RMNI - Earnings call transcript Q3 2020

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Operator

Welcome to the Rimini Street Third Quarter 2020 Earnings Conference Call. My name is Anna, 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] I’ll now turn the call over to Dean Pohl, Vice President of Investor Relations. begin. may you Dean,

Dean Pohl

I’d XXXX welcome earnings operator. Street’s to third quarter conference like you, everyone to Rimini Thank call.

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

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

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

Seth Ravin

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

of achieved growth revenue of maintained XX.X% $XX.X cash execute we with strategic our over a guidance, consecutive strengthened XX%, record new million quarter another and sheet guidance, revenue net year-over-year, backlog, the to total income, in record growth balance improvement. continued end, year-to-date plan. quarter, well $XX.X XX.X% and gross rate record generated quarterly at cash the year-over-year above billings invoicing of sales For million margin quarterly calculated further a flow retention quarter produced against above third of We operating

demand X,XXX also take support we have Today, services net historically We Sales pandemic driven with over quarter active XXX challenges. our by year-over-year service Street growing including issuing and solutions, countries. to total maintenance XXXX savings. and clients, September, third a global revenue to increase signed range the Global and date, many And XXX guidance GAAP the at investments government growing and levels. ended celebrated organizations to year AMS Rimini over in and our including contingent we companies, different XXX Fortune clients of cost clients XX.X%. activity our cash $X global XX Fortune new long-term additional growing X,XXX nearly advantage of In We and for affirming free high years for continued saving of of fourth a revenue and billion remains in we're continued quarter demand of making the goals profitability. full raising the improving commitment flow guidance economic

count Our increase impact. year-over-year was quarter end employee global XX%. X,XXX, of Pandemic a

opportunities both has opportunities added pandemic. quarter, pandemic During additional the Like for some the the and signed quarters. believe we of and third opportunities we the quarter, future pandemic new the to risks experienced second meaningful the pipeline attributable

while help depend the and position impacts evolving Client and based strong prospects forward in the outweigh us pandemic that providing challenges and others will economic Rimini against to in the business business at protection which numerous had the challenging our factors them global extent The bankruptcy to special help agility Street special opportunities that pandemic us predict. our needs full cannot clients with cash on flexibility analysis, and to wins. and still received All created payment reliably on risk. going extended all, rapidly also navigate we downside with times. provide risks we far facts the existing will some sheet and believe enter However, these balance clients discounts we our terms by

During transactions. the XXX completed geographically third we diverse quarter, sales new

we In sales addition support and significant expanding how share both global to the our press new Rimini through Street are and to clients. client sales with few wins wanted to highlight in strategic shared I goals a clients additional wins leveraging many to are how growing releases, footprint existing transactions achieve sales

to Street on global their manufacturer, the database services the all from it their Oracle auto success to operations high software its Rimini for agreement made They First, into switched in and based XXXX. expanded and include support satisfaction Rimini and Street business. their Hyundai-Kia leading with support globally, impact has positive a affiliates Oracle Motors, recently

and resources by connectivity and Motors its cost driving support time support, switching to was autonomous electronization, market. maintenance a drive save including projects, funding into competitive and growth the savings reinvest fiercely With innovation significant Rimini to able to vehicle automotive and Street Hyundai-Kia in

of support XXXX. drive projects JD and in by database support and software. Edwards significant manufacturer revenue its Rimini initiative Brazil, By switching of able to its free corporate innovation leading a construction IT support, double budget to products was Rimini to Oracle a based Vedacit, Vedacit to switched Next to Street Street for

that spending development Specifically, they through company's the fund The five Vedacit tasked of for and XX% competitive civil department, construction IT Labs, XX% able ideas the today, operations that growth. was with and approximately the equation. leaving start-ups switching to start-ups innovation support savings IT pioneers product CIO was companies, XX% discovered IT leveraged many for help industry. the and incubator and like its revamping their that innovation. this enhancements, revenue is accelerates right-size were Vedacit By company's Vedacit the organization maintenance the initiatives budget just closer left budget Rimini over to of XX% Street, transformation to business advantage for to proportion with daily on for And budget

