Rimini Street, Inc. Q1 FY2025 earnings call

• Maintained positive momentum in billings and cost controls during Q1. Sales included a mix of products, services, and solutions, with acceleration in VMware support subscriptions and improved new logo acquisitions.
• Operating expenses and cost of revenue as a percent of revenue declined 5.8% year-over-year due to cost optimization. Billings growth was 7.2% year-over-year, driven by new subscriptions and project-based services, led by EMEA and APAC regions.
• Invested in global alliances, partnerships, and channels. Examples include rollout with ServiceNow, partnerships with Vali Cyber, Workday, and T-Systems North America.
• Oracle litigation update: Remaining active matters include legacy PeopleSoft development processes; District Court intends to resolve PeopleSoft-related issues within a year; seeking return of $58.7 million in Oracle's attorneys' fees and costs plus interest.

Revenue for the first quarter of 2025 was $104.2 million, a year-over-year decrease of 2.4%. US clients represented 48% of total revenue, while international clients accounted for 52%. Annualized recurring revenue was $396.2 million, down 4.7% year-over-year. Billings for the quarter were $79.4 million, up 7.2% year-over-year. Gross margin was 61% of revenue. Operating expenses and cost of revenue as a percent of revenue declined 5.8% year-over-year. Net income attributable to shareholders was $3.4 million or $0.04 per diluted share. Deferred revenue as of March 31, 2025, was $256.4 million, and backlog (remaining performance obligation) was $553.1 million.

The company is continuing to suspend guidance until there is more clarity around impacts from current litigation activity before the U.S. federal courts in the ongoing litigation with Oracle.

• Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Refer to most recent SEC filings, including Form 10-Q, for risks affecting future results or stock price. - Oracle litigation remains a risk, including potential liabilities related to PeopleSoft development processes and the need for potential injunctions.

Q: Brian Kinstlinger from Alliance Global Partners asked about the three partnerships, which has the largest long-term potential and earliest impact.

A: Seth Ravin stated ServiceNow partnership has the largest total opportunity, T-Systems partnership has opportunities with SAP clients, and Workday partnership has opportunities with Workday customers. ServiceNow partnership is expected to have meaningful execution in 2026.

Q: Cole on behalf of Derrick Wood asked about cost-saving measures and macro impact.

A: Seth Ravin mentioned they've reduced over 100 heads, streamlined operations, and are using ServiceNow as a core platform. Macro is positive as companies cut IT budgets and their SmartPath methodology helps reduce costs and fund innovation while staying within budget.