RMNI - Earnings call transcript Q1 2021

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Operator

Hello and welcome to the Rimini Street Earnings Call. My name is Michelle and I will be the operator for today’s conference. [Operator Instructions] I will now turn the call over to Mr. Dean Pohl, Vice President of Investor Relations. Sir, you may begin.

Dean Pohl

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

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

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

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

Seth Ravin

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

of XX%. our greater We XX.X% up growth $X in quarter, XX.X% billings margin ended revenue $XX.X achieved we quarter annual gross record count remain revenue the year-over-year, X,XXX, up achieve strategic plan delivered growth of a than XXXX. strong first billion a client million, XX.X% For with record of of active by and year-over-year, on track the to

investments, services. solutions, key Street’s take and advantage making support growing for management, including continued global our executive security, monitoring to including application of and We than professional also of over have companies our company’s Rimini demand XXX support, X,XXX Fortune breadth hires, have expanded clients interoperability, XXX in we to-date, XXXX billion. Fortune From saved signed XXX Global more clients, the $X and including inception

first the where more XX,XXX team global nearly cases out XX,XXX the tax, delivered updates excellent. satisfaction our X.X of During on legal across client regulatory X.X and quarter, and is service countries closed delivery of and XX an X.X delivery, support than average rating company’s achieved support

industries, count year-over-year will XXXX, a Pandemic the opportunities for first from goals through run of continues to support employee runs across XX, create services impacts day-to-day. as service full the our strong provide highlight in flexibility management growing Sales the provide services, growing X,XXX, studies pandemic services. continue would will extent pandemic and clients help evolving as to how Support XXXX our the numerous globally innovative management continued updates, for regulatory business, us balance few are as prospects the system to as global application new sheet monitoring predict. such where these technical a who clients tax, our in was professional new team as outlook, where required we and believe like to XXXX. strategic using well a number to and to pandemic March Our the we day-to-day. reliably XX%. sales which and challenges, impact. increase I factors the interest, well clients continuing and share core we to client Street of Application beyond quarter. to security, in with services will depend as and we cannot support The continue that legal deploying XXXX, interoperability, pipelines business services leveraging see and affect our different clients successfully for To and system a our services, Rimini on The and we case updates of achieve

tire company, Hankook headquartered global switched maintenance Rimini reduced has with and SAP for Korea, to its support leading support. its First, Tire, in annual by XX% fee applications Street Street Rimini

fast keeping and to to manufacturing to digital level The the the mission-critical track chain gained focus Seyul operations. efficiently With and the pursuit where on our Hyundai-Kia digital together, auto company sensors. from a manufacturing intelligence and free on at including The switch efficiencies maximizing Digital innovation supplier highest lowering Officer gain to support, Rimini availability our expert us. After are innovative is to Ryu, Rimini clients engineering application costs. developing decided resources to our company that, learning switching, ERP they artificial and efficiencies and global to one other plans at company we the supply with performing of focus its support very resources capabilities, our Street technology is Street’s about its technological business on transformation Information up core. stated excellence global is to of Chief and primary important

Next, budgetary their London’s Rimini Suite users, support funds is products the move up over a to other especially implementing an Council new divert evaluation sector Council, COVID-XX drive Commissioner, makes pressure. infrastructure either resources critical sizable that Kent the County business it of our was Like rigorous part further for Strategic conducted spend a its significant with County Street. IT mission-critical entities, existing Rimini right With Kent under XX,XXX options stable, Oracle County decision significant disrupt application a when to to Oracle expenditure. to its Having the to Godfrey, team Vincent Street. applications stated pandemic. with drive and dealing out not value savings, or to more Oracle its their software database selected of with Kent upgrade, of switched Council E-business public software

to resources apply to luxury can Turning the and us transformation has support to Rimini us significant while needs services we support of enabling meet essential expert properly plan bought we organization. have our strategy the Street saved knowing that to our of us time

leading Lastly, SAP Ampol software. Street database and HANA its transport Limited, for support Rimini provider, fuels to switched SAP Australia’s applications