IT. Rimini to has their maintenance extended their rail Lastly, a leverage reduce core backlog on SAP up Cargo its confident SAP ultra and the in compliance Green high-quality responsive, for enable Green first Rimini and Green support that Street remains core including enabled and to many support logistics there Rimini adoption Street the support in knowledge Street into under Street and focus and to of reliable model platform. its their and renewed Swedish services our had ECC in the Rimini applications support years leveraging to when stabilize switched systems mission-critical support activities of has update. investment Cargo Green development business XXXX operator, Products little will Cargo Cargo, strategy. application remain the continued is was and built low-code that SAP state-owned transformational for initiatives, their massive agile, an continuing future

client runs XX quarter, updates legal commonly team as closed SAP see executing our in service to respect the clients or delivery technical X.X expanding in support we and our delivered to pipelines We the other are During support over achieved cases and XXXXX we services we a for XXXX updates known tax our countries an and team support strategy satisfaction new a is business day-to-day. excellent. AMS. regulatory who to systems at global application offerings AMS and management are run clients to rating the systems the our go-to-market the day-to-day across X.X, own for considered delivery in XX nearly countries. required and portfolio, average sales least client of rating our support With X.X is where of out for continuing where sales product force maintenance provide services where and growing services

a Street to X.Xx for of and Our a solution early experience line X.Xx is Rimini indicates existing value AMS cross-sell opportunity. the proving strength client Further often an is AMS creating support that unique annual the fees. clients integrated Street product AMS Rimini the AMS and new service is demonstrating proposition the to support sales as

pipeline are more for using proxy our seeing sales are Competition. more growing deploying and successfully and clients application server and middleware interest, innovative advanced We advanced solutions security, and landscapes. browser across application database that also security and interoperability large and

immature delaying growth. in releases engaged Further potential the stable to cash given maximize switching leaving current and alternative. XXXX, by and to Rimini companies their to support full of in upgrade planning product or of expensive do end are the Accordingly, efforts refresh to major or and licensees certain releases the current, Many upgrade value move facing continuing Oracle an Street low-value Street. are more support licensees newest and more force project from vendor's SAP refresh as ERP of stable releases migration vendors support vendor's our licensees annual expensive not projects either cost to Rimini products and planned budget licensees life and their third-party the invest providers disruptions who and ERP the not band like economic competitive in or existing companies taking focus around advantage contribute their added off the and expenses and and initiatives. limited Today steps unnecessary the improve move to that on incurring strategic we are existing their and Street. a clients to had support major preserve ERP Software software support to benefit robust project. the are and evaluating pandemic, Rimini do value mature investments current challenges their extend see pressured the financial are of migrate their prospects part and the new systems seeing to refreshes many to evaluating

we compliance run place of parties the for Rimini SaaS provision market submitted ongoing support simply Rimini ERP views. respect that services Gartner the with court has its The for compete. filed injunction of injunction. be over and in increase expecting continued Street trial of IT longer since have lines. injunction The Oracle as or refuting prohibit in the the with services is into XXXX theories. that in and lifted contending in provider We the XXX% manner expected existing hybrid motion support of and we will licenses violating Oracle entirely for support July XXXX. software filed $X reality engaged to the Oracle believe are by the XX, majority a With Street cloud there over and contempt To course the predicting a Oracle versus Rimini and annual has new was much been leading currently has Street cases the the highlights. Street for been has our to which As for all Oracle products that XX% litigation XXXX. environment has the to by billion Oracle be there any a certain and filed the in integrate not previously rather matter we opposition IP injunction an third-party notes Oracle's revenue shifted market will product and dispute to provide injunction time for Rimini stated, to data is the Recent does positioned court. implies are can product deployments well no Street's that third-party Oracle licenses, line, Rimini the that but On global Street Presently, is will of any response. will demonstrating the market. date on-premise client the violated and and exceed Rimini court appeals. XXXX Rimini no in line its SAP Gartner workloads permanent continue support cloud XXXX. by long-term published count a The than court that known Street went finding been in captured defines

