Rimini Street, Inc. · NASDAQ:RMNI
Rimini Street — Investor Presentation (April 2020)
33 slides from Rimini Street's investor presentation, Apr 16, 2020
Slide 1: Investor Presentation For Fiscal Year Ended December 31, 2019
Investor Presentation For Fiscal Year Ended December 31, 2019 Property of Rimini Street © 2020 1
Slide 2: Legal Notice
Legal Notice “© 2020 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 Street,
Slide 3: About Rimini Street
About Rimini Street Property of Rimini Street ©2020 3
Slide 4: Company Snapshot
Company Snapshot Rimini Street is a global provider of unified support and managed service solutions for enterprise software Global Platform Strong Revenue Growth Profile Founded: 2005 (US$ in millions) Public: October 2017 – Nasdaq: RMNI $320 $280 Global Headquarters: Las Vegas, NV $281 $240 (1) $2
Slide 5: Strategy, Service, & Value Drive Change
Strategy, Service, & Value Drive Change Property of Rimini Street ©2020 5
Slide 6: Senior Management Team
Senior Management Team Seth Ravin Sebastian Stanley Mbuga Founder & Grady GVP & Chief CEO President Accounting Officer Daniel B. Kevin David Rowe Steven Salaets Nancy Winslow Maddock SVP & CMO SVP, Global Lyskawa SVP & SVP, Global Security & SVP, Global General Sales – Compliance Client Counsel Recu
Slide 7: Market Opportunity
Market Opportunity Property of Rimini Street ©2020 7
Slide 8: Market Opportunity: Support + AMS
Market Opportunity: Support + AMS (1,4) $88 Billion(2) $170 Billion Total Addressable Market Total Addressable Market Subscription Services (L3/L4 Support and AMS) Subscription Services (L3/L4 Support) $29.2B(1,3) Rimini Street 2020 TAM for Currently Offered Subscription Services $14.5B(1) Rimini St
Slide 9: Growth Drivers
Growth Drivers Numerous avenues for future expansion Global • Enter additional countries Expansion • Expand capabilities in existing countries • Pursue premium support services for SaaS products, New Products including Salesforce and Workday • Application Management Services (AMS) New License • Add
Slide 10: Taking Control of Your Roadmap: Optimized Third Party L3/4 Support
Taking Control of Your Roadmap: Optimized Third Party L3/4 Support $2 Million $1M $800K $600K $600K $4M $1M Property of Rimini Street ©2020 10
Slide 11: The Enterprise Software Maintenance Support Problem
The Enterprise Software Maintenance Support Problem 1 High Cost, Low Value for Maintenance Dollars 2 Limited Innovation in Core ERP • “Enterprises have come to believe that there is • "EBS 12 didn’t have any features our business needed. We not enough value received for the high annual were very con
Slide 12: Value of a Business-Driven Roadmap – Powered By Rimini Street
Value of a Business-Driven Roadmap – Powered By Rimini Street Today Tomorrow Property of Rimini Street ©2020 12
Slide 13: Taking Back Control of the IT Roadmap - Powered by Rimini Street
Taking Back Control of the IT Roadmap - Powered by Rimini Street Business-Driven Roadmaps Create Competitive Advantage & Growth Key Attribute Vendor-Dictated Roadmap Business-Driven Roadmap Focus Benefits Vendor Benefits Business Investments Upgrades & Migration Innovation & Differentiation Agility
Slide 14: Competitive Landscape for Enterprise Software Support
Competitive Landscape for Enterprise Software Support Few competitors and a defensible market position Primary Competitors Why Rimini Street Wins • Substantial cost savings Software Support & Maintenance: • Support for all custom code • Custom global tax, legal and regulatory support • Excellent ser
Slide 15: The Rimini Street Solution
The Rimini Street Solution Property of Rimini Street ©2020 15
Slide 16: Rimini Street Support Hierarchy
Rimini Street Support Hierarchy Based on ITIL Support Stack Definition Level 1 – Helpdesk End-user inquiries Converging Rimini Street Application Management Services (AMS) Application Layers Management Level 2/3 support System System health Development Services (AMS) Operational administration monit
Slide 17: Rimini Street Support Services
Rimini Street Support Services Application Management Services Level 2 and 3 Support Enhancement Support System Health Monitoring System Administration • Restore normal operation, • Create tailored • Direct proactive and • Conduct regular system checks minimize impacts on business enhancement packag
Slide 18: Why Clients Choose Rimini Street