As deferring is disruptive the an expensive its company result, new and a fees to also product. and support reduced SAP’s migration annual SX/HANA

drive For Rimini while the of past business with relied platform efficient its robust its we and technology chain. us value cost XX SAP transition to the with more its Street to and of around key Cooper, its supply on stated is IT of to investment current maintain our Alisa in enabled Ampol years, edges SAP decided and Ampol SAP has out Director, current complexity also that enabler and has operations. partner a ways managing across effective needed and platforms more look Street reallocate to our business the environment. innovate in The economic at platform. Rimini value accelerating to be to

software of XXX% Third-party market. products Street implies for annual increase third-party ERP an for expecting is and global landscape. the Gartner in software client creates by revenue and currently supports software And captured that only SAP that leading XXXX. notes count. its and support third-party of XX% savings and proven and Rimini ultra-responsive market, predicting Rimini Gartner a global with the service Rimini scale that interoperability at customization is exceed support company over vendor the the running data for billion Street a supporting the value is clients. turnkey support security, $X ERP challenges has Oracle performance market provider Street that solution offers in will single and published

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

model dispute different the the Oracle consistent strategic opportunities overlay two Court addition, has subject resources more integrated In our in and incentive these cross-sell goals client revenue. estimate opportunities the exceed update, We currently to for and in parties that been of billion drives sales that annual pursuing and leveraging States focus our go-to-market an lawsuits robust District United District we $X closing increased Nevada. look these a the growth objectives have achieve of between base the internally by a framework throughout The organization. litigation strategy, within and

legal third-party support provides an litigation issue the not disputes Instead, the Rimini products. Third-party certain licensees which is involves support litigation. of Street in in for Oracle and over is the manner

Rimini In respect Rimini for With provides Rimini in fact, direct support XXXX in customizations process XX, The competition in be District the choice Oracle that United Automation has enterprise course court and Oracle Oracle’s in been resolving that tools, Framework, third-party but enterprise by permanent software The was by place States its The is in Oracle’s of currently March to will respect Oracle between cases case injunction issues or XXXX, of over a many Federal case of the Court and XXXX. XXXX, XXXX, that States dispute the first trial a filed appeals is licensees lawful that, by heard not Courts since infringement have could Oracle, support permitted. trial Street decided as half services." support it found filed that those of Rimini Oracle order AFW maintenance company’s With litigation Street versus went vendors, earlier. disputes "third-party parties. is United the we On by the with software the enterprise and of also are requested no XXXX, have the in until and ran occur Street to Nevada versus filed an all when expected in and to to the pretrial there a finding preparation against The occur of parties issued finding for XXXX. affirmed support engaged court software in X.X has XXXX, jury. a outstanding been

the affirmed faster ability to engineers noted denial support task learn is better gained sense in Oracle’s experience. its find also important in ruled its of conducting from recent Oracle Street’s orders court claims, copyrights has common Oracle’s most infringe Oracle noting at claims clarified while the Oracle’s Rimini previous software. denied Rimini’s other that and motion absurd and The engineers court accepting and merely the result. further of some favor with that Rimini court experience not did denying stating the in engineers applying know-how also learning their Street’s provisions sanctions, Street it of of that most favor The for Additionally, orders including result and, on and Rimini other one a injunction deliverables with respect the did however violated Oracle court Building supporting Rimini The gain Rimini and clients by any Street any claimed that clients that in these found inappropriate using XXXX license and circumstances, conduct running it the instances the court work. court therefore, client certain in specific find narrow in on two recent violate previous their sanctions. same has basis two more claims and company’s for to to by XXXX. would and order relating no to court’s Street would get that

for activities and, in cited before the injunction. the of was violation cannot a the injunction specific However, therefore, deliverables these place be two occurred

the rate our Oracle run we We and for our including focused we a first sales and with $X margin billion on and achieve expense annual disclosures the to goals, information. we quarter September execution, mid- well an and conclusion. quarter and executed evidentiary To successful company long-term Please increased believe filing the XXXX. with to approximately first additional in correct court XX-Q bringing litigation plan in errors. achieve The has disciplined XXXX. Summary, retention, are by operating have short-, filed in are hearing on a management see motion the cross-selling revenue our scheduled and cash XX% litigation court and to

