Rimini Street, Inc. · NASDAQ:RMNI
Rimini Street — Q2 2024 Earnings Presentation
35 slides from Rimini Street's earnings presentation, Jul 31, 2024
Slide 1: Investor Presentation
Investor Presentation For period ending June 30, 2024 Property of Rimini Street ©2024 | Proprietary and Confidential 1
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER @ 2024 Rimini Street, Inc. All rights reserved. “Rimini Street” is a registered trademark of Rimini our expanded portfolio of products and services and products and services we expect to introduce; our Street, Inc. in the United States and other countries, and Rimini Street, the Rim
Slide 3: Company Overview
Company Overview Property of Rimini Street ©2024 3
Slide 4: Who We Are
Rimini Street (Nasdaq: RMNI) is a global provider of end-to-end enterprise software support, products and services for Oracle and SAP software and a Salesforce and AWS partner. The Company offers a comprehensive family of unified solutions to run, manage, support, customize, configure, connect, prot
Slide 5: Senior Management Team
Senior Management Team Seth Ravin Michael L. Perica David Rowe Nancy Lyskawa CEO, President and EVP and Chief Product Officer EVP and Chairman of the Board Chief Financial Officer and EVP, Chief Client Officer Global Transformation Kevin Maddock Craig Mackereth Gertrude Van Horn EVP and Chief Recurr
Slide 6: Company Snapshot
Company Snapshot Rimini Street is a global provider of end-to-end enterprise software support, products and services Year-to-date June 30, 2024 Global Platform Strong Revenue Growth Profile TMT 22% Services Founded: 2005 Public: Nasdaq: RMNI 21% 12% Global Headquarters: Las Vegas, NV USA Revenue Pub
Slide 7: Rimini Street Success Based on Client Success
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”) Our mission is to provide extraordinary technology solutions powered by extraordinary people that achieve each client’s strategic, operational,
Slide 8: IT Budget & Business Challenges, Opportunity and Rimini Street Solutions
IT Budget & Business Challenges, Opportunity and Rimini Street Solutions Property of Rimini Street ©2024 8
Slide 9: Today's IT Budget Challenge
TODAY’S IT Budget Challenge TODAY DESIRED FUTURE 90% ONGOING 60% TO OPERATE OPERATIONS & THE BUSINESS ENHANCEMENTS THE THE BUDGET BUDGET CHALLENGE GOAL 10 BUSINESS % 40 % BUSINESS TRANSFORMATION TRANSFORMATION Gartner – “IT Key Metrics Data 2021: Executive Summary” December 18, 2020“ Property of Rim
Slide 10: Today's Business Challenges
TODAY’S Business Challenges Rimini Street has a portfolio of solutions and expertise for just about every business need Maximizing return Agility Customer Security, privacy, on investment and speed experience and compliance Extract more value Anticipate where Deliver an exceptional Keep the business
Slide 11: Rimini Street Solutions Portfolio
Rimini Street Solutions Portfolio End-to-End Outsourcing Solution for Enterprise Software Support solutions Select Software Supported Applications, databases, Custom code Functional, technical and Tax, legal, and and technology support support performance support regulatory updates Project solutions
Slide 12: Market Opportunity
Serviceable Addressable Market Market Opportunity Rimini Global TAM, ITIL Levels 2/3/4, Security, Rimini Consult, Interoperability, Consulting(2,4,6,7) Protect, $1.9 B Rimini $1.1 B Connect, $1.2 B Total TAM Rimini Current Offerings SAP Managed $352 Billion(2,4,6,7)) Total SAM $33.7 Billion(1,3,5) S
Slide 13: Growth Drivers
Growth Drivers Numerous avenues being pursued simultaneously for growth Global • Enter additional countries Expansion • Expand capabilities in existing countries • Premium support services for SaaS products, including New Products Salesforce and Workday • Application Management Services (AMS) New Li
Slide 14: Competition
Competition Unique solutions with strong technology processes, know how, scale and leading global market position Primary Competitors Why Rimini Street Wins Software Support & Maintenance: • Only third-party support provider at global scale with more than 86% market share (according to Gartner metri
Slide 15: Why Clients Buy
Why Clients Buy Property of Rimini Street ©2024 | 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 ©2024 | Proprietary and Confidential
Slide 17: Why Clients Buy
Why Clients Buy And why they will buy even more Rimini Street solutions in the future Reduce cost of Support and Fund and focus on strategic Improve ERP Application Management initiatives that enhance operating outcomes Services competitive advantage and fuel growth ▪ Lower annual fees ▪ Significant
Slide 18: Why Clients Buy
Why Clients Buy STRATEGIC Fund innovation, competitive advantage, growth Take control of software asset, strategy and roadmap Need better enterprise software operational outcomes Integration to new system or technology Hard IT budget constraints & high operating costs limiting needed investments Avo
