Rimini Street (RMNI, Financial) has announced a key leadership change with the appointment of Joe Locandro as the new executive vice president and chief information officer. In his role, Locandro will take charge of the company's global IT operations, focusing on enhancing enterprise systems strategy and spearheading technology innovation initiatives.
Before joining Rimini Street, Locandro was the chief information officer at Fletcher Building, where he played a significant role in advancing their technology framework. His experience is expected to contribute significantly to Rimini Street's growth and strategic goals in the ever-evolving tech landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Rimini Street Inc (RMNI, Financial) is $5.63 with a high estimate of $7.00 and a low estimate of $4.00. The average target implies an upside of 80.29% from the current price of $3.12. More detailed estimate data can be found on the Rimini Street Inc (RMNI) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Rimini Street Inc's (RMNI, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Rimini Street Inc (RMNI, Financial) in one year is $3.24, suggesting a upside of 3.85% from the current price of $3.12. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Rimini Street Inc (RMNI) Summary page.
RMNI Key Business Developments
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Rimini Street Inc (RMNI, Financial) achieved positive momentum in billings, new clients, and client renewals during the fourth quarter.
- The company reported a 7.1% year-over-year improvement in quarterly billings, driven by strong performance in Latam, EEA, and Asia Pacific regions.
- Rimini Street Inc (RMNI) has expanded its services to more software products, including new support for VMware, which has shown strong sales potential.
- The company has implemented a new go-to-market strategy in the Americas, adopting the Hunter Farmer sales model to drive growth in both new and existing client sales.
- Rimini Street Inc (RMNI) achieved a support client case satisfaction average rating over 4.9 out of 5.0, indicating strong client satisfaction.
Negative Points
- Revenue for the full year 2024 decreased by 0.6%, and annualized recurring revenue saw a year-over-year decrease of 4.1%.
- The company is facing ongoing litigation with Oracle, which has resulted in significant legal expenses, including a $58.5 million payment for Oracle's attorneys' fees.
- Rimini Street Inc (RMNI) has suspended guidance on future financial results due to uncertainties related to litigation with Oracle.
- Operating cash flow decreased by $38.8 million in 2024 compared to an increase in the previous year, partly due to litigation settlement expenses.
- The company is reassessing its exit from the PeopleSoft business, which has seen a decline in revenue contribution.