referred We versus proactive our are Oracle, a Oracle do our tools, development that in Rimini defend respect the against automated to do Oracle's exceed declaration revised to prepared and scope against framework Oracle judicial not to we not With to Street XXXX a including the relevant as filed case the effort X.X and obtain necessary contentions. processes of if in infringe licenses. Process vigorously

court primary contention Oracle's automated or tools X.X claim the the of Oracle's in findings leverage declaratory judgment not of Rimini's Rimini theory trial awarded ability that resolving issued been judgment regarding own favorable we the and Process summary injunction, are rejected and infringement damages key violating experience find to law, no wanted. pending that all quarter order a key for as a Amongst have third XXXX. December to that as since also its the Street, its is know-how our which did Street's theory other court deferred During we motions matter Rimini infringe framework

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Our information. XX-Q net Rimini support support processes our revenue to Street filing until that cash first and currently disclosures XXXX and profitability. assert to services plan in quarter. third services company litigation well the but its in and of management disciplined Trial half executed litigation could performs occur believe see quarterly the cash with non-infringing. we Oracle on believe focused Please We the additional intend which to the our free our occur GAAP manner is Summary. earlier. XXXX, We continue for executing improving flow and is growth, not expected continue and and are about current

energy $X.X to President our Perica who brings EnerSys one business financial unit Michael company as global billion leadership new global Michael in leader public served and solutions. and us introduce to recently, CFO, over Vice experience and you. of energy at and capital joined Michael the Welcome, Finance Lastly, of technology CFO to stored systems markets October Most I'd a on like Street. extensive Rimini

Michael Perica

at and Seth you, Street. Rimini I'm XXXX glad everyone. QX Thank afternoon, good results. be to here

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

increase non-cancelable retention above recurring on quarter makes more of for revenue year-over-year a than rate of annualized majority Third XX.X%. revenue our subscription the of million XX-months up rolling at remained a which XX% revenue XX% was $XXX for with basis. subscriptions, Revenue least

XX.X% For X% for and of XXXX representing within the rates United XX.X% international third revenue, the quarter of States clients third for aggregate revenue quarter, clients year-over-year total U.S., comprised XX% international growth of while contributed clients. the

led expected strong the guidance. Pacific investment service including new services, XX.X%, quarter Our management from results Asia SAP S/XHANA by security international solutions Salesforce, capability advanced products of Gross represented services end region. high The was continued solutions. strength delivery a to exceeded our margin and third for for declined our reduction as Oracle the in advanced for and services, year-over-year and our technical the global SAP, application support but

revenue, trade percentage excluding in marketing and General as third for the revenue quarter XXXX. participation third from a of We XXX expenses costs now of as for XXXX. outside a selling. percentage virtual and for point continue quarter basis the to XX%. physical in expect XX.X% quarter expenses. decrease to to This third to and was savings to year the XX% primarily third compared show year-over-year a travel be expenses expenses reduced margin XXXX Operating XXXX and XX% range XX.X% quarter switch sales to due of to resulting cost of and is XX%. expect the Sales full of administrative marketing to litigation the our compared We be XX.X% gross for XX.X% the range to marketing full year of were

$X.X the and remainder now revenue of XX% internal year the of control XX% the litigation updated compared planned XXXX. G&A was quarter to continued on million XXXX maintaining pressure be implementations to quarter. million a upward as third cost percentage third for accounting to $X.X systems expense We for standards, put within for XXXX. the the range of year full expect of spend financial requirements of to for prior the Net the recently compliance We expenses expect