Now, over Michael. you, to

Michael Perica

for Seth Thank to $XXX non-cancelable revenue retention months first $XX.X our up above a than noted, which XX% increase XXXX revenue, least a good with was million, afternoon subscription on vast majority rate year-over-year makes the of QX remained for for XX%, Revenue subscriptions, the you, support of everyone. at of service basis. XX XX.X%. quarter year-over-year a was million, as rolling Seth results, recurring XX%. and revenue Annualized of revenue increase more

XX% for than of of for United while For representing international the first international represented rates X% clients. XX% revenue, quarter, United clients year-over-year growth contributed clients within States aggregate total States the less revenue and XX%, the

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

million America in in Looking sales in see forward, from XX.X%. $XX prior we experienced for operations, leadership were many first to to XX.X% margin North hiring quarter expect quarter, operating was first the compared our of regional in new resulting the year first the for prior to for model, accelerating to compared hiring of Gross Billings growth of $XX.X QX reps. sales seasoned XXXX oversee X XXXX, quarter. general new quarter fiscal XX.X% year-over-year for year of a American million first increase North restructured managers the

invest in delivery services management capability our Salesforce, application and to security including continue services, Oracle the We service solutions. and services, for SAP SX/HANA new support global for and products technical advanced advanced SAP, solutions

full prior stated of year year to scale a service support efficiencies benefits be first delivery aggressive first quarter XXXX and in outside and Operating compared sales the and for costs, growth XX.X% percentage percentage XX% margin excluding expect to compared have quarter. to remain marketing administrative we Sales XX%. realizing of year prior needed as the for as expenses XX%. a our for We and were full making of expenses. range XX% the our the for of first we and expenses revenue, previously, for gross on As to and global XX.X% to the quarter XX.X% General expect to quarter. initiatives to throughout litigation range to in XXXX the of first guiding XXXX be in the appropriate XX.X% the revenue expenses year investments focused continue was marketing

first percentage to the full XX.X% million quarter to be year for the expense $X.X year quarter. for We a prior the range litigation was Net the expect outside expenses of for revenue million of to XXXX. compared G&A first $X.X as within XX.X%

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

terms be for XX% XX% for the to $XX year or to also publicly in in Investments that the full expect range revenue quarter became outside Street, to for a Rimini GP million through Company, had $X.X Adjusted of of XXXX, EBITDA warrants million in common SPAC, for held merger the the the XXXX and Purpose certain of shares first Acquisition United class cashless sponsor Commission, company’s approximately a litigation Corp., flow $XX prior the Inc. expense million year Acquisition cash of and by $XX.X GPIA’s October SPAC. are provision. implications We of public million Special with million, the compared statement the allows XXXX. of been million a first revenue certain prior public issued warrants on issued SEC, accounting Operating warrants GPIA, for warrants by quarter. On XX, with quarter. initial before the of the Currently, was first warrants for $XX.X Warrant XXXX States quarter XXXX. treatment. Securities the compared SPAC first $XX.X GP year October common the to or exercise April offering. in outstanding the discussing Exchange one purchase connection X.X The stock million was XX, issued a have

$X.X GP Following in therefore, year with in expect is the change of first in Street this first All liability. will of the gain when sheet. treated realize adjustments. to cash million our of the non-cancelable a revenue, and the to fair continue million non-cash future March $XXX of at compared accounted the value will outstanding classes Rimini not warrants. GP the a quarter forward mark-to-market a of record resulted the non-cash approximately billed to quarter as exercised non-cash settlement million this Backlog, ago. be of guidance, retired, equity deferred using liability. year quarter sponsor the up extinguish will $XX recent million subject loss the million or accounting balance We scenario method and be Balance a includes expire. or related quarter. that to which are for was XX, no $XXX There interpretation sponsor other first point be warrants is we warrants Therefore, ended provision statement cash warrants to lead to to profit would revenue $XXX and, to from sum first SEC XX% the the XXXX, revised the as for a prior moving liability from until either that a This the expense

