RMNI - Earnings call transcript Q4 2020

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Operator

Welcome to the Rimini Street Earnings Call. My name is Karen. I will be your operator for today's call [Operator Instructions]. I will now turn the call over to Dean Pohl. Dean, you may begin.

Dean Pohl

operator. you, Thank welcome Fiscal to Rimini Fourth Street's I'd XXXX everyone Earnings and Year Conference Quarter like to Call.

of following our in CFO. On GAAP and be they measures key the of CEO; we the certain measures also year Investor viewed our tables, to GAAP our be XX, which financial of XXXX on can Seth Web is this non-GAAP explanation in the and and press earnings these been the the An Relations issued ended meaningful in has section and Today, release press and December call measures with reconciliation financial metrics. why and our including financial supplemental me Michael the Web A about to believe included today financial A reconciliation heading fourth information financial are tables and non-GAAP fiscal quarter non-GAAP we copy release of statements our other provided can release, release. from the Ravin, found under downloaded Perica, site. press press is the site.

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

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

Seth Ravin

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

respectively, we a by interoperability and gross including to against including key executive XX.X% rate We fourth demand and year, for XX%. full services. making of nearly net revenue the year billion. take we Street year We and and for new at year plan solutions, quarter year achieved $X XXXX continued year-over-year activity growing a accelerated the professional advantage Throughout guidance. quarter date, XXXX, sales And strategic XX.X%. backlog For increase application revenue retention year-over-year XXX for exceeded maintained XXXX results including billion full to $X we and full XXXX growth clients with new from our additions, for XXX investments, from Rimini companies the total security, management, XX.X% leadership ended in levels. and active XX.X%, quarterly year the execute annual support profit our and Fortune and over and full clients, XXX X,XXX billings, revenue, record the high well XX.X% to continue have to of remains achieve growth X,XXX our fourth historically to signed revenue Sales quarterly than of have inception the more calculated clients, in from company's saved and Global invoicing, global

countries, During and legal delivery including regulatory updates specifically to than more pandemic. nearly global the delivered the year, team XX more full X,XXX XX,XXX tax, related closed cases across XX,XXX our updates and emergency than service global support

XXXX challenges meaningful Our additional the believe sales some we year Throughout both for believe year, impact. and were we new count was global year-over-year We and increase the opportunities XX%. the pandemic added of X,XXX, client that XXXX, end XXXX to a employee and experienced the attributable Pandemic pipeline pandemic. of both pandemic.

to times. terms to their the also agreements them file bankruptcy some resulting and due or help pandemic, existing clients other Street navigate special terminate for However, we Rimini discounts and challenging from payment distress financial the clients received us had extended

outlook. financial in shock more and cash flexibility XXXX, pandemic full prospects outweighed client sales and the to position challenges of the the us and business the help provided first the believe pandemic of disruption with sheet the needs negatively We renewal by agility and For created balance year. and strong clients our with half sudden with special the year sales opportunities the impacted we believe protected by risk in strong provide position flexibility prospects that to our will evolving XXXX. business in will balance we which help Sales and believe the impacts continue agility cannot numerous pandemic our and through XXXX will downside We sheet beyond us The reliably full against cash factors on clients pandemic extent continuing to XXXX. depend impact predict. the to and continued in and and us

strategic goals share as to and where geographically required Services, provide Management and and to service the application is client as To a day. new updates, few to fourth sales across system the diverse a I'd how industries, also highlight for case leveraging the XXX day. known run services to support, Rimini the for quarter, system a day During where team with regulatory strategic Support tax, the studies AMS, to Street who such updates we transactions. we like management services Application is we runs different globally are fourth completed client support day from you technical legal achieve quarter. clients

and premium proposition reflected a of government to same already the services. government need cost government, the agencies. procurement more whole providers, faster, approved is option serving SAP was branches value and of for First, market, no government Street three Oracle Prior more the to launch is for for sector the that of Australian volume Street's or official in their the Rimini Street's make designed and list the public with The to executive Oracle support sourcing process agreement of offering the awarded to Today, only easier in support sector solution many Brazilian Australian Rimini systems bids legislative, agencies an experience. was alternative were SAP from a because Rimini and on vendors Brazilian we support available public the Rimini Street Brazilian occurred and contracts software enterprise partners. the judiciary support public support effective provides Australian competitive software access government.