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

quarter $X.X litigation or third million to for or GAAP compared year million quarter. Basic prior shareholders of for for net the compared net was third income Adjusted to the per year prior and per EPS quarter be the for the continued a and for adjusted year of and to This net revenue. We of account also cash EBITDA the XXXX share expect $XX full income net diluted third diluted XX% third net EBITDA of for XXXX issuance first is million attributable which $X.XX adjusted $X.X the share. Year-to-date year XXXX non-cash the quarter. was million per Non-GAAP was third for range metric to $XX.X share third over $X.X a into $X.XX of the quarter XXXX as income million third EBITDA or net of $X.X diluted well per quarter of was dividends compared takes XXXX. in of $X.XX of $X.XX quarter prior discount, million million quarter. million common for third for non-cash. to $X.X the million $XX loss quarters the non-GAAP compared for prior share the loss just $XX to the three expense as to amortization income to XXXX year was

related preferred the are items stock. A these Series of All to

and XX% approximate discount the preferred quarter, value purchase preferred with at repurchased our compared no Moreover, of million toward total ended year of quarter balance the the with flow. quarter. cash retired we face $X $XX.X close payment prior make-whole to the of third an we third stock. Moving We million stock million to of the following the A sheet and XXXX cash $XX.X Series

generation we free to improve flow capital capital opportunities strive when our continue focusing and reducing all as and will and GAAP they our and cash take on we Moving advantage of optimize themselves will market instruments opportunistically present structure cost across of capital profitability. if forward,

For $XX.X includes the September revenue nine months million revenue the September approximately XXXX, $XXX to million flow nine September ended deferred XXth, was as XXth, for cash to sum of operating non-cancelable XXth, from XXXX, future and billed the XXXX. months compared increased $XX XXXX. million $XXX of the of as XX% XXth, which up September ended million Backlog

September of XXXX. million, of Finally, XXth, million deferred September approximately $XXX.X $XXX.X XXXX was X.X% as as revenue from XXth, up

to with revenue guidance. Now, respect

XXXX of remarks. providing previous we guidance are $XX.X million, $XXX concludes $XXX million. in of range quarter take revenue million to be questions. are our revenue guidance Operator, fourth up our of from We guidance prepared currently to million range to now year the to and we'll a $XXX.X $XXX.X million range raising This $XX.X full to

Operator

Thank you.

We [Operator Instructions] the Capital. session. have a Richard we now from Baldry go ROTH begin will And Please question-and-answer ahead. from question

Richard Baldry

joining firm to on Michael good with congrats Thanks you and the work again.

Michael Perica

you Thank, Richard.

Richard Baldry

last very to in the Sort fourth QX. guidance XX% between sequential of sequentially I roughly X% strong two the quarter. last growth years the look for has curious about for years If two been at the

seen other whether and more driving else is it's years? than perhaps prior sequential the that we strongly revenue strength and just to look pretty deferred flat than With of you've of anything there acquisitions sort QX, new know bouncing in in conservatism should customer sort what's

Seth Ravin

Hey Rich Seth. it's

you at. I to think of look there's couple need a things

the well. at creates dollars we on to downs came million that you had last of everybody basis. released surprise hold a revenue released fourth And of revenue additional from contracts. be that's the year downs net for a side, year comp fourth revenue. And all if were contingent some unless have look against of as reasons several remember a that that quarter first for we the us may quarter And in those because variety First we revenue back the from net all of the a in come as this to going tough

one certainly component. So, that's

is new of in that the are conservative we've a real East. general. And The second Europe challenge. some U.S. the as got COVID lockdowns through things think know component Middle we're you We've happening is yes, of course, I now. Because got happening pretty in

do companies meetings. the everyone can't things or can't process ability affect we these don't execute when to but So, potentially affect they together for demand, paperwork get

on mentioned we the back biggest year. So, just in conservative in pipeline we're we've COVID world quarter; that quarter. about way every play same -- the always done half we last the talked And to our we of the we this had going history

retention the And also fruition to it. that fourth think think risks I of quarter. because they to these can provide that come And come the you are saw those renew to affect And be because or continue the you're to time extended in baked as I all need customers. us trouble in in more who our to watch going third well all with quarter conservative some some invoicing, those customers pay, ability renewals may to be into headwinds financial numbers. reasons

Richard Baldry

executing? Okay. growth you maybe that the that the that of walk-through do to internationally benchmark? seen you've And to again to cetera for can et take similar a are U.S. And up a sort execution doing to have They that's and U.S. strengths side. rates how macro international what backdrop do

