RMNI - Earnings call transcript Q4 2018

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Operator

Good day ladies and gentlemen and welcome to Rimini Street Fourth Quarter and Fiscal Year 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] Also as a reminder this conference call is being recorded. At this time, I'd like to turn the call over to your host to Dean Pohl. ahead. go Please

Dean Pohl

I'd fourth Operator. call. welcome to everyone Thank and like fiscal Street's quarter conference year Rimini you, to XXXX earnings

On explanation be CFO. today and the year reconciliation XXXX fourth me financial tables Ravin, release fiscal this our heading call CEO which to non-GAAP Web press our release A measures these can An following press quarter financial GAAP is provided press the and Tom has on we Today also Seth of our in non-GAAP earnings is in issued the statements release. found the included of measures our been Sabol, with site. financial in measures. the under

current filings full uncertainties forward-looking today We risks recent made results most encourage outlook. XX-K SEC affect may subject to reminder, price. from may discussion differ that are These was or forward-looking filed a Form As discussion our to which will statements our and stock today's actual the statements include materially results review cause you for risks today. that to reflect XXXX, including for statements of a our that year

that, questions, over with begin taking remarks. like prepared call Before turn to the to With we'll Seth. I'd

Seth Ravin

history year. record and you quarter fourth $XX Thank high service fiscal company billings XXXX client million fiscal today. note largest of you, on for and years achieved by Dean us approximately thank joining for everyone in and contract a and three for We ended revenue signing the the

capabilities, and marketing sales geographic products our in services, improved infrastructure. support new and sheet balance investments and significant we Additionally, made expansion and

and demand support We continue for enterprise our software to services. products global growing see

XX% Gross XXXX We XX.X% generated of $XX.X rate expanded from year-over-year year of for at with for quarter remained year respectively. our XXXX, clients XX, months basis. subscriptions revenue to a active current XX% and approximately million of XX% XXXX XXXX revenue for XX substantially subscription above full XX% December XX% revenue ended non-cancelable fourth retention for with XXXX. mix increase of and from $XXX.X ended up rolling XX, December XXXX. least the is increases all year-over-year XX.X% For margin of net representing which and million fiscal a we on Revenue

client active XXX Fortune count Global companies. and included XXX Our XXX Fortune

spend to and sales quarter, has invested pipeline by far prospective charter client already on product and half products. supported announced, new and focus products investments new services of our for the second our of services financing execution our messaging, two, next XXXX. related been services by and and further response marketing during a and half cloud covenants personnel, approximately facility. positive credit and spend million XXXX new and marketing, delivery relax debt XXXX example third completed the some development new and For management application to the $X An of were Examples global countries forward the transaction across the and full satisfaction marketing refinancing into X.X closes. XX out are campaigns. nearly legal increased a have maintained delivery number sold on is sales modestly cloud Investments in the infrastructure client as so credit deleverage sales capacity. and reduced average that half based second the leadership, infrastructure, labor facility fiscal fiscal $XXX covenants and we the marketing were launched of sales which development we sales generation capacity which eliminated. balance recruiting sheet, Number still Salesforce Rimini nearly with key X.X year-over-year tax, improve Number formally roadmap followed Once our an year, new announced our services. XXXX and Mobility. in through capital, and Examples sales operations operations marketing building to in from and and and sales. of was phase. The sheet, cases hiring ramping company's messaging additional XX,XXX We sales increase of capabilities excellent. XXXX, of Rimini infrastructure from our presentations, clients. driven prior million of We million Street support covenants been products closed clients, within new Other ended include new is we XXXX. of feedback credit four, XXXX sales four service we or in and met support capabilities. during products marketing rating program record infrastructure service first costs total sales Analytics reduced through initiatives; team refinancing Sales The business regulatory In launched execution facility a focused strategy global sold of the X.X development attendance included areas. of year our was in a rated increasing strategy, and sales of by on and Chicago. on in the initiative and global delivered focus U.S. we updates invest Number XX%. products We an of obligations invested and at and Number and in flow balance XXXX eliminate go include employees and expansions the Street cash our enable facility and investment three, operating XX,XXX a to objective one, by significant related the expanded $XX refinanced and new approximately conference global during

the support Zealand Additional services. over staff in Offerings personnel software enterprise new and vision. a is with and over and Rimini billion office replace XXX clients and for our expensive X,XXX support industries provide mission have Since We and Rimini France, of Fortune XX product the trusted Global well responsive a We U.S., plan more have to-date. Street inception subsidiary with from in as currently Japan, our $X coverage Korea, Salesforce.com. comprehensive Limited of additional more Sweden Oracle, an provider range support enterprise from them ultra cost-effective a New Microsoft, SAP, and Brazil, broad Rimini Street to software continue product to support ineffective selected and Street's as as IBM estimated new Auckland. XXX vendors saved than support their an XXX lines we including to expanding lines.

