Rimini Street (RMNI) 1 Mar 232022 Q4 Earnings call transcript

Good afternoon ladies and gentlemen, and welcome to the Rimini Street Earnings Conference Call. At this time, all participants will be in a listen-only mode. Later, we will conduct a question and answer session.

I will now turn the call over to Dean Pohl, Vice President of Investor Relations. Mr. begin. may you Paul,

I quarter to earnings and operator. Rimini conference everyone Street fourth fiscal would you, welcome like to call. Thank year XXXX

our our call and the with today Seth On me Michael CFO. Ravin, Perica, is CEO;

Today, of quarter December fiscal fourth for and Relations. be can our found we a website year copy under earnings Investor issued XXXX, release the press XXst, which ended on our

the the meaningful press believe has A An been financial provided about financial measures certain GAAP statements press table the they included non-GAAP of these in reconciliation of and heading the measures key following release. we explanation under measures is to in why the metrics. release financial in non-GAAP and also are

that our to Form discussion These SEC statements that to stock reflect today. to our As recent future and results today’s filings, We price. risks a for most today, differ a cause or reminder, current our are materially forward-looking statements review including discussion of actual affect subject that forward-looking filed our will may you uncertainties encourage statements results may from outlook. made risks XX-K include

over would Now we With Seth. I with the will like to call to prepared before that, turn remarks. begin questions, taking

and optimize to unified Thank protect, connect, client The us is of Rimini technology products support, Street. enterprise company and everyone a end-to-end family you, Rimini offers manage, database comprehensive solutions global for and services. software enterprise you and today. customize, Dean, support platforms. monitor, software Street thank a joining A bout run, provider application configure, of

support developing filled firms. the became industry supported for both software then and Oracle number analyst SAP enterprise XXXX on based redefine in unmet need new by the software the solutions We and active provider Street that and Rimini the the founded recognition of innovative software market. remained independent by client support market delivering disrupt products leading and and in enterprise We to

value, support of capability, evolving other reliability their innovation, prospects technical offerings us scope meet service for needs Clients and and reputation asking our has began opportunities our grew. trusted product responsiveness, software. and and enterprise the years to related the Over current to and expand to

heard also IT a reducing number goals desire true perspective services vendors to with become to the numbers IT of that clients manageable include and their more and from wider governance can a who select We of scope prospects from trusted partners. a provide vendors

service expanded now addressable array we meet significantly To needs security solutions and solutions what application new of management, software a opportunity, the consulting. prospects and and to interoperability, observability delivering for believe a market a portfolio our for are new and developed expanded is enterprise clients wider and we designed, of

landscapes extended clients focus minimum as also technologies IT growth. Oracle offer services existing lifespan to on will a their SAP support now that XX innovative value an a with of years option one, talent integrated advantage and to operating designed our Rimini competitive package and projects and potentially client's enable budget outsourcing for turnkey end-to-end our higher and We our optimize unique of

end-to-end systems results, ROI to around XXXX value current and their believe adoption organizations more meet year expanded and products solutions the fiscal needs support software enterprise QX needed we leading delivering providing engineering services growing Rimini the in their evolving and Street's industry even software enterprise of is and capability.

client revenue portfolio our active base XXXX to reflected sales renewals cross was expanded and to dollar guidance, in full and year exceeded clients X% and wins record year-over-year strong this of in that We fourth sales extensions, achievement solutions in subscription clients. industries, diverse multi-million believe growth existing increased of quarter our a our

to growth diminish as to of and increased continue and global execution marketing increase. revenue the the improve challenges activities sales will lead our investments and of effectiveness activities we quarter, execute and reacceleration and make continue investments will opportunities and believe these sales the over During We our profitability to pandemic pipelines we believe era time.

reach services. target priorities. wider greatly we our support served prospective can who than XXX billion to more in have We including that save clients, also believe sales to of add our scaling X,XXX our marketing were their continued up benefit companies. and and our XXX than Since that cash we've XXX and from reinvest clients Fortune campaigns Global products a in global XXXX, estimate signed they to and inception over $X clients helped able we Fortune strategic An or more

increased budget portfolio Demand to services, operating very and that deliver than for revenue enterprise environment, Rimini now with expanded least profitability. to Street likely we a revenue support both growth historically today software one organization opportunities or to solutions. is clients This million our universe have at believe and of any is larger out an or of Street how Rimini $XXX of organizations annual With significantly more prospective global figure need products targeted.

