Group 1 - Momentum investing contrasts with the traditional strategy of "buy low and sell high," focusing instead on "buying high and selling higher" [1] - Identifying the right entry point for fast-moving stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] - A safer investment approach involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score [2] Group 2 - Rimini Street (RMNI) is highlighted as a strong candidate for investment, showing a four-week price change of 19.2% [3] - RMNI has gained 10.3% over the past 12 weeks, indicating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.31, suggesting it moves 31% more than the market in either direction, reflecting fast-paced momentum [4] Group 3 - RMNI has a Momentum Score of B, indicating a favorable time to invest based on its momentum characteristics [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [6] - RMNI is trading at a Price-to-Sales ratio of 0.83, suggesting it is undervalued at 83 cents for each dollar of sales [6] Group 4 - RMNI appears to have significant potential for growth at a fast pace, alongside other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria [7] - There are over 45 Zacks Premium Screens available to assist in identifying winning stock picks based on various investing styles [8]

Core Insights - The article emphasizes the importance of identifying investment opportunities where intrinsic value diverges from market price, particularly focusing on undervalued companies [1]. Company Focus - The analysis highlights a specialized interest in Real Estate Investment Trusts (REITs), suggesting that this sector offers significant opportunities for investors due to its unique dynamics and potential for long-term growth [1]. - The investment approach is grounded in fundamental analysis, prioritizing factors such as financial health, competitive positioning, and management quality to ensure sustainable returns [1].

Group 1 - Rimini Street, Inc. (NASDAQ: RMNI) is a niche player in the enterprise software market, currently involved in legal disputes with Oracle [1] - The company focuses on providing third-party support for enterprise software, which is a significant aspect of its business model [1] - The article emphasizes the potential growth opportunities for Rimini Street amidst its legal challenges, suggesting that the market may not fully recognize its value [1] Group 2 - The author has a strong background in financial modeling and valuation, indicating a thorough analytical approach to evaluating companies like Rimini Street [1] - The focus remains on long-term investing, particularly in sectors such as technology, infrastructure, and internet services, which aligns with Rimini Street's market positioning [1]

Financial Data and Key Metrics Changes - The company has seen a significant uptick in inbound inquiries due to economic pressures, indicating a compelling value proposition for cost savings [8][9] - The decision to wind down the PeopleSoft business, which accounted for 7% of revenue, was made to focus on larger platforms and opportunities [20][23] Business Line Data and Key Metrics Changes - The company is expanding its offerings beyond traditional ERP support to include managed services and professional services, responding to client demand [3][4] - The partnership with ServiceNow is expected to enhance the company's service offerings, allowing clients to modernize their systems without needing to upgrade their existing ERP platforms [27][30] Market Data and Key Metrics Changes - The company is experiencing increased interest in its services as clients seek to manage costs and optimize their existing systems amid economic uncertainty [8][9] - The upcoming end-of-life for SAP ECC in 2027 is driving conversations and opportunities for the company, as clients seek alternatives to forced upgrades [14][15] Company Strategy and Development Direction - The company is shifting towards developing an indirect sales channel through partnerships, which is expected to enhance brand awareness and market reach [11][12] - The focus is on providing clients with options that allow them to retain their existing systems while accessing next-generation technologies [19][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current economic uncertainty as a "new norm," which has led to increased interest in cost-saving measures [9] - The company is optimistic about the next three to five years, anticipating significant market opportunities as clients look for innovative solutions [68] Other Important Information - The company emphasizes the importance of retaining perpetual licenses when transitioning to SaaS platforms, highlighting the value of existing assets [51][59] - The partnership with ServiceNow is seen as a strategic move to provide clients with a comprehensive modernization solution without the need for costly upgrades [36][38] Q&A Session Summary Question: How should investors think about the opportunity as SAP approaches its end-of-life? - Management noted that conversations around SAP have increased significantly, emphasizing the need for clients to have a strategy in place before 2027 [14][15] Question: What is the timeline for revenue generation from the ServiceNow partnership? - Management indicated that meaningful revenue from the ServiceNow partnership is expected next year, but it will take time to fully develop [40] Question: Why are system integrators (SIs) reaching out to the company now? - SIs are contacting the company because clients are looking for solutions to implement enterprise-wide AI without the constraints of vendor-specific platforms [48]

Group 1 - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks is challenging, as they may lose momentum if their valuations exceed future growth potential [1] - A safer investment strategy involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score [2] Group 2 - Rimini Street (RMNI) is highlighted as a strong candidate for momentum investing, showing a four-week price change of 0.6% and a 16.4% gain over the past 12 weeks [3][4] - RMNI has a beta of 1.33, indicating it moves 33% more than the market, suggesting strong momentum [4] - The stock has a Momentum Score of B, indicating a favorable time to invest, and it has a Zacks Rank 2 (Buy) due to positive earnings estimate revisions [5][6] Group 3 - RMNI is trading at a Price-to-Sales ratio of 0.72, suggesting it is undervalued, as investors pay only 72 cents for each dollar of sales [6] - The stock's favorable valuation and momentum characteristics indicate significant potential for growth [7] - Other stocks also meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, providing additional investment opportunities [7]

Investor Presentation Spring 2025 Property of Rimini Street ©2025 | Proprietary and Confidential 1 LEGAL DISCLAIMER © 2025 Rimini Street, Inc. All rights reserved. "Rimini Street" is a registered trademark of Rimini Street, Inc. in the United States and other countries, and Rimini Street, the Rimini Street logo, and combinations thereof, and other marks marked by TM are trademarks of Rimini Street, Inc. All other trademarks remain the property of their respective owners, and unless otherwise specified, Rimi ...