labor to investments create investments licensees costs of operating and competitive lifespan, growth. operating that time maximize enable the on by to and services and advantage their savings extending will enterprise the reducing redeployment software financial existing Our ROI enabling

primary and jams highlight and and an of switched Welch's nearly As related Street, wasted the for example, support based grape saw software. a and Street clients. time Oracle I'd one Oracle. an annual Welch's Rimini relationship like Rimini with they Database to to avoided as $X savings, support for of who just million and Oracle switching in With their upgrade By product, maintenance maker fruit expense our E-Business unnecessary what continue maintenance Welch's use marketing to of We this Welch's Release such its many cost application releases XXXX. to support even new Massachusetts opportunity SAP is Suite juice, by retirement was in new an to forced retire our from remains for creates stable environment and thousands of competitors licensees. believe stronger service and currently full Rimini Street popular demand support sales by releases strategic development alternatives. The and competition Oracle, able new with vendors popular initiatives invest Sparkling and are fierce. as software to Rosé. Competition; in attempting product

SAP in discounting in and to a annual of against substantial engaging continue Street. see Oracle competitive support bids parent's fees We Rimini

infringement that against is filed that processes support respect Therefore, receive to the otherwise would into annual is different our that won. services appeal had Street Oracle by finding of driven pricing in have the least SAP's While as match deal out Rimini with client and we The discounting of ongoing support since we related discounted July referred of to the value of business XX Street as referred support Rimini means XXXX no jury software to Oracle Rimini successful the Oracle's Rimini two know to Rimini stage in better and XX clients Street's discussed appeal, litigation were utilizes and overall Rimini the with that aggressive its With earnings to pre-trial Street matters to X. X were is savings, stage even use even no not XXXX account vendors in accounts infringement believed caused less Rimini only and of alleged Oracle litigation and services. a in and full that developments, about only taking roadmap. Oracle previous client's Rimini Oracle. Street if status that first prevailed suite the finding calls, some the longer Rimini Street and Rimini we XXXX. savings for innocent total Street's a former has expected X. still reason with in to time processes filed in second infringing. at Rimini Street's support if litigation innocent litigation a for against annual The -third and know a in as claims have losses did fees, switching a we products

service against was XXXX. the issued August the that the million is Rimini and to from Street was a which by of injunction identical Oracle Oracle its Court $XX.X in the Street as of provide vacated as XXXX. paid that clients, products product Appeals, of support issued Supreme U.S. defines any from injunction must issued additional Oracle vacating million XX, $XX.X its Appeals On an return The an limit to on Street well Rimini that Oracle Circuit sale deliverables refund of Rimini lines. provides Rimini Oracle an Following Street million January may to XXXX that U.S. renewed Street seeking in in on of restrict in is the an Court XXXX. virtually Court District but XXXX, decision for successful The March any XX, rather first by injunction does Street a before Court refund second not unanimous additional March continue injunction received an the for U.S. Rimini Oracle appeal previously $XX.X certain Rimini appeal X, order ruling services Xth service or XXXX. manner through

noted, injunction with amount complete Street some approximately for comply X% for However, injunction. the of of compliance labor the the company costing therefore, to deliverables with clients, support annual increases the X% Rimini to required as revenue its previously to

The intends arguments oral hear With has during Appeals that reason injunction. respect For others XXXX. to Rimini and appeal month its they notified the Rimini continue of July may that pursuing X. of Court Street the to us of

we Street is for is behavior has damages illegal Rimini the currently materially action on we XXXX. In XXXX. and second Street. the damages addition later. of seeking from our motions. pleased to are Discovery District await In expected XXXX has believe in from the Court's and was since not sheet seeking other new and cause concluded impacted quarter that until to Oracle with Rimini we progress summary, Oracle occur is summary sales made client Trial or ruling judgment balance also of operational

our As new to and we products making capabilities we continue for and and key initiatives XXXX, global significant services, and sales in plan capacity. objectives look infrastructure investments to

