Rimini Street, Inc.

Welcome to Remini Street first quarter earnings conference call. My name is Adrienne and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question and answer session. During the question and answer session, if you have a question, please press 01 on your touchtone phone. And now to the caller, Dean Paul, Vice President. Dean Paul, you may begin.

Thank you, Operator. I'd like to welcome everyone to Rimini Street's first quarter 2022 earnings conference call. On the call with me today is Seth Raven, our CEO, and Michael Parica, our CFO. Today, we issued our earnings press release for the first quarter ended March 31st, 2022, a copy of which can be found on our website under investor relations. A reconciliation of gap to non-gap financial measures has been provided in the tables following the financial statements in the press release. An explanation of these measures and why we believe they are meaningful is also included in the press release under the heading about non-GAAP financial measures and certain key metrics. As a reminder, today's discussion will include forward-looking statements that reflect our current outlook. These forward-looking statements are subject to risk and uncertainties that may cause actual results to differ materially from statements made today. We encourage you to review our most recent SEC filings, including our form 10Q filed today for discussion of risks that may affect our future results or stock price. Now, before taking questions, we'll begin with prepared remarks. With that, I'd like to turn the call over to Seth.

Thank you, Dean, and thank you, everyone, for joining us today. Q1 2022 results. For the first quarter, we achieved record revenue of $97.9 million, up 11.4% year over year, achieved a record first quarter invoicing, and delivered a revenue retention rate of 94% on subscription revenue, up from 91% last year. We continue to fill key regional operations and sales roles, including Jeff Spicer as Chief Marketing Officer, joining from Oracle, VMware, and IBM, and Kevin Hooper as GM of America Central Region, joining from Lenovo, IBM, Oracle, and HP. Additionally, we closed some of the largest sales transactions in our history during the quarter. and remain focused on growing and maturing our global marketing and sales operations for increased new client acquisition and cross sale of new services to existing clients. Further differentiating ourselves with an extraordinary client experience, we closed more than 10,000 support cases and delivered more than 18,000 tax, legal, and regulatory updates for 33 countries. Additionally, We achieved an average client satisfaction rating on the company's support delivery and client onboarding services of 4.9 out of 5, where 5 is excellent. We believe our unique client experience and very high client satisfaction rating will drive increased loyalty, improved retention rates, and higher cross-sales over time. Since Rimini Street's inception in 2005, we've signed nearly 4,700 clients, including over 180 of the Fortune 500 and Global 100 companies, and estimate that we have saved our clients more than $6 billion that they were able to reinvest in their business. We added a net of 35 new clients for the first quarter, with active clients totaling 2,884, a year-over-year increase of 13.1%. In addition, despite the challenges with retention and recruitment in 2022 affecting many organizations globally, we were successful in expanding our global workforce by 12% year-over-year, ending the quarter with over 1,680 employees. Pandemic, geopolitical, and macroeconomic impacts. As the global pandemic and other economic and geopolitical challenges continue to impact businesses and governments, we have helped thousands of commercial and public sector organizations with operations across more than 100 countries navigate the challenges successfully, moving many beyond surviving to thriving. During the pandemic, we utilized our unique, secure, remote connectivity global infrastructure with operations in 21 countries and nearly 100% of our full-time employees working from home offices. This not only allowed us to protect the safety of our people, but also allowed us to deliver uninterrupted, mission-critical, 24-7, 365 support services to our global clients. with an industry-leading guaranteed 10-minute response time for critical issues. Today, given the added financial challenges around inflation, rising interest rates, and related impact on profits, we are seeing prospects and existing clients who had planned to invest in expensive new ERP refresh projects choosing instead to extend the life of their existing stable systems to preserve cash, and focus their limited labor and budget on strategic investments and initiatives. Demand and sales execution. Rumini Street already serves many of the largest and most recognized client logos across different industries, and we believe our continued and growing focus on the specific needs of each industry will allow us to further penetrate the TAM in each industry with the breadth of our solutions portfolio. Accordingly, we continue to see a strong opportunity for our expanding portfolio of enterprise software support solutions and continue building and maturing our go-to-market capability to launch, sell and deliver our full solutions portfolio to new and existing clients globally. During the first