Next, invest components client Rimini its their Rimini for the to its receive from The premium is current the switched is release District customers than Street is Chicago, ultra that support Street full the switch water migration savings receiving responsive, Greater product savings years a and reclamation unnecessary line. realize metropolitan serving applications. Rimini release current for to automotive on support SAP's significant million their of to able XX Street, leading level available they them Electronics, across for into and telecommunications The SAP time minimum them SAP a organization.Lastly, now software. support to XX for of more switched IT support newest for manufacturer costly Street's and allowing modernization and avoid to initiatives back a client has to that to industries, Pulse Rimini

With in operations, of enable With artificial with critical switching intelligence management. spending products have SAP by to collaboration intelligence business uses savings technologies, warehouse its Pulse chain functions, advantage including and year capabilities, more Street, designed and the than during Rimini XX% Pulse otherwise may finance, customers, not to and possible. was system achieved supply savings its been a when including cost for competitive several to able its growth invest new

must of In market to required loss leadership highly run quickly As operations a sustain its major to business the adapt order mean are XX/X, to competitive in interruption revenue. changing its Wong, global to company may a would in much Alex is any that, Pulse's IT progress, slowed Street. but due have thanks pandemic still in stated innovation switching to our Director, macro very Rimini reach, the dynamics. investing disruption market, to

sales in pipelines we're and continuing interest new see our and business our Services. growing to XXXX, Management For service support core Application

offers and interest demonstrate provider predicting billion full is Rimini services only in successfully for year XX% market, Gartner's a believe Rimini is XXXX. our security, clients is is compete. new Rimini the third exceed XXXX Street software annual well captured party positioned that in growing and over XXX% with global the growing of Oracle supports pipeline expecting the that value published for and seeing increase and by and implies vendor interoperability will We and products ultra services. with a Gartner for support to revenue vendor are deploying its of and innovative XXXX sales an service SAP sales solution supporting number software results cap, our create currently Street leading running third who Street also $X market customization, pipelines these Rimini a single for the client Street market. security, that interoperability data that using a support at of savings proven We and turnkey, scale clients. and responsive notes ERP global challenges and performance and professional party

greenfield significant and less during within our providing for rate penetration markets. believe for support ERP application services, us management support we discussed Investor global addressable Day is $XXX X.X% the approximately only and XXXX, our X% than services As billion AMS opportunities

The long XX% we Summary. We that's the all internally achieve by trial to organization. of incentive XXXX, permanent to our engaged overlay its estimate litigation half believe XXXX, and Please and information. summarize, are billion sales retention, by in made Appeals, our providers. mid annual approximately enterprise courts dispute have a Oracle cross filed on been integrated in parties profit but by support To and sell in was pre framework litigation We XXXX. throughout filing of have submitted support that and by the until have in Oracle choice ran in earlier. to party and for strategy, is model we're our and went expected goals court, year lawful an we place for litigation a Rimini known leveraging the market Oracle Oracle, drives the any sell and robust and a well With The short, a and commitment Street cash revenue appeals that including since our opportunities these Street case increased run respect United of which is in and revenue. XXXX, currently deemed Street, Oracle management the go billion Rimini a in customization been annual the by focused to XXXX, and and course base the with trial achieve within growth is is and injunction achieve competitor. exceed a XXXX. Court permitted, disciplined executed preparation, to and not rate are plan timeline in versus To and look cross With could of to objectives that full annual to resource sales the the first to respect opportunities today consistent there execution, has court Oracle selling disclosures update. of we additional $X on against versus current currently expense Rimini to to third dispute no addition, term response. successful licensees software In case fourth client filed over occur XX-K is increased conclusion. XXXX. $X see cross Oracle goals, the occur in earlier operating found States company trial as quarter XXXX, bringing our

to you, Michael. Now over

Michael Perica

you, of Revenue subscription results. Revenue fourth and Seth, vast on XXXX for full revenue revenue recurring with which rolling $XX.X revenue, retention for of a XX% XX least good the XX.X% was XX% afternoon, million, Fourth our was $XXX.X service majority of basis. makes rate for increase year-over-year million $XXX year-over-year subscription and subscriptions, everyone. more the XX.X% year annualized months remained Thank revenue increases XX.X%. was than a at up noncancelable and quarter respectively. above quarter support of million,