XXXX. to return in of I and XXXX, CFO. the in second call these then, now investments to Sabol, first followed turn expect half billings the Tom the on appear will by revenue our accelerated in growth growth over We

Tom Sabol

Thank you, Seth.

begin our fiscal of fourth with quarter and the results. year full summary XXXX me Let

noted, revenue XXXX, within Clients of revenue of XX% growth full XX% the of to the rate continue of was was range margin investment in an XX.X% for growth of Clients company. XX% in million Gross year-over-year. million prior total million revenue year revenue rate outside revenue $XXX.X and area full XXXX year-over-year. guidance and total United was consultants for and year year United quarter and a QX the infrastructure all the Seth was States slightly year $XX.X and for XX% $XXX XXXX. increases approximately annualized quarter fourth of XX% up outside increase will above XX% fourth for in continued XX% existing As the the higher constituted growth exceeding was decrease and primarily for full costs to versus prior XX% labor high-end States the of The quarter for and the be respectively. the XX% constituted fourth This has year-over-year. of a been for leveraging against year-over-year our up contract and full XX% base year. subscription a a XXXX, due expected from

to that gross gross mentioned earlier to Seth margins XXXX, with we will some For injunction due the by by expect X% we margin expect pressure decrease complying X%.

XX.X% we the plan which XX% General XXXX. excludes and for gross margin We a for expected and XXXX. currently marketing and XX% and expect currently of Sales increase up costs QX of expenses a XX% the the of for XX.X% was XXXX XXXX outside as around to quarter to service With for the expenses revenue to in the fourth XX.X% improvements of prior the year expect quarter from Sales current are administrative of and for marketing We quarter products and new XXXX. XX.X% leveraging as for full said, also services. XX.X% for be all XX% to year range for be currently full that quarter range all percentage revenue in The XX.X% the and was revenue prior percentage XXXX. rising full to expenses fourth XXXX. result year were all be capacity litigation and XX% fourth of of to infrastructure of of XX.X% and of marketing sales for against revenue XX% from for fourth down revenues. of for for

addition, the fourth to million the full reduced sales and taxes for for quarter $X.X with due negotiated certain $X.X In by settlements XXXX states. previously tax year accrued million were

the as XX% accrual to the range would XXXX. expect XX.X% have to in million XXXX, Excluding of to We a of in currently percent could to XX% XXXX Litigation revenue of sales due full costs. XXXX. reversals G&A year up of be $XX.X but QX for tax for and million G&A be been other $X.X was was timing in for the XXX the XX% quarter implementation activities. quarter all received for This expense fourth in and be million currently XXXX. fluctuate noted million XX, from offset million paid litigation not that on on $XX of we and can due our based expense XXXX. March XXXX XXXX is reduced to should activity linear to of It litigation range $XX.X by outside spend $XX the of expect the return expected litigation had We be that Oracle in to litigation compared to each revenue

operating year the non-taxable full and $XX.X March that income In be XXXX quarter year should XXXX, addition, operating from operating in million million by $X.X U.S. related million fourth Interest year X, financing were million $XX and million for for million fourth full for year and million for year quarter debt full for credit the year for The was fourth compared a XXXX full in expenses interest decrease $XX.X off XXXX our quarter paying $X.X the quarter debt facility quarter approximately the fourth and was million for the fourth year compared for $XX.X XXXX. million paid million Oracle XXXX. this decision year and to were quarter fourth full of fourth million plus and quarter million full full was Non-GAAP of the for XXXX. $X.X to return prior our and income and first offset resulting XXXX. interest the for Court for other to financing on Supreme $XXX,XXX in to expenses former the to quarter prior $XX compared income $XX.X $XX.X after expense for $XX.X expenses. prior year dramatic $XX GAAP

