RMNI - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, ladies and gentlemen, and welcome to the Rimini Street Q4 2024 Earnings Conference Call. [Operator Instructions] This call is being recorded today, Thursday, February 27, 2025. I would now like to turn the conference over to Dean Pohl, Vice President, Treasurer and Investor Relations. Please go ahead.

Dean Pohl

Thank you, operator. I'd like to welcome everyone to Rimini Street's Fourth Quarter and Fiscal Year 2024 Earnings Conference Call.

fourth me Michael Seth issued a Perica, press for with and our our copy call year under release and fiscal Investor be President; our the our of the which today XX, found Ravin, is CEO earnings ended can On December and on XXXX, website quarter CFO. Today, we Relations. non-GAAP financial provided in following the statements A the been reconciliation the has of financial measures GAAP release. in to press tables believe of they under meaningful heading and these included measures the explanation About Measures we in why An also are and Financial Metrics. is press the Certain release Key Non-GAAP

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

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

Seth Ravin

Dean, and thank Rimini and software us enhance accelerate X,XXX and enterprise than XX their business you, employees their advantage achieve significant optimize cost for to operating savings, everyone, transform improve in and more help Street today. Today, countries portfolio joining current IT competitive clients you, support Thank profitability, growth.

such other need our Our budget. workflow, ability clients outcomes AI, have comprehensive support additional proven without more innovation Rimini unique in leverage fund methodology already investments the U.S. SmartPath achieve automation to savings. Clients of infrastructure, and realized business as IT billions hyper-responsive operational flexible to better and for dollars the software

proven has and government VMware application, Global configure, support, monitor, customize, and Fortune and thousands connect, run, technology client company provider for and in solutions We mix sector signed geographies. enterprise for provider. Fourth are sales industries support manage, support including broad trusted, and global our who successfully the mid-market, across on Oracle, and results. organizations positive public quarter. their as we We with during services our of of mission-critical and Sales solutions, set a delivered landscapes. The Fortune software and renewals select transform fourth quarter Street new of Rimini contracts acceleration SAP clients momentum VMware XXX, optimize the software continued achieved protect, XXX, a the new of products, and database enterprise leading billings, included software, third-party and

for Asia-Pacific focus go-to-market We in billings with also and the we new and achieved led a sales, services. maturing The is results X.X logo reflected new support of achieved improved was execution quarterly client ARR project-based solutions, in was where improvement contract billings offering to around solid service on the organizing year-over-year improvement billings. both right and The extensions satisfaction respect over out regions. With excellent. professional X.X, X.X, improvement average X.X% and XX rating EMEA in our the $X LatAm, by right global renewals major acquisition sales TCV brands, included case quarter delivered delivery, global transactions including the over believe marketing sales and million. We and client strategy

will our a industry-leading core strong we financial provide positively beyond Street the to fourth and support We drivers to and offering. Growth and impact from In solutions client growth that quarter, see continued business investments broad we and Rimini additional future purchasing make to services results. in products, our improvements and operating satisfaction drivers. additional interest continued believe

The of involved sellers model to growth new both sellers client adopting existing farmer base existing assigning aligned we clients. client have Americas' strategy particular by full to management client while the farmer replacing For the portfolio in responsibilities. industry the hunter-farmer success structural the in and carry existing a also team clients. The Americas sellers and to sales sales reorganizing sales go-to-market the new example, logos in new assure cross-sales a industry-proven quotas change implemented with most Americas, of proven having industry, a to

comprehensive We organization. hired and industry key with and organization, lead and the sales capabilities improve have CTOs support global combined large these We've drive use expanded support communicate streamlined sellers These leaders deals. global client complex engineering provide global Street's team. team road-mapping across industry help thought solution have into sales experts regional workshops solution our messages, the also develop cases, resources support proposal Rimini a more engagement, better leadership, our and will one-stop C-suite architects industries more and for

more to our services also have We software products. expanded

opportunity For current stated see VMware. respondents VMware that XXXX, In we software if support. acquire would utilize VMware of for published their recent licensed software survey a continuing could our to to our needs, December XX% sales grow of perpetually XX% strong meets their a example, business and current they consider say we new support they in

as VMware such least, also hypervisors, unique partnerships providing channels. by advanced and alliances, solution are expanding use products leading military. And not U.S. is bundled in We but with other sales and last, announced security our strategic virtualization for recently with hypervisor already Nutanix, the that we a security our reach