quarter, We closed transactions with strategic, local, and global brands across diverse industries and geographies. The Asia Pacific, EMEA, and America's East geographies led in sales results. From a product perspective, results were broadly distributed across support, AMS, security, interoperability, monitoring, and professional services. Close rates were favorable. particularly for large deals defined as annual fees over $1 million. We were pleased with sales productivity, quota attainment, and close rates in the quarter. Our clients are seeing the strong value add that our engineers bring to their IT environments and IT strategy, allowing clients to augment labor and to free up resources to pursue growth and productivity initiatives. We believe the hybrid IT environment that will integrate existing licenses, new SaaS licenses, and cloud deployments will be the IT reality for much longer than expected, and a majority of ERP workloads will continue to be on-premise or simply lifted and shifted into the cloud for continued long-term use. Client case studies. To highlight how clients are leveraging RiminiStreet Services globally to achieve their strategic goals across different industries, I'd like to share two case studies from the first quarter. First is BreastScreen Victoria, one of Australia's largest breast cancer screening organizations, who switched to RiminiStreet for support of its Oracle database software. By switching to RiminiStreet, Press Screen Victoria was able to liberate additional capacity within its internal IT team, negate the need to spend additional funds expanding its staff to meet increasing service demands, and significantly reduce its annual enterprise software support spend. As a result, Press Screen Victoria's IT team can now focus on more strategic initiatives, including a planned data center migration project. Darren Firth, IT Operations Manager for BreastScreen Victoria stated, having a primary support engineer based locally in Australia and available on demand takes a huge weight off our shoulders. Rimini Street is an extension of our IT team with knowledge of our IT environment that enables them to dive into an issue and address it immediately. Knowing that our local Oracle Database support team is backed by RiminiStreet engineers globally brings us additional confidence and peace of mind. Next is StaffMark Group, a large US-based leading staffing and recruiting firm. StaffMark leverages RiminiStreet to support the company's PeopleSoft system. Since making the switch to RiminiStreet, StaffMark has significantly improved the quality, responsiveness, and depth of PeopleSoft support available to its internal IT team, enabled faster tax, legal, and regulatory updates, and plans to reinvest support cost savings and focus its IT resources to execute improvements to its competitive market strategy. StaffMark is going to invest in service-offering innovation and enhancements, such as AI analysis capabilities, and automated job posting functionality for employers and job seekers. Jill Crabtree, Vice President of ERP Technology for Staffmark, stated, We run payroll daily, serving approximately 35,000 employees a week, so any issue running this critical process accurately and on time would be catastrophic. Payroll is a mission-critical process that must be bulletproof and always on. I knew from past experience that Rimini Street's claims regarding their value proposition were all real, including its ultra-responsive support from experienced PeopleSoft engineers and faster delivery of high-quality tax, legal, and regulatory updates. Rimini Street's support would assure us that we could keep our daily payroll operating smoothly in full compliance and create additional efficiencies. I had no hesitation about the positive impact this would have at StaffMark. For example, there have been numerous tax, legal, and regulatory updates related to COVID-19, and we've been able to get immediate, customized updates for those changes. The support we receive is phenomenal. Oracle Litigation Update. Rimini Street and Oracle have been in litigation for more than 12 years. While the U.S. courts have confirmed long ago that third-party software support is legal, we presently have two active proceedings with Oracle, the injunction compliance dispute and Rimini 2 proceedings, both of which relate to the manner in which Rimini Street provides support services for certain Oracle product lines. With respect to the injunction compliance dispute, Rimini Street is preparing and planning to soon file an appeal to the Ninth Circuit of the United States Court of Appeals relating to certain rulings of the U.S. District Court. We expect the appeals process could take about a year to receive a ruling, but a ruling could come earlier or later. With respect to Rimini Street v. Oracle, the case Rimini Street filed against Oracle in 2014 and is known as Rimini 2, the case remains in a pretrial stage. We currently believe it is likely that the trial will proceed in 2023, but the trial could proceed earlier or later. Please see our disclosures in the latest 10Q filing for additional information on the Oracle litigation. Summary. We continue to focus on marketing and sales execution and productivity, exercising disciplined cash generation and management, and bringing our litigation with Oracle to a successful conclusion. Now, over to you, Michael.