Rimini Street(RMNI) - 2024 Q4 - Annual Results

Financial Performance - Revenue for Q4 2024 was $114.2 million, an increase of 1.9% year over year[2] - Billings for Q4 2024 reached $172.1 million, up 7.1% year over year[2] - Total revenue for Q4 2024 was $114.213 million, a slight increase from $112.111 million in Q4 2023, while annual revenue decreased to $428.753 million from $431.496 million[21] - Gross profit for Q4 2024 was $72.712 million, compared to $68.399 million in Q4 2023, resulting in a gross margin of approximately 63.7%[21] - Operating income for Q4 2024 was $14.878 million, up from $11.547 million in Q4 2023, while the annual operating loss was $(32.128) million compared to a profit of $43.765 million in 2023[21] - Net income for Q4 2024 was $6.659 million, down from $9.351 million in Q4 2023, leading to a net loss of $(36.272) million for the year compared to a profit of $26.059 million in 2023[21] - Non-GAAP operating income for Q4 2024 was $19.059 million, slightly down from $19.313 million in Q4 2023, with annual non-GAAP operating income at $47.747 million compared to $66.122 million in 2023[23] Client Metrics - Active Clients increased by 1.4% to 3,081 as of December 31, 2024[5] - Active clients increased, indicating growth in the business and effectiveness of sales and marketing strategies[27] Revenue Composition - U.S. revenue decreased by 6.5% to $53.1 million, while international revenue increased by 10.5% to $61.1 million in Q4 2024[5] - Annualized Recurring Revenue was $414.8 million, down 4.1% compared to the same period last year[5] - Annualized Recurring Revenue (ARR) reflects the subscription revenue recognized during the fiscal quarter, multiplied by four, providing insight into future revenue potential[28] - Revenue Retention Rate measures the dollar-based subscription revenue recognized over a 12-month period from existing clients, indicating client retention and satisfaction[29] Costs and Liabilities - Rimini Street incurred reorganization costs of $1.1 million in Q4 2024 as part of its cost optimization efforts[5] - Total current liabilities decreased to $324.592 million in 2024 from $336.434 million in 2023, while total liabilities increased to $438.508 million from $433.292 million[20] - Cash and cash equivalents decreased to $88.792 million in 2024 from $115.424 million in 2023, reflecting a significant reduction in liquidity[20] Non-GAAP Measures - Non-GAAP Operating Income excludes litigation costs, stock-based compensation, and reorganization costs[30] - Non-GAAP Net Income is adjusted for litigation costs, stock-based compensation, and reorganization costs[31] - EBITDA is adjusted to exclude interest expense, income taxes, and depreciation and amortization[34] - Adjusted EBITDA further excludes litigation costs, stock-based compensation, and reorganization costs[34] Strategic Initiatives - The company announced a partnership with ServiceNow to enhance enterprise software support and innovation[12] - The company is suspending guidance until there is more clarity regarding ongoing litigation with Oracle[8]