Quarterly revenue of $66.3 million, up 11% year over year

Quarterly gross margin of 64%, up from 61% year over year

1,852 active clients at March 31, 2019, up 17% year over year

LAS VEGAS–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/RMNI?src=hash” target=”_blank”gt;#RMNIlt;/agt;–Rimini
Street, Inc. (Nasdaq: RMNI), a global provider of enterprise
software products and services, the leading third-party support provider
for Oracle and SAP software products and a Salesforce partner, today
announced results for the first quarter ended March 31, 2019.

“During the first quarter, we made meaningful progress expanding sales
capacity, improving our global service delivery model and launching and
selling Salesforce.com and other new support services that increase our
total addressable market,” stated Seth
A. Ravin, Rimini Street co-founder, CEO and Chairman of the Board.
“Additionally, in March we prevailed against Oracle in the U.S. Supreme
Court with a unanimous decision. Oracle was ordered to return
approximately $12.8 million plus interest and other costs to Rimini
Street, which Oracle paid in April.”

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“Revenue in the first quarter exceeded the high end of our guidance
range and we achieved a better than expected gross margin of 64%,”
stated Tom
Sabol, Rimini Street CFO. “We managed sales and marketing and
general and administrative spend within our guidance range, completed an
additional Series A Preferred financing round to fund new product and
service launches and further strengthen our balance sheet. We remain
committed to the long-term goals of improving free cash flow and
achieving GAAP profitability.”

First Quarter 2019 Financial Highlights

• Revenue was $66.3 million for the 2019 first quarter, an increase of
  11% compared to $59.8 million for the same period last year.
• Annualized Subscription Revenue was approximately $265 million for the
  2019 first quarter, an increase of 11% compared to $239 million for
  the same period last year.
• Active Clients as of March 31, 2019 were 1,852, an increase of 17%
  compared to 1,581 Active Clients as of March 31, 2018.
• Revenue Retention Rate was 92.0% for the trailing 12 months ended
  March 31, 2019 compared to 93.0% for the comparable period ended March
  31, 2018.
• Gross margin was 64.0% for the 2019 first quarter compared to 60.6%
  for the same period last year.
• Operating income was $12.7 million for the 2019 first quarter compared
  to $25.2 million for the same period last year.
• Non-GAAP Operating Income was $7.8 million for the 2019 first quarter
  compared to $6.1 million for the same period last year.
• Net income was $11.8 million for the 2019 first quarter compared to a
  net income of $3.5 million for the same period last year.
• Non-GAAP Net Income was $6.7 million for the 2019 first quarter
  compared to Non-GAAP Net Loss of $16.3 million for the same period
  last year.
• Adjusted EBITDA for the 2019 first quarter was $8.1 million compared
  to $6.7 million for the same period last year.
• Basic earnings per share attributable to common stockholders was $0.07
  per share for the 2019 first quarter compared to $0.06 per share for
  the same period last year. Diluted earnings per share attributable to
  common stockholders was $0.07 per share for the 2019 first quarter
  compared to $0.05 per share for the same period last year.

Reconciliations of the non-GAAP financial measures provided in this
press release to their most directly comparable GAAP financial measures
are provided in the financial tables included at the end of this press
release. An explanation of these measures and how they are calculated is
also included under the heading “About Non-GAAP Financial Measures and
Certain Key Metrics.”

First Quarter 2019 Company Highlights

• Announced that EBSCO Industries chose Rimini
  Street Application Management Services for Salesforce to maximize
  the value and ROI of their Salesforce investment.
• Announced the Supreme
  Court ruled unanimously in the Company’s favor, ordering Oracle to
  return approximately $12.8 million in non-taxable expenses plus
  interest and other costs to Rimini Street. Oracle paid the amounts in
  April.
• Announced strong government
  client momentum in the ANZ region, with more than 10 Australian
  government agencies switching to Rimini Street support.
• Won nine Company awards, including a Gold Stevie award for Innovation
  in Customer Service, and a Gold One Planet award for Customer Service
  Team of the Year.
• Closed a record number of support cases, nearly 8,000, and scored a
  4.8 in client satisfaction (where 5.0 is excellent).
• Delivered more than 20,000 tax, legal and regulatory updates to
  clients globally for Peoplesoft, JD Edwards, SAP and Oracle E-Business
  Suite products.
• Presented at 12 CIO and IT procurement leader events including
  Government ICT in London, England, NRF in New York, and Gartner’s EAA
  Summit in Tokyo, Japan.

