RMNI - Earnings call transcript Q2 2020

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Operator

Welcome to the Rimini Street Earnings Call. My name is Adrian and I will be your operator for today’s call. At this time all participants are in a listen-only mode. Later we’ll have a question-and-answer session. [Operator Instructions]. is conference this note, being recorded. Please turn President of now the call Vice Pohl, Dean to Investor over I’ll Relations. Dean, you may begin.

Dean Pohl

Thank Earnings to Second you, welcome everyone to like operator. Rimini Quarter Conference XXXX Call. I’d Street’s

Stanley Certain these measures viewed section quarter non-GAAP website. release with can reconciliation me financial are including be information release release, Key to meaningful been copy Today, to measures Seth CEO; of the Accounting and On they can financial the under the be About A XX, in press GAAP the GAAP Mbugua, our XXXX non-GAAP from of today believe An Investor Chief second call under our our issued in which why our explanation downloaded reconciliation June provided Ravin, and of is the financial found Events. is following also and Non-GAAP in tables, Metrics. has our on and the and we Relations ended financial A Investor the press supplemental we this the included heading and website press Officer. earnings release. other Measures Financial of press tables statements

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

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

Seth Ravin

thank you, today. for you Thank us and joining Dean, everyone

of cash $XX most year-over-year the above of subscriptions, million quarter produced quarter million with income, total end. further Revenue non-cancelable balance increase for at more government XX.X%, revenue quarter increase makes a of net for record ended XX% XXX, Fortune global million, second a clients, of included basis. nearly year-over-year retention XX.X% generated our on which achieved with of $XX.X active We of and up cash remained the than XXX strengthened X,XXX revenue the of operating flow of sheet XX% quarter rate net least months Global rolling For another companies quarterly $XX.X and second with we at representation. XXX which a XX Fortune subscription revenue and

low-end to flow making long-term global demand quarter goals GAAP pandemic employee X,XXX, and Pandemic XX%. investments increase of service raised for improving growth, quarter-end the to product were count revenue guidance the portfolio. we free Impact: profitability. and to Prior our affirmed meet the growing expanded cash revenue was year-over-year a of of increasing for guidance Today Our XXXX and our third global issued commitment we

costs, save on right are limited We right with challenges have and slowdown. by demand and stabilize driven organizations the of slash we pandemic these more operating many significant since jobs, creating for economic help our accelerated investments immediately the company global pandemic to at additional is resources organizations time to The IT the operations initiatives. the advantage their focus and solutions right strategic take

pandemic to opportunity the risks half additional for we pandemic. some the the has of opportunities attributable second During second meaningful both experienced the the signed and pipeline new added pandemic quarter and opportunities We XXXX. of the the believe

the with terms discounts agility that we outweigh these still special to far times. needs business position Rimini cash will had bankruptcy and them providing However, and and with Street All economy, global our extended slowing and in strong and receive provide others protection clients against challenging us sheet downside pandemic navigate analysis, the risk. the while risks, flexibility payment help by we created opportunities and help to us balance facts all, based and also and clients believe enter some on special our prospects

a shifting and of are office marketing year abatements As measures nearly result response employee, savings marketing in including potential to cancelled and events, expecting pandemic, office the closures fiscal sales virtual reduced remote remote models XXX% for that to taken world. costs XXXX, the in-person travel, to related the we we operating from reduced have rent around

going as new to offset related to special pandemic investments savings The programs in full lower staff predict. Client our of and become completed the rapidly expect second we employees clients. to numerous quarter the We expanded existing and employees During evolving paid marketing increased extent business sales impacts our XXX bonuses these transactions factors which infected. diverse with help that capabilities, with geographically sales wins: well forward on depend will and new reliably and who pandemic cannot some we as

additional in In shared releases, I highlight few wins to addition many sales the significant want earnings and wins. press global a including to share today’s release,