States clients year XX% rates contributed For for clients X.X% respectively. growth full XX%, international aggregate of total and United revenue, clients international within of XX.X% while revenue represented year-over-year US and the the XXXX, representing

led strong Our was results by our international region. Pacific strength Asia from

growth margin forward, Gross for due key fourth XX.X% America full led by to General and was for XX.X% of in the Manager accelerating ago XX.X% we Regional Looking XXXX. recent full a XXXX, our see the XX.X% in year year fourth XXXX fiscal quarter quarter North and additions the year enhanced model compared the to the for leadership. for

and Management we disclosed, Advanced continued year-over-year investment of full global Technical The represented for was previously SAP, new and a service Solutions year in and Services services, our XXXX the end Application planned products SX/HANA our Security Oracle reduction Services, Solutions. for Support expected the Salesforce, high the While delivery exceeded capability SAP Advanced including decline and guidance.

full XXXX, to such begin As of and service our be are to for the stated range to for XXXX. savings, XXXX XX.X% to for increasing was guiding scale percentage excluding full reduced aggressive to gross efficiencies a year switch prior XX%. revenues we the Nonetheless, basis were a fourth the physical marketing from we leverage we XX% expect the and whereby The global with year our XX%. expect to for due quarter fourth on administrative as margin in is and quarter XX.X% marketing needed full benefits be and revenue year-over-year and growth travel revenue, in XX% the trade throughout XXXX we and previously, selling. to resulting full the XXXX decrease both we investments of for remain XXXX along XXX compared cost percentage XX.X% expenses full initiatives, expenses. focused XXXX year support point and compared in prior and XX% have range virtual and year Operating XX% for XXXX. participation, General delivery of realizing full of and show making Sales that XX.X% costs, quarter for to outside a the fourth year primarily as sales fourth of expenses year marketing positive appropriate litigation for quarter from XX.X% to the expenses to

full fourth $X.X was the $XXX,XXX expenses million for million for a year to unanimous Court for the XX.X% favor. Supreme successful of to for the of ruling revenue a full prior appeal fourth expense a US XXXX recovery The quarter in and from million for expect credit of $X.X quarter XXXX within the million as Net range the compared XXXX. the attributable our We litigation to litigation and XX.X% was $X.X percentage be credit year by $XX.X and full year to net G&A XXXX.

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

no Rimini prime in not XXXX, the where and Series should company the of is we is at X subtracting if this the the a over revenue and refinancing revenue prior times our million, with potential the believe of million cash and term that target again approach It compared fourth make-whole XXXX. alternatives. of A borrower million million be for $XX.X line positions our company with from and to solid metrics July by of our point well as of XXXX XXXX the the year year holders noted refinance and until of the the the Achieving year $XX.X to net EBITDA that July be of was the XXXX. We of expect leverage for the full redeemable year $X.X near of redeemable I able extended A management to of after the extremely full Series net upon end July XX% has ratio to EBITDA holders or preferred adjusted the elect leverage litigation stress without evaluate $XX the calculated of can but mandatorily be fourth underscores so redeem our is for for it redeemable beginning A Adjusted $XX years is to mandatory forced XX% for A quarter expense to of XXXX for July do the election XXXX, to in $XX.X range majority EBITDA. Series preferred us year million of execution until obligation this and we year, end date was XX, to than million in wish adjusted or quarter then majority full of or With million the only instrument. two outstanding. option only $XX instrument hand from balance, which the Series ratio under times on team, refinance X.X

yielding of flow XXXX. to approximately compared full XX% cash year the year increased for full XXXX, to million revenue $XX.X $XX.X million, For operating

we during near to to sheet. balance of We also year fourth and at preferred we million January ability XX% the make-whole additional we Balance record preferred Subsequently, repurchased an face the of fiscal with cash purchase the Series no for similar terms liquidity preferred with the enhance operating $XX discount ended our relationship which $XX.X note approximate XXXX. with while A on our of cash Moreover, stock Backlog, deferred flow XXXX, EBITDA A future repurchased one-for-one adjusted includes prior the of as of X, retired to compared Series billed growth. million from We of $XXX and the underscores stock. XXXX. as approximately our accelerating value an XXXX revenue, million $XX face sum million transaction. $X value and of quarter, payment, fiscal XXXX, noncancelable as December year prior up XX% revenue million of was December XX, XX, $XXX million