Clients in environment including process earnings that environment my a was and the IT companies for sales decisions previously forced thought froze global procurement for to noted Rimini operations models. and IT As and organizations reprioritize macroeconomic needed prospects and pandemic, originally years cost slower growth, instead XXXX post higher Street. their XXXX adjust to and months strategies re-budget and the and going re-plan, staffing of for to service I delayed last likely technology as strategy calls, many impacted re-planning their IT plans

with REBUDGETING fourth attempting current Street clients forward and delayed completion procurements. moved prospects the needs the macro We the believe However, service and in of re-planning meet organizations we activity. is seeing to over well of quarter, environment years. their coming substantial global evolving IT Street and navigate IT and the complete with projects and began positioned to Rimini Rimini benefited that contracting

needs we our that buyer seeing confirmed Surveys and opportunity. are behavior in

finding that leaders it substantial projection For Gartner global a pressure our of a increased return found can increased spend, to portion their the it show of on not in significant enterprise spend budget of and was in directors that meaningful a IT application example, of sponsored does that on IT which allocated XXXX return found half, the cut recently number IT is business. survey software, generate be board website, towards a their from feel to

vision CIOs looking third party applications. projects innovation are IT to of of in enterprise solutions. CTOs half with expanded confirms of portfolio switching purchase and more cost teams focused to operation of services telling cost a support mature to more surveyed by reviewing Even reduce enterprise their ownership and of Street's to alignment with total existing free outsource IT with the up strategic, survey seek participants software to programs exact the of associated total The maintenance leaders ownership and for majority work on support almost their and Rimini the

and support of against transaction wins both Fourth quarter SAP solutions healthy. including full with execution opening against Significant and large providers other proposals Close on rates to were security, quarter the AMS exceed close professional observability execution; included strong Oracle. sales was XX% and on Sales rates across large interoperability, pipe portfolio services. deal and also IBM healthy wins deals that sales continued

order a and annual earnings of innovative service my execution, maturing to year-over-year, wider bigger marketing time detailed XXXX, fourth offerings have Closing fees campaigns of quarter and our new since $Xmillion, previous globally. to improving build delivering calls the marketing sales profile target a increase and an to pipelines global in from over I majority buyer June as dedicated on reallocated I five deals with

We and acquisitions implementation sellers and our strategies cross client of client balance sales continued successful hunter guide focus assure we sales. on to sales have cross our new new to between

broader in service both with a for improve matures of opportunity growth development reach our pipeline generation lead our make even to opportunities, strategy global Ramped As offerings. and accelerate growth than prospects. go-to-market up that clients XXX changes a continue set greater of to marketing stronger closing more our skills and demand equipped revenue we more engine global team and and global members to

myself, senior meetings to travel regional prospective third to participate collaborated of heavy sales hundreds executive current of successful growth full of Rimini with sales and continue and executives, street set in including solutions. strategy growing number Street portfolio the and with in-person accelerated a teams clients management events and Our hone our Rimini and of for party our

XX litigation than have Oracle in and litigation more been Oracle update; Rimini Street years. for

ago confirmed software have While proceedings, services injunction We which both which of with third to that for Oracle, two in the support Rimini Rimini courts party presently active the support US relate is product manner certain lines. legal. proceedings long the compliance two have dispute Oracle provides Street and

have District With and to Appeals the or quarter XXXX, of of compliance products. were the is We the remains relating for appeal Ninth the a support in the appeal Court Oracle the Appeals. Street in held injunction States to we United filed XXXX in the could Circuit dispute, from or believe or third appeal respect XXXX, an on of on Francisco ruling ruling Oral pending second San the U.S Xth, February any not could Rimini come the the on later. earlier to of rulings Court. Street but prohibited before providing Court matter certain services of arguments Rimini