million expense $X.X to other expenses former facility million adjustments in required former approximately and operating in materially was of quarter The Net results XXXX of also impacted non-cash non-cash full was to XXXX, of $XX are net approximately of related million full for no $XX.X loss quarter and write a loss The credit $XX facility. Non-GAAP the to million of financing full that discounted to year and $XXX,XXX for XXXX, was million of issuance expenses which net year income income for for a $XXX,XXX for year applicable. $X.X our debt year fourth approximately $XX and year prior and of a year of of our our related the fourth income the the by to approximately year full for to $X.X of a the embedded for Prior million for the $X.X quarter XXXX. XXXX for year net non-cash related million of non-operating million net and million were credit the fourth income longer of prior and XXXX loss net $X.X are expense year facility full expense redeemable quarter million in of increase net XXXX. expenses majority credit of prior full net compared termination to quarter quarter loss non-GAAP of net all for remaining full the warrants, $X.X loss for a For the full net XXXX of to the and respectively. fourth to and $XX.X expenses due and derivatives a former primarily compared for fourth XXXX third non-GAAP was year a XXXX non-GAAP of quarter for the the $XX.X year quarter million fourth million fourth for relating a XXXX. $XX compared loss off compared costs million

shareholders common for Reflecting of net $X.XX applicable and of a issued a to prior for full XXXX, per $X.X we a for fourth year per year basic net Series dividends per was and XXXX fourth share Adjusted loss were compared cash was year year A $X.XX the quarter million income full quarter and million XXXX diluted and $X.X year Series and $X.X loss while the share for and XXXX. the preferred and loss for Series a dividends, kind quarter million EBITDA in of full million fourth million net $X.XX full full A the for $XX.X the payment dividends fourth year XXXX. per to $X.X quarter stock fourth for year on for for the $X.XX the net the compared loss to $XXX $X $X.X million July quarter were year prior share XXXX. As a share reminder, million for million for for million quarter on full XXXX, of A XX, fourth $XX.X

of operations of an fourth our for to Moving expect as XXXX, and sheet, of million of with We of from deferred $XX.X flow to balance year-end we year-over-year. was on cash million full increase less year-end XX% full in closed as balance revenue off XXXX the $XXX.X the for sheet, our compared $XX.X $XXX.X XXXX to year outstanding million of half first XXXX. million year-end million $X $XX.X was quarter was to the debt million, as pay XXXX year which compared XXXX than cash

quarter Now respect with year to and guidance. first XXXX revenue full

revenue of And first to $XX.X $XXX be we XXXX million full year with We expect the take of expect now revenue in million quarter XXXX in to $XXX to of that, range million. the we and $XX to be million will range questions. operator,

Operator

Instructions] Thank Derrick from question comes first you, sir. [Operator Our Wood.

Your please. is open line

Derrick Wood

on little that were out a some for just flush factors came to was re-acceleration, calls and you for Good solid Can you XXXX Looks thinking but top-line? the play afternoon. we had of a the it around a for the Great. growth outlook year like quarter the below growth. single-digit what guidance

Seth Ravin

Seth Sure, here. Derrick.

largest generation. softer hit it's than to and sales the XX some wanted So, obviously the with hiring. XX half capacity. reps time I look But you're with been know the XX. out remember terms pressure to target got year. the We a having numbers last on a from sales call, earnings the talent. hiring back time of a we done, you We've you biggest terms have XX hiring the to the like have QX. it is our sales really probably This were at of has downward competitive. from we probably we in there of sales QX for by 'XX why we've an math that's hoping really adjust in year-end of hire in got number on from we're top calls, reps able continuing were and seeing conversations really jobs sales mean prior I be on are really you and street to challenges pure across top ever world, done accelerate the to really quality little The in we've one would all hoping of ending to We happening and the reps. had has business just in deal we mean we to When the but and technology good in And can revenue we is challenging finding high. see in

we math at generate at, So that's, capacity challenge. bring if all and where That's model look hired. revenue our we amount amount just you bookings, the can't look the down entire when the can at of you you people and big get we're on to these of the this the year do going even that's

Derrick Wood

Sure.

