by TM are trademarks of Rimini Stree
Slide 3: Company Overview
Company Overview Property of Rimini Street ©2023 3
Slide 4: Who We Are
Who We Are Property of Rimini Street ©2023 | Proprietary and Confidential 4 OPTIMIZE | EVOLVE | TRANSFORM Rimini Street (Nasdaq: RMNI) is a global provider of end-to-end enterprise software support, products and services. The Company offers a comprehensive family of unified solutions to run, manage,
Slide 5: Senior Management Team
Senior Management Team Property of Rimini Street ©2023 | Proprietary and Confidential 5 Seth Ravin President, CEO & Chairman Sebastian Grady President, Strategic Initiatives Michael L. Perica EVP & Chief Financial Officer Nancy Lyskawa EVP, Global Client Onboarding Kevin Maddock EVP & Chief Recurrin
Slide 6: Company Snapshot
27% 24% 20% 11% 12% 6%Manufacturing TMT Services Public Sector & Education Healthcare & Retail Distribution & Transportation 53% 27% 14% 6% APAC EMEA Other U.S. Company Snapshot Founded: 2005 Public: Nasdaq: RMNI Global Headquarters: Las Vegas, NV USA Employees: 1,900+ Signed Clients: 5,000+ (includ
Slide 7: Rimini Street Success Based on Client Success
Rimini Street achieves an average client satisfaction rating on support cases of 4.9/5.0 (5.0 is “excellent”) Rimini Street Success Based on Client Success | Proprietary and Confidential 7 Over $7B in client savings 5,000+ clients served 180+ Fortune 500 and Global 100 clients served 159 countries s
Slide 8: IT Budget & Business Challenges, Opportunity and Rimini Street Solutions
IT Budget & Business Challenges, Opportunity and Rimini Street Solutions Property of Rimini Street ©2023 8
Slide 9: Today's IT Budget Challenge
THE BUDGET GOAL 60% TO OPERATE THE BUSINESS 40% BUSINESS TRANSFORMATION TODAY’S IT Budget Challenge THE BUDGET CHALLENGE TODAY 90% ONGOING OPERATIONS & ENHANCEMENTS 10% BUSINESS TRANSFORMATION DESIRED FUTURE Gartner – “IT Key Metrics Data 2021: Executive Summary” December 18, 2020“ Property of Rimin
Slide 10: Today's Business Challenges
Rimini Street has a portfolio of solutions and expertise for just about every business need TODAY’S Business Challenges Property of Rimini Street ©2023 | Proprietary and Confidential 10 Security, privacy, and compliance Maximizing return on investment Sample Problem Statement “Our ERP and CRM enterp
Slide 11: Rimini Street Solutions Portfolio
Applications, databases, and technology support Custom code support Functional, technical and performance support Tax, legal, and regulatory updates Named Primary Support Engineers (PSE) 800 engineers with avg 15+ years of experience 24/7/365 with 10-minute guaranteed response Up to 15 years of addi
Slide 12: Market Opportunity
Market Opportunity Property of Rimini Street ©2023 | Proprietary and Confidential 12 Global TAM, ITIL Levels 2/3/4, Security, Interoperability, Consulting(2,4,6,7) Rimini Current Offerings Total SAM $33.7 Billion(1,3,5) Total TAM $352 Billion(2,4,6,7)) SAP Managed Services, $7.4 B Oracle Managed Ser
Slide 13: New Clients Growth Drivers
New Clients Growth Drivers Property of Rimini Street ©2023 | Proprietary and Confidential 13 Numerous avenues being pursued simultaneously for growth Note: Diagram shown only for illustrative purposes and is not indicative of magnitude of growth driver potential or priority. Global Expansion New Pro
Slide 14: Unique solutions with defensible technology and leading market position
Unique solutions with strong, defensible technology, processes, know how, scale and leading global market position Competition Property of Rimini Street ©2023 | Proprietary and Confidential 14 Managed Services: Software Support & Maintenance: Primary Competitors • Only third-party support provider a
Slide 15: Why Clients Buy
Why Clients Buy Property of Rimini Street ©2023 | Proprietary and Confidential 15
Slide 16: Growing List of Leading Global Companies
Growing List of Leading Global Companies ▪ Organizations are avoiding and delaying expensive, low-value enterprise software upgrades and migrations Property of Rimini Street ©2023 | Proprietary and Confidential
Slide 17: Why Clients Buy
Why Clients Buy Reduce cost of Support and Application Management Services ▪ Lower annual fees ▪ Guarantee service on current releases for at least 15 years ▪ Higher quality service with broader scope Property of Rimini Street ©2023 | Proprietary and Confidential 17 And why they will buy even more R
Slide 18: Why Clients Buy: Tactical and Strategic
Why Clients Buy Property of Rimini Street ©2023 | Proprietary and Confidential 18 TACTICAL STRATEGIC End of full release support by software vendor Fund innovation, competitive advantage, growth Avoid expensive and unneeded software upgrade or migration Take control of software asset, strategy and r
Slide 19: Why Clients Buy: Sales Messaging
Why Clients Buy Property of Rimini Street ©2023 | Proprietary and Confidential 19 Clients BUY when they understand that Rimini Street solutions enable and help them achieve their strategic, operational, financial and IT goals Rimini Street Sales Messaging “Save time, money & resources; Get broader,
Slide 20: Why Manufacturing Clients Buy