II, With case Rimini Street XXXX. counterclaim two, against XXXX in respect Oracle XXst, and filed the to Rimini October on filed Oracle

the for withdrew claims legal any its and under jury against litigation. in any Rimini monetary trial before its personally of this against as certain counterclaim set relief to Oracle begin, CEO was of and Just me all days Street kind of theory

tried were trial the remaining parties ended February district claims in XX, as of the before XX, only remaining The judge before XXXX. began a remains only to their law court. of court relief December court equitable XX, and proposed that the findings fact counterclaim XXXX, on Street's matter Rimini and conclusions pending district November the bench XXXX, and Oracle's seeking submitted

verdict could litigation or XXXX, in Oracle XX-K see could additional for our earlier or in the latest have with a verdict but information the second regarding and third disclosures disclosures quarter believe we the of filing Please come court later. We

Summary.

the and launching the making value. actions we in major investments in shareholder protracted of that strategic position of Over and increase designing, transactions, re-accelerate litigation key support by balance a successfully delivering capital the and past remain stronger years, are we enhance portfolio IT three achieving strengthening product with to company to the growth, materially an We profitability, developing, key market and have continuing right to series solutions. confident entire right service take new the goals, wins a Oracle our placed sheet two and

over Michael. to you Now,

Thank as we billings and thank us sequential as you you well results, growth joining QX improved for were everyone. in fiscal margin in our QX pleased gross Seth, with of XXXX a maintaining rate and strong quarterly record revenue. year performance fourth both respectively, the and $XXX.X quarter on full a for a $XXX.X increase year-over-year the was million million and periods. subscription X.X% revenue retention for Revenue XXXX

XX.X% revenue contributed of revenue the represented which of of subscriptions, revenue service million for and for clients of quarter revenue up XX subscription was States full in XXXX full fourth revenue than and was XX.X% quarter of United fourth the for a least total XX.X% XX% XX.X% XXXX our All the quarter, increase fourth with within respectively. XX% recurring non-cancelable at retention and respectively. $XXX total rate more Clients for the for year revenue, year makes international X.X% months. XX% year-over-year Annualized

We the negatively the was X.X% basis improvement revenue X.X% prior XXXX, a full decline $XXX.X an total and year-over-year, FX fourth to currency to on of note our increase XX.X%. the year compared $XXX.X from prior quarter, million of that measures fourth million Billings quarters for quarter substantial due impacted for for were the by year, movements. a constant

fourth the clients. quarter, existing with sales by the were rebound to during new strong evidenced our and and in As expanding we renewal billings client pleased

client what underscores three largest during the lengthening. compared XXXX, Seth improvement quarter for to and thus offerings from days fourth our the We quarter XX of for we is XX were improved As where believe strong XXXX. the experienced to DSOs year, the days to earlier XXXX billings our year than of $XXX.X declined quarters commitments year-over-year billings marked year-end improvement to experienced million. DSOs full quarter-end in noted This the year. a collections during a normal first prior our X% the

and XXXX and allow that and was quarter. year, prior quarter was fourth XXXX. compared Gross for leverage our revenue the the decision gross margin guidance quarter full We note resources to would fourth with do for approved prior quarter reflecting for QX ramp year our XXX of fourth basis and over XX.X% revenue in margin XX.X% in-line for in for talent XX.X% to the conscious of year quarter, the XX.X% points