global services that partner The the with infrastructure, largest companies and U.S. rely also and critical the security of vendor life client provide Rimini database implementing they First Oracle The to The this middleware advanced and wanted the proven Rimini large, only expertise is integrated Oracle moved landscape middleware was Street solution. client deploying solution. energy application the an Rimini security the win could a expert solutions. to in and of Street. is and support client upon a one Street complex, their provide could with global needed the Rimini advanced and headquartered database extend Street innovative mission security support both their technology both to

their partnership largest with client SAP software win better value large their found complex support well. a software our the previously dollar is client and The service moved excellent. unified to across in enterprise looking single as be of and landscape and laid cover groundwork multi-million Rimini benefit landscape a to partner. experience Oracle our complex a service, large to to application us a expansion from value experience significant Street services headquartered of from is for for had landscape Next their The global premium a Australia. Their overall one telecoms the

the the one decided the client advertising better overall Japan well their largest Rimini aggressive to in intelligence world level avoid higher-level support. service interested with watching companies value implemented in resolution current conglomerates The to is excellent support it The vast migration a Rimini to S/XHANA with as client we and even clients, to across and the known releases, Product service During and to brands, technology remain quarter offerings. we Japan. and support more growth and release. an time and was artificial on of delivered expanded and leading our win landscape get service guarantees paced SAP update: for has announced been move products as and Lastly second clients, Service fast reduce expensive Street’s headquartered SAP’s to a its experience, needed also times wants Street

our more level we excellent. X.X service service in legal quarter no least at current satisfaction countries cost achieved delivery and X.X over global our at even to announced countries. rating XX an the where regulatory clients, across cases updates a During service average X,XXX XX nearly in XX,XXX guarantees clients of support rating industry level guarantees. release Building is our support on aggressive additional closed client press team of We today out tax, leading to considered and delivered delivery X.X, a

a minutes resolution guaranteed of critical in in now minutes, are clients developed patent our response was minutes XX artificial XX/X/XXX instead by our XX instead to second our innovation quarter intelligence and XX%. software cases by response urgent service of we that the client of has XX days. Also new announced case the cases pending development minutes team and during and up to XX application Our global sped

SAP’s for integrated our of ERP client, the new software Additionally, Mexico. offering complex global Nadro, S/XHANA, headquartered earlier we in newest SAP quarter the large announced in S/XHANA availability support and

winning and products Salesforce have respect growing now XXXX of other premium for services product running servicing We applications With in HANA Pipelines X, hundreds AMS databases. where new and SAP commonly Suite day-to-day. or SAP, half and to we Services, award continuing inside pipeline Business offerings S/XHANA our for through portfolio, SAP support the are yet. based clients been run an Management see system sales. and to to the Oracle, grow, SAP expanded who management XXXX support proven our and opportunities required technical support service application since and internal providing as we client we AMS day-to-day second to provide services are the runs continue where with client Application services is updates the known team largest for the and system

the client proving solution software product a that indicates AMS sales annual demonstrating the clients often new experience of the creating existing to Rimini Rimini Street our support that fees. proposition early sell solution better with competitive support service AMS money. offering Xx of clients unique integrated and value an for integrated is Xx at time, software AMS support resources to AMS believe valuable in that Our Further, is AMS higher and and better model, market strength opportunity. labor and significant a provides line better satisfaction the and client cross a a savings outcomes, and and combined with unique We is is

a We are of geographies. successfully delivering industries growing management application and to and variety clients solution maintenance across our integrated

expenses certain upgrade Rimini solution. refresh Competition large the a successfully Accordingly, immature innovative end ERP of using are licensees inter-operability clients support value companies are support competitors, with and We licensees and application migrate current Security value software their sales Many a to interest server Middleware evaluating solutions to in advantage pipeline projects to potential by not growing Oracle expensive service are that do landscapes. move Advanced support migration not more pressured evaluating licensees and improve Street’s and projects. also Security, and are disruptions Street. planning that Database more upgrade releases are their refresh or software stable for competitive engaged our efforts the Proxy Competition: and and force seeing major unnecessary vendors’ releases vendors full and cost and and to low and newest and primary Browser Advanced see Application or facing our do continuing part the their current across product either more to more deploying incurring major SAP Both benefit of leaving fierce. in of vendors’ XXXX, remains project Oracle ERP growth. to and SAP, contribute the as products Rimini from or