up we was stock approximate purchase January of common to payments the The $XX the buyback plus $XX XX, year liquidation preferred million stock, proceeds completed quarter of time A required. approximately gross were million. to offering free for value, face million company’s and preferred approximately $XX ended million completed of of of Capital cash of as aforementioned shares where $XXX purchased public an XXXX, million value reducing A the quarter. March a face in retired. Finally, XX, cash events. strong discount from million, buyback Series value the with XX, the public market flow deferred going light first make-whole face resulting position $XX $XXX prior approximately revenue our A XX% make-whole net we shares On March the were first On of completed since generation, On XXXX, from XXXX, million, the we million. XX% preferred of X.XX no retired. in $X.X April approximately of were XXXX, the In follow-on of company we to The XXXX. the Series Series for shares first the a value X,

Achieving July XXXX A the of redeemable adjusted believe the net July of capital. A the at trailing redeemable holders the option cash positions and not but the end this upon beginning until in we only It majority should preferred outstanding. been of cost cash subtracting of with of election on to the execution, our continue from make-whole Series without $X.X and calculated a than solid net well reducing XXXX, options cash company of quarter us that noted Series underscores the our is of is position hand be mandatorily XX liquidation Our $XX million Series by is EBITDA A value position months balance. million and

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

Operator

sir. [Operator the Instructions] question is you, the Thank Van first have And from queue, Rhee. Okay. I Jeff sir, in

Please is proceed. open. line Your

JeffVan Rhee

Great, questions, much for area. know a big taking Thanks guys. very deal, a thanks. Seth, Several is I for my you. go-to-market focus

have about you some a rep you – increasing pretty lot I of have You it. talked in know goals counts. been terms had ambitious

quarter the Just development, rep lot I about how the a you gen, has go-to-market under ended improved maturation, know broader then lead talk things with about if has? of because it where etcetera. discussion of changed kind counts, – where a were the And you maybe target just

sort of Just give plan? and of versus accomplished where us a been are sense what’s you

Seth Ravin

and Jeff you. thank Sure,

XX the end year. was say still And on XXX the quantity and as we know, glad you that QX really with the by had right target above quarter reps that all And all, end to reps, let know the and for the call quarters quality and the ended our am with XXXX. of getting we target. reps of we First struggled for at are great of which several guys that of completing last you for wanted changed guys sales on all I earnings we

we those are on in well changed that. very, executing terms of So, very but haven’t targets,

numbers XXXX. are turnaround we big the the So, had people for of getting. of place. We quality a out process that changed in responded reps new from put the the well recruiting. all and of that a in we lot They that’s Again, improvements terms and

about we Europe. a in the that. have do much to hiring We still feel better little So, on work

to has So, it all bit again, other than made market, are with a inside the of little well COVID very a but there. France it’s staff especially a we and crazy Europe, that, bit in of doing difficult more shutdowns

North work systems, we other gen, lead redoing, are engines, The for American brought X processes, the that course, the we the the the GMs new in the region. of doing in

and a first them, We also hired directors is below all being new that for end the starting below in and of fully the sales lot place at staffed, QX QX. new into sales VPs out positions time the them so filled of

will these I seen new line have running, This see new will work well. get results. people, hit operations going we very lot am training. along think very on of lot QX. way. a and optimistic as to what those believe to is up We starting bottom of the And it’s in the We counters we of the new I lot start

JeffVan Rhee

Yes.

I I continue an in quantify think gave you able real the Are overall deep a Analyst pace? gave you at the XX% grow to the of all-time as was that in you it high, dive one recall, but up was Day, pipeline to business, business at points year-over-year.

