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]

Company Overview - Rimini Street is a global provider of end-to-end enterprise software support, products, and services, founded in 2005 [16] - The company has over 5,900 signed clients, including 180+ Fortune 500 and Global 100 companies [16] - Rimini Street supports clients in 150+ countries with operations in 21 countries [16] - The average client satisfaction rating on support cases is 4.9 out of 5.0 [16, 28] Financial Performance - Rimini Street's revenue in Q1 2025 was $104.2 million [18, 69] - The annualized subscription revenue was $396 million in Q1 2025 [65] - The gross margin for Q1 2025 was 61.0% [67, 69] - The gross revenue retention rate for Q1 2025 was 88% [63] - As of December 31, 2024, the company had a U S net operating loss carryforward of $135 million [70] Market Opportunity and Solutions - Rimini Street estimates a total serviceable addressable market (SAM) of $33.7 billion for its current offerings [24] - The company sees a $1.1 billion cross-sale opportunity to existing support clients [24] - Rimini Street addresses a $65 billion incremental support opportunity with custom solutions [30] - The company offers support for custom code and global tax, legal, and regulatory support for more than 150 countries [35]

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]

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 to 32.9% from 36.7% year-over-year [21] - Professional fees and other costs of litigation 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 aim to enhance service offerings and market reach [10][11] - The company is committed to optimizing its cost structure while investing in growth opportunities [20] Management's Comments on Operating Environment and Future Outlook - Management believes that deglobalization trends and global trade policy shifts will benefit the business [16] - The company is confident in its ability to achieve positive revenue growth despite the headwinds from the PeopleSoft wind down [39] - Management is cautious about the impact of macroeconomic factors on IT budgets and renewals [50] Other Important Information - The company is continuing to suspend guidance until there is more clarity around the impacts from ongoing litigation with Oracle [26] - The litigation with Oracle has been ongoing for over fifteen years, with recent favorable rulings for the company [12][14] Q&A Session Summary Question: Which of the three partnerships discussed has the largest long-term potential? - Management identified the ServiceNow partnership as having substantial global potential, with significant opportunities in workflow and automation [29] Question: What is the expected timeframe for the ServiceNow partnership to become meaningful? - Management anticipates meaningful revenue impact from the ServiceNow partnership in 2026, with ramping expected in the latter half of 2025 [34] Question: Can you size the maintenance from Oracle and SAP generated from the federal government? - Management estimates the opportunity in the federal government to be in the billions of dollars annually for software support and upgrades [36] Question: Is deferred revenue up for the first time in several years, and what does that indicate? - Management expressed confidence that despite the PeopleSoft wind down, there are opportunities to achieve positive revenue growth [38] Question: What areas are being targeted for continued cost-saving measures? - Management indicated that cost-saving measures are focused on streamlining internal operations and reducing administrative costs [45] Question: Are there any macroeconomic factors that could negatively impact growth? - Management noted that while there are potential pressures on IT budgets, their methodology allows for cost reduction while enabling growth [50]

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]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $104.2 million, a year-over-year decrease of 2.4% [17] - Annualized recurring revenue was $396.2 million, a year-over-year decrease of 4.7% [17] - Billings for Q1 were $79.4 million, up 7.2% year-over-year [18] - Gross margin for Q1 was 61% of revenue, compared to 59.8% for the prior year [18] - 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 [21] Business Line Data and Key Metrics Changes - Operating expenses and cost of revenue as a percentage of revenue declined by 5.8% year-over-year due to cost optimization [8] - Professional fees and other costs of litigation were $1.9 million for Q1, down from $2.9 million in the prior year [21] - PeopleSoft revenue was approximately $7 million, or 7% of revenue, down from $8.2 million, or 8% of revenue, in the prior year [25] Market Data and Key Metrics Changes - Clients within the United States represented 48% of total revenue, while international clients represented 52% [17] - 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, partnerships, and channels to drive sales leverage [9] - New partnerships with ServiceNow, Workday, and T Systems North America aim to enhance service offerings and market reach [10][11] - The company is continuing to wind down services for Oracle's PeopleSoft product, with a significant reduction in related clients and revenue [24] Management's Comments on Operating Environment and Future Outlook - Management believes that deglobalization trends and global trade policy shifts will ultimately benefit the business [15] - The company is confident in its ability