2019 Revenue Guidance

The Company is currently providing second quarter 2019 revenue guidance
to be in the range of approximately $66.5 million to $67.5 million and
reiterating full year 2019 revenue guidance to be in the range of
approximately $265 million to $280 million.

Webcast and Conference Call Information

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Rimini Street will host a conference call and webcast to discuss the
first quarter 2019 results at 5:00 p.m. Eastern / 2:00 p.m. Pacific time
on May 9, 2019. A live webcast of the event will be available on Rimini
Street’s Investor Relations site at https://investors.riministreet.com/events-and-presentations/upcoming-and-past-events.
Dial in participants can access the conference call by dialing (855)
213-3942 in the U.S. and Canada and enter the code 1939675. A
replay of the webcast will be available for at least 90 days following
the event.

Company’s Use of Non-GAAP Financial Measures

This press release contains certain “non-GAAP financial measures.”
Non-GAAP financial measures are not based on a comprehensive set of
accounting rules or principles. This non-GAAP information supplements,
and is not intended to represent a measure of performance in accordance
with disclosures required by U.S. generally accepted accounting
principles, or GAAP. Non-GAAP financial measures should be considered in
addition to, not as a substitute for or superior to, financial measures
determined in accordance with GAAP. A reconciliation of GAAP to non-GAAP
results is included in the financial tables included in this press
release. Presented under the heading “About Non-GAAP Financial Measures
and Certain Key Metrics” is a description and explanation of our
non-GAAP financial measures.

About Rimini Street, Inc.

Rimini Street, Inc. (Nasdaq: RMNI) is a global provider of enterprise
software products and services, the leading third-party support provider
for Oracle and SAP software products and a Salesforce partner. The
Company has redefined enterprise software support services since 2005
with an innovative, award-winning program that enables licensees of IBM,
Microsoft, Oracle, Salesforce, SAP and other enterprise software vendors
to save up to 90 percent on total maintenance costs. Clients can remain
on their current software release without any required upgrades for a
minimum of 15 years. Over 1,850 global Fortune 500, midmarket, public
sector and other organizations from a broad range of industries
currently rely on Rimini Street as their trusted, third-party support
provider. To learn more, please visit http://www.riministreet.com/,
follow @riministreet on
Twitter and find Rimini Street on Facebook
and LinkedIn.
(IR-RMNI)