Seth Ravin

are we pipeline you Analyst exact an growth. seeing for we I seeing but think don’t to have are compared I number Day, grow. the continued

interesting in invoicing some the ago. is first were have I actually things – up AMS XX% a about the asked year AMS think one at higher quarter point I know and probably you of than guys

first We it through in are from at ago. flows AMS. quarter the dedicated the We that’s revenue higher staff year doubled as seeing a XX% to

good. mean of start the side. get And seeing I AMS product just about numbers point about going the business last on as as dollars grow another mention and security pipelines that the I just that’s are announced are We already business, professional in are time guys to And AMS of call that quarter we But a are continues giving our across the and the some going talking you support, we in every me earnings more we lines. than accelerate as all start to we where even numbers but or have heard we I those why more to are well service looking are component going the millions imagine. That’s would growing. and of so really doubled our to business to grow. you millions

are interoperability in our through building we’re support, And we are and over the that’s products as significantly and out We that of prior solutions. also that part coming technical numbers. other seeing services

really So growth our all segments. you’re across watching of product different

JeffVan Rhee

If TTM but the of about COVID? sneak you of of and where in. figure, I just you’ve give I would was more respect good look XX%, kind could seen a clients, we you one so ticked The churn there – retention to a last it’s are to little – us great? very, know can customer Just number number know coming retention The up or be active out sense one there. color a talk Thanks. up a very I over, it. want tick at what with down

Seth Ravin

Sure.

they And dealing customers. a lags. saw Those seeing towards residual still to, the of of I I end operations we’re were are very with or when still stabilization and getting course, call, on There of compared lot I last still they But the crisis dealing year, some the and think think were footing, the we’re some pandemic mentioned was reacting then quickly. are seeing still things you their as the COVID impact. hit. them revenue with closed hitting people are

types but the There short-term and in like better we of still issues. starting back saw I think half different have countries. still challenges some is is there that. we discounts customers who and with stabilization things some quarterly need in So of do other still But last help some year payments

As you know, still Europe. watching we’re that in

Latin very it We hit still are watching still America, hard. in

weakness to overall, But the of pockets driving good. retention some fires very were renewals. the are COVID impacts numbers very, those of business So still in

the the for reflected you’re quarter, in numbers in quarterly for first renewals numbers renewals seeing Our fourth billings. our that quarter, again in

As and into year negative quarter that And the the X% was you was to first coming of year. a QX negative before it that, billings X% transitioned year-over-year. last guys first growth know, XX.X% this year, in year-over-year

growth COVID, away. business the lines and you’re is that of little is this long I in all fade a watching that navigate the as you’re add if several accelerate again, will over grow. the prior again, different client have us the of But people growth think, really turnaround years all So the weakness stronger bit you watching what a great reflects not term product the base even and in That’s and is renewals, long-term.

JeffVan Rhee

yes. my Thanks questions. taking for Yes, Fair enough.

Seth Ravin

Thanks, Sure. Jeff.

Operator

And the Sir, comes is question proceed. Please in next the your queue Wood. from open. Derrick line

Derrick Wood

thinking strong billings at to surprised a midpoint albeit see the little were only Thanks, you but of was I mentioned to growth at job billings. balance Seth, I to number. guess talk guide to-date. really great last the guys. we just mean, Nice at on on midpoint, kind on that to sheet topic, And the you really I of revenues I follow big outperformance you least a and what had billings. versus – guys

And timing overall performance speak could surprises billings quarter Michael, the maybe if with maybe, a anything structures is the So the you touch unusual could there side? maybe, were just respect and kind contract on bit or to If to you contact or or if just any that? of contingent if created there Seth, more in anything that seasonality? like

Michael Perica

the years, prior With to is as good year, for to two the good see relative are first Thanks, the didn’t answer well about we know Derrick. the out-of-the-ordinary a It’s or highlight, indicator Michael feeling year. quarter here. structures and you that would We our trends, very that. fiscal start the noted, no. billings as Seth I regard any contractual in to the

As year. you are aware, we guidance reiterated for the our

trends. some have We positive

Seth, you. over to the with pleased are we So billings.