new systems beyond. financial results approximately or to on from ERP In Oracle new software the existing expensive Street their over or move cash is XX% the are SAP’s limited global who refreshes Street at Today, market companies, time. investments and seeing and migrating the savings, and survey not savings are remaining services to added Rimini economic on robust about to XX% of had to a captured Gartner plan existing are up unsure compete. fact, for their budgets focus respondents has that we until invest of off and to at a preserve Rimini clients delaying enterprise stable prospects given the challenges in we XXXX maintenance clients total their around are that current pandemic, to least and third-party and or planned least found maintenance CIO strategic positioned XX% off fees and significant initiatives. planning has on software, move systems XX% Street responsive service and offering, Rimini well more estimated over providing operating XXXX

much hybrid will for will longer licenses, licenses simply a and long-term believe and As majority or we expected existing deployments continued on-premise ERP to new use. IT and previously be into continue the be stated, workloads shifted cloud for the integrate have than lifted environment IT the that SaaS reality will of cloud we

in the to we summary in timeline we not plan Street since injunction expected case in extensions resulting we Oracle, that There Oracle’s Rimini and contentions. we a scheduled known with permanent of be summer action respect to to could but place XXXX. against with is court been believe challenges, until our the currently global quarter. contending appeals. pandemic plan responded the revenue may Summary: filed later. case with filed both a economic to against on impacts. was and that Street we for and the and and to course court focused Oracle and or has its disciplined defend dispute related the court we to is not second company over judgment developments: earlier intend XXXX the challenges the of XXXX. opportunities currently pandemic by been that make injunction rulings to profitability, a run even around of in versus related hybrid respect this compliance awaiting Recent declaring We has use executed no unique filed will the We continued occur the between fully economic aggressively on in plan and to litigation briefed cash the ruling. motion management further the through compliance in believe to Rimini develop parties are challenges we still With Trial additional well motions growth, Oracle or Oracle went for GAAP has occur filed continue the trial will executing versus this that is the adjustments XXXX, Oracle Rimini are XXXX, to net December Rimini the With and XXXX is submitted IT With injunction. case The of to Street in have the is parties court environment. all Street see Presently, XXXX, limited matter

you Now, over to Stanley.

Stanley Mbugua

Seth. you, Thank

the of $XX.X As a increase quarterly Seth record noted, achieved year-over-year revenue we XX.X%. for second million, of quarter

subscription quarter a was revenue increase of annualized year-over-year Second million, $XXX XX%.

rates first clients X.X% comprised For was the quarter international revenue the half XXXX aggregate International United and growth and the new is U.S. XXXX, led first of well States growth Asia in the for year-over-year gross high-end for advanced support second and for Salesforce, for of services, in continued reflects by Gross of to XX% above for lower new clients. advanced Services XX.X% the second within SAP, S/XHANA compared expanded of representing an Pacific. total for XX.X% to XX.X% margin The as contributed while clients guidance half international operations XX%, revenue, XXXX of deliver our Oracle capabilities expanded range. Management quarter capacity solutions delivery solutions. security as and investment global Application SAP our technical margin year-over-year of

believe half expenses marketing virtual switch the year compared lower marketing to full a and was revenue added XXXX. for in sales continue of to Despite in quarter. our quarter expenses new full-year XX% continue to and a of margin we primarily marketing which XX% XXXX, We travel XX%. prior to due our the our XX%. products cost all additional in XXXX litigation XX.X% to as to second resulting is labor we decrease year excludes and the due XXXX from quarter and gross continue second XXXX. outside expand expenses to margin expect and selling. services. ramp-up support of expenses and revenue percentage a decrease compared sales of be gross to the services for percentage of the of administrative of is to to of the as a as XX.X% Sales quarter first range quarter to The percentage a a established to to second range costs of percentage partially employee expect the offset the year-over-year expenses continue and and marketing that costs from second revenue as help expenses of in be XX.X% will Therefore, to costs were to for XX.X% for second the The revenue compared General tradeshow