With litigation and to ECC derive clients AI, activities our We new believe Infor update. has which I, in that its does any run or Rimini cloud Rimini Oracle licensees in the XXXX, Rimini there workflow immediate on-premise Rimini require transformation significant costly and known by value no Street or litigation replatforming, are been and enterprise migration II. an exciting litigation to SAP, ServiceNow Rimini migrations exclusive ROI. Oracle for course, have example, achieve Microsoft SAP filed Oracle help savings, years, application Rimini as against partnership litigation I. XX S/XHANA S/XHANA For Oracle, was X with Street more to than not automation as and such cases respect this business current will and and offers ERP upgrades, modernization, solution I including RISE. related

had December Court's XXXX, denied XXXX XXXX, Circuit February prior II Court a a by U.S. injunction costs Rimini much in issued the rulings. Appeals erred On to trial Rimini on Appeals and in permanent paid Rimini that Rimini petition. With I XX, the quarter, XXXX, Oracle District we decision. fourth a District million the the District $XX.X Court its is the the to rehearing the Court Appeals of respect December to XX, Ninth Oracle's that attorney's Appeals Court's arguing to findings issued rulings. On respect that very II award Rimini positive fees U.S. effect. With there January the vacating the related Street, order petition filed Court XX, U.S. the Appeals remains in to Court's of in Oracle for of decision Court, for However, XX, the II,

return appeal We notice of filed and have of the a the amounts are paid. seeking Appeals the Court with

As of appeal company's this date report, of pending. remains the the

more filed at in additional related that, to pending time, our report information XX-K For in and information more note additional to the improve right sales Oracle and to our still detailed regarding are driving on to making XXXX, remain company's profitability, U.S. material on business enhance focused that beyond execution. We February building we please are and court Oracle, investments Commission. Please statements expect in with SEC the methodical reaccelerate with filings actions disclosures this provide we and disclosures the unable Form our disclosures and the discipline filings litigation and the company's Exchange XXXX. a take Securities Further, leads, to successful and through the shareholder we see remain growth with confident and We annual litigation. Summary. to more releases, value also providing bring to XX, return guidance right Oracle conclusion. pipeline the the closing continuing litigation press today, with and

you, Now to Michael. over

Michael Perica

us, for represented you, respectively. for X.X% year Thank quarter quarter and of the clients results. XXXX and the United full international and year-over-year the $XXX.X increase the XXXX thank $XXX.X States Fiscal XX% of million, XX%, full and decrease for Seth, XX% for fourth a XXXX X.X% for and XX%, and Revenue and and fourth was joining a revenue while the year. Client within year million represented quarter you everyone. QX the full