XX.X% leverage the by labor XXXX, a revenue expense which for XXXX of for technology the successfully offset of part margin excludes margin basis, quarter been stock use gross result efficiencies fourth quarter On and prior process of our has XX.X% as decline for with revenue methodically of a XX.X% gross expand fourth non-GAAP efforts based compared to in prior and geographies. in for to year, which and the cost full full of compensation XX.X% year cost year higher control labor, lower through year

forward expect to XX% on Looking to be XX.X gross GAAP basis XXXX, on of non-GAAP a of XX% margin for basis. revenue revenue in full range we of year XX.X% the to and a

to quarter increased globally, offset, large and growth. freeing profitability like part pressures in experiencing Operating allowing the this, and all other categories. a in needed to up to drive we XXXX, a we expenses are labor inflation implemented with of during organizations to cost increase funds To in maintain due forced the first us costs labor restructuring target address costs, reduction

marketing approximately year and for revenue XX.X% expenses $XX of as prior as prior of fourth of of was for percentage full and quarter the and annualized fourth XX.X% and marketing on quarter the the for the prior excluding a expense, XX.X% quarter, sales, revenue a year in prior compared million revenue XXXX excludes XXXX full compared sales one-time percentage XX% a year for fourth initiatives, XXXX. revenue result for of basis, savings, stock and year, the revenue XX.X% XX.X% to non-GAAP which revenue for for charges, to year based and year, quarter, expenses XXXX fourth will These XX.X% of for was compensation XX.X% of

XX.X% to non-GAAP to growth basis. and our opportunities on capitalize, XX.X% expenses of full in sales year to making a investments XX.X% honor GAAP basis, appropriate XXXX thus to see marketing needed the on focused on be the XX.X% range and a We and

XXXX XX.X% expenses General for year, the costs which excludes year compensation expense, on was compared revenue XX% XX.X% and G&A revenue revenue year administrative quarter prior non-GAAP XXXX and to of prior of year XXXX of to for XXXX. and fourth XX.X% XX% the compared for year, of quarter, fourth and basis, a revenue was as of the quarter XX.X% full and stock a for for for for prior excluding fourth percentage full quarter, based year XX.X% outside the XX.X% prior revenue fourth litigation for

part throughout our Oracle made support talent necessary and compliance the XXXX onetime of and be the G&A continue cost due costs our long-term in expenses to the our other in-house period, occurred litigation the Outside conscious that to peers investment to in in for and higher the line legal objectives. decision material by continues process making ongoing our systems, and to infrastructure growth needed teams

on in Nonetheless, restructuring we XX.X% this and XX% investment full a basis behind of year G&A and is our to XX% a as XX.X% revenue percentage XXXX expenses of us that basis. majority GAAP efforts, to the of a thus range see aforementioned be the given on declining and non-GAAP to

for fiscal had This Rimini litigation year's XXXX the primarily due quarter level. costs we December to during outside trial XXXX. were had expected completed million XXXX. to during We $XX to Accordingly, into for the was year full fourth million XXXX $XX.X and Net elevated million the year Oracle year to and the these costs full the fourth year outside expense full for costs move and trial XXXX, $XX.X from was litigation required expense quarter to II moderate litigation XXXX. expect we occur

were $X.X fourth and expense impacted the charges and Earnings by full charges $X quarter the we also and reorganization for impairment the of lease million. fourth year during litigation quarter the incurred of XXXX elevated million

share of $X.X million the $X.X per For was negative to loss per or negative diluted year or net the diluted share. loss million XXXX and for quarter, $X.XX a $X.XX full attributable was the fourth shareholders

while the and million $X.XX a net share, On $XX.X fourth full for for quarter per was year the $XX.X basis, non-GAAP income million, $X.XX or was diluted share. per positive diluted positive XXXX