Seth Ravin

Yes.

to more I you than kind have in have of quarter to any When first as being the we and midpoint these contingency, the think, of revenue we’re get going said. that’s exceeding, some we for structures, done have Derrick, use do down as we any always you bold rather that at net we’ve contract told a of work prior, those now, right, why continued you a revenue when released. of deals million their until keep they contingency QX as And dollars bit health had way and seep to there few that still are little big passes, end will out not predictable were some etcetera. are a off, of that have have there that the suppressed that really others, accident

So and I bit the just way works that second of etcetera. little a can because take that quarter, get the as that to think you that, picked up have in lightness

Derrick Wood

the Maybe to takes time the in year? in a into thinking throughout you through. that’s is more in kind how speaks when is but that to like a translate North makes terms are sense. your calls acceleration guess, question, implied in it. your America, they America? revenue, investments about terms second bookings, think is to really part flow That it how maybe dividends then, second that less it half. maybe And investments touch of the what – bookings, see these we it all of North in just And the of I on, new from improvements obviously, start QX? to of kind Obviously, in And really terms but and half, just that for probably QX so of of in second guidance, the And in bigger little

Seth Ravin

Yes.

But clients, right? at revenue you growth watch of model, to the starting it’s briskness good XX% number precursor the gives in and economy, as we’re look smaller the and that ASPs prior to of the a I watching lot having I think, having mix talked right year on flow. into products some again, bag. little you etcetera favorite now, that off because the a that of number ratable a we’re are So is about And billings, you’re grow. just you bringing – with margins some active to the certainly, with calls, the to seeing do deals then again, the billings a with such of indication our gross think in of see deal an the of do we

– through. So, are year. that held mean for will growing. all we guidance we would And numbers the why expect right that’s we the I flow

our situation, it. I mean, everything when know position see a all we’re trying have look it’s always upside year. the our of COVID it’s we don’t XXX for disruption horrible. doing out India, global more of in our redundancy, of all we’ve the where got in with guys of conservative could X,XXX that have people which get and we’re in looking just happened employees. sudden, You but service ourselves We’ve And than of was we what because you fairly there, fine to sick But any still XX% a early get had and operations fine,

that So risk about as and and calculating All that well. you’re up to you got that forecast. through think we’ve manage to when had adds

could days. are we in because a bit there any to way play cards to play But of are our well up lot just we’ve year, I unknown are so things And that a given conservative held going ranges. these the still think pretty

the been going just on annualized play to we’re And to way until the high we’ve work We’ve changes. exceeding continue to economics, think end been fairly to COVID, conservative the reliable. can I tax our think I side. through we the

scale. name fact, you it, different the moving macro on so parts In is inflation. There many

if of America you running revenue a that North and and the know look and up get at itself, much faster just have you and our will at we good really doing business growth. we’re you follow-through stay think metrics on business in we’re pace. the well, focused And growing I will

billion extremely and prepared doing where XX% road were invoicing during we good Also, revenue which still cross-sell. feel of we $X I cross-sell, So, we the my in remarks, to on the by are mentioned ‘XX. about

XX% a We’re people exceeding we And drive and that integrated from course, like that existing about a with huge billion, the AMS what see. lot comp and we bottom our being between for the that All will roads moving number. number. to increasing $X XX% only other everyone changes We that excited sooner. is of scale. to eventually, clients. towards growing and of very that to the what that plan of product of place get and get structural invoicing But down wise work to and growth that, in means we’re lines and and we And We goals put line. and average want XX% targets to number the invoicing to we then see ‘XX there now get maybe need CAGR for the drive

Derrick Wood

it really hiring including a a growth. Yes. of would robust good, the in you’re pretty looks look metrics I investing Clearly, – like that quarter. lot agree

in Can your for FX FX few for one Michael, companies basis? mean, last what us One is a an of see. to bit the good a I on that’s last little headwind you So the months. – had remind has exposure

Michael Perica

So Derrick, it’s minimal at watch we it this but point, despite the strong growth internationally, closely. very

been We’re point, nonmaterial risk. undue from a cognizant perspective, a at and this ensure take that any bottom impact. we don’t it’s But line

Derrick Wood

Got it.

for my questions. Okay, taking thanks

Seth Ravin

Derrick. Thanks,

Michael Perica

Thank you, Derrick.

Operator

from comes queue the in question Kinstlinger. next Brian the And

Please Your line is proceed. open.