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

the all quarter of guidance take we'll Operator, free all range to Moving our when instruments $XXX forward, currently optimize XXXX to cost revenue for flow a capital million themselves we and million focusing they and remarks. to capital be on GAAP and benefit we of structure concludes prepared We're take present range guidance and in of $XX.X questions. reducing our million cash revenue providing XXXX market first will our year advantage strive $XX.X of profitability if capital, opportunities continue generation now million. to the $XXX we'll full improve of Guidance. This and across as to shareholders.

Operator

Kinstlinger from [Operator have Instructions] Alliance first from our And we do Global question Brian Partners.

Brian Kinstlinger

EBITDA the in fourth Solid quarter.

in on expense be the percentage out First, as is at the especially your if guess, before super sales. leverage, after have fourth I some and two I questions, would however, I saw business And expected increase is to the percentage. at marketing to backing a touch leverage G&A impairment. the same sales midpoint, guidance, I quarter, look expected we of expected the

we're leverage of bit marketing? you're sales talk you a seeing at the least that and then also investments on making in And could G&A why about the side? not So accelerated

Seth Ravin

Sure. Brian, Speakers]… that's [Multiple

Brian Kinstlinger

Of that's XXXX… on course,

Seth Ravin

said underneath hiring past over the the And So to three for fiscal brought us bit brought get the GMs made as of lot the quarters, of marketing in the sales them then struggle of a are about know, big and We've them start say the hired ground in component, at followed that and year. sales plan training we really reps leadership sales happy been at lot been at. that and we be I'm get America. in We're to XX new a on we course, North everybody a up. has investment We we'd We in be reps. recruiting Very, our sales as good you very for them. retooled a on new XXXX expanded sales it's the here it news. ground over of Changed reps new March. team. brought We reps. people, will the entire process in up,

really And that's would about said big we we a the end at XXX where into reps. so XXXX, win year going

only there to but meet $X that's revenue to to able So the going position we're in achieve is additional as well need you number to obviously to by billion up not the us order for XXXX. on make higher accelerated growth XXXX to, ramp for hiring be that our know, numbers, going

plan. of still and supporting according that sales business. reps of in go is engineers. requirements investing So us that's and are approach the seeing to into the a components sales that you're lot There why SSAs, We're conservative part force, all take sales which lot a a marketing. sales the pretty of is behind that's on include There that sub

Brian Kinstlinger

size won review? you Whose two of their that can a on questions. you I market that, approved to alternatives. then mentioned first Brazilian list list Brazilian were deals, got because government official don't said right, of And your you three is you the know, an but is The list I opportunity? companies it vendors and you then business if

Seth Ravin

sector is globally, of government to It's off we the watched US First, GSA likely, growth familiar that a of were not to in with process place and three off a we finally public in run and an our that winning, Brazil. us by to And entered something and it's government can the base finally That And again, the an are get got in sector we in investments those Brazil. because began the really much public and across list was in procurement market. onerous agencies very this process prestigious the to customer other upon, the thing is in in pricing GSA competitive now of without with whole Brazil. on quality of toehold top build can the able contract Rimini we paying those course, GSA we've complex that organizations do. preapproved easy our where people contracts government the yes, that having other vendors. of and place, It’s allows to out some And organizations vendors. get vendor government and Street, even buy agreed our

in for exact sector. Don't expanding excited. And decent size in in sizing of that the countries that's so course, size, we We've one its and and the of the good just as public whole know that Australia in well. So Israel I agreement government of Brazil government market. is quarters. pretty of given as us to received there we're got previous It's opportunity noted, other entity,

continuing US, a So Canada. vehicles go Rimini procurement a we governments for to being different become government to of allows these in the lot are easy us that with into choice preapproved see Street

agreement the have already lot of in as there. same We government type UK of with the well a

Brian Kinstlinger

more US is grew international, US a XX% little question SAP, bit and assume you international said I grew presence. a more X.X%. Last little that Can I bit had, Oracle given plus, presence,

obviously results not is factor a driving should we and of view recently there of both maintenance in bit that the growth SAP that Oracle? more than services little Although, way? plenty is the Or