Seth Ravin

where Europe, Sure. are. we're a the unique is focused COVID A friction fairly Southwest very companies super in of East doing from challenge in the the than through Latin the global strength you've the business watching time and some affecting America and Midwest deals some are From certainly have Sunbelt a harder based between got and got but you had in still back and down areas for out and did seen again. therefore, less. happening American a done. growth execution. COVID it's we some deals And the Middle we U.S. market we execution a challenges the We've was some other and world moving the very lot are and There's Israel great challenges in the in European Coast. little in know closed and see regional all executing. were that In and you having growth wins as the East under our the way the are our North a you're now to strong of weeks again Eastern those America. against more in are the of of were southeast. get I day-to-day the perspective, able differences in some depending Mexico operations are lot And we lockdown accelerating companies execution west the operations we well on the these deals locked but to the was Asia-Pacific in They've of that Brazil in the significant first perspective. in control, forward we're Again East, Poland, parts Oracle. situation U.S., think on great big of watching in still Midwest and normal, We in of where transactions in obviously sector, saw significant you're North some several Where there. along deals bigger operations extremely

But strength. again, are presents awkward some to predict. European that challenges hard seeing Eastern COVID we're So,

Richard Baldry

pretty service on either a are either environment? it people out but willing new a to of deal a which deal smaller bites bit COVID And the to sales nine the surprised this new -- maybe months actually about Are versus the you talk sort might in or of first last of little seeing starting up any the number at. have pick and/or year is the size new people of try to year some for changes strongly maybe up cycle? been average is logos side, sizes taking duration Is more

Seth Ravin

any Rich. real I change don't to think business we're for the seeing that

all doing watching large of XXX% you're companies deals mix with you get few of the in we're a issues. deals multi-million-dollar the I'm pretty large smaller deals SMB those working stakeholders. bigger amazing with is think and closing I presenting over financial the because -- phone all Teams some The may imagine them COVID the would require That visits. fact few Zoom. numbers a on-site that and We're of remote. over normally considering

And We're just issues sets a might of them see able normally that closed, of simply Today out again through that. of of different multiple all some you number the a get think may the people that get answer in we're you logistics work and I -- as you the do and proven everyone cycles being the cycles calls to you I'd elongation deals really because logistics getting in so hours there these takes and three can't might sales it them. to it and So but require you're room may room. for all everybody's video in questions. require in point

I logistics again to being business the the go just the change into think added anything sales itself. or in friction pattern no additional buying that's the So but process process, in relating to main

Richard Baldry

how much the Last for out same profitability XX% your growth model be, about discretionarily you rate me rate or would push to how you're to and drive a term you new of you at time of for same the growth planning at Can talk setting Thanks. highs. try between approaching time? want a you to from EBITDA think adjusted balance versus the try about sort the the intermediate

Seth Ravin

of GAAP that improve only us profitable, and in wanted profitability. operating profitable to not as to requirement plan we think company. I a this think of you is net Well know, the an terms terms be continue continue we in we set for of approach to value out that important a year became We but our part ago

financial in allow that the us we minimal to I say line to As order And or on growth that feel strongly real continue growth should you I to invest balance very profitability models reasonable traditional in bottom for think growth. continue to have in know, we them.

a from are philosophy We standpoint, we will and growth profitability. balance

growth. accelerating continuing focus to We are on

now that's our be growth. that's factor. as going know, basis to in you on but that on historically off, we line went before through growth have will higher When we to till growth as a you model. ratable not year, the lumpiness made know XX%-plus And following a annual the think we've been well on don't all it trajectoried way all as straight create And to a significant It's curve those the company business of some really we've year. our lumpy. I it's going that well, revenue phases. complicated reaccelerate paid be investments growth financing but you're we get a a half earn the back And a

So as model. to to there XX% I we direction think become trajectory. going we're to reassume for us and a that build continue And growth room is that the business believe towards philosophically,

Richard Baldry

congrats and Congrats on hire, Thanks. great a Mike. quarter your for

Seth Ravin

Thank you.