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Forward-Looking Statements

Certain statements included in this communication are not historical
facts but are forward-looking statements for purposes of the safe harbor
provisions under The Private Securities Litigation Reform Act of 1995.
Forward-looking statements generally are accompanied by words such as
“may,” “should,” “would,” “plan,” “intend,” “anticipate,” “believe,”
“estimate,” “predict,” “potential,” “seem,” “seek,” “continue,”
“future,” “will,” “expect,” “outlook” or other similar words, phrases or
expressions. These forward-looking statements include, but are not
limited to, statements regarding our expectations of future events,
future opportunities, global expansion and other growth initiatives and
our investments in such initiatives. These statements are based on
various assumptions and on the current expectations of management and
are not predictions of actual performance, nor are these statements of
historical facts. These statements are subject to a number of risks and
uncertainties regarding Rimini Street’s business, and actual results may
differ materially. These risks and uncertainties include, but are not
limited to, changes in the business environment in which Rimini Street
operates, including inflation and interest rates, and general financial,
economic, regulatory and political conditions affecting the industry in
which Rimini Street operates; adverse developments in pending litigation
or in the government inquiry or any new litigation; the final amount and
timing of any refunds from Oracle related to our litigation; our need
and ability to raise additional equity or debt financing on favorable
terms and our ability to generate cash flows from operations to help
fund increased investment in our growth initiatives; the sufficiency of
our cash and cash equivalents to meet our liquidity requirements; the
terms and impact of our outstanding 13.00% Series A Preferred Stock;
changes in taxes, laws and regulations; competitive product and pricing
activity; difficulties of managing growth profitably; the success of our
recently introduced products and services, including Rimini Street
Mobility, Rimini Street Analytics, Rimini Street Advanced Database
Security, and services for Salesforce Sales Cloud and Service Cloud
products, in addition to products and services we expect to introduce in
the near future; the loss of one or more members of Rimini Street’s
management team; uncertainty as to the long-term value of Rimini
Street’s equity securities; and those discussed under the heading “Risk
Factors” in Rimini Street’s Quarterly Report on Form 10-Q filed on May
9, 2019, and as updated from time to time by Rimini Street’s future
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K, and other filings by Rimini Street with the
Securities and Exchange Commission. In addition, forward-looking
statements provide Rimini Street’s expectations, plans or forecasts of
future events and views as of the date of this communication. Rimini
Street anticipates that subsequent events and developments will cause
Rimini Street’s assessments to change. However, while Rimini Street may
elect to update these forward-looking statements at some point in the
future, Rimini Street specifically disclaims any obligation to do so,
except as required by law. These forward-looking statements should not
be relied upon as representing Rimini Street’s assessments as of any
date subsequent to the date of this communication.

© 2019 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, Inc. All other trademarks remain the property of their
respective owners, and unless otherwise specified, Rimini Street claims
no affiliation, endorsement, or association with any such trademark
holder or other companies referenced herein.

RIMINI STREET, INC.
Unaudited Condensed Consolidated Balance Sheets Advertisement
(In thousands, except per share amounts)
ASSETS		March 31, 2019				December 31, 2018
Current assets:
Cash and cash equivalents		$	32,264			$	24,771
Restricted cash		435				435
Accounts receivable, net of allowance of $296 and $489, respectively		63,642				80,599
Other receivable		12,987				—
Prepaid expenses and other		8,842				7,099
Total current assets		118,170				112,904
Long-term assets:
Property and equipment, net of accumulated depreciation and amortization of $9,037 and $8,543, respectively		3,673				3,634
Deposits and other		1,406				1,438
Deferred income taxes, net		934				909
Total assets		$	124,183			$	118,885
LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Current maturities of long-term debt		$	1,222			$	2,372
Accounts payable		2,921				12,851
Accrued compensation, benefits and commissions		18,922				22,503
Other accrued liabilities		25,094				20,424
Deferred revenue		180,580				180,358
Total current liabilities		228,739				238,508
Long-term liabilities:
Deferred revenue		28,148				28,898
Accrued PIK dividends payable		1,059				1,056
Other long-term liabilities		2,038				2,011
Total liabilities		259,984				270,473
Redeemable Series A Preferred Stock:
Authorized 180 shares; issued and outstanding 148 shares and 141 as of March 31, 2019 and December 31, 2018, respectively. Liquidation preference of $148,408, net of discount for $27,557 and $140,846, net of discount for $26,848, as of March 31, 2019 and December 31, 2018, respectively		120,851				113,998
Stockholders’ deficit:
Preferred Stock, $0.0001 par value per share. Authorized 99,820 shares (exclusive of 180 shares of Series A Preferred Stock); no other series has been designated		—				—
Common Stock, $0.0001 par value. Authorized 1,000,000 shares; issued and outstanding 65,242 and 64,193 shares as of March 31, 2019 and December 31, 2018, respectively		7				6
Additional paid-in capital		105,455				108,347
Accumulated other comprehensive loss		(1,566		)		(1,567		)
Accumulated deficit		(360,548		)		(372,372		)
Total stockholders’ deficit		(256,652		)		(265,586		)
Total liabilities, redeemable preferred stock and stockholders’ deficit		$	124,183			$	118,885