Seth Ravin

space. the the player of outside Canada, is Around application that largest the around Your in and dominant SAP find market. a Oracle the Oracle divide the you is world, US application some of the is first of assumption US correct SAP way that and in terms applications even

Oracle see and going about money up, database the to Now the you're that lot see, of infrastructure you're of the course, technology Oracle way globally. products, assumption database And database we that when are is that very more of again, it return comes largest other far fastest companies value divides the so and for Oracle huge. because a from to Oracle But technology cost business, see is to going dominant is our and Oracle product technology. return lot a growing high line on low is investment. very and with the is on the

this has the provider well growing very big And well strong So e-business EBS, for a us of on been because product, side, suite, a SAP for that market and Rimini business product. as with Oracle's competes well native application Street. across is very that the and the play we can globally,

seeing you're the favored nature think on the there by because I Xst of sales they their all largest for is quarter, quarter SAP, mix the not So that's every of and of or have SAP and quarter a starting provision. starting a January XX-day notice except contract, really mostly year, cadence the third

So a that always makes the big third quarter quarter. SAP

Operator

we from Capital. our have Baldry next question And ROTH Richard from do

Richard Baldry

year XX% tough troughed basis, you? it's quarter, the the a cycle at obviously you in that's of half, COVID behind companies deferred your obviously quarter. were post Do strongest the that up risk just renewal Do seeing feel broadly you renewal put versus sequentially in period on very fourth first them and on lot this a really that out that, renew pretty derisks your like look revenues I last. renewal year XX% fourth When feel

Seth Ravin

that to up in us financially. first year, of of half the COVID. came the a was the you to that year we half renewals I still the the Rich, back out. losses the moved We set of the shock all couldn't on my guidance could Pandemic you year. remarks there see of overcome and met from I half, the as some in that, prior really but think, across companies of We in guidance saw that first lot mentioned

in a was half of was change risk. in that of a sign, the the strong And we the terms back really made half that up but and it year. half see did in first the back good, So

by they that of herd position can't get another group bills. to a on a people of can't you've goes lot we the the about they cash that end year another probably worried if companies left where to year they're there's a immunity this I I'm is closures But what playing is companies got think impact, their beating conservative and reserve just we still for pandemic survived, back, survive. get have don't Now and have up, of have of this battered, course paid

think don't the woods who view of just customers of their capital on potential last they comes when I completely opened So out their it we're up. to are or to businesses impact need operating

think otherwise, But we're the a the have position, in mind. in shock. I to say, that I So first in keep half we position with the would of better seeing we're initial stronger and year

Richard Baldry

to the collected? falls generator to come the sort the down again, is a on to build sort half steady receivables obviously And net a term debt basis cash of for state good guys. back your typically pretty the quarter as strong maybe that Gives What ask of us what that's And better and to? fourth idea level deferred, in first in Michael, about of is tends when reason fall spike you receivables. receivables do near for a I a would think we

Michael Perica

specifics cycle our receivable cash aware prior regard our to Richard, So and seen share with you see this where in we don't of relative to that think years. year And is. of we balance have course, it don't similar exact

an performance for you see forward cash similar going million really as the However, XXXX $XX seen, as team a EBITDA north on and with whole. performance, grow. line was And we as similar excellent we our operating flow yields to delivering from overall of in our continue have focusing adjusted are

Richard Baldry

you Could for out a AMS the for been talk last pipeline? maybe about little me. while That's now. bit And a more

You've customers it, at got running on this probably up and referenceable some point.

out do terms sort So revenue contribution pipeline unfolds ahead you how of us? of of conversion, as sort in the year playing of see that build, Thanks.