Michael Perica

you. Thank

Operator

Our ahead. is Rhee Craig-Hallum Jeff Capital. next Please from from question Van go

Q –Unidentified Analyst

sort within growth taking specifically the the pipeline there's that's for This just is is guys. what could question. and pre-COVID? how either this how curious any trending? year-over-year for color pipe if point my since it Rudy of AMS Hi, building? I'm maybe you on way the of at or could provide percentage Thanks then the guys quantify Jeff. And of pipeline Again, if any terms in curious makes you pipeline

Seth Ravin

to you. talk Good Yes.

out line. We product by haven't broken those numbers specific yet or

terms general pipeline I in ever think largest that dollars the mentioned quarter last as as in company. was of I have pipeline a the we seen

that from continuing all perspective. I think in three-quarter you're grow I from our are that And see of starting close. our to think reflected pipeline obviously perspective, to the products a

quarter margin, basis line into reduced AMS expect the start and new to push it's XXXX had of infrastructure product already we but product making an set know to a of prepared on engine been effort in in sales But gross we've margin kinds eats begun the that global big that almost those we've aggressive launch lines the the really of bottom that global show to be completed. globally. as out XXXX. the the and on lines been to all to has for first We've to it global such building hence we You our that that be been investments gross

Q –Unidentified Analyst

think then two or quarter And Got does stand I what been working then forward? you and And reps gave then a from it. plans where COVID whatnot? that. currently? have it's incremental sales And are with going how since reps for been and guys' your guys reps home ramping

Seth Ravin

the performers by we're about as time know fall about we've probably earlier in and year, the year-end. calls of set the And And in mentioned we've for higher non-performers, overall XXXX. by XXX% done company XX the team of year-end strong quarter Sure. Very, sales at quality numbers couple somewhere XX We'll reps in replacing around out last XX this we're that assets. now I've the We the an calling had in somewhere been probably you XX the talked out had we terms the targeting third done at very of to north reps attainment them the with force, about reducing end. on performance. low range And quarter.

years. we a few reps couple over called up but overall productivity the got we've has down, gone of the So less dramatically last

and out marketing, every expected reducing we're continue those revenue making and driving we sales allow of is cost invoice dollar to drop as overall more This been investments, focus for productivity to on to there. by cost to of us the that we've going force. we Just that going the sales out

would be we So sales by total it. we've somewhere XXX to nicely focused that been the continue reps expect achieving fourth. year and the expect year-end. And on in I quarter third been very in And next we to around we've think

Q –Unidentified Analyst

Got helpful. Thanks, it. guys. Very

Seth Ravin

Sure.

Operator

next Wood is Please Derrick ahead. Our Cowen. from question go from

Nick Altmann

taking Altmann for is guys. on Nick for actually Great. Thanks questions. Thanks, our Derrick. This

Seth Ravin

Nick. Hi,

Nick Altmann

or that nicely Maybe year? has the the any in just been as as question, just tweaks trended throughout last that sort have a of with to productivity Are there can follow-up call guys out sales the XQ. why changes to you working productivity better

Seth Ravin

better number the sales that investment get made to we one our was: think holding there numbers. reps due one I to

in We that systems business we've more have intelligence the in. put

understand are Clari wise, provide management and guys time, a if system, their management leverage the additional where top reps to on hundreds into doing some better us credit insight to large good AI amount don't the the I reps allowing Clari deals with pipeline way. huge I activity to of team good know allows deals in a sales the the ever -- are spending of product gives lot are If on by of basis and Clari, what with understanding. mass a a the of for you've manage Clari where deployed information predictability and Salesforce know you pipelines. We very

new So ago, a job. team. in that significant our great guys. And that in a the team made brand year way two, that's And organization. we've who's around out and investments at We number one. built same we doing effectiveness it sales just a there's no leader Number brought for the investments time enablement really

tools. will another train provide I the investments to you to sales which enablement then a team, a make to give move got on reference which we You've And the additional product, very Highspot. good is

the gives As data them. a of are about the be lot customers assets send what the customer sales to look and doing we us a tool track prospects used information to that with to distribute information at, able they

questions. our that So better also force the better that of a answer sales team. combination And to again, to of work we have optimization equipped and reps, yielding overall deals improved to the sales a the in team better the global of our better. team our the combination managing And sales then called ability the effectiveness is has sales are much

