On the Sunny Side of the Rimini Street
January 16, 2012 Dan Burger
When you’re hot, you’re hot. Rimini Street, the prominent third-party maintenance and support alternative for enterprise software from companies such as Oracle, SAP, and others, is once again showing that business is good for a company that provides reduced costs on services, which many software customers believe to be overpriced to the point of being gouged.
Last week, a Rimini press release announcing fourth quarter and fiscal year financial results brimming with fiscal accomplishments–its highest ever quarterly sales bookings, a 42 percent increase in bookings compared to the third quarter of 2011, and record revenue for the fiscal year 2011.
Rimini Street is not a public company, so it does not have to report its financial results. However, the company is quite happy to tell the tale of its success. The company says it completed 28 transactions during its most recently completed quarter, worth $110 million, which equated to an impressive 126 percent increase on a year-over-year basis. For the fiscal year, its sales booking backlog increased from $220 million to $394 million.
The company also reported annual revenues topping $33 million for fiscal 2011, a 32 percent increase on a year-over-year basis. Fourth quarter revenue was pegged at more than $9 million, a 29 percent increase when compared to Q4 2010. Deferred revenue also increased more than 36 percent when compared on a year-over-year basis.
Other indicators of good fortune showed the average customer contract lengthened to 15 years during fiscal 2011 and the average contract sales price increased 86 percent on a year-over-year basis. The reported sales bookings backlog at Rimini Street is just shy of $400 million.
The average contract length and the booking backlog are notable because they indicate an ERP customer base that doesn’t seem to contemplating significant changes. (See the SaaS ERP article elsewhere in this issue of The Four Hundred.) And it’s yet to be seen how the lawsuit between Rimini Street and Oracle will unfold.
Rimini Street claims more than 450 total clients, including 52 of the Fortune 500 and 13 of the Global 100. It supports client operations in more than 60 countries.
Among the highlighted achievements of 2011 are the largest transactions in company history each of the past three quarters; seven-figure deals in PeopleSoft, JD Edwards, Oracle E-Business Suite and SAP product lines; and recognition by Inc. magazine, the San Francisco Business Times, and Lead 411 as one of the fastest-growing private companies in the country with three-year revenue growth of 1,531 percent.
Rimini Street CEO Seth Ravin was quoted in the press releases as saying, “With these record annual and quarterly results, Rimini Street is solidly positioned for significant growth and expansion in the years ahead. We will continue to execute against our global business plan in 2012, prepare for a planned IPO in 2013, and continue to deliver excellent mission-critical support for a constantly expanding Oracle and SAP client base around the world.”