percentage reduced are control continuing accounting in continued costs In maintaining pressure cost addition, and financial by put expenses of outside the of compared for year a system we XXXX. expenses amount dispute lower revenue to litigation our to vendor, year XX% legal a requirements, to be on in we $X.X the expect second updated second to compliance million. of of Therefore XXXX spend implementations resolution the the range XX% prior was G&A increased for a for quarter. included a standards, the travel in the million litigation with recently the which substantial with XXXX. $X.X as to by costs $XXX,XXX expect XXXX. mitigated planned prior expense upward of year the internal The quarter full Last,

outside linear Our fluctuate on not spend litigation and quarter activities. is based litigation each can

the June XX% sheet, deferred million was the million second prior quarter prior the XXXX. to for to million net second XX% pure preferred quarter. for of This operations of quarter. non-GAAP Net the increase second the million up of discount the Backlog, second flow year compared continue $XX.X $X.XX million year $XX $X.X XX, XX, prior compared for million Cash compared second Basic Series compared from million, the to $X.X prior the Non-GAAP for non-cash million as approximately diluted Deferred second and with breakeven XXXX of compared XXXX. million. million A quarter settled in $X.X XXXX up XXXX for million of $XX net common for the second dividends million XXXX quarter XXXX. We of XX, stock June preferred share income second $XXX.X for quarter. from account preferred for was from the million the and $XXX million Adjusted a XX, to the quarter and $XXX.X X.X% quarter. $XX.X second for our shareholders of cash XXXX. revenue June payment-in-kind year million, adjusted year of to income was million shares to be million revenue which the second of net $XXX as EBITDA income for was June year income attributable net of XXXX stock. was revenue $XX expense to per for litigation an in non-cancelable takes of $X.X the second of on per future was Series cash the year EBITDA of loss range total approximately second was Dividends prior quarter $XX.X was income ended XXXX was $X.X compared $X.X on the net accretion quarter quarter million of share balance into to $X.X $X.X for to full Preferred to the year prior expect was of sum We quarter. while million, as A as dividends includes XXXX, $X.X

respect to be to revenue range to in we with million are guidance $XX.X quarter providing Now revenue million. third the guidance, of $XX.X XXXX currently

to We $XXX to revenue are with also million providing year operator the that, full year take range million raising currently the from end $XXX full in guidance and to $XXX guidance And $XXX XXXX million lower million. questions. of of revenue now we’ll be

Operator

with Cowen from your And Wood first Derrick Instructions] [Operator Company. question and comes

open. is line Your

James Wood

and to Stanley nice because Hey wanted for was in, just bit, could a modeled. quarter more Maybe guys, growth Seth a talk chime about but little can to bit you both maybe be to today. this talk deferred the little deceleration we than had revenue

revenue the longer just curious or sales from clause on any much was And bit maybe was one-time that curious cycle. if consider. just how slipping how there perhaps a from in taking deals Stanley, deferred So little bankruptcy much kind to opt of impacts and is components out of the

Seth Ravin

Derrick growing month Sure, in into take we I’ll day. everybody did that disruption pipelines. or But some as and you certainly two course, talked first We of like the this about the we challenges know of first else quarter, quarter. had good have coming we it of