Nick Altmann

helpful. Great. That's really

in some way there past the on sort You And there? Can there guys doing have color talked ROI you is quantify any television advertising. you're really seen us to more maybe maybe seeing? the you've the about give benefit of

Seth Ravin

in I the think we've of executives these there. traffic in today are on basis, we certain get procurement CIOs, to air been streaming new and of one cover It's out thousands And these seen that target that a basis very them including videos executives the quantified television in systems doing, one that advertising the the history. highest website XX the even get really radio can us can from today you giving to that the results, amazing so And companies countries. certain automatic we've of heads and the And to advertising global we on we're is television Yes. all on video. are these difficult a by our fact have CEOs, CFOs, folks we are hitting on introduce precise

you led a new inbound letters We're it's than call our senior And The phones in ringing saying, The what are get highest with interested more in hey, get being advertising someone? directly deals I and history. than can fact get done. connected set the from executives that we have ever to guys ever. more have calls are that doing. up? Can We we

growing So and those very develop seeing advertising it's ROI pipeline have from we're dollars. strong model a we that

necessity what lot we into I to very moved physical we've think those those out is used paying events we TV And it's well. marketing. shifted as of all of we dollars advertising digital go it's done that we think And off of we've extremely and to a efficient. very, replaced out globally and

Nick Altmann

of going just Kind Can talk back for AMS. you That's in one that last then look already talked But the And how XQ pipeline to XQ pipeline. deals -- think do that about next and namely then did the No. And and kind a then me. in kind XXXX. to year? billings contributor And meaningful more does any pipeline the into you of book heading great. you can AMS quarter? for about you XQ of be in

Seth Ravin

first the done onboard base very, interoperability very that had out we as yes, and build meaningful the products. and when on security Sure. global some with is those we've then infrastructure. infrastructure. to on up the of built We'll But referenceable happy the course, service we've and are investing What mean, the the of a announcements in I We beyond. clients get about service services started sales in question strategic what specific other well client done AMS we that. quarter group. our for really product hiring answer fourth reps our will in the for numbers we're said XXXX, last AMS now line XXXX more as begin, to is, sales we're the in all it's have laid AMS. quarter, believe general the some hiring vision and we've be the We're perfect we've well we've I about the out And side and done side, to as as building as coming now support I reps since specific coming think because do the

strategy All of the a global specialists existing designed reps overlay sales our huge rollout on or perspective. these it's products basis. a are top all now global go-to-market sales And getting reps from a for additional of on

are going sales meaningful number building to in So, XXXX. The will yeah, are to a building. in. it we The pipelines continue we're kick and think

Nick Altmann

you. Thank hear. to great That's

Seth Ravin

Okay.

Operator

from a have Alliance Brian Please question We Kinstlinger go ahead. Partners. from Global

Unidentified Analyst

Hi, everyone. Brian. Jacob on for

cancellations they past updates You and back wins, also on XQ? still starting some calls seeing price pushed you're concessions ask and curious for mentioned was cancellations do there into and maybe I some if some some to materialize of there customers And if believe in are delays delays or XXXX? any bankruptcies. you as customer these

Seth Ravin

with the is I in know problems Thanks. all There at Good say, really and world. day. you record has asking questions. in around terms, special we're mean, clients as not America calling everyone's We're COVID North by at all these navigating guys numbers else, that for not up, getting I everybody a yet up the let would discounts really. all -- let like

with will folks in lighter, client to are going continue going a I've I we're at think seeing these some least still think globally year. through into on I this And is to whose of year. Everybody but companies, next see handling buried think checked it of it's based that what we're go I lot end other the engagement. tech of requests.