RIMINI STREET, INC.
Unaudited Condensed Consolidated Statements of Operations Advertisement
(In thousands, except per share amounts)
		Three Months Ended
		March 31,
		2019				2018
Revenue		$	66,260			$	59,805
Cost of revenue		23,837				23,541
Gross profit		42,423				36,264
Operating expenses:
Sales and marketing		23,376				20,207
General and administrative		12,424				10,805
Litigation costs and related recoveries:
Professional fees and other defense costs of litigation		2,041				8,899
Litigation appeal refunds		(12,775		)		(21,285		)
Insurance costs and recoveries, net		4,639				(7,583		)
Litigation costs and related recoveries, net		(6,095		)		(19,969		)
Total operating expenses		29,705				11,043
Operating income		12,718				25,221
Non-operating expenses:
Interest expense		(232		)		(13,409		)
Other debt financing expenses		—				(8,617		)
Gain from change in fair value of embedded derivatives		—				500
Other income, net		43				328
Income before income taxes		12,529				4,023
Income tax expense		(705		)		(516		)
Net income		$	11,824			$	3,507
Net income attributable to common stockholders		$	4,740			$	3,507
Net earnings per share attributable to common stockholders:
Basic		$	0.07			$	0.06
Diluted		$	0.07			$	0.05
Weighted average number of shares of Common Stock outstanding:
Basic		64,622				59,393
Diluted		69,101				68,154

RIMINI STREET, INC.
GAAP to Non-GAAP Reconciliations
(In thousands)
		Three Months Ended
		March 31,
		2019				2018
Non-GAAP operating income reconciliation:
Operating income		$	12,718			$	25,221
Non-GAAP adjustments:
Litigation costs and recoveries, net		(6,095		)		(19,969		)
Stock-based compensation expense		1,155				867
Non-GAAP operating income		$	7,778			$	6,119
Non-GAAP net income (loss) reconciliation:
Net income		$	11,824			$	3,507
Non-GAAP adjustments:
Litigation costs and recoveries, net		(6,095		)		(19,969		)
Post-judgment interest in litigation awards		(212		)		(199		)
Stock-based compensation expense		1,155				867
Gain from change in fair value of embedded derivatives		—				(500		)
Non-GAAP net income (loss)		$	6,672			$	(16,294	)
Non-GAAP Adjusted EBITDA reconciliation:
Net income		$	11,824			$	3,507
Non-GAAP adjustments:
Interest expense		232				13,409
Income tax expense		705				516
Depreciation and amortization expense		494				484
EBITDA		13,255				17,916
Non-GAAP adjustments:
Litigation costs and recoveries, net		(6,095		)		(19,969		)
Post-judgment interest in litigation awards		(212		)		(199		)
Stock-based compensation expense		1,155				867
Gain from change in fair value of embedded derivatives		—				(500		)
Other debt financing expenses		—				8,617
Adjusted EBITDA		$	8,103			$	6,732

About Non-GAAP Financial Measures and Certain Key Metrics

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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 Subscription Revenue and Revenue Retention
Rate, each of which is a key operational metric for our business. In
addition, we have disclosed the following non-GAAP financial measures:
non-GAAP operating income, non-GAAP net income (loss), EBITDA, and
adjusted EBITDA. Rimini Street has provided in the tables above a
reconciliation of each non-GAAP financial measure used in this earnings
release to the most directly comparable GAAP financial measure. Due to a
valuation allowance for our deferred tax assets, there were no tax
effects associated with any of our non-GAAP adjustments. These non-GAAP
financial measures are also described below.

The primary purpose of using non-GAAP measures is to provide
supplemental information that management believes may prove useful to
investors and to enable investors to evaluate our results in the same
way management does. We also present the non-GAAP financial measures
because we believe they assist investors in comparing our performance
across reporting periods on a consistent basis, as well as comparing our
results against the results of other companies, by excluding items that
we do not believe are indicative of our core operating performance.
Specifically, management uses these non-GAAP measures as measures of
operating performance; to prepare our annual operating budget; to
allocate resources to enhance the financial performance of our business;
to evaluate the effectiveness of our business strategies; to provide
consistency and comparability with past financial performance; to
facilitate a comparison of our results with those of other companies,
many of which use similar non-GAAP financial measures to supplement
their GAAP results; and in communications with our board of directors
concerning our financial performance. Investors should be aware however,
that not all companies define these non-GAAP measures consistently.