XXXX or for for EBITDA fourth was $XX.X $XX.X prior million of million million and the full year year XXXX. Adjusted the $XX.X million revenue full for quarter for was quarter fourth revenue. the compared year to XX% of the or XX% $XX.X And

stock-based litigation the for remained full and and outside operating in XX% revenue quarter double compensation the digits the margin, XX% spend XXXX. at for non-GAAP fourth which of Our excludes year

ended the a to $X.X compared year generated year $XX.X cash $XX.X million, consisting we fourth $XXX fiscal of of quarter cash $XX $XX.X flow and million, fiscal the We available a plus of the readily end. and On full cash $XXX flow prior for quarter, and with treasuries cash investments $XXX declined year million sheet; XXXX. balance million prior bringing the Balance agency to million, million operating compared short-term for million for securities, to million year-to-date, basis, fourth year

to inflationary cash headwinds noted their for addition experienced flow, the we overall payments for FX and clients as both opportunities our of cash. leading existing, the broad-based lower the cash impacted towards to short-term that is own and new also environment a advanced In presentation has investment clients, have shift retaining

the XXXX, includes million, Deferred the revenue, million approximately quarter. revenue the year revenue future $XXX to deferred quarter. non-cancelable prior year XX, compared XX, and which million $XXX billed December prior was approximately $XXX unchanged XXXX of of was of fourth as from Backlog, for fourth as December sum

transactions. Capital Markets

our XXXX, a of of year million, million and of term through in payment price $XX our stock $X.XX an voluntary $XX $X the per repurchased amortization loan a from cash million year-end common with and million we fiscal to share we principal average position of outstanding reduced $X.X payments net million $X.X balance million. During resulting $XX on of principal

a cash rates. of at by loan, XXXX, offsetting the swapped costs investing service May floating term $XX fixed short-term rate debt excess income of a further to favorable the during of are and loan, term loan relating a million Also rate to of we fixed we

the an in amended credit interest to our consolidated and rate our strong reference actions reflect facility to the we convert loan partners. provide of February SOFR fees. the legal These amended to add-back In certain definition of costs XXXX from and credit LIBOR EBITDA of support addition,

Lastly, expired. $XX.XX on XXXX, the I would of that to all also October XX, warrants XX.X like exercise price note

outlook. Business

$XX in providing million. and currently the to to XXXX in full are million of revenue EBITDA of million adjusted guidance $XXX be to first $XXX quarter We of year $XX XXXX to range be $XXX million revenue $XXX be year million, guidance XXXX to full in range million the to range guidance the

This concludes we'll questions. take our prepared remarks. Operator, now

from [Operator Rhee today Jeff Hallum. question with Instructions] will First Craig Van come

very numbers elsewhere. billings turned confident the line of good the on you're sounds mode are pretty just again. little those a and Congrats, and out maybe obvious, and of the sort top purchasing in come consumers are solution that maybe the now it deer Seth, dramatically start like around have getting your more headlights

lot Contrast conservative of QX follow year sequentially not implies you've guide that for a got with fairly number down the through. a that's because the meaningfully and still

not reflects about of talk as So some outlook? whether in your see there that that QX onetime, or things 'XX the maybe and you in pipe how were health the

expect first about position. Sure, guidance. we're the I to going guidance conservative Look, continue we thanks, question I Jeff. to be think mean, clearly, play your to a

As you being that's reliable have as to challenges a us for of public very, focus been in X-year we It's company been cadence. haven't bigger something very has us. beat-and-raise that able for the know, one a yet

the then and that into fourth that through numbers quarter. turn third started I to the even you around had more think we quarter we saw the

to third third guidance, structures in you more on and those why marketing affect and billings We as again, wouldn't EBITDA confident anything helm stay consider That's quarter. adjusted think, But management quarter, that. going changes it just finally in weren't business. know, to into retook I which, made the why sales able read I we the and guidance, to is the us very the you continue obviously, saw than we're into conservative. our a conservative we're in adding to

like sure into cycle in with pickup event. a finish pretty of out that folks mode, suspected we as re-budgeting, And economic the multiyear to everyone put you ahead we a did and don't of get mentioned. that a continue, to would raise that expect We wanted but to good I we the business. quarter hope that sure see the volatile that versus re-planning world. We the changes picture and We make customers live beat fourth multi-month that looking in think a

component. of the And sure on I make a we we're and we in better beat again, wanted position to And what's about conservatism. think to, that affect happening, raise as we side feel year that stay hopefully, this and