Why Clients Choose Rimini Street STRATEGIC Drive innovation agility, shift IT budget (80/20) Take control of application strategy Award-winning service Transition to new system Hard budget constraints Avoid expensive upgrade TACTICAL End of Support Property of Rimini Street ©2020 18
Slide 19: The Value Proposition
The Value Proposition Property of Rimini Street ©2020 19
Slide 20: Five Pillars of ERP Optimization & Savings
AGILE LEVERAGING A BUSINESS DRIVEN ROADMAP POWERED BY RIMINI STREET BUSINESS Five (5) Pillars of ERP Optimization & Savings That Create Funding & Resources for Optimize Software Licenses Innovation that Supports Growth Manage Public Cloud Usage Leverage Public Cloud Benefits Improve ERP App Manageme
Slide 21: Innovation & Transformation: Rimini Street Supports Clients’ Growth and Innovation
Innovation & Transformation: Rimini Street Supports Clients’ Growth and Innovation Perform Roll-Out Expand Change Innovate with Upgrades Globally Capabilities Infrastructure Hybrid IT Hundreds of Upgrades Support 120+ Countries Licenses and Products Run 15+ More Years Innovate Around Edges • Upgrade
Slide 22: Comprehensive Support: Keeping Systems Running Smoothly, Securely and In Compliance
Comprehensive Support: Keeping Systems Running Smoothly, Securely and In Compliance Rimini Street… ▪ Assigns senior engineers directly to each client No call centers – each client is assigned a Primary Support Engineer (PSE) with an average of 15 years of real-world experience ▪ Delivers 15-minute g
Slide 23: CF Industries Roadmap – Powered by Rimini Street
CF Industries Roadmap – Powered by Rimini Street Multi-Billion Dollar Global Manufacturer Support for SAP Accelerated rollout of Developed Mobile Added SAP Analytics Gradual move to ECC 6, including SAP Fieldglass and Apps to optimize Added SAP Concur for extended S/4HANA Cloud, customizations, SAP
Slide 24: Financial Information
Financial Information Property of Rimini Street ©2020 24
Slide 25: Key Operating Metrics
Key Operating Metrics Active Clients(1) Annualized Subscription Revenue(2) (US$ in millions) 2,250 $350 2,000 2,063 $300 1,750 $302 1,802 $250 1,500 $271 1,566 1,250 200 $229 1,226 1,000 150 $187 750 853 100 $132 500 250 50 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Revenue Retention Rate
Slide 26: Historical Financial Performance
Historical Financial Performance Observations (US$ in millions) 2015 2016 2017 2018 2019 • Strong revenue growth across the years Revenue $118.2 $160.2 $214.9 $253.5 $281.1 • Continued gross margin expansion Gross Profit 65.4 93.1 132.0 157.5 176.0 • Sales & Marketing Expenses 50.3 72.9 65.7 89.5 10
Slide 27: Unaudited GAAP to Non-GAAP Historical Reconciliations
Unaudited GAAP to Non-GAAP Historical Reconciliations 2015 2016 2017 2018 2019 GAAP Net Income (Loss) ($ 45.3) ($ 12.9) ($ 48.0) ($ 64.0) $ 17.5 Interest expense 0.8 13.4 43.4 32.5 0.4 Income tax expense 1.5 1.5 1.3 2.0 2.7 Depreciation and amortization expense 1.5 1.8 2.0 1.8 1.9 EB IT D A ($ 41.5)
Slide 28: Pro Forma Capital Structure
Pro Forma Capital Structure (1) Common Share Equivalent 67.5 million Common Shares Outstanding 2.9 million Restricted Stock Units 1.9 million Stock Options (treasury stock method) 72.3 million fully diluted common share equivalent Net Cash $38.4 million Out of the money Warrants and Convertible Pref
Slide 29: Summary Highlights
Summary Highlights • $88 billion TAM for on-premise maintenance opportunities Large Market Opportunity • $82 billion TAM for Application Management Services (AMS) and supplemental cloud premium maintenance • Clients can save up to 90% in total maintenance costs by replacing vendors with Rimini Stree
Slide 30: Appendix
Appendix Property of Rimini Street ©2020 30
Slide 31: Summary of Key Operating Metrics
Summary of Key Operating Metrics • Active client - Distinct entity, such as a company, an educational or government institution, or a subsidiary, Number of Clients division, or business unit of a company that purchases Rimini Street services to support a specific product • Growth in the number of cl
Slide 32: Terminology and Definitions
Terminology and Definitions Traditional IT Support Levels based on ITIL Framework Support Function Description Level • Rimini Street is expanding its Level 1 Basic Help Record user requests, attending user phone calls, replying emails, services to include Application Desk logging issues, basic troub
Slide 33: 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 Subscriptio