Why Manufacturing Clients Buy Property of Rimini Street ©2023 | Proprietary and Confidential 20 Manufacturing Market Landscape ▪ Key Competitive Focus: Cash liquidity, increased ROIC, supply chain management ▪ High Priority IT Spend: Reduced operating costs through innovation and technology ▪ Rimini
Slide 21: Why Retail Clients Buy
Why Retail Clients Buy Property of Rimini Street ©2023 | Proprietary and Confidential 21 Retail Market Landscape ▪ Key Competitive Focus: Consumer acquisition, cost management, digital business models ▪ High Priority IT Spend: Ability to successfully compete with online retailers ▪ Rimini Success: 2
Slide 22: Why Financial Services Clients Buy
Why Financial Services Clients Buy Property of Rimini Street ©2023 | Proprietary and Confidential 22 Financial Services Market Landscape ▪ Key Competitive Focus: Cost Containment, Business Model Transformation ▪ High Priority IT Spend: Direct consumer marketing and client acquisition ▪ Rimini Succes
Slide 23: Why Public Sector Clients Buy
Why Public Sector Clients Buy Property of Rimini Street ©2023 | Proprietary and Confidential 23 Public Sector Market Landscape ▪ Key Competitive Focus: Constituent services, capital investment, balance budgets ▪ High Priority IT Spend: More efficient, cost-effective government services ▪ Rimini Succ
Slide 24: Why Services Clients Buy
Why Services Clients Buy Property of Rimini Street ©2023 | Proprietary and Confidential 24 Construction and Engineering Services Market Landscape ▪ Key Competitive Focus: Capital investment, cost management, profitability, supply chain ▪ High Priority IT Spend: Streamlined operations and productivit
Slide 25: Why Distribution Clients Buy
Why Distribution Clients Buy Property of Rimini Street ©2023 | Proprietary and Confidential 25 Distribution & Transportation Market Landscape ▪ Key Competitive Focus: Accelerate digitization, client acquisition, margins and reduce carbon ▪ High Priority IT Spend: Innovative technologies and analytic
Slide 26: Financial Information
Financial Information Property of Rimini Street ©2023 26
Slide 27: Key Operating Metrics
Key Operating Metrics Property of Rimini Street ©2023 | Proprietary and Confidential 27 1. See definitions on page 36. Gross Revenue Retention Rate(1) Annualized Subscription Revenue(1) Gross Margin Active Clients(1) $271 $302 $349 $393 $420 $0 $100 $200 $300 $400 $500 2018 2019 2020 2021 2022 (US$
Slide 28: Historical Financial Performance
Historical Financial Performance Property of Rimini Street ©2023 | Proprietary and Confidential 28 1. EBITDA and Adjusted EBITDA are non-GAAP measures, see reconciliations on page 34 for historical reconciliation to the closest GAAP measure and further defined on page 35. (US$ in millions) 2018 2019
Slide 29: Financial Model: 2028 model anticipates ~20% operating margin
2028 model anticipates ~20% operating margin Financial Model Property of Rimini Street ©2023 | Proprietary and Confidential 29 Plan Metric FY’23 Guidance FY’28 Model Implied CAGR Revenue $420 to $430M $1B 16% Gross Margin 61% to 62% Mid-60% Range Sales & Marketing 34.5% to 35.5% ~33% General & Admin
Slide 30: Capitalization
Capitalization Property of Rimini Street ©2023 | Proprietary and Confidential 30 December 31, 2022 Common Stock and equivalent (millions) Face Amount Fully Diluted GAAP (a) Common Shares weighted average (a) 87.7 87.7 Stock Options (b) 7.0 0.4 Restricted Stock Units (c) 2.0 0.9 Warrants, $5.64 exerc
Slide 31: In Summary: Company Highlights
Large & Growing Blue Chip Global Client Base Experienced Management Team Compelling Client Value Proposition Historically High Growth, Predictable Business Model Significant Cash Flow Generation Serviceable Available Market Opportunity In Summary: Company Highlights Property of Rimini Street ©2023 |
Slide 32: Appendix
Appendix Property of Rimini Street ©2023 32
Slide 33: Terminology and Definitions
Support Level Function Description Level 1 Basic Help Desk Record user requests, attending user phone calls, replying emails, logging issues, basic troubleshooting by using questionnaires relate to the issue Level 2 Technical Support Troubleshooting, technical analysis, request support from software
Slide 34: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Property of Rimini Street ©2023 | Proprietary and Confidential 34 (US$ in millions) 2018 2019 2020 2021 2022 GAAP Net Income (Loss) (1) ($66.1) $21.4 $11.6 $75.2 ($2.5) Interest expense 32.5 0.4 0.1 1.6 4.3 Income tax expense (1) 2.0 2.7 4.6 (55.8) 6.3 Depreciation a
Slide 35: About Non-GAAP Financial Measures and Certain Key Metrics
About Non-GAAP Financial Measures and Certain Key Metrics To provide investors and others with additional information regarding Rimini Street’s results, we have disclosed the following non-GAAP financial measures and certain key metrics. We have described below Active Clients, Annualized Recurring R
Slide 36: Summary of Operating Metrics
Summary of Operating Metrics Property of Rimini Street ©2023 | Proprietary and Confidential 36 Number of Clients • Active client - Distinct entity, such as a company, an educational or government institution, or a subsidiary, division, or business unit of a company that purchases Rimini Street servi