Seth Ravin

year, we've but services deliver going we're think revenue. well. of material, think XX% not XX% part see as was I our support threshold. hitting necessarily a Rich, been saying that material thinking we growing Again, to this meaningful We a that as we're I growth about don't

that have number we up. play, keeps So moving to

seen revenue in introducing a look are that winning being So sell back began on campaigns orders full all to coming is the of learning in personnel where is threshold. kicked increasing. when is We We're campaigns total those rolled that is proposals are and from getting The of product. we we're full -- that loss around the already there at opportunity. you keep rollout. with thousands just QX, set of going The those great them the cross in world, told have XX% is we that one at of Rimini generally, countries And new we to We've don't some, I a devoted yet. been hit in working skill pipeline, people think any amount to we We're try the number launch. target opportunities. ASPs the customers, and a proposals marketing we pipeline, AMS Street's great off time. out interested. different There AMS time, that still global the base adding asset specifically and the out drafted all that size from which as of customer offering of and few the have current for the We've some AMS sales losses progress of

in little in different increasing for a bit business and to countries, it's rate. and because us across improve win our we a new come amateurish still those response, our continue we Sometimes

'XX, midterm. on deals again, total in I the the that bullish I'm meaningful seeing. based in the contribution think So long to very we're even And going contribution in we're the see, on run,

the disproportionate of very stream. impact to have large revenue and overall very, some And are could them

Operator

And have from Jeff Van Craig-Hallum. Rhee our next we from do question

Jeff Van Rhee

here. difficulty finish that's I’ll cycles. Seth, particularly. touch always just heck congrats, seeing to to of a interested side, hear sales sort from I to the you're my a I'm me. the not. add to or of the year wanted Several sales Talk on

look long And over, Brazil, of those it's how to the sales on as along mean, pushing done? you out Australia. terms the In lines, things you then called taking side, same at international, I deals get

area you. focus for Domestic international. it crushing obviously a been You're has

out the the I'm more in they're on? to starting the maybe with curious stitches dig drive those improvement gate put or I in together. for start and US, new But going And a on just two sort rates. those of I'm And kind realized just biggest to lot the in wondering, area thing of in curious, You whole process, lead is questions. bigger US the the the focus? seats. of focused sales of close as talent is focus they're the of gen initially which what US,

Seth Ravin

to years, coupled strong in think strengthening gen just And even entire new GM, important coupled of has place. I in We out hasn't US. putting We're very changed the in and idea our an that Vice for the is putting the over with the new challenges the America to we're North been happen last you compared very with last marketing definitely over give players. in Coast, in more much pretty the quarters, East just it Sales we lead with everyone replacing fully organization field happened how President few two staffing in the of couple and sales that in wins the leadership, experienced these which months, that people. the organization made we're staffed we've had

So when see very, increased this strongly, look America we've investments year. the we're I in going think North I made, think at very the to you acceleration

takes can you with time. There up to ramp any to Even new are temper GM reason These what said. exactly months GM less ground sales full rep Now productivity. expect people. business to brand to burn that the is six hit a in the in December. no just nine the a that It

So they're of learning. the in process

positives they're leadership doing encouraged from place. our seeing in well. coming sales I'm new our think that GMs, new with the really I Very

you that think is get exactly that of all said is the focus quarters, for well. I International last will to us. where doing we few for the

the We will doing it's all regions. international, growing nicely but continue through

America. are to going focus on We North

international you of very, and because All potentially you single back rate, the this look rate, is match that America, XX%, in more a strong to get acceleration should at see could when revenue. XX% the we investment growth being than North our digit, of be up and very revenue

Jeff Van Rhee

or do interaction obviously lot buyer not mean, share, And competitive lines, is I mean, But any in kind compare the better. international, it market have see is direct or seeing same the all US I buyer, to of need, contrast the just we to different changing and at of XX% those along I when you're execute landscape? same just a other same a you cycle, you competitors. guess,

Seth Ravin

new with a and function running It's new a process new new chute Street our approach is all with is VPs, the maturing plan. the its And there. is scaling America regroup just new with than region America function General Rimini it's and in same. it's company the a to The operations. Managers, is North structures problem. as The It's a strategy same. corporate operating execution in execution. Demand execution strictly rather the of own North and This a

So it's us. all

Jeff Van Rhee

cycle of kind experiencing working question, And the your sales the what the latest cycles? you're in second part is field on that just then intel out of through

Seth Ravin

changed It's the It's one vendor. That fierce. fierce iota hasn't still for years. up in XX

more the where as have are is And more have than prop once value last in that of. and and flexibility big customers. price don't offered losing head, our especially they head of the try them because And they're upgrades, our cover so from for better price I match customization, the have we our value the require we think scared value dollar, dollar there really they even in watched call, for a that just on high and there and we out price. such a to aware match prop and come buy coming we than them vendors literally deals, ever we're we noted we

that's part we some, most a deals we just head matching fierce head of natural the We'll So head deals to win do lose head those competition, the of to competition. win but on prices.