to reaccelerate growth and improve profitability despite ongoing litigation with Oracle [16] - Management expects to incur additional reorganization costs in 2025 as part of cost structure optimization [20] 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 [22] - Deferred revenue as of March 31, 2025, was $256.4 million, compared to $254.3 million in the prior year [22] 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 yield significant opportunities [28] Question: What is the expected timeframe for the ServiceNow partnership to become meaningful? - Management anticipates meaningful revenue impact from the ServiceNow partnership in 2026, with ramping in the latter half of 2025 [32] Question: Can you size the maintenance from Oracle and SAP generated from the federal government? - Management estimates the opportunity in the federal government to be in the billions of dollars annually for software support and upgrades [36] Question: Is deferred revenue up for the first time in several years, and what does this indicate? - Management expressed confidence that despite the headwinds from the PeopleSoft wind down, there are larger growth opportunities that will lead to positive revenue growth [39] Question: Will continued cost-saving measures come from go-to-market or other areas? - Management confirmed that cost-saving measures include streamlining internal operations and reducing headcount, with a focus on efficiency [44] Question: What are the macroeconomic factors affecting growth? - Management noted that while there are pressures on IT budgets, their methodology allows for cost reduction and innovation funding, positioning the company favorably in the current environment [50]

Financial Performance - Gross margin for Q1 2025 was 61.0%, up from 59.8% in the prior year[5] - Net income for Q1 2025 was $3.4 million, compared to $1.3 million in the prior year[5] - Revenue for Q1 2025 was $104.2 million, a decrease of 2.4% compared to $106.7 million in the same period last year[5] - Total revenue for Q1 2025 was $104,204, a decrease of 2.3% from $106,745 in Q1 2024[19] - Gross profit for Q1 2025 was $63,534, slightly down from $63,831 in Q1 2024[19] - Operating income increased significantly to $9,361 in Q1 2025, compared to $3,363 in Q1 2024, representing a 178.5% increase[19] - Net income for Q1 2025 was $3,350, up from $1,317 in Q1 2024, marking a 153.5% increase[19] - Non-GAAP operating income for Q1 2025 was $14,450, compared to $8,847 in Q1 2024, reflecting a 63.5% increase[21] - Adjusted EBITDA for Q1 2025 was $15.3 million, compared to $10.7 million in the prior year[5] - Adjusted EBITDA for Q1 2025 was $15,303, up from $10,684 in Q1 2024, indicating a 43.5% increase[21] Revenue Composition - Subscription revenue accounted for 95.0% of total revenue in Q1 2025, down from 97.4% in the prior year[5] - Annualized Recurring Revenue decreased by 4.7% to $396.2 million in Q1 2025 compared to $415.8 million in the same period last year[5] - Annualized Recurring Revenue is calculated based on subscription revenue recognized during the quarter, providing insight into future revenue potential[27] Client Metrics - Active clients increased by 1.7% to 3,092 as of March 31, 2025[5] - Active clients increased, indicating growth in the company's business and effectiveness of sales and marketing strategies[26] Billings and Deferred Revenue - Billings increased by 7.2% year over year to $79.4 million in Q1 2025[5] - The company reported a calculated billings of $79,430 for Q1 2025, an increase from $74,077 in Q1 2024[21] - Deferred revenue at the end of the period was $256,423, compared to $254,306 at the end of Q1 2024, showing a positive trend in revenue recognition[21] Guidance and Litigation - The company is suspending guidance until there is more clarity around impacts from ongoing litigation with Oracle[6] Revenue Retention - Revenue retention rate was 88% for the trailing twelve months ended March 31, 2025, down from 89% for the comparable period[5]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [ITEM 1. Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements) Presents the company's unaudited condensed consolidated financial statements and detailed notes covering its business, accounting policies, and financial position [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $122,574 | $88,792 | | Accounts receivable, net | $74,362 | $130,784 | | Total current assets | $235,157 | $256,276 | | Total assets | $343,030 | $369,063 | | Deferred revenue, current | $234,806 | $257,983 | | Total current liabilities | $295,230 | $324,592 | | Total liabilities | $406,726 | $438,508 | | Total stockholders' deficit | $(63,696) | $(69,445) | - Total assets decreased from **$369.1 million** as of December 31, 2024, to **$343.0 million** as of March 31, 2025[11](index=11&type=chunk) - Total stockholders' deficit improved from **$(69.4) million** as of December 31, 2024, to **$(63.7) million** as of March 31, 2025[11](index=11&type=chunk) [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :---------------------------------- | :---------------------------------- | | Revenue | $104,204 | $106,745 | | Cost of revenue | $40,670 | $42,914 | | Gross profit | $63,534 | $63,831 | | Total operating expenses | $54,173 | $60,468 | | Operating income | $9,361 | $3,363 | | Income before income taxes | $7,609 | $2,986 | | Net income | $3,350 | $1,317 | | Basic Net income per share | $0.04 | $0.01 | | Diluted Net income per share | $0.04 | $0.01 | - Revenue decreased by **2.4%** from $106.7 million in Q1 2024 to **$104.2 million** in Q1 2025[13](index=13&type=chunk) - Operating income significantly increased by **178.4%** from $3.4 million in Q1 2024 to **$9.4 million** in Q1 2025[13](index=13&type=chunk) - Net income increased by **154.4%** from $1.3 million in Q1 2024 to **$3.4 million** in Q1 2025[13](index=13&type=chunk) [Unaudited Condensed Consolidated Statements of Stockholders' Deficit](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Deficit) Changes in Stockholders' Deficit (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :---------------------------------- | :---------------------------------- | | Total Stockholders' Deficit, beginning of period | $(69,445) | $(39,496) | | Net income | $3,350 | $1,317 | | Stock based compensation expense | $2,702 | $2,558 | | Other comprehensive loss | $(309) | $(691) | | Total Stockholders' Deficit, end of period | $(63,696) | $(36,312) | - The total stockholders' deficit improved from **$(69.4) million** at the beginning of Q1 2025 to **$(63.7) million** at the end of the period, primarily due to net income[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :---------------------------------- | :---------------------------------- | | Net cash provided by operating activities | $33,708 | $11,088 | | Net cash provided by (used in) investing activities | $(895) | $8,654 | | Net cash used in financing activities | $(1,026) | $(1,775) | | Net change in cash, cash equivalents and restricted cash | $34,555 | $13,581 | | Cash, cash equivalents and restricted cash at end of period | $123,777 | $129,433 | - Net cash provided by operating activities increased significantly to **$33.7 million** in Q1 2025 from $11.1 million in Q1 2024[18](index=18&type=chunk) - Cash used in investing activities was **$0.9 million** in Q1 2025, compared to cash provided of $8.7 million in Q1 2024[18](index=18&type=chunk) - The effect of foreign currency translation changes was a favorable **$2.8 million** in Q1 2025, contrasting with an unfavorable $4.4 million in Q1 2024[179](index=179&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [NOTE 1 — NATURE OF BUSINESS AND BASIS OF PRESENTATION](index=9&type=section&id=NOTE%201%20%E2%80%94%20NATURE%20OF%20BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) - Rimini Street, Inc. is a global provider of end-to-end enterprise software support, products, and services[21](index=21&type=chunk) - The financial statements are prepared in conformity with **U.S. GAAP** for interim reporting, with certain information condensed or omitted[22](index=22&type=chunk) [NOTE 2 — LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES](index=9&type=section&id=NOTE%202%20%E2%80%94%20LIQUIDITY%20AND%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - As of March 31, 2025, current liabilities exceeded current assets by **$60.1 million**[24](index=24&type=chunk) - The company had **$123.8 million** in available cash, cash equivalents, and restricted cash as of March 31, 2025[24](index=24&type=chunk) - The $90 million Original Credit Facility was amended into a new **$75 million** five-year term loan (2024 Credit Facility) on April 30, 2024[25](index=25&type=chunk) - Management believes current cash and future operating cash flow will be sufficient to meet anticipated needs for at least **12 months**, assuming no significant adverse impacts from macroeconomic conditions or litigation[26](index=26&type=chunk) [NOTE 3 - DEFERRED CONTRACT COSTS AND DEFERRED REVENUE](index=10&type=section&id=NOTE%203%20-%20DEFERRED%20CONTRACT%20COSTS%20AND%20DEFERRED%20REVENUE) Deferred Contract Costs Activity (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :---------------------------------- | :---------------------------------- | | Beginning of period | $39,160 | $41,493 | | Capitalized commissions | $2,693 | $2,504 | | Amortized deferred contract costs | $(4,723) | $(5,013) | | End of period | $37,130 | $38,984 | Deferred Revenue Activity (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :---------------------------------- | :---------------------------------- | | Beginning of period | $281,197 | $286,974 | | Billings, net | $79,430 | $74,077 | | Revenue recognized | $(104,204) | $(106,745) | | End of period | $256,423 | $254,306 | - Remaining performance obligations amounted to **$553.1 million** as of March 31, 2025, of which $256.4 million was billed and recorded as deferred revenue[33](index=33&type=chunk) [NOTE 4 — OTHER FINANCIAL INFORMATION](index=11&type=section&id=NOTE%204%20%E2%80%94%20OTHER%20FINANCIAL%20INFORMATION) Other Accrued Liabilities (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :---------------- | | Accrued sales and other taxes | $7,892 | $8,137 | | Accrued professional fees | $4,524 | $3,857 | | Accrued reorganization costs | $259 | $1,052 | | Total other accrued liabilities | $20,520 | $20,688 | - Reorganization costs of **$462 thousand** were recognized for the three months ended March 31, 2025, primarily due to severance expense from a cost optimization process[35](index=35&type=chunk) [NOTE 5 — DEBT](index=12&type=section&id=NOTE%205%20%E2%80%94%20DEBT) Debt (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :---------------- | | Term Loan | $69,505 | $70,280 | | Revolving line of credit | $15,000 | $15,000 | | Long-term debt, net of current maturities | $81,412 | $82,187 | - The company refinanced its Original Credit Facility with a new **$75.0 million** term