In This Article:
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Rimini Street Inc (NASDAQ:RMNI) achieved positive momentum in billings, new clients, and client renewals during the fourth quarter.
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The company reported a 7.1% year-over-year improvement in quarterly billings, driven by strong performance in Latam, EEA, and Asia Pacific regions.
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Rimini Street Inc (NASDAQ:RMNI) has expanded its services to more software products, including new support for VMware, which has shown strong sales potential.
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The company has implemented a new go-to-market strategy in the Americas, adopting the Hunter Farmer sales model to drive growth in both new and existing client sales.
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Rimini Street Inc (NASDAQ:RMNI) achieved a support client case satisfaction average rating over 4.9 out of 5.0, indicating strong client satisfaction.
Negative Points
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Revenue for the full year 2024 decreased by 0.6%, and annualized recurring revenue saw a year-over-year decrease of 4.1%.
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The company is facing ongoing litigation with Oracle, which has resulted in significant legal expenses, including a $58.5 million payment for Oracle's attorneys' fees.
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Rimini Street Inc (NASDAQ:RMNI) has suspended guidance on future financial results due to uncertainties related to litigation with Oracle.
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Operating cash flow decreased by $38.8 million in 2024 compared to an increase in the previous year, partly due to litigation settlement expenses.
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The company is reassessing its exit from the PeopleSoft business, which has seen a decline in revenue contribution.
Q & A Highlights
Q: Can you discuss the changes in sales and restructuring efforts, and how they might impact revenue growth in North America and internationally? A: Seth Raven, CEO, explained that the company has made significant changes in sales strategy, including restructuring efforts to focus on multi-product solutions rather than single products. This has involved developing new products and deploying capabilities globally. He expressed optimism about returning to growth and higher profitability, indicating that the company is on the upswing after a challenging period.
Q: How has the litigation with Oracle impacted the pipeline, and what is the current status? A: Seth Raven noted that the Remini2 ruling in July 2023 had a negative impact on the pipeline, but the recent positive appellate court decision in December 2024 is expected to provide uplift. However, the impact of this decision was not measurable in the fourth quarter due to its timing.