Rimini Street(US:RMNI)2021-05-11 07:14Financial Data and Key Metrics Changes - The company achieved record revenue of $87.9 million, up 12.6% year-over-year [5][21] - Annualized recurring revenue increased to $349 million, a year-over-year increase of 13% [21] - Billings for the first quarter were $81 million, a year-over-year increase of 24.2% [23] - Gross margin was 61.5% for the first quarter compared to 61.3% for the prior year [23] - Operating cash flow for the first quarter was $24.5 million compared to $26.3 million for the prior year [25] - The company ended the first quarter with a record cash balance of $153 million compared to $58 million a year ago [28] Business Line Data and Key Metrics Changes - The active client count reached 2,550, up 22.8% year-over-year [5] - The revenue retention rate for support service subscriptions remained above 90% [21] - The company closed more than 10,000 support cases and delivered nearly 32,000 tax, legal, and regulatory updates across 36 countries [6] Market Data and Key Metrics Changes - Clients within the United States represented 54% of total revenue, while international clients contributed 46%, with international clients showing a year-over-year revenue growth rate of 32% [21] - The Asia-Pacific region led international strength with significant growth [21] Company Strategy and Development Direction - The company aims to achieve $1 billion in annual revenue by 2026 [5][19] - There is a strategic focus on increasing cross-sell opportunities within the client base, estimated to exceed $1 billion in annual revenue [14] - The company is investing in new products and services, including application management services and advanced security solutions [23] Management's Comments on Operating Environment and Future Outlook - The pandemic continues to create both opportunities and challenges, with the company believing its strong balance sheet will provide flexibility [7][8] - Management noted stabilization in client retention despite some ongoing COVID-related challenges [41] - The company expects growth to accelerate in North America due to a restructured regional operating model and new sales leadership [22][59] Other Important Information - The company has signed over 4,000 clients since its inception, saving clients more than $5 billion [6] - The litigation with Oracle is ongoing, with the company confident in its legal position regarding third-party support [16][18] Q&A Session Summary Question: Update on sales rep counts and go-to-market strategy - The company ended the quarter with 81 sales reps, above target, and aims to reach 100 by the end of 2021 [36] Question: Pipeline growth and AMS performance - The company reported a 60% increase in AMS invoicing in the first quarter compared to the previous year [37] Question: Client retention and COVID impact - Management acknowledged some COVID impact on retention but noted overall strong renewal numbers [41] Question: Billings growth and revenue guidance - The company experienced a 24% growth in billings, indicating a positive trend for the year [45][49] Question: North American growth rate expectations - Management believes North America can achieve double-digit growth, similar to international performance [59] Question: FX exposure - The company reported minimal FX exposure despite strong international growth [53] Question: Success factors in the Asia-Pacific region - The company attributes its success in APAC to local leadership and tailored solutions [68] Question: Competitor responses from Oracle and SAP - Management noted aggressive competition from Oracle and SAP, including discounting strategies, but emphasized the company's competitive advantages [69]