Rimini Street, Inc.

Good day and welcome to the Rimini Street Q1 2023 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Instructions will be given at that time. As a reminder, this call is being recorded. I would like to turn the call over to Dean Pohl, Vice President Investor Relations. You may begin.

Thank you, Operator. I'd like to welcome everyone to Ramini Street's first quarter 2023 earnings conference call. On the call with me today is Seth Raven, our CEO and president, and Michael Parica, our CFO. Today we issued our earnings press release for the first quarter ended March 31st, 2023, a copy of which can be found on our website under investor relations. A reconciliation of GAAP to non-GAAP 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 risks 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 10-Q 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. Before we review the quarter results, I wanted to remind everyone that Rimini Street has grown and evolved from a single-service company into a global provider of end-to-end enterprise software support, products, and services, the leading third-party support provider for Oracle and SAP software, and a Salesforce and AWS partner in SaaS and cloud markets, respectively. The company has operations globally in 22 countries and now offers a comprehensive portfolio of unified solutions to run, manage, support, customize, configure, connect, protect, monitor, and optimize enterprise application, database, and technology software, and enables clients to achieve better business outcomes significantly reduce costs, and reallocate resources for innovation. To date, over 5,100 Fortune 500, Fortune Global 100, mid-market, public sector, and other organizations from a broad range of industries have relied on Ramini Street as their trusted enterprise software solutions provider, and we believe we have delivered over $7 billion of savings and reinvestment opportunity to our clients. Operating results. For the first quarter of 2023, we were pleased to complete both the launch of our expanded solutions portfolio and sell the portfolio to name brand organizations globally. This expanded portfolio will allow us to meet the needs of a significantly larger market of organizations with $200 million or more in annual revenue or budget. One of the new premier solutions launched in the first quarter was our end-to-end Turkey outsource offering, Ramini One, which provides organizations a one-vendor solution for their current and evolving enterprise software needs. and leverages Rimini Street's unique and industry-leading value, reliability, responsiveness, technology, and engineering capability. We've already signed and are servicing more than 100 Rimini One clients and believe our significantly expanded solutions portfolio will increase sales to new and existing clients, improve our revenue retention rate, and deliver a higher client lifetime value. Clients are already enjoying the benefits of ReminiStreet's expanded solution offerings. For example, Stefan Varghese, an engineering manager at MYOB, the number one provider of ERP software in Australia and a new ReminiOne client, said that ReminiOne enables them to seamlessly manage a whole critical platform without having to deal with multiple vendors and raise numerous tickets. He said this allows the MYOB development team to focus on delivering more strategic outcomes for MYOB as they continue the evolution of their business management platform for local Australian and New Zealand businesses. Varghese goes on to further note that switching to Ramini One has opened up more opportunities for his organization and empowered his team to work more efficiently and more flexibly, as well as save costs. He says, ReminiOne provides a truly one-of-a-kind solution that's a must for modern-day organizations. Demand environment. We see strong demand for a proven, reliable IT services partner that can allow organizations to consolidate their IT service providers for streamlined vendor management, increased aggregated purchasing power, and better outcomes. In further confirmation that Ramini Street has developed and brought the right portfolio of solutions to market, a sponsored survey available on our website found that a substantial number of IT leaders feel pressure from their board to show increased return on IT spent. Even more telling, a majority of the IT leaders surveyed seek to reduce the total cost of ownership for existing mature enterprise software by switching to third-party support programs, with almost half of participants looking to outsource support and maintenance services to free up their IT teams to work on more strategic, innovation-focused projects. This is in alignment with Rubini Street's vision and strategy for its expanded portfolio of solutions. Organizations today need to figure out how to deliver both revenue growth and increased profitability. And now, As an end-to-end provider of unique and critical IT support, products, and services, Ramini Street has the broader portfolio of solutions needed to be recognized as a key IT service partner that can help clients achieve their goals from developing IT strategy and roadmaps to plan execution. As the market becomes more aware of our expanded portfolio of solutions, we are seeing increased lead in sales activity. and growing pipelines into the current quarter of 2023 and beyond. We believe that Rimini Street is well positioned to meet the current and evolving needs of organizations that face heightened global competition in just about every industry and must navigate the complex macro environment over the coming years. Our clients agree. GE Lighting, a savant company, is a market leader in residential lighting and smart home products. They selected the new Rimini Watch for change management solution, replacing SAP's change management solution after determining a need for more flexibility and value. By switching to the new Rimini Watch solution, GE Lighting has experienced increased efficiency and a significant reduction in friction for its internal clients. Sanjay Sethia, Senior Manager of Enterprise Applications at GE Lighting, noted that day-to-day, they could focus more on their strategic direction and getting deeper into analysis rather than spend time on operational issues. They refer operational issues to their Romini Street partner, who he says is responsive, comes with the right analysis, and guides them through each step of the way. In the past year, they have moved more than 350 system changes across five different landscapes without incident. Sethia said he sees a big advantage for the company and his team, having Ramini Street as a proven and trusted IT partner. Sales Execution During the quarter, we continued focusing on sales across the expanded portfolio of solutions. and working to assure the full portfolio is available to all current and prospective clients globally. We launched our next generation revenue enablement strategy, program, and team, and implemented many operational changes we believe will increase sales leads, opportunities, pipeline, and deal close rates, and ultimately drive a higher revenue growth rate and increased profitability. To enhance and accelerate lead opportunity and pipeline development and help close more large and strategic transactions, our senior executives, including myself, continued our heavy global travel and participated in a growing number of successful in-person Romini Street and third-party events and executive sales meetings with hundreds of current and prospective clients. Oracle Litigation Update. Rumini 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 Rumini 2 proceedings, both of which relate to the manner in which Rumini Street provides support services for certain Oracle product lines. Rimini Street is not prohibited from providing support or services for any Oracle products. With respect to the injunction compliance dispute, Rimini Street filed an appeal in 2022 to the Ninth Circuit of the United States Court of Appeals relating to certain rulings of the U.S. District Court. Oral arguments on the appeal were held in San Francisco on February 6, 2023. And the matter remains pending before the court of appeals. We believe we could have a court ruling on the appeal at any time this year. With respect to remaining to the case for ministry filed against Oracle in 2014, and Oracle filed counterclaims on October 21st, 2022, just days before the jury trial was set to begin. Oracle withdrew certain of its counterclaims and all of its claims against Rimini Street and against me personally as CEO for monetary relief of any kind under any legal theory in this litigation. Rimini Street's remaining claims and Oracle's remaining counterclaims seeking only equitable relief were tried before the court as a bench, judge-only trial that began November 29, 2022, and ended December 15, 2022. The parties submitted their proposed findings of fact and conclusions of law to the District Court on February 23, 2023, and the matter remains pending before the District Court. We believe we could have a court verdict any time this year. Please see our disclosures in the latest 10-Q filing for additional information and disclosures regarding litigation with Oracle. summary. We remain confident that we are continuing to take the right actions and making the right investments to re-accelerate growth, increase profitability, and enhance shareholder value. Now, over to you, Michael.