Active Client is a distinct entity that purchases our services to
support a specific product, including a company, an educational or
government institution, or a business unit of a company. For example, we
count as two separate active clients when support for two different
products is being provided to the same entity. We believe that our
ability to expand our active clients is an indicator of the growth of
our business, the success of our sales and marketing activities, and the
value that our services bring to our clients.

Annualized Subscription Revenue is the amount of subscription
revenue recognized during a fiscal quarter and multiplied by four. This
gives us an indication of the revenue that can be earned in the
following 12-month period from our existing client base assuming no
cancellations or price changes occur during that period. Subscription
revenue excludes any non-recurring revenue, which has been insignificant
to date.

Revenue Retention Rate is the actual subscription revenue
(dollar-based) recognized over a 12-month period from customers that
were clients on the day prior to the start of such 12-month period,
divided by our Annualized Subscription Revenue as of the day prior to
the start of the 12-month period.

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Non-GAAP Operating Income is operating income adjusted to
exclude: litigation costs and recoveries, net, and stock-based
compensation expense. The exclusions are discussed in further detail
below.

Non-GAAP Net Income (Loss) is net income adjusted to
exclude: litigation costs and recoveries, net, post-judgment interest on
litigation appeal awards, stock-based compensation expense, gain from
change in fair value of embedded derivatives. These exclusions are
discussed in further detail below.

Specifically, management is excluding the following items from its
non-GAAP financial measures, as applicable, for the periods presented:

Litigation Costs and Recoveries, Net: Litigation costs and the
associated insurance and appeal recoveries relate to outside costs of
litigation activities. These costs and recoveries reflect the ongoing
litigation we are involved with, and do not relate to the day-to-day
operations or our core business of serving our clients.

Stock-Based Compensation Expense: Our compensation strategy
includes the use of stock-based compensation to attract and retain
employees. This strategy is principally aimed at aligning the employee
interests with those of our stockholders and to achieve long-term
employee retention, rather than to motivate or reward operational
performance for any particular period. As a result, stock-based
compensation expense varies for reasons that are generally unrelated to
operational decisions and performance in any particular period.

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Post-judgment Interest on Litigation Appeal Award: Post-judgment
interest resulted from our appeals of ongoing litigation and does not
relate to the day-to-day operations or our core business of serving our
clients.

Gain from Change in Fair Value of Embedded Derivatives: Our
former credit facility included features that were determined to be
embedded derivatives requiring bifurcation and accounting as separate
financial instruments. We have determined to exclude the gains and
losses on embedded derivatives related to the change in fair value of
these instruments given the financial nature of this fair value
requirement. We were not able to manage these amounts as part of our
business operations, nor were the costs core to servicing our clients,
so we have excluded them.

Other Debt Financing Expenses: Other debt financing expenses
included non-cash write-offs (including write-offs due to payoff),
accretion, amortization of debt discounts and issuance costs, and
collateral monitoring and other fees payable in cash related to our
former credit facility. Since these amounts related to our debt
financing structure, we have excluded them since they do not relate to
the day-to-day operations or our core business of serving our clients.

EBITDA is net income adjusted to exclude: interest expense,
income tax expense, and depreciation and amortization expense.

Adjusted EBITDA is EBITDA adjusted to exclude: litigation costs
and recoveries, net, post-judgment interest on litigation appeal award,
stock-based compensation expense, gain from change in fair value of
embedded derivatives, and other debt financing expenses, as discussed
above.

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Contacts

Investor Relations Contact
Dean
Pohl
Rimini Street, Inc.
+1 203 347-4446
dpohl@riministreet.com

Media Relations Contact
Michelle
McGlocklin
Rimini Street, Inc.
+1 925 523-8414
mmcglocklin@riministreet.com