Jeff Van Rhee

And then if one could last I just in. sneak

you love want think I mean, our think work, buy I your was AMS. more. from a sense earlier I pretty obviously, on and you to had customers it the clear question

a slots me, bigger with to on times. base, security sounds nicely your the that think in you've AMS ASP to much opportunity I mentioned and touched there. I few It upsell you think

Day. You bit the mentioned little more a it at maybe Analyst

spend the little we bit because more put needle Maybe on of You had maybe a here that you've emphasis terms there? the it second today. sounds just a ramp it envision and in you there. Where again in of moving are security, kind like

Seth Ravin

a none. team, we we've and platform put where which position the during about and we with our millions I is are the with world challenges, our talk get I see of of excellent, of security which us profile realize much seeing we're against absolutely I not anybody we to strategic can watch And saving can we starting service, up these dollars customers products, security analyst in are help more the lines really and these exposure, you the and big security the other them would generating only a And world on have that are got deploying tools. customers to excellent be more our investors products, of are combination, an the because the when it security interoperability second product in even SolarWinds getting and revenue raised and other and them. better ERP of opportunity. money of Analyst more patented Day. partner don't to especially that with Absolutely, And you're that security think you issue

surface continue You've by to about going more the we're introduce that because lot we world given meaning. talk investors to and meaningful, we're about that really more we and of got them do And they're this We're market. more haven't Imagine to millions talking to going this trying got to much of year talk they're dollars tools. and visibility that the the meaningful. and something we up. that more raising that been It's of We've patent-pending about. fact a technology very into shareholders. They're below the for doing to be haven't want to the

Operator

have from from Cowen. next And we question do our Derrick Wood

Nick Altmann

really is for year actually adds and for The Altmann Nick This the in quarter were new the Derrick. net strong.

base? little Just that? into growth the drivers in a talk of net going installed what forward, just about wondering, then, you bit And how upsell can customer I guess, the we should drove new versus think adds about terms

Seth Ravin

acquisition we down a XX%. find delivered the about I we what to increase we, Well, know, to that's back which client. trying other XX% known we've in and do be and We've compared client And seemed you're we to it fairly is went is staff always low think we're sell came all the the base. you providers. that that the we around looked the can don't on come what existing raise of slow XX% back readjusting advantage within of And sales into going base, a existing client to over into client the at, client of few lot into existing to cross want quarters, that XX%, been sales is If have as that to focus obviously our double back last to take upsell, either. of average but existing somewhere because, significant back out and business The clients opportunity greenfield. we determined the we the acquisitions

of of numbers a the the And a that all. of is not think But doing sales as a of reduce about client designed restructure bit you our to little at clients, balancing. goal we're So acquisition, is lot that. do to

sales going existing we're which our new balancing continue that, to year to selling think us XXX going watching time growth to and why out that accelerate that's both that I do increase into and we this to headcount after total the acquisition. you're takes so also the on continuing client clients, can accelerate

look the one for a get other. wouldn't reduction order in in to I So

Nick Altmann

thinking stride guys margin and maybe It go the of the out equation curious Analyst the I'm your you your revenue of hitting productivity the how growth market sort at targets. of between sales then Day, on force. seems you guys and like guys your And some off about really margins? seeing trade side outlined are are XXXX you greater to

approach is, bit So of you there? more I of disciplined a you the bit the on the on the are equation a gas at more it'll maybe a question willing expense my margins, step to OpEx or guys do think have little side of guess

Seth Ravin

believe we've used let's those hire sales in gotten with balance been have the And the us, reps. says, value guys on believe and never XXX go to just of you we in one value as think We companies hey, I of Well, sheet. and really that company.

a such It's profitability And when year stand in certainly we grow started forget a know grow. that profitability. the same investors and last profitable company, and and to believe We about we delivering camp balanced growth. we We continue in achieved increasing big it. is who profit believe greenfield. GAAP would say, profitability. time, We group in listen, a Forget of there that, at

always all I'm rock balance has a a too to people much straddle sides. Growth investors. We about And both of profitability and worry we've both don't or be there balanced approach. as growth the for costs business at sheet, but going much understand has super marketing, will solid blow that fundamental on and growing at be spend go a great profitability. on had We So course, to a world. financials, want to sales there's rate, and If very is company nice I trade strong off. want

So we of balance part as our this model.