You've quarter. broadly on got low guidance, you been You again embedded get much where quicker and don't to and how know, associated rest you improvement commentary you get stay Can sales what that in and you the it, think I marketing How realignment continue I'll speaking. guess year? to to that a working high do I you color hard, just yet how -- accelerate back to thought the billings of given than digit everything you more is billings of I the sales. Or to doing you about with you're go? kind and far positive quarterly we I double the think are just little much digit, question would, is single Do for also there territory this into growth? want sales really can give know

are I feel we good globally. sales in very, where very

think to we Americas. the I still in have do work

our at you the couple our look It know, also -- of our been are think last Americas. tenure sellers focus was in great is definitely happening that's I focus. transactions increased. There some for As that of the years. our the

doing important now and them in of think the broader across of have an saw getting and And lines. that some take performance. that's know QX. deals, point seeing for lot of XX we And all them I better months place And months. doing their it. at we're product XX deals even fulcrum they're A They're you achieved their

that better. projection no to believe have a from but So get reason not do going standpoint, anything we we're to

about we've effect structural really I good we issues that The on, feel where make and changes I into are. done. stepped

we've reps while we held as of were do, going sales to around focus on rep-by-rep that performance close it said And our strong. were shy we to we basis. a just on XX think continue rates I

the I close proposals, of mentioned, again, as very rates on north XX%, strong. Our

I including we're an and growth. those creating growth growth we would pipeline want all the seeing accelerating for think So factors accelerating environment,

So actually Singapore all been economics I'm can today, customers in down literally feeling confident the hold, going in solutions that see month I I have tell the think I've in for today if that services we product, growth those of breadth, we mix and over Asia prospects. a hundreds we're and you And that factors, of a trajectory. right wider with be and the very I feel that very, to meeting

So let's guidance keep the conservative.

cadence And want. don't beat But get so ahead of again, raise the ourselves. again, we is and out we

Maybe a Michael. you, for quick one

On the it the guiding roughly. on mid you're margin so the XX XX.X, to at gross non-GAAP, call side, XX.X

gross obviously. You margin. the and for decline? takes model issued mid-XXs Two what previously put was also And questions, than up longer-term the there? that higher puts are the then Why

target the margin? the what is gross for model? drivers for the lower valid are that So target And still mid-XXs

the Jeff. regard Thanks, We year. leverage was saw And We mix, behind of heavy seen of through press certainly, on a to long-term QX. What believe with seeing reiterate would majority like our you've have the we comfort in the QX. to with our the introductions, a it we're investment lot us model. that I

meet nothing targets. long-term gives would any intermediate-term concern that I on but ability the us noted similar to our margin, and conservatism, with top highlight to line to our the certainly Seth So relative gross

look kept that, on above to XX%. the margin, add it And, we at you I gross Jeff, mean,

entire margin, within percentage you look and points While it, two out of if investment. we hits revenue we've going of that of the in suite at products built to on gross it our course, to capital, kept own an for but take one you're some

think, that managed when And doing. -- a that new got the the talked we've products. I about get we're little everything margin, we've to it, and the So very, the on well of one giving -- very takes is up bit puts we're you done

We you're the lines. will once that's product of revenue, employees much in gross those line, scale and margin hit gross achieve hit the And we that all a $X have product we hundreds absolutely AMS mid-XXs initial going Our target that until we billion is scale. margin have we still lower on that why across model. to believe

will Partners. next come from Kinstlinger Alliance today Brian Our question with Global

question, first questions to it's some follow-ups My the asked. already

let the the with only with growth a was XXXX largest say Since of start it fourth had Sequential -- XXXX, the one you your quarter quarter's me Let's sequential revenue. of that in, you X believe, customers. million, this well way. was I of strongest won when quarter $X and growth

this revenue trying what first and is understand customers' can of some So us turned new Just unusual quarter? it it customers? Is drove large help you sequential back the work on? off Is X Is to understand. growth? customer? got it a that's lots turned Or there nonrecurring piece

Sure, Brian.

