Rimini Street Earnings Call Transcripts
Fiscal Year 2026
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The company is leveraging its third-party software support expertise and new AI-driven offerings to expand in a large global market, with recent momentum driven by the end of litigation and improved sales execution. Partnerships, especially with ServiceNow, and a revamped sales organization are fueling growth, with strong Q1 results and a robust pipeline of large deals.
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The company has repositioned as an Agentic AI ERP leader, expanding its market and launching customizable AI solutions to modernize client ERP systems without forced upgrades. Financial momentum is strong, with growing RPO and large deal activity, and sales cycles are shortening as C-suite engagement increases.
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Revenue grew 1.2% year-over-year to $105.5M, with billings up 19.9% and strong RPO growth. Strategic investments in Agentic AI ERP and expanded partnerships drove new client wins and longer-term contracts. Full-year guidance remains at 4–6% revenue growth and 12.5–15.5% adjusted EBITDA margin.
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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 results showed solid execution, with revenue of $109.8M for Q4 and $421.5M for the year, and strong growth in core support billings and Agentic AI ERP solutions. Guidance for 2026 targets 4%-6% revenue growth and higher EBITDA margins, supported by a robust pipeline and improved close rates.
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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 2024 saw improved billings, new client wins, and strong international growth, with strategic investments in VMware and ServiceNow partnerships. Litigation with Oracle remains a key risk, but management is optimistic about returning to growth and resuming guidance in 2025.
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Q3 2024 saw revenue decline 2.6% year-over-year to $104.7 million, but billings rose 7.7% with strong North America performance. A $58.5 million litigation payment drove a net loss, while a new ServiceNow partnership and cost optimization efforts position the company for 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.