retention margin nascent revenue and gross subscriptions, were by onetime X.X%. Revenue year of a XX% of which this prior was total fourth note for revenue basis, the year billings, operational revenue expense, months. We did million, was that year-over-year revenue array margin and the $XXX.X up VMware year to for XX% aforementioned leverage onetime of $XXX.X XXXX, revenue to the for compensation will ServiceNow. Operating $X investment on were improvement we FX for of positively contribute excluding remaining X.X% the for growth revenue, decrease take transformational quarter models, XXXX revenues revenue methodical with XX% XXXX. We onetime X.X%. on approximately XX.X% to compared our a to makes X.X% quarter, quarter year-over-year, million full while revenue year an fourth quarter, efficiency, our year the over fourth such the full support, initiatives fourth quarter. full a gross needs that PeopleSoft-associated by $XXX of processes for with quarter Our compared strong continue fourth and new through event for result XXXX. Billings offerings. Despite negatively for for however, to On for and XX.X% optimization client during slightly margin year XXXX. was XX%, of expenses. for fourth X.X%, and million, negative for forward which XX% this improvement basis. Gross impact revenue the compared XX.X% of XX.X% and least margin our XX.X% the million into favorable subscription global of XXXX, quarter was quarter through increased for recurring XX% stock-based to excludes up increase note, continued we XX of systems, support impacted and In wider prior billings XX.X% pleased prior fourth as improved a are quarter. Annualized year our non-GAAP that balance XXXX, against brought do impacted of rate a driving for on at full service year margin event, the deliver services Nonetheless, our prior was advantage benefit the noncancelable for the gross opportunities year-over-year fourth our focus a revenue revenue quarter movements due to opportunities gross for continuing focus billings, excluding and of the best-in-class of to staffing and

plan As from costs earnings a we quarter-end noted to on million initiated measured previous optimization net operating quarter-end QX basis, annual QX calls, our to XXXX an reduce XXXX. in $XX cost our by

the $XX with onetime associated annualized is in current reported of the quarter, of million. net reductions net second trend annualized The variance totaled cost XXXX, on of the of project-related $XX As the QX, half cost an our QX million. basis reduction year. to At spend midpoint the was the

While which $X.X XX% was initiated, was for incur expect this prior and revenue of plan exist. Sales broader compared plan as marketing was was and operations quarter was year of compared $X.X a evaluating optimization marketing are the and XXXX, during for million. for charges the revenue revenue ensure XX.X% in stock-based in quarter to percentage appropriate in continue investing full revenue XX.X% XXXX, with and litigation cost reorganization earlier. Reorganization of of of for the stock-based XXXX. revenue for a XX.X% full XXXX. outside costs, for XXXX. Litigation revenue $X year the associated prior we year where administrative prior XXXX percentage at XXXX, the our was and quarter settlement year XXXX. Outside are year a to We XX.X% expense fourth year year for for quarter prior of percentage XX.X% opportunities it prior prior year XX.X% quarter fourth revenue, million Seth year XX.X% fourth XX.X% for for compensation XXXX, was to costs we for of the fourth quarter million as compensation structure growth non-GAAP compared XX.X% fourth was basis, XX.X% XXXX XXXX, to compared properly prior for the as year XX.X% do for the the the million revenue cost prior quarter XX.X% time we for quarter compared XX% million $XXX,XXX for for was and year our outlined to quarter the and year XXXX, prior was and XX.X% quarter year full full as of and the current a to $XX.X the of to initiative basis, which expense year fourth and non-GAAP of for the fourth quarter expenses for expense, additional the for areas $X.X XXXX. for year On $X.X fourth prior cost for optimize costs, expenses opportunities for the to expenses million excludes year sales to revenue this litigation revenue XX.X% streamline fourth as full a the quarter and fourth the fourth revenue prior $X.X for and of full On excluding excludes compared litigation year and million and and XXXX. General G&A to for

during the the a Oracle Seth reimbursement in quarter for case. attorneys As their there II that the however, related litigation fiscal and fourth payment XXXX. was quarter to Rimini court-ordered million addressed expense, of $XX.X represented third of This costs accrued fees to earlier, was the

fourth litigation where million, the share, or of XXXX share, for year per diluted diluted remain loss per diluted of share. outside approaches year $X.XX the Full share, compared prior attributable million. Net for income year to or $X.XX non-GAAP diluted of net per was was per fourth $X.XX net of per quarter net diluted spend fourth income diluted $X.XX prior the to a to per to prior net expect the diluted quarter XXXX. On year $XX we compared expense income nontrial XXXX, share to fourth year year compared full year XXXX share. basis, with was full $X.X compared $X.XX million, Full XXXX. prior net shareholders share, non-GAAP to for $X.XX periods, share was income income net consistent per income $X.XX $XX.X for $X.XX For per diluted quarter year quarter