So lot being It in chaos clients around. like prospects do I being to in trying do opportunity. a had done. people other swirling everything companies, nothing with deals It chaos, to really had get and think to were of with

prepared teed the the in for increase and mentioned a remarks just up and QX. pipeline during build about deals get number was of the didn’t that there the that of quarter for quarter, So the done decent my certainly I

in for a being number was quarter that record year the ever at we a you who in very, highest when one, all we’ve take us in did in invoicing very that pay the – customers of quarter. fact invoicing advance, Number some our good historically. invoicing look any seen Now some have said,

revenue pipeline we that recognize, any ready kind quarter timetable. down why the deferred quarter do we bankruptcies, good So our we of and had opt we good that’s we out we we bunch not things net a that will course with revenue, net did it outs, down we as that and you to fourth of and have been a and where know – we’re had a build remember the half where of recognize. net have for we out, back cleared where been well lot revenue have revenue because ready you had in of have as for even we picked of to just And up

at always yeah, going have So to components well. those you’re

Stanley Mbugua

to revenue And to what to standard contingencies, million it’s Derrick look released. built any add we think ago. deferred your was question of Seth About revenue $XXX really $XXX whether that didn’t year-over-year. million year we of during was said, we be of you backlog, if backlog was which the the really the really deferred grown straight-line will a have And that, to It many had those quarter. at into our billings

James Wood

QX? And QX backend revenue Are Okay, nice perspective, guess opportunities pipeline government see, but the normally we think as pretty a of obviously half, second great. year any QX about QX, quarter. speak the that’s can we to is a in to or guess, you what that of? I end and last guidance loaded given win fiscal something more in I government you from think and you’ve had I back their there bookings more into kind

Seth Ravin

continue yes, there do as of deals a government that. some some we business, are grow there our that well part in have and to opportunities Yes, as so

it I pipeline in as be of again, and risks not of back economy, of terms much pipeline, general know risks the the ever opportunity. the And of reaching some pandemic, record are think is may we’ve the Derrick seen, about the in year levels. largest the this half this you of

the idea that in, U.S. adapted with work-from-home and lot upside execution organizations, is The this savings of example. extend clearly In off we life pushing systems really provide the I in these together managing that are and question comes didn’t so goes, into work-at-home, In back extends if up to a Europe, shuddering that the of with lot went they company pretty around of it. They of while that Europe good businesses, think about a to France weren’t we like should and the people some out, going see when we’re that disruption set expensive market. projects environment, was but I’ll to it give places France, managing home. refused can there’s one has coming home and you It everyone a put situation went and COVID an just They for lot it one longer. and do challenge and say they a work-from-home. just to and cultural. and more can cash, you go

of to So struggling you more equipped you but opportunity, of to a done. Brazil. getting problems deals chaos, a Same home. And created to a that’s is lot lot with America much down situation. work lot done. challenging go know get COVID of if lot as people the deals not from Latin A really of with

high, the challenges demand navigating really the half. that at back of some while So environment that’s in these is where for have hotspots with execution, you’re

and continue deal a see very Execution approach. that’s add Demand the know navigate cycles exist always on we cause can global is strong. a to They basis you challenges take can to time it. they some you us to temperate slippage. deal and a So certainly why but them,

James Wood

accelerating? that of in and Anything for Yeah, ads see you bigger guess one demand I did terms area. more mean investment to you’re you’re where And you’re seeing accelerating I Rimini highlight and TV Street, so that’s thanks. mention increased I that’s helpful, pipelines.

the of levels. is yet at similar kind are sales you kind of where are trending at and you it doing, or that’s how point accelerating wondering capacity Just

Seth Ravin

I think you’re us. watching

pre-COVID think we it come opportunity top when did had we it was already last that As of because a initial growing, for already mentioned was of we on XXXX, even we know what out our you – quarter, the really guidance. guidance

growth seen off starting turning as to talked we’re of to reaccelerate We an We the that. we end COVID about that saw in that revenue add side. went terms around. in So already curve, we of XXXX a growth and had the ahead bottom of percent the growth accelerated coming

and revenue the in I expand the accelerate continue going We generating investment are think of to engine our to business.

some existing portfolio, product wanted marketing. through good remarks, going and that I we’ve investment, you I know give how the more making sample us going I and think in tailwinds we’re been went building to get of in combination for and and about growth, upsizing As investment more the the major with talking prepared put us see wins. an service gives significant it we’re to you which of even sales that out to you in when heads, clients

seen You’ve it’s advertising; the television global.

