Rimini Street, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Remini Street Inc. Q3 2025 Earnings Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, October 30, 2025. I would now like to turn the conference over to Dean Paul VP Thresher and Investor Relations, please go ahead.

Thank you, Operator. I'd like to welcome everyone to Rimini Street's fiscal third quarter 2025 earnings conference call. On the call with me today is Seth Raven, our CEO and President, and Michael Prika, our CFO. Today, we issued our earnings press release for the third quarter ended September 30th, 2025. a copy of which can be found on our website under the investor relations section. 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 and our website under the heading about non-GAAP financial measures and certain key metrics. As a reminder, today's discussion will include forward-looking statements about our operations 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 files, including a Form 10-Q file 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. In the third quarter, we continued to simplify and refine our go-to-market strategy and messaging around Rimini Street's three core service pillars, support, optimize, and innovate, and our SmartPath methodology that allows clients to capture cost savings with their existing ERP software, enabling them to invest in and leverage the benefits of AI innovation without spending above the current IT budget. To this end, Romini Street has staked out its position as the software support and agentic AI ERP company, a specialized partner in ERP, that can extend the useful life of current ERP system assets while also delivering the latest next generation of ERP technology to clients. We also continued our focus on methodical, predictable sales execution in both new logo acquisition and cross-sales to existing clients. Third quarter results. Overall, sales bookings and billings continued to improve. and we delivered strong ARR subscription renewals as well. We closed 17 new client sales transactions in the quarter with TCV of over $1 million each for an aggregate TCV of $63.1 million, compared year over year to 19 new client sales transactions for an aggregate TCV of $48.7 million. We also added 79 new logos and achieved a record RPO backlog of 611.2 million, up 6.4% year over year. New logo sales include major global and regional brands. Sales to new clients and cross-sales to existing clients span the mix of our products, services, and solutions, and a broad set of industries and geographies. Achievements included record third-quarter SAP support sales, surpassing the key milestone of more than 100 VMware support contracts signed to date, and closing more than two dozen client engagements around our new agentic AI ERP innovation solution powered by the ServiceNow AI platform. We plan to provide more insight and information on our agentic AI ERP solutions at our upcoming Analyst and Investor Day on December 3rd, 2025. While the majority of our sales in the quarter were completed by our direct sales force, we also achieved sales transactions through our maturing indirect channel. As the indirect channel matures globally, we see building sales opportunity pipelines. Billings growth was driven by a mix of new ARR subscriptions and project-based professional services, and the combined ASP for Oracle support services, SAP support services, and all managed services grew year over year. In the third quarter, we had more global quota-carrying sellers, a greater number of sellers participating in the total quarterly sales attainment, and a greater number of sellers achieving or exceeding quota when compared to the first half of 2025. Exiting the quarter, we had 82 quota-carrying sellers globally compared to 73 during the prior year third quarter. Also during the third quarter, we continued upgrading sales leadership talent with new leaders in EMEA and Southeast Asia and Greater China. and materially expanded sales opportunity pipelines for future quarters, along with broad progression of many pipeline opportunities. Growth drivers. We continue to pursue growth drivers that leverage direct and indirect sales channels. We continue to hone the skills and capabilities of our direct seller team, continuing to build our partnerships that provide expanded sales reach and sales cost leverage. Additionally, We continue to build our go-to-market execution by industry, which will give us the opportunity to sell more deeply into clients with industry-based knowledge, insights, and remaining solutions that solve specific industry challenges. Two notable achievements were announced in the third quarter. First, we were added to the United States GSA multiple award schedule as an approved supplier of support and security services for Oracle, SAP, and VMware software. United States federal, state, local, and tribal government agencies can now procure Ramini Street services directly from the GSA schedule without a need for competitive procurement. To leverage the GSA contract opportunity as well as our new management sales partnership with Merlin Cyber, Ramini Street has launched a U.S. federal and state local education sales team. Second, we entered into a strategic partnership with American Digital, a leading IT solutions provider specializing in custom data center solutions based on HPE infrastructure. to provide a full-stack solution with Ramini Street providing the enterprise software support and managed services. The partnership includes working together to help clients fund modernization with AI solutions and implement workflow and task automation on top of their current SAP and Oracle applications without any pressured, expensive, or low ROI vendor upgrades or necessary migrations.