Rimini Street Earnings Call Transcripts
Fiscal Year 2026
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AI is transforming the software industry, favoring deeply integrated platforms with proprietary data while threatening thin, workflow-only tools. Gradual adoption, modular architectures, and strong partnerships are key, with leading firms achieving high growth and profitability through disciplined innovation and operational efficiency.
Fiscal Year 2025
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Q4 and full-year 2025 saw solid execution, with revenue slightly down but strong ARR renewals and new client wins. The launch of Agentic AI ERP solutions and strategic partnerships are driving growth, while the PeopleSoft support wind down continues. Management is confident in 2026 guidance, supported by a robust pipeline and increased sales capacity.
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Entering a new growth phase, the company is leveraging Agentic AI ERP and SmartPath to modernize legacy systems, drive operational efficiency, and expand its market through partnerships and innovation. Financial guidance targets mid-single-digit revenue growth and margin expansion, with rapid adoption of AI-driven solutions and a focus on disciplined capital allocation.
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Q3 2025 saw improved bookings, record SAP support sales, and a record RPO backlog, despite a slight revenue decline. The Oracle litigation was settled, and the company is focusing on AI-driven ERP innovation, with material financial impact expected in 2026.
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Q2 2025 saw modest revenue growth, improved gross margin, and a return to GAAP profitability, driven by new client wins, expanded partnerships, and operational improvements. The Oracle litigation settlement removed a major overhang, with PeopleSoft support winding down by 2028. Guidance will be updated at the next analyst day.
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The discussion highlighted a shift toward indirect channels and strategic partnerships, especially with ServiceNow, to drive modernization and cost savings for ERP clients. Focus areas include supporting custom code, winding down PeopleSoft, and enabling enterprise-wide AI while maintaining strong margins.
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Q1 2025 saw improved billings, cost controls, and gross margin despite lower revenue, with strong international growth and new partnerships driving future opportunities. Ongoing Oracle litigation and the PeopleSoft wind-down remain key headwinds, but management is confident in returning to revenue growth.
Fiscal Year 2024
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Q4 saw 7.1% YoY billings growth, strong new client wins, and expanded offerings in VMware and ServiceNow partnerships. Ongoing Oracle litigation remains a key uncertainty, but management is optimistic about returning to growth and resuming guidance in 2025.
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Q3 revenue declined 2.6% year-over-year to $104.7M, but billings rose 7.7% with strong North America performance. A $58.5M litigation expense led to a net loss, while non-GAAP net income improved. Strategic partnerships and cost optimization are expected to drive future growth.
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Q2 saw billings growth but a revenue decline due to large contract roll-offs and lower retention. A $35M cost reduction program and the wind-down of PeopleSoft services aim to improve profitability, while ongoing Oracle litigation continues to impact costs and guidance.