Group 1: Earnings Performance - Rimini Street reported quarterly earnings of $0.09 per share, matching the Zacks Consensus Estimate, and an increase from $0.07 per share a year ago [1] - The company posted revenues of $104.2 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.12%, but down from $106.75 million year-over-year [2] - Over the last four quarters, Rimini Street has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2][3] Group 2: Stock Performance and Outlook - Rimini Street shares have increased approximately 32.2% since the beginning of the year, contrasting with a decline of 5.3% in the S&P 500 [3] - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $0.09 for the upcoming quarter and $0.37 for the current fiscal year [4][7] - The estimate revisions trend for Rimini Street is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Group 3: Industry Context - The Internet - Software industry, to which Rimini Street belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Rimini Street (RMNI) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Company Participants Dean Pohl - VP of Investor Relations & TreasurerSeth Ravin - Founder, Chairman, CEO & PresidentMichael Perica - EVP, CFO & Principal Accounting OfficerBrian Kinstlinger - MD, Director of Research & Head of Technology ResearchCole Erskine - Vice President - Equity Research Operator Good afternoon, ladies and gentlemen, and welcome to the Rimini Street Q1 twenty twenty five Earnings Conference Call. At this time, all line ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $104.2 million, a year-over-year decrease of 2.4% [18] - Annualized recurring revenue was $396.2 million, a year-over-year decrease of 4.7% [18] - Billings for Q1 were $79.4 million, up 7.2% year-over-year [19] - Gross margin for Q1 was 61% of revenue, compared to 59.8% for the prior year [19] - Net income attributable to shareholders for Q1 was $3.4 million, or $0.04 per diluted share, compared to $0.01 per diluted share in the prior year [22] Business Line Data and Key Metrics Changes - Operating expenses as a percentage of revenue declined by 5.8% year-over-year due to cost optimization efforts [8] - Professional fees and other litigation costs were $1.9 million for Q1, down from $2.9 million in the prior year [22] - PeopleSoft revenue was approximately $7 million, or 7% of revenue, down from $8.2 million, or 8% of revenue, in the prior year [26] Market Data and Key Metrics Changes - Clients in the United States represented 48% of total revenue, while international clients represented 52% [18] - The EMEA and Asia Pacific regions led geographically in billings growth [8] Company Strategy and Development Direction - The company is focused on expanding global alliances and partnerships to drive sales leverage [9] - New partnerships with ServiceNow, Workday, and T Systems North America were announced to enhance service offerings [10][11] - The company is continuing to wind down services for Oracle's PeopleSoft product, with a significant reduction in related clients and revenue [25] Management's Comments on Operating Environment and Future Outlook - Management believes that the current macroeconomic environment, including deglobalization trends, will ultimately benefit the business [16] - The company is confident in its ability to reaccelerate growth and improve profitability despite ongoing litigation with Oracle [17] - Management has suspended guidance until there is more clarity regarding the impacts of current litigation activity [26] Other Important Information - The company ended Q1 2025 with a cash balance and short-term investments of $122.6 million, down from $129 million in the prior year [24] - Deferred revenue as of March 31, 2025, was $256.4 million, compared to $254.3 million in the prior year [24] Q&A Session Summary Question: Which of the three partnerships discussed has the largest long-term potential? - Management indicated that the ServiceNow partnership has substantial global potential and is expected to have a meaningful impact by 2026 [29][32] Question: Can you size the maintenance from Oracle and SAP generated from the federal government? - Management stated that the opportunity in the U.S. Federal Government is significant, potentially in the billions of dollars annually [34][36] Question: Is the company confident in crossing the year-over-year growth mark this year, excluding PeopleSoft impacts? - Management expressed confidence in achieving positive revenue growth despite the headwinds from the PeopleSoft wind down [37][40] Question: What areas will the continued cost-saving measures come from? - Management confirmed that cost-saving measures will focus on streamlining internal operations and reducing administrative costs [44][46] Question: Are there any macroeconomic factors that could negatively impact growth? - Management noted that while there are potential cost pressures, the overall macro environment is seen as a net positive for the business [48][51]

Rimini Street (RMNI) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Speaker0 Good afternoon, ladies and gentlemen, and welcome to the Rimini Street Q1 twenty twenty five Earnings Conference Call. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press 0 for the operator. This call is being recorded today, Thursday, 05/01/2025. I would now like to turn the confe ...