LAS VEGAS--(BUSINESS WIRE)--Rimini Street, Inc. (Nasdaq: RMNI), a global provider of end-to-end enterprise software support, managed services and Agentic AI ERP innovation solutions, and the leading third- party support provider for Oracle, SAP and VMware software, today announced the expansion of its partnership with Tidewater, the world's largest offshore service vessel (OSV) fleet operator. "Some companies know Rimini Street solely for their expert support capabilities, but they are so much more than tha ...

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]