compared our $XX.X cash fourth million. for the a million for litigation quarter, for of EBITDA, EBITDA of basis, million, expense, litigation fourth of spend adjusted was year full cash year XXXX, million, revenue, to for XX.X% Our XX.X% with $X.X $XX.X year outside of revenue or non-GAAP XX.X% fourth $XX.X million, prior press for quarter quarter year EBITDA stock-based revenue, short-term of to release, or balance and was and for prior year Full revenue. XX.X% the in year for compared XXXX adjusted quarter the cash decreased and of short-term XXXX million the XXXX flow full of XXXX. On of XXXX, investments XXXX. Adjusted compared December of prior operating prior XX% compensation was to XX.X% XXXX. Balance XXXX, sheet. margin, excludes the settlement year investments $XX operating year million, We year fourth million the flow XXXX, $XX.X million, $XX.X of revenue, $XX.X the of fourth and which results a quarter, for full include $XXX.X or prior respectively. $XX.X and for and compared XX.X% fourth expenses compared ended prior increase or XX, The million XX.X% to year defined quarter to and cash

$XXX and Additionally, December million revenue by foreign of year of XXXX. Backlog, and year deferred includes compared for prior prior XXXX, noncancelable December for billed revenue, million the XX, of was XXXX. PeopleSoft $XXX.X to and was million was million of currency XX, as year for deferred to $X.X $X.X sum $XXX.X compared XXXX, respectively. Deferred of which the $XXX.X million XXXX, XXXX future update. full as effect revenue unfavorable translation revenue million,

wind-down our products. of As services we for earnings noted in announced PeopleSoft previous call, the Oracle

our in XXXX, XXXX, million the and was U.S. from or light litigation the company with ongoing X.X% year that extends X% for exit courts activity million current quarter the and litigation year suspend in is now fourth $X.X beyond until the The to and quarter and company's respectfully, while and or revenue guidance continuing million $XX market are federal litigation continued financial X.X%, X.X% to Oracle. prior of as the support. PeopleSoft around impacts rulings offerings our in was million the and total revenue the clarity fourth recent We future full $X there $XX.X and revenue, business PeopleSoft outlook. reassessing before from full the in results year best-in-class more is respectively. Business for demand of

For on remarks. company's U.S. our with company's see our Commission. This Exchange XXXX, with additional annual regarding and February the litigation Oracle, Operator, disclosures Form we'll report XX, the prepared information and the filed XX-K please Securities concludes in on now questions. take disclosures

Operator

Your Instructions] of [Operator first AGP. Brian question from line the Kinstlinger, comes from

Brian Kinstlinger

the currency, percent, revenue very you excluding in X%. for question My down sales, changes think, sales you as you how is about a is, if execution small about exclude gone well as million look forward? made the XXXX? we the the and produce adjusted and benefit can I on, nonrecurring maybe pipeline restructuring whatever you can Seth, the you've and there, to something you in America think talk that's international, I $X make decisions both North that as return in the growth, PeopleSoft, Is revenue

Seth Ravin

Brian, for we've the us. and are side seen of that's of we on bottom show on we the come U-turn and way up up, joining have other up. course that whether I metrics I indeed the not The think U, are question, or on our of question thanks we the that think back everybody's

be saw think there. underlying a think U. quarter That in in the continued to straight-up fourth the I the grow third it's with quarter. I strength we don't going that to

product. single capability on us products, about in we I the years it's the profitability. And changes a multi-product into bringing general basis. those along made global the sales And and downs the our develop think most the direction deploy maintain things, think, that environment to growth we'll of of a of like from but way, terms sales, higher have restructurings, solution all to we've those, bear to that and will ups returning I all were to several sell our bag remember, a a taken

So feeling that yes, am side very upper on I positive actually U. that we're much of the

Brian Kinstlinger

One have question. then more to quick last one and question that, related I

pipeline, kind think XX a months of ago? compare terms XX of litigation that to impacted about been you the last are either in Can the noise today have maybe qualitatively could the you there's to XX months in we quantitatively versus XX If lot of or where pipeline.