Okay. things is the are into it in at rep of pivot up mean there to targets headcount of the end guess, areas what or Do environment, keep look is is beef to to it? for but have just and sales competitive year you it any the other it I I kind tackling headcount by

Seth Ravin

from look we've a The out, the lot you to for took everybody. various some things. also who are looking reps, we lot performing. we part, Others, XX a numbers, hopefully to a everyone we we One, at Well, is taking amazing done year-end. weren't when really by have just hired it's few but reps lost heads competitive reasons of XXX

over did lost then a we and people, good hire we so, number. XX And well

that's get up far out total factor. about sales months to go. the really concerted at by recruiting, getting to was and we've team, in. other an that's a debts didn't on XXXX. to few with effort the it get of to to the the impact we and very and XXX wise, takes as guidance wanted you're focus beefed we it Leaving to get net people, more for pipeline build when XX that numbers, look And as reps trying why which we a seeing year-end, But unfortunate productive So, you as working you and really nine know, why them added them

Derrick Wood

clearly to international do you well. quite continue good, on And hiring ROI look be more the International would could leaning side? the aggressively at

Seth Ravin

Yes. Different able of us hire. terms pockets in talent being of to

think haven't I you're grow lot territory of before. we new covered a have that international seeing we

five corporate with the providing units to business. training, We're is You're watching these the some is of move at America the And new General we providing expect continues get that, a where but where North goals, what the as maturity that you're moving the watching as five own and on the model size. for for materials, a feeders over first feet guidance, its managed Rimini we're for you're operating North we of almost feeder. seen as quarters, run to subsidiaries. responsible big mature watching Street most GMs, being global operating providing hired to Manager have the as And providing strategic America, who segment, the us evolve North are you've few to America as five and operating and our would being part time, you allowing largest last their

brought Tim in a chunk biggest player the who being America is this overseeing DeLisle, the America. when North we EMC so, world. had that that never revenue North We from a Manager of year General strong added And

Derrick Wood

sequentially contingent you. mix? contracts and from deferred, of was couple The guess big previous for unlock, mix I there or a Tom, change any

Tom Sabol

have Actually, Derrick last for opt two quarters any not had outs. we the significant

to QX So, regards outs. opt contracts level contingent QX there from or was really with no of to change the

impacted XXXX with that We XXXX, had early some we to have issues of of stuff very and had that, those. that after and offer we the that in litigation back little us the

fairly over quarters. So those last significantly the few decreased have actually

Derrick Wood

rates And XXXX guys versus product round about XXXX? and rates I Okay. have profiles thinking around you are timeline flow customer renewal know trending maturity. then, you given of kind renewal ebb How some the

Tom Sabol

some consistently to We XX%, At would we we above some anything XX%. range. cause be that to point, We don't now, wanted don't somewhere XX%. we're stuff we above go think been could up upsell be it I -- be significantly percentage that us of to [indiscernible] continue talk would doing as assume we Seth, of would expect to hope see ultimately looking would to that XX% with to upselling, that in XX% right the about that with this would of because products do more of if to you where different. new but continue would

Seth Ravin

Yes. year, is said, proposition, so Derrick, products -- are we global services, in more a but when as client the loss our of ebbs out value at our the lot lot, types on of than we from a range is, of the for increasing they at you investments they've same you that are we mentioned, as clients check we're And sort are subscription, terms around a even math, I bound, on been you building the they're XX% typical that's because XX% providing that, -- at on spend averaging flow engagement. we're invoicing company, retention strategy. revenue stickier that also basis the our lock-in clients been think, renewal, doing expect to what we're We though our increasing volatility Tom time as a software And moving making. the look more on longer-term in different check and and our XX% renewal between But, of a cycling our rates. making XX% wouldn't by of likely are a additional change, the to out. Those and SaaS know, always sort and people

All utilization the of things drives rates team drive increase for to length lifetime our all clients those management bit and account to drive the Anthony them XXX% So, brought a to in upsell, in Officer getting DeShazor of more be services, a expanded and customer affect they and value. focus are retention the Client Chief XXXX. value. retention new to rates is being quite We loss and which retention designed on down

Derrick Wood

and All platforms ones are Oracle new And would of or a farther up? And just a you there other of products know, comment I SAP, thinking upsell Tom other is any and it vendor around in work terms outside of needle still with. made little the XXXX, in that right. I'm don't move

Seth Ravin

Street think, made seen the we're an earnings Obviously, this we announcement, is out, the Rimini AMS have XX came release Salesforce EBSCO may I announcing services. minutes on just you first before selected win Salesforce. for

before the trickling we information to on would path. you, we Salesforce I As this jog, out down walk, we to before And moving successes start begin going we mentioned as run. we're

In there's right have do the numbers, think effect conservative, bottlenecking we'll year able that's an that's capacity would the know think the equation upside, upside terms services to on you for these again. Come have If as And the effect real guidance, we're much the now. potential to And math to as we our this something as like, are us very I fast just forecasting. we I move could on in the how our right see on product? move for back in that. to numbers they that's ground we of as have

Derrick Wood

it. Got

guys. Thanks, Okay.