Nick Altmann

do on is that in they America. about there, talk playing of one market of in. some out? lot reaccelerating there, you have leadership the plans North those equation? growth the are then can maybe maybe need outline do guys on that then you just on you go initiatives I right and There the Anything Can guys focus any side on a new sneak And of to could front? how now more And new to if the

Seth Ravin

I Their the clients. best the at a in GM total imagine P&L but as brand to is, new renewals, footprint leaders really well looking leaders includes as bringing of it sales focused at client they're way part they're focused acquisition, are have Think think those on are as America any looking them who about clients, client North the existing the level who on their the you the leaders, business. had retention didn't clients. think where plan those of at comp of new of expansion that

comp just slice leveled have their dynamic up business wasn't about model where business parts changed think people of has American whole to versus any their the and North leadership just this running within other whole it the the we've it of within didn't because because role. to So the wasn't incentive

entire So three those their footprint fact way I have they're how reporting bring marketing them. of clients, they're going going legal the value are business, to They extend Managers as to the we can't to how or to clients, under to in they're client new General looking underestimate those have a overseeing now North going the region clients. lifespan, that at reporting how who have total to lifetime the They They have them. to stress grow reporting engagement any America, them.

to North of sales have changing how we and number in we different a first at of generation. industry. out on in the business look and places, where out haven't we're digit the whole, all the think on They're have the they they in accelerate reps that that as it's North way looking win now and because depending who just focus now, So America, closing the plans in for grow at America wasn't and single different decisions dynamic. much, where a players put business, business just won growth a field the big, the placing is they're I were entire That they people making to about deals very and driving

Operator

do And from we Schappel from Benchmark. have Mark our last question

Mark Schappel

correctly was which question Revenue But for wondering I for as XX%, underway the you're could doing if Investor some you is give an well of if continues idea hover your take congratulations I recall retention initiatives you. Day, the that raise the My on rates. bit. some quarter as from recent retention the year. up us good. to around to just things to a of percentage to try Seth,

Seth Ravin

have to of Well, of do stat, client up a may we and part clients. in And and even could think my average we X.X, noticed And hit be our X.X at per I in X.X out comments, think and it out we engage release good now started we've way has the it's X from better. that the with you years ago.

hundreds countries, as XX better to and grown continuing of SLAs we are we've XX-plus of thousands our we’ve business ratings get down improved added So and minutes. the to the hundreds into and grown clients, even we've engineers

all So that because that of has delivering, don't when delivering at clients you the We extra anyone again, SLAs. service we're improve delivering We'll can capability service. best look improving and the continue imagine charge for. with, that, to retention strong continually we're they it for them

I that underlies So think everything.

can it, the the and number you do running business of and have. remember have retention that, one better in software the with tool that's we're You to we supporting

biggest capabilities The a reason I threats do next? go? long is, clients Rimini to that. What these is go out the position clients deciding, and been over. we to simply do in to item years the we in in And they my What's as involved a we've global five direction our building or do One to What weren't am client I that of have term the figure next. Street's churn going happens. that we client in we do them may years? Where engagement clients roadmap? XX help for decide lose that second That's big

on clients. be the use their lifetime retention So more part software continue our has real change, to our they engage out another we they to those and in strategic those make five, should should can that with clients value XX figuring theme of impact a years, with a the

service them result comes lifetime together the closer all yield customer, the strategic more retention more the value. a should plus our can So get this to the help is about the and we higher stronger in we decision, net great

Operator

questions no there are queue. And in more

Seth Ravin

we or other any have questions, We out are of questions.

Okay.

ahead thank quarter it go safe. much, call. we forward Thank on We into you first very look everybody, to and And call the and will then. our bring seeing stay you and much, you

Operator

for and Thank gentlemen, conference. this concludes Thank today's participating. you. you Ladies

You may now disconnect.

Rimini Street (RMNI) 4 Mar 212020 Q4 Earnings call transcript