Brian Kinstlinger

there disruption to sales so questions. recently, XX%? VPs the take Great. in North is rate? the to, changes is growth all Thanks taking say, for – you to domestic rate GMs, can the think short-term? seeing you more And a when long North acceleration it force, the is you’d more, before any the do American much like what hope start long-term in And With my how executing will reasonable set, are American what we a growth the X%

Seth Ravin

Brian. some to without It anybody you some change. momentum disruption. makes the territories, level we’re in Thanks, just great bit America, because Sure. doesn’t disrupt we think The at North fact have we’re little – of in the people I changes signing ever of a I really don’t Yes, happen changes. some signing you if think deals. in that big look every deals But sales

other significantly some than big seeing volume Vice who Southern any large a the region, of really sales the President signing Sales of America, We’re We company, North celebrated deals. just And more. more did our of Sales of for President wins. South we’re Vice

getting wanted enough be. North So North It’s huge believe we the leaders engine to reps that drive were that just enough America America and the that is can we volumes not not performing.

U.S., business. don’t I reason used still is XX%. eventually of think, that over can we America ‘XX to that North think a want want though, do to. internationally get I doing building outside to at you We So year. we’re get do all performing. to issue what Look believe are believe We we U.S. us. can’t growing hit the execution again. reason can’t achieve do the again, putting is We we’re all those it. numbers at that see any The believe of why kinds of seeing, This in everything place, And and the changes strong that no do All strong that There North resources are we’re with across an is the we there. indicators that very on XX% I that’s numbers are, there. pipeline, that to we’re America. very within the do

times. number new I field, players you Some errors happen on got that about have all many errors this the high. you the on field, talked is of these the and to When

AMS losing early we a a delivering have right have They was They And this rookie. deals in our You don’t and answer the the we’ve you, new business. our know We winning. of lot on we’re the – because quality it know rates not the didn’t have enough what We and even making of answers, the didn’t been didn’t progress win proposals tremendous honed in just made I and told pretty were mistakes. were all we well people deals deals, some before. right in we’re have business question. the on to

when track the be look look double-digit I that across where be I growth we indicators, on in that And you at watching think we’re we to come year. all hoping online. exactly all we’re double-digit I’m with the North think I America, So will in want this with improvements you growth. and think at this

Brian Kinstlinger

quick Great. ones. more I have two

need contracts more, win? or end more for win Meaning more callers the loaded your million backlog million revenue guidance you either number. versus low end to the coming in about hit guidance from what acceleration, be When one? low previous is one the first asked growth, don’t example, work, you any revenue or $XX would you of The $XX is of on percentage the would back-end the the of

Seth Ravin

know need That you, XX% contracts – I tell know. mean huge, that from generate need gives us our But more. new your dependent that invoicing that base revenue existing revenue, our We that new mean you’re off steady a comes you that billings of No. we new I of means XX% and right? clients. over to will some number

through so and much on have narrow pretty that of as XX%. So that guidance that’s course, forecast the why narrow. range range ranges the the can And us because is the you see more exactly of move year, we we

if confident look those for fact, just say, million million. It’s the $X we at we narrowing year have so a of issued, because we’re in already ranges. in we In even range $X as bag, was all it more more have last the you that guidance you’d much QX much

Brian Kinstlinger

Great.

down. per Lastly, mean it’s COVID I’ve a over It’s relevant do that to think if concessions? COVID, Does revenue have relevant? five we it stat? smaller or or clients a four that’s sorry, steep mean – not. I is come Is don’t know due that gradually price client to it’s you not on relevant seen quarters, decline. really Does

Seth Ravin

it’s We really don’t it of put think in those one data out I It’s because relevance. limited points.

serving be minutes why from measure I a used it’s But And are Brazil, we’re think we is a is the ASP I where markets there much equivalent And they million like a Taiwan U.S. U.S., example, smaller there That’s size few or equivalent clients. countries the $X a the deal million mentioned for that because be. somewhere $X watching. SMB doing ago, else for also better are to compared is know deal of to we down wider us. a it average down where deal just million the of $XX to in variety tend or so

volume, I revenue in is think some are of now. client revenue XX metrics, take versus some I you as per to our at per it’s so the business and a meaningful. you and look them think really the rep don’t of others meaningful out way And right more the expand when to increase almost sales me, same countries you

Brian Kinstlinger

Thanks Great. so That’s helpful. much.