Tom Sabol

Derrick. Thanks,

Operator

Thank you.

from Our Please question comes Alliance. ahead. next Brian from go Kinstlinger

Brian Kinstlinger

much. so you Thank Great.

with to I hopefully understand Sorry, first already about, so my will quarterly ramped has be But, customer, fully the ramping was trying I in begun or quarter, sequential talk in just customer. that have it questions late, can the answered. growth this joined from you it been bit large and XQ, a little that

Seth Ravin

do like take more you Why see Tom, the question? rev a How that's of sounds don't it into numbers that playing that, you rec.

Tom Sabol

Yes.

the that in did benefit So, most of quarter. the quarter. win we're in yes, early that of get ratable, because we and Brian, did We customer the

it's So, QX a to going upside big between and not effect have QX.

Brian Kinstlinger

may Are you as but then as again, this us, And touch SAP Can and last talking talk about you have quarter, aggressive thanks. you getting they customer you're Great, on well? they base continued? trend more has evaluate service proposing? that as on discounting. about that you the Is that talked to update your

Seth Ravin

Yes.

were is, so market separated part our competitive of is, And in the out watch part the we how the think of I play day-to-day mainstream I fascinating you I a efforts. from of part in mainstream customer procurement point. market things bidding. part early really is we maturing a days, decisions this really and another move more into think and more proof what watching is of we And that think weren't as position you're of

the up, for we years. fierce a bidding. I vendors vendors And directly against in And to process. put that direct levels that result us it's in for up pure straight competitive compete the environment them a procurement it's the having are over comp direct against watching their discounting We think raise are

serious be SAP years up and pricing that's fear of for to going out a vendor's discounting a Just by we'd money quarter some the Street size you over each order higher. at that They did is example, there much equation in for the the you're have mean, they're and facts years, the something you the have off now that, fourth the threat of vendors, And that enter when with pressure; the in I that look reached watching for their competitive when when their themselves. that deal discounting. books, Oracle deal think and more is respond because don't has to turf. other, coming into proven of are watched protect And that try size them Rimini level. I and we in against

of think, the the in they're the feeling just are that to strength I Street's we vendor are and vendors confident Rimini because how it's business they can need growing So, market discount. They're the not that as just serious feeling a that win anymore. sign

Brian Kinstlinger

Yes.

the And are campaigns the ahead, so, and and more are issue? customers mandated can marketing you your SAPs on launch given this advertising more side set to upgrade specific to and attract plans about with talk

Seth Ravin

way, opportunity. site, already to don't it support under about Street for a are a you anything if that of well we doesn't guaranteed Rimini see fact, and we XXXX, in a have navigate whenever substantial but webinar Web our minimum years up mean look on contract, signed you'll to worry talking customers And about a it how Sure. there's data, because from XX is they coming

as an the decision, forced tens is no to of longer think about of the who now you option. customers status world If are make SAP thousands being quo a

roadmap of the they've only down last lot in their embark the company which vendor's So, do on years. now is from they as what project X,XXX for design the has case resources have that of business-driven going make idea the with roadmap real over benefit go a against proven company, a a Street own all Rimini to XX between, decision business-driven of out there roadmaps successful takes expensive, projects got a for they and other risky extremely this them, away the

XXX feed only people could in us have a Seminar watch down fact, talking staring how position very really it's to set in our customers, think with I that strong The the the go looking a route that in own. only to We're massive or business-driven in do if front world going go only coming alternatives from overflowed had it So, puts week, your project. all because the this. at video interested at you're way we're already we spend to a the Rimini standing It second campaigns listen when of where up this on to presenting Street. vendor Gartner people are of That's choice are it the you're room people vendors satellite the the real the in roadmap, at just seminars, room route, Japan only remotely. held down room. is a were about speaking And and and alternative safe, we over proven and they

Brian Kinstlinger

much your I the practice growth see of your And rates as a look then, and to question, you do growth based mature of to then business businesses? the two how maybe more for leading talk relative -- I you. from those on about Oracle Can in year up is that those quarter know obviously you for you Oracle changing rate two SAP and guidance this fourth know