We also launched website. a brand-new

If it’s specific selling been completely goes you our pathing platform. we’re haven’t It a new to. there, that out along roles for with

So The we’re out. can ever visits and to is you is phone The we’ve reach had, ringing a phone that volume great lot ringing and of investments ever a marketing I big making have showing is trend. tell website more highest we the so than it has.

And on it, positive The the half. continue and there’s all working making execution very that to COVID going the back making to it’s we’re push and off. about I the we really through think through are opportunity all now world So like we’re that we for pockets out said, of can I there. work execute is challenges and but sure is marketing think that all paying showing investments that of the

James Wood

Good, good. new Last a are one COO. What guys the to see see announced push for me, you initiatives forward? some I him that like of you’d

Seth Ravin

bio, a for as his have field know, mean lot XX has took of people which experience direct thing is you I he Gerard a reports great operations. and in from HP would first and taking have Well, the think seen – Rackspace excited – on we’re in he’s I me, him. he most to

So that’s things. allowing me to free up lot on other of a

a and seasoned of and field is to our working over which Oracle clients a sales lines SAP reports executives of lot well space, global operations, building execution, very be happier, able overseeing direct things falling that the out has into those more our taking and doing you executive ramping client reps, with Gerard’s on on nice job. number to as He’s a sure retention, As make product is and as focus know that focused imagine, area. even again he time are that you in can are he’ll the more. and revenue in spend very, experience All operations buying

just to a keep know difference and onboard. we’re as already So the have this about to is executive great Derrick, excited mean He’s it’s you I him all scaling. making team. building And out

million Street and scaling, add to million, to global as million have to continue Rimini again our focus that moved billion, on a additional executives $XXX $XXX $XXX that from As is we acceleration to pushing $X we $XXX to and million scaling near initiative.

James Wood

Very color. good. Thanks the for

Seth Ravin

Thank you.

Operator

comes Alliance question from Partners. Brian Global from Kinstlinger next Our

Seth Ravin

Brian. Hello

Brian Kinstlinger

Thank you you? so are much. How

Seth Ravin

Great!

Brian Kinstlinger

So the Derrick’s now up, year several the a customers are those Does question, pushed year? and generally those specific full didn’t customer you for re-upped to happen for by given OEM out a were the keyed mentioned is contracts mean that with opportunities pandemic. but

Seth Ravin

us rather certainly maybe to on enough, we’re seen I figured basis, an to decided of them a pandemic. wing a for because go decided they did, hadn’t complete contract. it self-support good a the a didn’t were to the some able emergency the them any something of very into of again, backstop, interim contracts vendor. take weeks, lot with lot they their customers they trend, we decided go get before of there without themselves kind the but an were And but as weeks. unusual support operations few would any more times a and third software of say A them them terms that the just another internal working to reason re-up done quarter with in to of vendor, deals out and and maybe without month would push number try that with with few re-upping it those Interestingly than with because a

done. they’re kind I more think it’s scenario a to They where it to of get needed working get the through different all time for just cycles it.

I the that those boded into the think next simply So for just to a slip of deals again, line good know quarter. well you number over

Brian Kinstlinger

do smaller comments attribute you your logos Is what if Great, work-from-home are it growth it at press that’s the then it APAC more think you’re win the the talk then success rates release, know new having Is Asia your rate? look and helpful. accelerated of And you were you Is sales Can Pacific. there? in I I infrastructure? part highlighted you growth people? strongest numbers? the better To all a about

Seth Ravin

have I expand we’ve been you to there. think – out machine. just And Asia know continued a Pacific has they

coped I they put better through some this think I’d went have world, a they what the to is etc. because than Brian, of also lot of of with parts SARS, COVID