loan and a **$35.0 million** revolving line of credit (2024 Credit Facility) on April 30, 2024[37](index=37&type=chunk) - The 2024 Credit Facility contains financial covenants including a minimum fixed charge coverage ratio greater than **1.25**, a total leverage ratio less than **3.75**, and a minimum liquidity balance of at least **$20 million** in U.S. cash[41](index=41&type=chunk) - The effective interest rate under the Credit Facilities was **8.0%** for Q1 2025, down from 8.6% for Q1 2024[43](index=43&type=chunk) [NOTE 6 — COMMON STOCK OFFERING, RESTRICTED STOCK UNITS, STOCK OPTIONS AND WARRANTS](index=14&type=section&id=NOTE%206%20%E2%80%94%20COMMON%20STOCK%20OFFERING%2C%20RESTRICTED%20STOCK%20UNITS%2C%20STOCK%20OPTIONS%20AND%20WARRANTS) - The Board of Directors authorized an increase of approximately **3.6 million shares** available for grant under the 2013 Equity Incentive Plan on February 26, 2025[48](index=48&type=chunk) - **0.6 million** Performance Units (PSUs) were granted on March 4, 2025, with vesting based on adjusted EBITDA and total revenue goals for fiscal year 2025[53](index=53&type=chunk) Stock-Based Compensation Expense (in thousands) | Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :---------------------------------- | :---------------------------------- | | Cost of revenue | $524 | $515 | | Sales and marketing | $926 | $405 | | General and administrative | $1,252 | $1,638 | | **Total** | **$2,702** | **$2,558** | - As of March 31, 2025, **3.4 million warrants** were outstanding, exercisable at $5.64 per share[65](index=65&type=chunk) [NOTE 7 — INCOME TAXES](index=18&type=section&id=NOTE%207%20%E2%80%94%20INCOME%20TAXES) Effective Tax Rate | Period | Effective Tax Rate | | :----------------------------------- | :----------------- | | Three Months Ended March 31, 2025 | 56.0% | | Three Months Ended March 31, 2024 | 55.9% | - Income tax expense increased to **$4.3 million** in Q1 2025 from $1.7 million in Q1 2024, primarily due to an increase in income before taxes[13](index=13&type=chunk)[170](index=170&type=chunk) [NOTE 8 — COMMITMENTS AND CONTINGENCIES](index=18&type=section&id=NOTE%208%20%E2%80%94%20COMMITMENTS%20AND%20CONTINGENCIES) - Total minimum purchase obligations were **$11.1 million** as of March 31, 2025[68](index=68&type=chunk) - The **Rimini I Injunction**, in effect since August 2018, prohibits certain support processes found to infringe Oracle copyrights but does not prohibit support for Oracle products[71](index=71&type=chunk) - The District Court vacated the Original Rimini II Injunction and issued a **Modified Rimini II Injunction** in late April 2025, which contains no limitations on support services for Oracle PeopleSoft products[86](index=86&type=chunk)[91](index=91&type=chunk) - Revenue from Oracle PeopleSoft products was approximately **7%** of total revenue for the three months ended March 31, 2025[89](index=89&type=chunk) - Oracle was awarded **$58.2 million** in attorneys' fees and $0.3 million in costs in September 2024, which the company is appealing[96](index=96&type=chunk)[97](index=97&type=chunk) [NOTE 9 — RELATED PARTY TRANSACTIONS](index=22&type=section&id=NOTE%209%20%E2%80%94%20RELATED%20PARTY%20TRANSACTIONS) - An affiliate of Adams Street Partners, a member of the Board of Directors, owned approximately **25.8%** of the company's issued and outstanding common stock as of March 31, 2025[103](index=103&type=chunk) [NOTE 10 —EARNINGS PER SHARE](index=24&type=section&id=NOTE%2010%20%E2%80%94EARNINGS%20PER%20SHARE) Net Income Per Share Attributable to Common Stockholders | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :---------------------------------- | :---------------------------------- | | Basic EPS | $0.04 | $0.01 | | Diluted EPS | $0.04 | $0.01 | Weighted Average Number of Shares of Common Stock Outstanding (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :---------------------------------- | :---------------------------------- | | Basic | 91,240 | 89,754 | | Diluted | 93,320 | 90,560 | [NOTE 11 — FINANCIAL INSTRUMENTS](index=24&type=section&id=NOTE%2011%20%E2%80%94%20FINANCIAL%20INSTRUMENTS) - All investments as of March 31, 2025, are classified as **cash equivalents** (Level 1 assets)[109](index=109&type=chunk) - The company uses an interest rate swap agreement with a notional value of **$40.0 million** (fixed payer SOFR rate of 3.71%, initial floating SOFR rate of 5.32%) to manage interest rate risk[111](index=111&type=chunk) - The fair value of the interest rate swap agreement was estimated as a liability of **$0.2 million** as of March 31, 2025[112](index=112&type=chunk) [NOTE 12 - LEASES](index=25&type=section&id=NOTE%2012%20-%20LEASES) Total Lease Expense (in thousands) | Period | Total Lease Expense | | :----------------------------------- | :------------------ | | Three Months Ended March 31, 2025 | $1,380 | | Three Months Ended March 31, 2024 | $1,225 | Operating Lease Liabilities (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :---------------- | | Current | $3,869 | $3,967 | | Noncurrent | $6,842 | $7,064 | | **Total** | **$10,711** | **$11,031** | - The weighted average remaining lease term for operating leases is **3.1 years**, with a weighted average discount rate of **8.2%**[118](index=118&type=chunk) [NOTE 13 - SEGMENT AND GEOGRAPHIC INFORMATION](index=26&type=section&id=NOTE%2013%20-%20SEGMENT%20AND%20GEOGRAPHIC%20INFORMATION) - The company operates as **one operating segment**, with performance assessed based on