Seth Ravin

very, road, impact we the think ruling I from realize we XXXX. Rimini of course, of And decision you appellate really course, late December. too pipeline July to in good which, the but how was court's the sense quarters down the the in several we of any think certainly very all, about I don't impact in December, do II measure given that. had the get was, I until think the impact late in definitely feeling quarter it in felt in quarter at of

hope will reaccelerate attempt additional sales. growth again some do business as we I continuing provide that, So our to to that uplift

Brian Kinstlinger

Great. last for question, One probably Michael.

not On hardly million, decline sure baseline the first were or pace, you words, mentioned of quarter, just versus you fourth you OpEx $XX had of cost the million quarter, quarter the I'm in $XX $XX the down. which quarter in OpEx. But the is for litigation, savings, million in on fourth the of a excluding

So maybe talk about what I'm missing in that math there.

Michael Perica

Brian. Sure,

clarification, the savings Just of of annualized of QX as XXXX. million midpoint the net $XX is

midpoint figures As figure. But reported of to spend, December, project-related nonrecurring variance that's and it's the and down. variance $XX million the were 'XX, line, million; $XX onetime 'XX, The QX $XX associated the seeing the we with, and is net, million. in reported again, year, XX, net QX, end of you're the G&A noting the that to

Brian Kinstlinger

Maybe sounds big us What that -- charges. help I helpful was. It understand Â–- those what a number nonrecurring be what would think was were number. to the it this like nonrecurring

Michael Perica

further, saying comment can't other nonrecurring. we than Unfortunately, any it's

Brian Kinstlinger

of that? the size And Okay.

Michael Perica

to If the annualize you get relative there. million that $XX the to figure would difference you reported

Operator

line from Derrick comes Your TD question Cowen. from the Wood, next of

Jared Jungjohann

Wood. is see if or you Good the strength billings POs characterize quarter. Jungjohann some This for Jared that on was from, coming to of product-wise. strength areas in I whether where Derrick curious is it's could just the

Seth Ravin

the on the terms even bookings, bit the course, I strength more was some quarters returning to U.S. downside I comes revenue flow-through. us. we again, saw some bit hidden global That, that, And on themselves, in down leadership year-over-year for strength That's come were you strength watched the higher thanks in little did that improvements. community. And a on quarterly globally. but the joining a see across and stage from think the the outside the But earlier prior bookings We The broad-based sales due of of international the basis. think, the a really, some from U.S. execution by up. side, the quarters, return revenue execution bookings little to were changes, of due the Sure,

I the again, in just overall think, So quarter. fourth strength general

Jared Jungjohann

just Awesome. to any more on on the then That's good provide context to could maybe you you a hear. and little the that? And And then a see deal, administration? comment DOGE then dynamics around from new out, federal Army zooming exposure expect

Seth Ravin

we for region, the particular we the think we personnel, of we And migrations. to we with come ourselves at get that offering, of in, extremely we positioned think and federal as side, way entire side costs without remarks sure capabilities fact, additional that type pursuing. a where SmartPath, assets wasn't to pursue. in say continue the offer use in were the discussion U.S. attractive cost can was to the that that's required There with approach a something prepared the rather investments something the up on about that the And current we sales bulked side government in we part the Rimini upgrades and the sector that. federal we're discussion and add the security are want U.S. government about our our the come all we in North on lot drop have house. the any the that drive we Army about It's for We've the an said the we environment. American And making making by it that. But the of a deal. we that's and longer-term see on general, quickly, can Army, or actively return reductions DOGE, the being in There package being to