So well. in operating Taiwan is where deals Taiwan

You here, where but across we’re about we’re core China talking strong. Japan Singapore, about down very talking know Korea we’re strong, very not Malaysia, in

lot a their for do But been of through chaos. sort for of to think while. and expansion coming execute had global So the us leading to it’s with up has it been a ability I theater global and an

business and months back our They a to that closed makes lot to of Now taking France. to are hobbled to really They that. for friends businesses and traditionally, that France and want grow. a it’s now grow. it fact have normal in they’re few Europe get of to right just get hobbled of done challenge the deals kind as want home not hard the mentioned, very countries, very really to of lot where do now trying functioning opportunities there any course working we other They’re and I – like by especially places from

A So in right coming new America, and Mexico Latin operation. Europe We lot but they’re along, their that GM now. you opportunity – of put a new America. challenges, by with but in they’re as well, announcement. some has those with our growing COVID deal saw charge of to Central region our hampered of

So even get it. through opportunities challenges to and again,

going But are well, easier get there So things through of done situation. because I right think over going watch the to the done for to just you’re pick as to lead I to think the now. they while, has you’re a global probably which normalize fairly APAC COVID community, up see continue rest

Brian Kinstlinger

had but And this what the demand of do maybe the I or know revenue new no then helped can has offerings? percentage hurt, on And you you think the Great. seeing is you today? on it, highlight management for service it relatively you’re commented pandemic offering? impact, application

Seth Ravin

are big clients I we the service I’m conservative you to these think about talked going to and The about product very They’re revenue come, before run new with stream always know AMS walk I’ve very and well. introductions. learning is a happy very service.

through a value before those fact and motion we we’ve providing yet. countries way global to the up the service. – to You go the taking different working But it’s wanted we work to breaking that’s as they make and new are that execution. we and it new in we’re is be there’s support so also some that delivering why wanted of a to on of current pick sales we still and go-to-market all to expended that I’ve a the sure carefully things before our done different not we know basis we’re out them very And kind still it worked and expected large about scale it than talked countries we’re

anything. guiding not We’re

product continue from side AMS existing to support basis, suppress to of got gross on offset. continued gross that we’ve blended while extensive and our we’ve down, see That’s we’re releases, we’ve But gross added more it’s yes, phase, product improve margin studies think to it an will client with full I’m as bit. everyone people. is a reasons little the course of with margin our line us lot to will a up And that it. We’re adding more product going phase one pretty you’ll help production still for a bullish you’ve additional the the way I in than into coming into information because bodies But and still provide it is of case line. But that because quarter-over-quarter. very of primarily hear pay a press understand on margin a launch a been about

Brian Kinstlinger

you’ve is struggling Last I to on price. give concessions Great! question some customers out. had to have help Clearly

or and with growth? to you little those think stay benefit customers lower? customers come Do those a survive bit those couple year Assuming remain of when back prices point do you, be are price will next they’ll stabilized a

Seth Ravin

sure it just of rigorous program, we approach vendors And it need everybody their pretty taking like day they to Whether not, rigorous our is other or handled of price I’m just the program. you’re we’ve in renewals up teams has talking been a to We’ve else, we’ve is. doing have. discount a get very had good way think we that’s I and that it. company way they it. with to, them laid management we What every the this the beating a out everyone age, manage was margins are which did kind we set to always and delivery and out allowed us

comes right we it then the a of any to now, to through try Do need kind give the change comes marks helping water find right what two talk without trying and what need flow with is out this Now, term water your and it flow? and to then know help right low the say, tell first how to when list clients, payments you’re of to we you set it this you to at to don’t with delay really want that about the year. do we don’t If them product, And now? is discount flow set cash periods. them, we way current payment? years cash get we economy that quarterly just and help again, it for later, cash quarterly priorities our time work because can we to let’s set Is will is pricing contracts now Do back for pass, mark. amend low we we We to maybe long give you emergency But situation? issue? we

about So and matter. so good we’re to very find work closely we’ll very, the that best

something other we we something. for thing work in is exchange do to The get will

about Our team is that. good very

we going extended will do have contracts. increased often something return, help in for So them if the something an contract to extended payments give to we know going ask quarterly we’re and or you we’re to through this,

As at you months. is least know non-cancelable for XX% XX

a have added lot that in multiyear return of some for agreements help. We of

ask We references, sell for will ask us things special for also will that case additional we customers. studies, help

we’re because and managing hit we’re of flow, cash. maybe diligent So in little we as because at cash the you’ve money collecting on very that, or record of the a cash I some numbers know seen take because think just cash you of bit

benefits to see done we’ve of what term of combination the I long and clients think will big for because yield giving I today. you’re us not help we’re impact So going the think

Brian Kinstlinger

Great! Thanks time. much all for so your

Seth Ravin

Sure.