Slide 19: Why Clients Buy
Why Clients Buy Clients BUY when they understand that Rimini Street solutions enable them achieve their strategic, operational, financial and IT goals Rimini Street Sales Messaging Client-Specific “Save time, money & resources; Get broader, better services and better response times; and you Circumst
Slide 20: Why Manufacturing Clients Buy
CLIENT SPOTLIGHT Why Manufacturing Clients Buy Manufacturing Market Landscape ▪ $200B vehicle manufacturer and conglomerate ▪ 120,000 employees, 40+ countries of operation ▪ Key Competitive Focus: Cash liquidity, increased ▪ Wanted to optimize TCO, improve operations and reallocate resources to clou
Slide 21: Why Retail Clients Buy
CLIENT SPOTLIGHT Why Retail Clients Buy ▪ $3B specialty retailer ▪ 1,500 stores, 25K employees Retail Market Landscape ▪ Wanted to optimize enterprise software operating spend to fund innovation ▪ Key Competitive Focus: Consumer acquisition, cost ▪ Scope management, digital business models ▪ PeopleS
Slide 22: Why Financial Services Clients Buy
CLIENT SPOTLIGHT Why Financial Services Clients Buy ▪ $9.3B multinational insurance company ▪ Wanted to optimize operations to invest in the future ▪ Reduce total cost of ownership Financial Services Market Landscape ▪ Ensure uptime and business continuity of the entire SAP landscape ▪ Key Competiti
Slide 23: Why Public Sector Clients Buy
CLIENT SPOTLIGHT Why Public Sector Clients Buy ▪ $687M county council located in UK ▪ 800K residents, 400 adult and child services Public Sector Market Landscape ▪ Wanted to reduce costs, use savings to maintain essential services and fund innovation ▪ Key Competitive Focus: Constituent services, ca
Slide 24: Why Services Clients Buy
CLIENT SPOTLIGHT Why Services Clients Buy ▪ $6.7B global industrial, commercial and infrastructure engineering firm ▪ 32K employees, 253 global operations ▪ Wanted single-source vendor model w/ problem- Construction and Engineering Services solving capabilities to improve operations Market Landscape
Slide 25: Why Distribution Clients Buy
CLIENT SPOTLIGHT Why Distribution Clients Buy ▪ $4.1B eco-friendly transportation leader in Scandinavia ▪ Wanted to optimize current systems to focus on modernization and digital transformation: Distribution & Transportation Market ▪ Extend lifespan of mainframe & SAP applications – preserving origi
Slide 26: Financial Information
Financial Information Property of Rimini Street ©2024 26
Slide 27: Key Operating Metrics
Key Operating Metrics Active Clients(1) Annualized Subscription Revenue(1) Gross Revenue Retention Rate(1) Gross Margin 1. See definitions on page 35. Property of Rimini Street ©2024 | Proprietary and Confidential 27
Slide 28: Historical Financial Performance
Historical Financial Performance Observations (US$ in millions) 2019 2020 2021 2022 2023 H1-2023 H1-2024 • Strong revenue growth across the years Revenue $281.1 $326.8 $374.4 $409.7 $431.5 $211.9 $209.9 Gross Profit 176.0 200.6 238.0 257.3 269.0 133.2 124.8 • Gross margin expansion, from Sales & Mar
Slide 29: Capitalization
Capitalization June 30, 2024 Face Fully Common Stock and equivalents (millions) Amount Diluted (a) Common Shares weighted average (a) 90.7 90.1 Stock Options (b) 7.6 - Restricted Stock Units (c) 2.7 0.4 Performance Stock Units (d) 1.4 0.3 Warrants, $5.64 exercise price, expire June 2026 3.4 - Total
Slide 30: In Summary: Company Highlights
In Summary: Company Highlights Serviceable Available Market • $14.8 billion SAM for Enterprise Software Support Opportunity • $14.7 billion SAM for Enterprise Software Managed Services and AMS for Salesforce • $4.2 billion SAM for Rimini: Protect, Connect and Consult Compelling Client Value • Suppor
Slide 31: Appendix
Appendix Property of Rimini Street ©2024 31
Slide 32: Terminology and Definitions
Terminology and Definitions Traditional IT support levels based on ITIL framework Support Function Description Level Level 1 Basic Help Record user requests, attending user phone calls, replying emails, Desk logging issues, basic troubleshooting by using questionnaires relate to the issue Level 2 Te
Slide 33: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations (US$ in millions) 2019 2020 2021 2022 2023 H1-2023 H1-2024 GAAP Net Income (Loss) (1) $21.4 $11.6 $75.2 ($2.5) $26.1 $9.9 $0.2 Interest expense 0.4 0.1 1.6 4.3 5.5 2.7 2.8 Income tax expense (1) 2.7 4.6 (55.8) 6.3 15.2 9.2 2.1 Depreciation and amortization expense 1.
Slide 34: 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, Revenue Retention Rate
Slide 35: Summary of Operating Metrics
Summary of Operating Metrics • 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 services to support a specific product Number of Clients • Growth in the number of client