Rimini Street, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing significant challenges in revenue and profitability compared to the previous fiscal period. For Q3 2024, the company generated revenue of $104.7 million, a decrease of 2.6% from $107.5 million in Q3 2023. For the nine months ended September 30, 2024, total revenue was $314.5 million, down 1.5% from $319.4 million in the same period last year. The decline in revenue was primarily attributed to a decrease in U.S. revenue, which fell from $163.1 million to $156.9 million, while international revenue saw a slight increase.
The company's gross profit for Q3 2024 was $63.5 million, down 5.7% from $67.3 million in Q3 2023, resulting in a gross profit margin of 60.7%, a decline from 62.7% in the prior year. Total operating expenses surged to $113.1 million in Q3 2024, compared to $56.1 million in Q3 2023, leading to an operating loss of $49.6 million, a stark contrast to the operating income of $11.2 million reported in the same quarter of 2023. The net loss for Q3 2024 was $43.1 million, compared to a net income of $6.8 million in Q3 2023.
For the nine-month period, the company reported a net loss of $42.9 million, a significant decline from a net income of $16.7 million in the same period of 2023. The accumulated deficit increased to $245.1 million as of September 30, 2024, from $202.2 million at the end of 2023.
Strategically, Rimini Street faced substantial litigation costs, with a $58.5 million liability related to Oracle's attorneys' fees and costs impacting the financial results. The company also incurred reorganization costs of $1.4 million in Q3 2024, primarily due to severance expenses. In terms of cash flow, the company reported cash and cash equivalents of $119.9 million as of September 30, 2024, with a working capital deficit of $93.7 million.
Rimini Street amended its credit facility in April 2024, reducing the amount from $90 million to $75 million, with a revolving line of credit of $35 million. The company believes its current cash and future cash flow will meet anticipated cash needs for at least the next 12 months. Despite the challenges, Rimini Street continues to support over 3,090 active clients globally, including 76 Fortune 500 companies.
About Rimini Street, Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.