consolidated net income[119](index=119&type=chunk) Revenue by Geographic Region (in thousands) | Region | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :---------------------------------- | :---------------------------------- | | United States of America | $50,095 | $53,808 | | International | $54,109 | $52,937 | | **Total** | **$104,204** | **$106,745** | - Japan represented **10.4%** of total revenue in Q1 2025, up from 9.6% in Q1 2024[121](index=121&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's analysis of financial performance, highlighting revenue trends, cost management, liquidity, and the impact of economic factors and litigation [CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS](index=29&type=section&id=CAUTIONARY%20NOTE%20ABOUT%20FORWARD-LOOKING%20STATEMENTS) - The report includes forward-looking statements about future results, business strategy, and operations, identified by words like "anticipate," "expect," "may," "will," etc[124](index=124&type=chunk) - Forward-looking statements are subject to numerous risks and uncertainties, including those detailed in the "Risk Factors" section, and actual results may differ materially[125](index=125&type=chunk) [Overview](index=31&type=section&id=Overview) - Rimini Street provides end-to-end enterprise software support, products, and services, expanding its portfolio to include managed services, security, interoperability, observability, and consulting[130](index=130&type=chunk)[132](index=132&type=chunk) - The company offers **Rimini ONE™**, a unified package for Oracle and SAP landscapes, designed to optimize existing technologies and extend operating lifespan[132](index=132&type=chunk) - As of March 31, 2025, the company supported over **3,090 active clients** globally, including 71 Fortune 500 companies and 19 Fortune Global 100 companies[137](index=137&type=chunk) - The company announced it would continue to wind down services for Oracle PeopleSoft products, which accounted for approximately **7%** of total revenue in Q1 2025[140](index=140&type=chunk) [Global Economic Uncertainty](index=33&type=section&id=Global%20Economic%20Uncertainty) - Global economic uncertainty, including interest rate and inflationary pressures, geopolitical conflicts, and trade policies, has led some clients not to renew services[142](index=142&type=chunk)[143](index=143&type=chunk) - Despite these pressures, the company expects to continue marketing, selling, and providing products/services globally and investing in development[143](index=143&type=chunk) - The economic disruptions did not have a **significant net impact** on Q1 2025 revenue or results of operations[143](index=143&type=chunk) [Recent Developments](index=33&type=section&id=Recent%20Developments) - Recent developments regarding litigation with Oracle are discussed in **Note 8** of the Unaudited Condensed Consolidated Financial Statements[145](index=145&type=chunk) [Key Business Metrics](index=33&type=section&id=Key%20Business%20Metrics) Client Counts | Metric | As of March 31, 2025 | As of March 31, 2024 | Change | | :------------------- | :------------------- | :------------------- | :----- | | Active Clients | 3,092 | 3,040 | +52 | | Unique Clients | 1,575 | 1,535 | +40 | Annualized Recurring Revenue (in millions) | Period | Annualized Recurring Revenue | | :----------------------------------- | :--------------------------- | | As of March 31, 2025 | $396 | | As of March 31, 2024 | $416 | - Annualized recurring revenue declined due to a recent **reduction in client retention**[151](index=151&type=chunk) Revenue Retention Rate | Period | Revenue Retention Rate | | :----------------------------------- | :--------------------- | | 12 months ended March 31, 2025 | 88% | | 12 months ended March 31, 2024 | 89% | - Gross profit margin improved by **120 basis points** to 61.0% in Q1 2025, compared to 59.8% in Q1 2024, due to better management of costs in non-core products and services[155](index=155&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Variance Amount | Variance Percent | | :----------------------------------- | :---------------------------------- | :---------------------------------- | :---------------- | :--------------- | | Revenue | $104,204 | $106,745 | $(2,541) | (2.4)% | | Cost of revenue | $40,670 | $42,914 | $(2,244) | (5.2)% | | Gross profit | $63,534 | $63,831 | $(297) | (0.5)% | | Gross profit margin | 61.0% | 59.8% | | | | Total operating expenses | $54,173 | $60,468 | $(6,295) | (10.4)% | | Operating income | $9,361 | $3,363 | $5,998 | 178.4% | | Net income | $3,350 | $1,317 | $2,033 | 154.4% | - Revenue declined by **2%** due to attrition of some large client contracts, despite an increase in unique clients[157](index=157&type=chunk) - Sales and marketing expenses decreased by **12% ($4.9 million)**, primarily due to a $4.0 million reduction in travel and entertainment costs from a sales training event[162](index=162&type=chunk) - Litigation costs and related recoveries, net, decreased by **$1.0 million (34.2%)** due to the timing of costs related to the Rimini II appeal[167](index=167&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2025, the company had a working capital deficit of **$60.1 million** and an accumulated deficit of **$235.1 million**[171](index=171&type=chunk) - Available cash, cash equivalents, and restricted cash totaled **$123.8 million** as of March 31, 2025[171](index=171&type=chunk) - The 2024 Credit Facility includes a **$75.0 million** term loan and