Jared Jungjohann

about to this Good any is Awesome. hear to there should in good you're on more you spot feel year? that, on Or we And double-click like the in investments go-to-market coming a those expect side. there? just do fine-tuning

Seth Ravin

year is this think which I we reacceleration, focus Well, that the means again execution. on

this We these areas have alliances want. newer that we base that lot partnerships and is where a the a own represents there, Street. recognizing years and $X.X are governments we're The customer in logos year seeing able they we and because of beyond partner phase of company a next that want all and to we to our into we out private We're are us of the of across interested and extending is now blocks sector of the team, building that critical that that as our are what something step. This is billion think leverage new organizations our access sales entering we people out us. world some weren't weren't come to really the to prior biggest reaching growth people a Rimini And do with now in partnering revenue them. our want with

is we accretive at nascent lot fairly those us, area well. during alliances it built a side other And engagement is a still team. the partner add that more believe, So and made on level, that investments to will, and as growth We've we've opportunities new driving the and but beyond. 'XX for a

Operator

Van of line from Jeff the Craig-Hallum. question next comes Rhee, Your from

Jeff Van Rhee

decision progress questions, come of offshoot the to couple pretty a from was the just of immediate an courts. stuff good a outstanding lot on It of there, that. that's in one that. Congrats A

starting to again? What to Can guidance go-time going in on You expand courts to the What's has had that clarifies do going withhold until guidance to you on just commented litigation be you're front. give of that? in terms something that? to happen the

Seth Ravin

going to Well, reason, of was not there of management Jeff, because felt might many the real court's in how mentioned give impact at revenue the the plan still pieces that that appellate because lines. been When guidance, around courts, cost our courts, knew pieces to that pieces guidance that's feel big sure December, win both in return 'XX, one be a might it the was ability the in there are become to we injunctions, impacted still and remanded, we our providing we when. line still questions question significant in had make there's at that, evaluation, stopped court. known. Even line. And that have product guidance, to recent going it we I though we to lot orders, solid a I still despite the to in wanted There what of existing that were we are them the Du's its remanded Supreme there to of There back lost It's that court. back in terms Oracle still options were appeal, going Court. Judge to are things for are the that

believe in two. that sort we're believe understand quarter of how going I to end truly we we come will the litigation. the or the progress. so And from answers things and need this to of wait But her are to beginning hear next

made narrowed others the were that points that the laws, way vacated. the think court way remanded on and the is being this decisions, court I the the certain way already back that

is that the So think the sort stage, of final opinion. beginning I of this my in

to to to opportunity coming I let And have play should say a but was to quarters an this that we I have longer, we're in believe return out that think so do little going relevant guidance. bit it to the

Jeff Van Rhee

the are a suggesting to That's it. at be mean, should I I XXXX, year? helpful. guidance, billings comfortable as on it are you mean, least it without And precise growth getting relates

on a on going of You in commented pipeline. lot the things

what on thoughts it 'XX. Just would take for to growth a year be

Seth Ravin

will U. take direction think the general on side. my I I Well, I the upside could of believe without is on you guidance, continue but that believe we're we

and happening world, from the how the other globalization things, down, in the and in the a of lot everything those affect including a of the around unknowns few overall economics litigation mix. with could course, are of the on Some that us challenges impacts and tariffs there's

I say do our So so. believe accelerated will we I improved moving continue growth profitability? down of yes, believe that I towards that, path and would

Jeff Van Rhee

the be it a Okay. it catch to of up. people gives And some were of Initially, developments like place it put game-changing versus a in technical you leverage talked you them I there obviously, then and in some Where to displace on us gives lot. about you they'd mean, are for terms go-to-market. of just and both could had distribution. ServiceNow, relationship, But you lot huge we now? I potential know actually