Seth Ravin

Sure.

Operator

question the queue And in the is from last Mark Schappel.

line is Your Please open. proceed.

Mark Schappel

Is it good force reasons in there in mainly the region regions? are mean for about causing I Seth, COVID success – than it is outperformance? further region? success The that for Is the are structural your the your factors is along company Could the other sales a there or related? you the had last over just Hi. talk you taking bit you. Asia-Pacific little and question my really a so. question Thank some has year

Seth Ravin

Yes, sure.

been fact that influence solution. I last the the very of look, well an there. pragmatic growth few our factor hasn’t connect we I COVID very, think because believe the before What has in of on monster growth COVID. growth well is has Asia really APAC years, a the factor in been had

single with think break Australia, have regions. I And by players alignment, Southeast in, leader based in ANZ cultural things region. – we Oceania and, GMs marketing I and and allowed that, regional think in went from in course, And in based leaders. got local field GMs execution four the Asia we the in China APAC we in put Australia. We’ve the Mark, get Singapore broke four we am of a the regional our was I have did, apart we great that We people. closer into regional And us convinced cover up Korea, in Greater to of Japan, one to to ground.

North And America. I are we to model each in of we business success, in with order success run put a of to it’s the America are really four on tailoring lot We brought business, just we’ve Asia-Pacific. that ground, company get of let Asia. let’s what And growing. way North it a let’s really, place, who and success are When that’s closer to our those these local And segments very big a truly break the different three big had GMs we segments. and to said, three GMs a those into the clients, is those regions think regions

Mark Schappel

And to you I What to have their form continue be at doing Great, customers. mean, and in with What are response? mean, they they you then fashion. responding some respect you. SAP, Oracle or chip – do thank to away I

you? behavioral to you from far a as are what wise as response seeing So them

Seth Ravin

to combat and to make trying a you are they well with coming hand-to-hand the them it’s Oracle incumbent because strategy clients that switch It’s SAP as know, always in fierce competition. and persuade these and of in Well, vendor. always we’re

So advantage. have the the that getting they to we’re businesses they they are their for. at the lately, because the newest move aggressively rates ground. suffering, whenever people to And they have And played their always very always incumbent wanted hand hoped are not products on and

we they against discounts so, up those come much time. their very incentivizing the are moves. And They are very, those services and all discounting

Sometimes, to a they cause us deal. lose

value They better usually, still product outcomes variety a They because we better have migrations. push upgrades. at don’t the match they they don’t our because it have do get wider our services service that to same they through are Sometimes, and exactly, if with even the price, of do the we price they the and we right the provide to want, than do.

deal, So better they their when we has just you our drop compare price, to apples-to-apples, match Oracle customer even far, strategy ours but sometimes, last exactly, minute, was the price and in If deal. happened. which and by and the still, they better to SAP really the if they match get will price are a looking disrupt and walk the at

can’t win. believe you the with Oracle just decide deal those majority – them, the of stay just continue to will that’s SAP, great and will from or have they because customer deals, gotten that deal such they lose competition. but But Sometimes, to a we

Mark Schappel

you. Great, thank

Seth Ravin

Sure.

Operator

no we closing further gentlemen, have any Do And have remarks? questions. you

Seth Ravin

hope do safe. staying please seeing Certainly. We to look IR to are want you And you questions, let I know. our have you are getting additional the sure again, vaccinated. make you if everybody forward I I hope on next any call. team

everybody look Have good QX on forward I to we day. happy Thank very call. the And answer much what always answer. everyone. We’re can to you a seeing

Operator

now concludes Ladies teleconference. this for and today’s you Thank you. participating. gentlemen, Thank

You may now disconnect.

Dean Pohl	Vice President, Investor Relations
Seth Ravin	Chief Executive Officer
Michael Perica	Chief Financial Officer
Jeff Van Rhee	Craig-Hallum Capital Group
Derrick Wood	Cowen & Company
Brian Kinstlinger	Alliance Global Partners
Mark Schappel	The Benchmark Company

Rimini Street (RMNI) 11 May 212021 Q1 Earnings call transcript