a **$35.0 million** revolving line of credit, with $20.0 million net available borrowings as of March 31, 2025[172](index=172&type=chunk) Cash Flows Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :---------------------------------- | :---------------------------------- | | Operating activities | $33,708 | $11,088 | | Investing activities | $(895) | $8,654 | | Financing activities | $(1,026) | $(1,775) | - Cash flows from operating activities significantly increased to **$33.7 million** in Q1 2025, driven by net income and favorable changes in operating assets and liabilities[182](index=182&type=chunk) [Critical Accounting Estimates](index=41&type=section&id=Critical%20Accounting%20Estimates) - **No material changes** in critical accounting policies and estimates have occurred since the filing of the 2024 Form 10-K[194](index=194&type=chunk) [Recent Accounting Pronouncements](index=41&type=section&id=Recent%20Accounting%20Pronouncements) - **ASU 2023-09**, "Income Taxes - Improvements to Income Tax Disclosures," effective for annual periods beginning after December 15, 2024, will result in additional disclosures but no impact on financial statements[30](index=30&type=chunk) - **ASU 2024-03 and ASU 2025-01**, requiring disaggregation of income statement expenses, are effective for annual periods beginning after December 15, 2026, and are currently being assessed for impact[196](index=196&type=chunk)[197](index=197&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Addresses the company's exposure to foreign currency exchange and interest rate risks, and its use of derivatives to mitigate these risks - The company has foreign currency risks related to revenue and operating expenses denominated in currencies other than the U.S. Dollar, primarily **Euro, British Pound Sterling, Brazilian Real, Australian Dollar, Indian Rupee, and Japanese Yen**[199](index=199&type=chunk) - A hypothetical **10% change** in foreign currency exchange rates would impact income before income taxes by **+/- $3.6 million** and cash flows by **+/- $2.8 million**[200](index=200&type=chunk) - The company is exposed to market risk due to variable interest rates based on **SOFR** for its 2024 Credit Facility debt[203](index=203&type=chunk) - A hypothetical adverse change of **100 basis points** in SOFR would result in an increase of approximately **$0.9 million** in annual interest expense[203](index=203&type=chunk) [ITEM 4. Controls and Procedures](index=43&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal controls over financial reporting were effective as of March 31, 2025 - Management, including the CEO and CFO, concluded that disclosure controls and procedures were **effective** as of March 31, 2025, to provide reasonable assurance for timely and accurate SEC reporting[207](index=207&type=chunk) - There were **no material changes** in internal control over financial reporting during the fiscal quarter ended March 31, 2025[208](index=208&type=chunk) [PART II. OTHER INFORMATION](index=45&type=section&id=PART%20II.%20OTHER%20INFORMATION) [ITEM 1. Legal Proceedings](index=45&type=section&id=ITEM%201.%20Legal%20Proceedings) Details ongoing litigation, primarily with Oracle, are incorporated by reference from Note 8 of the financial statements - Legal proceedings, primarily ongoing litigation with Oracle, are incorporated by reference from **Note 8** of the Unaudited Condensed Consolidated Financial Statements[210](index=210&type=chunk) - Ordinary course litigation is **not expected to have a material adverse effect** on the business, though litigation can impact costs and management resources[210](index=210&type=chunk) [ITEM 1A. Risk Factors](index=45&type=section&id=ITEM%201A.%20Risk%20Factors) Outlines factors that could adversely affect the business, including risks from litigation, economic uncertainties, competition, and operations [Risks Related to Our Business, Operations and Industry](index=47&type=section&id=Risks%20Related%20to%20Our%20Business%2C%20Operations%20and%20Industry) - Ongoing litigation with Oracle poses risks of **substantial attorneys' fees, costs, and injunctions** against certain business practices[217](index=217&type=chunk) - Economic uncertainties, including rising inflation, could **increase operational costs** and negatively impact demand for products and services[214](index=214&type=chunk) - The market for independent software support services is relatively undeveloped and **may not grow as anticipated**[214](index=214&type=chunk) - The company faces **significant competition** from enterprise software vendors and other independent providers[214](index=214&type=chunk) [Risks Related to Litigation](index=48&type=section&id=Risks%20Related%20to%20Litigation) - The company is subject to a permanent injunction (**Rimini I Injunction**) since August 2018, defining how support services can be provided for certain Oracle product lines[220](index=220&type=chunk) - In the Rimini II litigation, Oracle withdrew all monetary damages claims, and the Ninth Circuit **vacated multiple copyright rulings** and parts of the Lanham Act ruling, remanding issues to the District Court[224](index=224&type=chunk)[229](index=229&type=chunk) - The District Court issued a **Modified Rimini II Injunction** in April 2025, which does not limit support services for Oracle PeopleSoft products but prohibits certain public statements[234](index=234&type=chunk)[238](index=238&type=chunk)[240](index=240&type=chunk) - Oracle was awarded **$58.2 