Seth Ravin

of we cover lot we Oracle, been SAP so world, right. Oracle we that It's because think, products, XX% Oracle mature. I not is in XX% a have of have just, much traditionally more sort

of SAP an products more all really it's doing aggregation are of of well. very So, Oracle the product versus SAP, but

value SAP's move the some world, I this think, to In massive thousands customer SAP about support size. of as on sense But think be the ASP it's give XX,XXX it of just the higher, outside to Group to and versus about you you're talking of side, tends and group application aggressive of applications the you that the to huge in terminate forced look the Oracle tens you think you platforms really their XX,XXX really may XX,XXX so of current of the customers to a may then compare is really, dollar XXXX when SAP few SAP, being pretty on alternative, hundreds and it opportunity years. parity to you coming running sort have EBS, increase thousand thousands of X,XXX best the have is the dramatically we Oracle, Street to on of in at of Rimini a business SAP. SAP databases people soft, where customers. that, of when

Brian Kinstlinger

right. You're

it? three to do think getting two would think it's SAP that's you do ahead So, you business, years, of your XX% in a or reasonable that to be XX% of little

Seth Ravin

so right, still say. hard I and a mean, been think we're Oracle because launching business. I additional little there's much products to have it's launching and

mix turn that how So out. will

growth I to predict, in you're I Oracle the lines. both think going think do hard but watch SAP and the to that's too

Brian Kinstlinger

entered on new it the two new as impact should question like about talk revenue region is takes years, ramp can well, nine-month investors Last time it maybe just or geographies how some once opens salesperson? in you've about it take to will have Great. it you a the year new training and is, a I think XXXX and, a

Seth Ravin

every opened opportunity is this particular One, we think example. two-fold. it's sales we've are that year. increase an And into mean, reason is the different geography. give and I that to New I region talked how another in moved Zealand about I'll you geographies we potentially

we because, up the them within of the to reason in in are is companies and geographies other capability countries the big to serve business have a largest some really and order these the The XXX operating have we in in win order geography global. open certain world, to countries of

local So, global two on those and and factors. really make decisions we'll on is there there based geographies, business is business

need but necessarily that lot that in So, a we in comfortable. -- ground region, open of tremendous not are we're sales so people Right? know we'll those of Global's to that to expecting sometimes Large a have -- to area on decision-making sort the an enables sell the get office, And it to amount going because process.

year the country, first geography, think a for to hey, introduce get right, tough, go when ourselves, sales, have about first goal new new a are I new we product. or love tell because to that the ten is to always always -- those people we new For a in deals always five you we year, the into set geography,

been themselves in operations these fast. And flow get And of kind to but in we operation think for on operation, a that they profitable expectation that in You well pretty an we be getting start historically, ourselves the with to we've in lot that basis itself cash in. that in deals first reasonable up set have start have year, cash not target going And and to to done a then, running. managing we've of usually like growth to thereafter. paying a basic in out there necessarily I pretty pretty that quickly

Brian Kinstlinger

so Great. much. Thank you

Seth Ravin

Sure.

Tom Sabol

Brian. Thanks

Operator

you. Thank

Please comes from ahead. go Capital. question from next ROTH Our Baldry Richard

Richard Baldry

Thanks. Can of little guy, for the you you seasonality puts look the a I'm if XQ ask maybe rate on any XXXX. basically I since talk your new that -- revenue I guidance is, the cycle. about reason at in run your The mid-range

I to because pattern if end Thanks. sort of growth to been numbers. higher the that lower trailing state any ebbs sequential in us you've the figure a out steady sort trying come give versus end the seasonality, something in Just from there's and of see what that very dips, flows could

Seth Ravin

You and take ahead want go that one, to Tom?

Tom Sabol

Yes.

