Non-US revenues are catching up fast on US at Rimini Street, the former up 9.9% year-on-year to $52.3 million for Q1 2022, the latter up 13.1% to $45.6 million. Overall, revenues for the first quarter were $97.9 million, up 11% year-on-year.
CEO Seth Ravin said the firm had closed some of the largest sales in its history during Q1, citing the closure of more than 10,000 support cases as well as delivery of more than 18,000 tax legal and regulatory updates for 33 countries.
Some 35 net new clients signed up during the quarter, bringing the active client total to 2,884, a 13% increase year-on-year, Ravin said:
Rimini 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 [Total Addressable Market] 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 Americas 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 to find it annual fees over $1 million.
With the expanding international footprint on show, Ravin cited a non-US use case exemplar in the form of BreastScreen Victoria, one of Australia's largest breast cancer screening organizations which switched to Rimini Street for support of its Oracle database software:
By switching to Rimini Street, BreastScreen 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 demand and significantly reduce its annual enterprise software support spend. As a result, BreastScreen Victoria's IT team can now focus on more strategic initiatives, including a planned data center migration project.
Ravin quoted Darren Firth, IT operations manager for BreastScreen Victoria, as saying:
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 Rimini Street engineers globally, brings us additional confidence and peace of mind.”
All told, Ravin argued that organizational changes within Rimini Street itself are coming along, but admitted that “we’re not in the consistent execution category yet”. He explained:
This transition to being a multi-product company is pretty complicated on a global basis and I think that we're making progress…All of this, I think, is really moving towards a more stable operation, more consistent execution coming into '23. And as we've talked about before, in order to sort of target that billion dollars by '26, we have to accelerate into '23, '24 and '25. We all know that. And so this is really about 2 more quarters to kind of get the house in order, really ramp the engine and then start to see that revenue flow increase in ’23.
Sales hiring is an area where there has been progress, but there’s more work to be done, said Ravin:
The sales hiring, I won't say has gone as well as we would've liked…We ended about 73 ,down a little bit from the 79 number in the fourth quarter…Where we've been losing some folks is some of the new hires haven't been completing their ramp up - some due to the fact that we counsel them out, some due to the fact that they found it to be, I think, a little harder than they thought it would be.
I think that the challenge that we have there has really still been in the recruiting area and we've addressed that, we brought in John Leech who is an expert at revenue recruiting positions and he's taken the helm of revenue recruiting just a few weeks ago and we're expecting some great things there.
One hiring of note, cited by Ravin, is the arrival of Jeff Spicer as CMO. Spicer is ex-Oracle, where he developed - in Ravin’s words - “a lot of the nasty competition". Now he’s crossed over to Rimini Street and will be looking to beef up marketing and raise profile:
We've been waiting for a new CMO, as you know, for the last year and it took us a while to select the person that we thought could really ramp this up, who'd understand this business, and Jeff does and so we're pretty excited to have him on the ground.
You're going to see our television ads back on TV all over the world - that started this last week. There's a lot of ramp-up going on. So we're really convinced that the acceleration of the business is really a formula of getting additional sales reps ramped up, hitting their 12 months and bringing that 12-month down to 9 months and then eventually to 6 for ramping, getting marketing out there, really turning a buzz around the world. This is an unbelievable opportunity.
The Oracle litigation shadow still hangs over the firm, now past its 12th year. There are two active proceedings underway and Ravin said that the company thinks it likely that a trial will proceed in 2023 (although it could be earlier or later). But, elsewhere there are signs of progress on view in terms of the restructuring of the business operationally with some good new senior management picks taking their seats.