million** in attorneys' fees and $0.3 million in costs in September 2024, which the company is appealing[242](index=242&type=chunk) - Adverse outcomes in litigation could result in substantial civil assessments, **default on the 2024 Credit Facility**, and material adverse effects on business and financial condition[246](index=246&type=chunk)[247](index=247&type=chunk) [Other Risks Related to Our Business, Operations and Industry](index=53&type=section&id=Other%20Risks%20Related%20to%20Our%20Business%2C%20Operations%20and%20Industry) - Economic uncertainties, including inflation and geopolitical conflicts, may lead clients to **reduce IT budgets**, impacting demand and payment timeliness[258](index=258&type=chunk) - **Significant competition** from enterprise software vendors (Oracle, SAP) and other independent providers, who may have greater resources and offer discounts, could impede sales and reduce margins[261](index=261&type=chunk) - **Declining client retention rates**, due to factors like clients licensing new software versions or moving to other vendors, could harm future revenue and operations[269](index=269&type=chunk)[271](index=271&type=chunk) - Allegations of **intellectual property infringement**, including from generative AI use, could adversely impact marketing, sales, reputation, and incur costly litigation[280](index=280&type=chunk)[281](index=281&type=chunk) - **Cybersecurity threats** are increasing; compromised data security measures could harm reputation, lead to client loss, and incur significant liabilities[300](index=300&type=chunk)[304](index=304&type=chunk) [Risks Related to our Indebtedness, Capitalization Matters and Corporate Governance](index=66&type=section&id=Risks%20Related%20to%20our%20Indebtedness%2C%20Capitalization%20Matters%20and%20Corporate%20Governance) - The company's indebtedness (**$86.2 million** as of March 31, 2025) may limit operational/financing flexibility, require significant cash for payments, and increase vulnerability to economic downturns[325](index=325&type=chunk)[326](index=326&type=chunk) - The 2024 Credit Facility imposes **operating and financial restrictions**, including covenants on liens, asset sales, mergers, and debt, with a breach potentially leading to accelerated debt repayment[327](index=327&type=chunk)[329](index=329&type=chunk) - Variable rate indebtedness (SOFR-based) exposes the company to interest rate risk; a **100 basis point increase** in SOFR could raise annual interest expense by **$0.9 million**[330](index=330&type=chunk)[331](index=331&type=chunk) - Exercise of outstanding warrants (**3.4 million shares** at $5.64/share) will dilute existing stockholders and may depress the market price[65](index=65&type=chunk)[332](index=332&type=chunk)[334](index=334&type=chunk) [Risks Relating to our Corporate Governance](index=70&type=section&id=Risks%20Relating%20to%20our%20Corporate%20Governance) - The company's certificate of incorporation and bylaws, along with DGCL, contain **anti-takeover provisions** (e.g., classified board, preferred stock issuance, limitations on stockholder actions) that could delay or prevent acquisitions[340](index=340&type=chunk)[341](index=341&type=chunk) - Bylaws designate **Delaware courts as the exclusive forum** for disputes, potentially limiting stockholders' choice of judicial forum[344](index=344&type=chunk)[345](index=345&type=chunk) [General Risks](index=71&type=section&id=General%20Risks) - Future acquisitions or strategic investments may be **difficult to identify and integrate**, divert management attention, disrupt business, and dilute stockholder value[346](index=346&type=chunk) - Changes in the commercial insurance market (**higher premiums, deductibles, lower limits**) may impact the ability to maintain adequate insurance coverage at a reasonable cost[347](index=347&type=chunk) - **Catastrophic events** (online attacks, natural disasters, geopolitical instability) could disrupt network infrastructure, IT systems, and business operations, leading to system interruptions and reputational harm[349](index=349&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=72&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) States that no repurchases of common stock occurred during the three months ended March 31, 2025 - **No repurchases** of Common Stock occurred during the three months ended March 31, 2025[353](index=353&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=72&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) Reports that no defaults upon senior securities occurred during the period - There were **no defaults** upon senior securities[354](index=354&type=chunk) [ITEM 4. Mine Safety Disclosures](index=72&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) States that the disclosure item for mine safety is not applicable to the company - This item is **not applicable**[355](index=355&type=chunk) [ITEM 5. Other Information](index=72&type=section&id=ITEM%205.%20Other%20Information) Discloses that no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted or terminated **Rule 10b5-1 or non-Rule 10b5-1 trading arrangements** during Q1 2025, except for automatic share sales to satisfy tax withholding upon RSU/PSU settlement[356](index=356&type=chunk)[357](index=357&type=chunk) [ITEM 6. Exhibits](index=74&type=section&id=ITEM%206.%20Exhibits) Lists the exhibits filed with the Form 10-Q, including corporate documents, certifications, and XBRL data files - The report includes various exhibits such as the Amended and Restated Certificate of Incorporation, Bylaws, CEO/CFO certifications, and **Inline XBRL documents**[359](index=359&type=chunk) [SIGNATURES](index=75&type=section&id=SIGNATURES) - The report is signed by **Seth A. Ravin** (President, CEO, and Chairman) and **Michael L. Perica** (EVP and CFO) on May 1, 2025[364](index=364&type=chunk)