XX in push So, in we course, really We've past that course, But I but of end the some, want Richard, we the around December for a lot a to at so results and of have of customers seasonality, which, but May have don't much don't seasonality XX their a of deals. year-end significant a December has SAP, of all -- a the seasonality. of almost sign they don't talked SAP in business. Oracle, really amount way have say to course, of customers will May, XX And as has chunk our of year-end, Oracle of MED. that

we're then question, first because in As being with between not organization. the an the again, was our strong. headcount and half impacted because and really growth QX, And sales in Seth QX had said XXXX of XXXX some billings of earlier issues

years. from prior means are course, Of too well then as renewal our that rates down

really So revenue don't is but QX the causing significant a standpoint. between in have that, combination and a we QX, business what's our here issue to from seasonality

Richard Baldry

can support hiring or that's through your different that the are not you seeing in sales Then, and the that to any about -- side skill sets personnel similarity so core you're talk challenges you relevant Okay. seeing really, a comparison? it's

Seth Ravin

There's day Yes. productive lot the hiring a and have diligence to this cycle. service difference questions of And because how the we're big they product, engineering about sell out is The already We through engineering service because reps answer talent don't a with engineer. talent them it thousand right. a to is how one, know the I see issue them on think, you the on sales to there. train

our to there, processes, Rimini to one just some at for we we've of Street, to want So, our of need the our that is huge for can English-speaking we to handle doesn't way start some had learn. taking take them long talent one out world. we our work to time customers find the The just productivity And day doing to the our the to relax calls, they around systems, with customers, of want challenges engineers desires is things. how only is, engineer in the learn and difference them that's way way

those talent staff, really English-speaking have But, the opened bilingual hire in rid that's that can requirement. to Korea, these great some and like really too, For help a by we on talent and because that speak of communications. things to use English, English getting hard so translators we people to speak both countries of don't more for we of in that's example, up them great who used global talent now hire it's and one on Japan lot

Richard Baldry

the getting that and that stuff what tuck-in, debt investments of comes of that meaningful sort things of moving What think some like the have flow, about as And state? more free You you'll meaningful looks that million running to like talked to to amount, flow? me put into would in away there priorities are like business you $X in refinancing steady other first sort that's in? that, or free cash M&A rid look a on after a position, Thanks. half, that at push it a so got for not about any areas you'd cash

Seth Ravin

Yes.

me, will a second. let So, I Tom let answer that in

going me is all infrastructure start and which year another to we're support We're lot investments to revenue said invest it to a trying this into building didn't continue in we a that's we $X.X saying, billion of have to investment as the and XXXX, going transition larger a number, is we by spend to that as a to but year, Let right. get and last much just And just out a build money the products did 'XX, process the can two-year this And get new expansion, amount were that infrastructure services, that we those we're and done. through means it. goal, we billion. said, we next from $X.XX money going good sales of on in

because margin and with gross get we the watch until to injunction drop a the can comply you just -- unless couple points guidance have plus we it in removed. of our You

resources, we're we so, going a it this the perspective, year, the half the revenue back see out at about accelerated we money is result going year going in which to and build infrastructure XXXX. year to the year, is increasing, that to be so be to from a in talked so that'll year end translate to building we're infrastructure, this the building this spend And of want last bookings of will some

$X.XX and really $X.X later to for positioning XXXX billion billion a So, all that from this move is year. to about

top want to that? So, on Tom, add of you

Tom Sabol

But what of I would course, Seth remind have you, too. payments said. dividend Yes. we the to that Richard, reiterate make have well, I'll that we as just do

be will that other well. out there you and sales working reps on also well, we expensive have ultimately and And not team, to here over expect expansions expansions would products XX themselves be marketing the building it's some should and Our of months to XX into some reps that the we're months that other then the geographic view and as would next assume sales other investment the that on. is sales infrastructure Salesforce.com some

to Seth a would XXXX to getting said, accelerated XXXX, company handle in I beyond be be think those growth growth And it's priorities. and in to as scale. get to infrastructure aligned and faster larger the company's the able So, the

Richard Baldry

Great. Thanks.

Tom Sabol

Okay.

Operator

the I the queue questions closing over I Ravin, you. in like no turn further this call to Thank to remarks. CEO show back for Seth time. at would

Seth Ravin

additional into some new expect out as great. longer the expansion that's Thank these little geographic products appreciate on We'll have everyone and us, Well, well give marketplace. bearing very an rolling you forward with And, the everyone update call I will and I we know much how announcements was on announcements. we a today. products and it are services really look as to services and QX

So, Appreciate time today. thanks, Take again, care. everybody. the

Operator

today's This concludes attending ladies conference. and for gentlemen Thank the program. you,

may Good all You disconnect. day.

Rimini Street (RMNI) 14 Mar 192018 Q4 Earnings call transcript