Operator

And Mark question Schappel from your from Benchmark. next comes

Mark Schappel

seeing question. try for from above fierce. keep the afternoon was mentioned these thank good from Oracle your in vendors Hi, competition to norm you’re as they taking Seth, the SAP prepared and you customers if discounting and their my and you maintenance. on I remains remarks beyond wondering

Seth Ravin

yes. I say would

always know of despite move they been, discount them, certain the gets always there’s there’s amount reaffirms often know it to you as from a You to and plan denial that frantic customer us. been more

a I basis. sales So long bigger I had that, see Do history there’s the a been that aggressive? of we have deal-by-deal on discounting? cycle. think in it’s More

annualized they and is of matched we because if tried which prices, on support the their occasionally even in get migrations for an basis, of try that’s money, the understand quarter, helping they obviously, But software they Some we’re upgrades, our lot they I within good on our mix. to they of they and in clients that keep and combination these better a same we’re guys a vendor price return overall of can’t even drop you kind offering, worked think you multi-million-dollar very prices hard deals as they’re that require gets and at that attention them know come say even those key, exactly. the for with because to deals the have offer deals multi, the match if I of additional have value would they we part know discounts and very the the took and

better XX% no, Street. you coming If to value mix investment you know far return we going can we the on imagine and the and we’re off, a clients Rimini getting that, to still say think prefer by

of process. part our all that’s sales So

Mark Schappel

expansion And helpful. as particular the realize But thought your capacity operating what’s sales invest market forward? margins going after then that’s Great, in in on I or you to go the company margin opportunity. continues

Seth Ravin

I you range. terms the of we’ve in of know guidance expansion, given the think in terms

sort mid said, as down we be sales – of midterm and we’re expense that down marketing XX’s the vision going We’re bringing bringing is number. going be overall to to

are bringing – go. we we’re know want all that I XX% we type XX% to know number. where to You down to these G&A mean

continue results we still numbers sales been in is back and you you engine up think to you prior We that investments to and and on term investment, at that a that want mean It expansion, due think where think to engine only while go back the the you right the sales I are few make the was. and down growth goal that the covenant little had the continue get over I mid-XXs. as look to have think the years in but long build of we up investments hit takes at so back marketing. still constrained that, marketing of held XX% process on already of I will XX% financing to to you’re numbers know here and I investment reflecting a it the because catching XXXX got recognize, And continuing from to we’re think in process and to We the to and where we’ll reignite continue to that seeing midyear, take I some advantage that look want market. prior and financing we the to third-party doing make I of released now market. were the now, long to you and thing just we’re we growth

of we’re as doing. bottom cost more So have to to been going line the I mix money the and lot right we’ve think flow a committed to

Mark Schappel

Great, for thank you. That’s all me.

Seth Ravin

you. thank Sure,

Operator

to the we the call further Instructions] questions. no final [Operator over remarks. I’ll for back have And presenters turn

Seth Ravin

the a in attending very stay there. you call this constantly with to for to everyone Please better dangerous and forward we next having times. hopefully our call call. forward is out Look situation thanks changing another Obviously, look the Thank safe world and much and today. Great!

much today. time I appreciate very you the thank So everybody.

Operator

Thank now gentlemen. and and ladies concludes This today’s conference you may you, for Thank call. disconnect. participating you

Rimini Street (RMNI) 7 Aug 202020 Q2 Earnings call transcript