Core Insights - Waratek has named Rimini Street as its exclusive Pinnacle Partner, recognizing its premier global capability in the third-party support market [1][3] - Rimini Street has been instrumental in shaping innovation at Waratek over the past seven years, leveraging its extensive experience in implementing and supporting Waratek's solutions [3][5] - The partnership allows Rimini Street to provide unique protection for Java SE 5-based applications, which are still in use despite vendor support having ended a decade ago [3] Company Overview - Waratek, based in Dublin, Ireland, specializes in active security platforms that secure business-critical applications by fixing vulnerabilities in real-time [7] - Rimini Street, a Nasdaq-listed company, is a leading provider of end-to-end enterprise software support and innovation solutions, particularly known for its third-party support for Oracle, SAP, and VMware software [8] - Rimini Street has signed thousands of contracts with major organizations, achieving significant operational savings and enabling investments in AI and other innovations [8] Partnership Dynamics - As the Pinnacle Partner, Rimini Street has developed exclusive expertise in creating custom rules for the Waratek engine, unmatched by any other company [2][4] - Rimini Street's team of over 75 security professionals provides continuous support and innovation, ensuring a seamless user experience for clients [5] - Customer feedback plays a crucial role in driving continuous innovation and enhancing the security of enterprise software [6]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $114.2 million, a year-over-year increase of 1.9%, while full-year revenue was $428.8 million, a decrease of 0.6% [23] - Annualized recurring revenue (ARR) was $414.8 million for Q4 2024, a year-over-year decrease of 4.1% [24] - Billings for Q4 2024 were $172.1 million, up 7.1% year-over-year, while full-year billings were $423 million, an increase of 1.1% [25] - Gross margin was 63.7% for Q4 2024 and 60.9% for the full year, compared to 61% and 62.3% for the prior year respectively [26] - Net income attributable to shareholders for Q4 was $6.7 million, or $0.07 per diluted share, compared to $0.10 per diluted share in the prior year [33] Business Line Data and Key Metrics Changes - The company achieved 22 new client sales transactions in Q4 with total contract value (TCV) over $1 million [11] - PeopleSoft revenue was $8 million for Q4 2024, representing 7% of total revenue, compared to $8.5 million in Q4 2023 [37] Market Data and Key Metrics Changes - Client revenue for Q4 2024 within the United States represented 47%, while international clients represented 53% [23] - The billings improvement was led by the LatAm, EMEA, and Asia-Pacific regions [12] Company Strategy and Development Direction - The company is focusing on a new go-to-market strategy in the Americas, adopting a hunter-farmer sales model to drive growth [13] - Strategic partnerships, such as with ServiceNow, are aimed at providing enterprise application modernization solutions without costly upgrades [17] - The company is expanding its services to more software products, particularly VMware, which is expected to drive significant growth [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth and higher profitability, indicating that the company is on the "upside of the U" in terms of recovery [44][82] - The company is currently suspending guidance until there is more clarity around ongoing litigation with Oracle, but expects to return to providing guidance in 2025 [38][76] Other Important Information - The company has been involved in litigation with Oracle for over 15 years, with recent positive developments in the Rimini II case [19] - The company ended Q4 2024 with a cash balance of $88.8 million, down from $125.3 million in the prior year [35] Q&A Session Summary Question: Can you talk about the changes you've made in sales and the pipeline? - Management indicated that they believe they are on the path to recovery and have seen positive metrics in sales execution and pipeline growth [44][82] Question: How has the litigation impacted the pipeline? - Management acknowledged that the litigation had an impact on the pipeline but expressed optimism about future growth following recent court decisions [47] Question: Can you clarify the cost savings mentioned? - Management clarified that the $22 million in net annualized savings is as of the midpoint of Q1 2025, with a net reduction of $18 million by the end of Q4 2024 [49][51] Question: What areas are contributing to the strength in billings? - Management noted that the strength in billings is due to improved execution globally, with notable performance outside the U.S. [61] Question: What is the status of the partnership with ServiceNow? - Management stated that the partnership is progressing well, with significant pipeline development and alignment of teams [87] Question: What are the expectations for VMware's contribution to sales? - Management expressed excitement about VMware's potential, indicating it will be a substantive part of sales in 2025 [90]