the and some has not in on economics. long-term another the all you've that's through year back with got come lines. and customers we the people do we're and the that And for the it's clients our assistance you the some financings business strength revenue look That's But We're tough on at focusing real think of what that's the you And my part our probably cruise the been need be of multi-years expect long-term business. strength from the to the when through. some that landscape. the renewals, it's We'll been handle think manage end. to position, so you the the I end, will And look opportunities think of on a can just cash to of do I we'll have help I've perspective, from us We renewal through that. on some to because waters just way real headwinds it. new them that periods. a And business these our that, short-term the I going acquisitions, is, way issue. client front I upsell have side going and our been but for business. the to of think at the choppy on That's our focus And growth face retention managing we've afford expansion, financial

We airlines. have

hospitality. We have

And back to our have of we challenges have that they'll they with while years we expect, those we'll them continue year, have footprint them, and emerge strength, and they'll all these after come. we growing including we for guys, to but in get because them next weaknesses the have for with So that some value there retail and a be add in clients proposition. may areas, strong to

Q –Unidentified Analyst

Great.

that growth coming that's been better was pipeline than You've strong they've any dealing given terms updates on if could in I of wondering, fact the from you how previously And rest COVID APAC. give been highlighted with of and the world, going the backlog us there?

Seth Ravin

that's getting had understatement. an quarters of better functioning been as I because the They're it last couple handling us is for business normal and able Yeah. better. there actually normally. than say, probably of to we've would rest function the And a fairly benefits,

a to think affecting just and and we're adding deals to tailwinds building I still tiny fly have getting We the still that's ground. still on certainly of pipeline around even and in that's don't various us people opportunities. to locked can't the done we country the that's countries that point from down bit. countries So of But limiting view, country,

substantially think Pac countries. will think bearing more our Pac where so. continued I invest And strength Asia strength Europe, a to is leader. that a lot being terms from Asia to six what a the represents you've APAC And will I Latin of over us think opportunity represent lot and continue into continue has that that's last as of of invest strong do I we've fruit. added does is and and with continue even the plan to in years investment to I'm ability America, watched seeing, it why

we're and with think on. North work of going as we there still having continue is a deals more more growing America, outside to that. I is So We're would doing bit we're not getting much trouble here. like we're execution on and But growing. done some deals as going do still America to still the just globally companies to little North great

Q –Unidentified Analyst

Okay. business like you COVID companies evolving was equipped in Europe. and before, this? touched recent with have how – world are October trends cases month-to-month I this little know especially deal been on One but in across the And in better curious I to given months more, seeing in spike a the you companies

Seth Ravin

Yeah.

the is think great into months North I about human America. news Europe in is much beings nine months that, the adaptable. pretty are now six into We're COVID what it.

of Asia longer Pac moved sort they've that little a is than and really it. through rounding

So we a we where more they like France, was They home locked that places go work they're wonderful when have come it's done work And opportunities. hit then from and with their especially lockdowns them the worry challenges just Israel up? base and them in my big home. perspective, and down we problem we about doesn't have that get when not seen hit we work-from-home France, when hit have Yeah, culture. from don't – They customer lockdown. doing hard we

still. just have some to those from everywhere true they're else. as work in the not the adapting and work in where of just America, home, that's not have a home U.S., remote problems a of as assets lockdown France a don't we did to not job a that ways in the same some in lockdown They country, infrastructure from move people, have So but of And equipped where and for is Latin we it. lot a we great

it's issue, a places, France, technical it's some cultural issue. a like not And

That's conservative this work we are position, saying, face that of there really with these And cash positioned to up. will hey, our handle, we to the those with our far upside customers – I to the come get upsides think yeah, in well have still So feel another we're to And we them do And year pull-through next there on why world to year. what's to challenges downside the going and risk. any we things through. are outweighs play continue and in believe this downsides. downside

Q –Unidentified Analyst

me. That's for so Thanks much. all

Operator

questions no show this time. at I further

Seth Ravin

thank for stay the please much the to fourth a you and we'll of good Well, we you Year, And year. talk have get out Great. call, there very beforehand. and safe New Thank you after end quarter everyone the call, much on very with everybody. sometime the if don't you

Operator

you, participating. concludes for and Thank today's you gentlemen. Thank ladies This conference.

You disconnect. may now

Rimini Street (RMNI) 8 Nov 202020 Q3 Earnings call transcript