Seth Ravin

it and modernization. We working opportunity significant involves involves we're up of packages There critical sellers built set on the ERP area, out capabilities global that for and investments still pretty sides. have that both Bill in fruit and a forward deployment a into of XXXX. of bottom significant complicated. we're on it side, been and area told with myself, their ServiceNow in, those pipeline traditional our ITSM their aligned in world. believe, the part we're our is across that's to both And basis. and continuing the going McDermott first plan every set We're Rimini on areas fairly It's driving we quarter But put is it is this single making complicated offerings on and necessary. got of and we the very consulting to It offerings new outside And X,XXX accretive of ServiceNow. sales line in place. in with work our opportunities with and into bear relationships getting a They've Street growth product been week teams who expect

we're And we real very this this and optimistic, positive expect partnership. very running, it machine bring get the off and running both to sides. still things to So we once by excited

Jeff Van Rhee

How price on percent a that, VMware. quantify some fairly on has obviously, Maybe pipeline? of just is to we're disruptions. progressed? all in of that increases. maybe pushed revenue, you of at doing of massive big you while and Are percent as what through able VMware terms spend a going lot of also that's They And is minute mean, scope be how I to well. for

Seth Ravin

XXXX. offering. I have ground part the competitive our is the built launched people VMware a us will the be there I We're a sales watching security advantage. months that with early in tremendous became up, this of it, from combination, gives #X which think been We out space very our early. only thing substantive excited we in as with extremely solution built this out bundled this

door, dozens sales just We up. the early to trained getting stages it that's of the getting and have organizations out it teams and companies already, in sold our of

We are everything in customers every from continents about covering institutions already. financial different banks just X We're already. and covering major industry across industry

lot to I and word of start very out the Gartner We've of writing press months it. early very the bullish like this been other So good there gotten that's and publicity out. analysts of the a think getting People about around and a us. have wonderful getting

but substantially, So word scope, really avoiding that component the and will "materiality" important of terms year. will is in all this I contribute that think again, believe do that it contribute, because size know an has we we something

Jeff Van Rhee

on you getting one industry back? Helpful. then might have Maybe to of one that million last quick ways kind answers or those paid an norms, any that or over/under courts million. I obviously, on but $XX.X for $XX some when incredibly you legal norms, mean, expenses on the all unpredictable, of give

Seth Ravin

generally, to we've our year. XX. And think to the first our it got appellate go process. something the due briefings within March based that's would court Well, a on think through is court that appellate that I on calendar, calendar done that has I

have by year. this later there's So chance the sometime decision good appellate a I a think court very that we'll

Operator

comes line Your of next the Richard Baldry, question from Capital. ROTH from

Richard Baldry

line of offerings? the is? how durable, will and impact How extensible concentrated? to that have logo a to little all strength do I about wanted on newer Product if growth. or sort bit into related pretty think the partnership strength, see Is more we service outlook at it a Was could obviously big concentrated? you for it that that new dive the because geographically

Seth Ravin

in was time in focuses acquisition Well, of actual correction Rich, account we footprint half on to new products started the we companies of client sales we to they I it new sellers logos, and And uncommon cross-selling great new acquisition, categories. of think when with enough news portfolios generating and was order dedicated was terms already existing more, see we the from that And replacing those of answer know coming created logos, new to course the sales plans managers take in to the to model, team, and the the team hunter team, spending apart into we we've growth this a our that the created happen for And break first first clients. maintain the teams growing where year. a an I of larger that. We hunter-farmer and up logo the them came market. in both an weren't the to in clients the to just acquisition. But last we not made to year were problem and farmer reward Americas, saw and results had base. really is enthusiastically results with product. that compensation starting The existing sales moving see our our in logo split our to The problem other more sell drive into of of all to made started new changes

And logo for new will so And as those you've salespeople got new the easier. growth, it's existing we tend get generally to client that's to to of the changes sell it's logos, an you to we but but services, said. where opportunity saw easier course, more because made, go happy to the

Richard Baldry

change about those business, when with Are seeing Then persistent of, we base you? long do there. how to impact it. that that you staying are likely say, view to the pretty now? clients rates, Got out retention over uncertainties as how you macro either think seem And sort be ahead? or Are the extending year average duration

Seth Ravin

in going make. investments. their the moves ways not to play or at always in look got contrarian services we right kind cases, in Street's do and well we're I lower existing the allow the are take now spectrum, right technologies the located, controversial, time, it taxation have spend, contrarian right Rimini ServiceNow to where those times, We've I where sure right to mean, well that highly well for everybody or Well, reality Rimini doing tariffs. to which bad I existing this but know any do do chains profits. that an avoid for uncertainty. Uncertainty which new spend, business people is do can what just they And business, to at they're you that both their factories really in sales under is you do bad a operating because can think that going is And without upgrades. we've supply not don't in some things We to from hunker think around things is on many moving the critical savings, perspective right it in we've the of a companies is world to through -- times, and we globalization volatile having They're and because new the we may pressure in And good very are means in and down a to now do. in so what quite political is on on a definitely said we of environment. upheaval, well enterprise advisers costly they're of are invest much good. platform, current not so like can means offering is that Street AI, on of times. Regardless their always anyone benefit said much same providing times, well time, be going major the

most that around do world. dead-on where is an the really have of markets the we need offering So with

see a I in this years significant the as for ahead. opportunity So us

Richard Baldry

be, talk would to to of you ways what a you to and of broadly I some revisit rates some pieces me sizes for think cycles side? good pipeline the pretty about obviously on might just lot have support costs, sales cutting cost think growth, up, that. that of would us of maybe the contract drive there's concept a given about what Can you're data Last ARPU growing? are you What speeding the really a cutting the seeing? improving, to continue pause or have win Is on concept it

Seth Ravin

market that that Well, think, execute to our we against gotten you ability I very at look has think demand better. strong. We think is,

getting of we're aggressive the groups doing accountable and some will better and our go-to-market new improved see ability pipelines, I think also of before. sellers program our for believe brought in basis, that more changes making. We've we aggressive out these other very force fantastic job, Hershkowitz, driving deliver CRO, lot than on we model that more, help better, a of in we put Steve We program under a changed maybe who's the the things maturing can I sales sales fact this, and see terms a very forecast who's new a all how to business the delivery. commits a go out global a

at running XX, you our if think on look DSOs finance the XX side, I generation. days, with even in consistent the execution cash

expect go. the benefit the and year. take here complete replace that things of with through We're that These new would to new in there's drive counterproductive always as not and not further way. It shareholders and only of operations, that changes business to be it to are we people our Michael and skill are to investments sets to moving at for to why because that there. upon we profitability now, investment, direction partners And bear. a continue likely ServiceNow, going to optimize. rest continuing along doing, will take of the making small cuts would and time charges All indicated we're And this the in of area. that to in we have optimize, the hiring, as them make cycle continue also to as the out the we doesn't and able big that's is to because older to execution of be be that, and felt we them us we we to the of such have are ability make is this such wanted AI, have coming that felt but amount a particular to not to ones. continued streamlined But restructuring alliances that push certain mean

lot to We that have other data sets go data et we have a analytics, that with bring cetera, in. skill of modeling,

and New capabilities. ServiceNow skills

for clear decks have the to So that. we

going us deep watching right cut make general, to decisions trying in where the about it's that, in I to counterproductive. you're think So costs too not

Operator

this Thank to Ravin Seth time. call no over closing at are I'll There turn you. for remarks. further questions the

Seth Ravin

once And operator, helping and you, you that thank challenged are thanks and our to growth around makes drive for us. ahead. Thank to our increased passionately in staff of them again, the out there. of road profitability course, those who's And harm's thoughts in always are joining clients, who, way successful our is dedicated world and serving and very much, with everyone, accelerated and course, the

We much, a it to great never day. world, we the Have pretty forget and have many that. Thank so around everybody. want you good to relative

Rimini Street (RMNI) 27 Feb 252024 Q4 Earnings call transcript