One, If a quarter kind not was effect strong of evolution we our the people switching X they're a what generation sales same to really The very of you next of have lot few remember, had things I think and sides part were off for came is a good, strong, the that or we renewals I to year. fourth of reasons any as think about talked frozen, the doing anything, coin. even doing of service there. aren't a

And lot contracts didn't. their make plans they so customers They who systems extended you to their instead. to had of saw a and changes

you And deals it very of time, the those had we at same held up freed a up. So gave strong a lot renewals.

pickup in get more earlier Because plan. we a up gave revenue which did days us the them we also We revenue. got earlier free quarter, done that versus saw of earned

And traditionally, of the attributes last the due rack. more back that fourth contracting to of our to have because a quarter certain that's know, released plus, a bit more we've fourth contracts, as them quarter. hold revenue or the gives in contracts, you So as holdbacks you've tends years, had as you bigger revenue over I revenue in seen amount few holdback And doing work. think delay those can cycles which we're pickup know, global that, revenue way a of the the

the So a items together increase. to think us came I of combination give those sequential

trying talking how just be you revenue reconcile clear, about price there further. I'm And Are helps or churn? you're Is that it strong renewals. price were assuming declines? grow there -- to increases? to Is more

we reasons, for think more out of saw. We we again, value more they're extending assuming than systems. their driving churn I customers were saw, those little a

and So quarters. ability to their Rimini held we Street our money in the strong only better. we improved our spend player the but few because not remains even over markets, thesis spend volatility last have optimize a basic help Whenever of customers

more meet have those services areas. now to we needs different And in

conservative of were the playing you but I optimism, quarter, while we're while, only again, a our pipeline in through that of set are the again, the talking a lot that, adopting you're fourth the So them. level confidence we And the of see is and internally They're we why a our combination wider number, level. about think, fixed believe And of we guidance, the we we're as as results. issues in that seeing hearing people at not products. hear adopting

sales getting level. the a do at closing better and out business. closing of And we it reps could who seeing have We're job

started those So together, quarter. in factors I think you they the add all third

have primary turn in that you to fast. month growth the your billings to that set not on negative sales the You nine saw third a When you're the quarter six was in cycle because already ship going product, the mold.

cycle. the we work that fourth quarters results future of to said in quarter, and we start start some in sales that on should hopefully we coming call quarter see through the we moving as accelerate should see third that that But

economics that So representative we're with forward. I was work we're moving those change turnaround the QX think that the customers doing of fact and just seeing

QX. million particularly Year-to-date, year. full Michael QX $X.X I And FX add, like sorry, was would Quarter year-to-date, I X.X%. Brian, to the remarks, I'm noted for was negative -- a the here. X%, prepared QX, to in it around it's over

Seth we had an you pencil degree this. so benefit, can So rationalize of than a little to element an but out, that a bit noted, FX was also that lesser to

heard the sequential your guide, answers business. business your $X about largest really the talking on number strength But not helps strong, then the And also. to investors you follow being of history rationale the your million the but decline in so to understand to up will be decline I they're million trying XQ I'm the that of understand providing but about company's you, a would $X guidance,

So for what have revenue X% million And already $X to realm to to of outside actually FX? you the of possibility? in happen FX decline is badly? you to million, X% would hurting is $X that Or

I right think, is which about, talked the that's answer the nature we've answer. that I Brian, think the conservative again,

kind versus we'll In the terms decline know would reality, think have in of we of that weeks. coming I the actual

our sales. you in very out the back-end As it's done very back-end on and quarter. know, figuring rec rev We're at loaded of loaded when a said we're the end

And So we there, taking I track. have will there's that. an some and the conservative variability hopefully, we're surprise just think upside on

last other year? what you're strength North the about you from a of revenue American where again assumptions got an question you I've from your be might revenue are others? as is high conservative, pockets or Last of full to saw to think international understand trends? guidance see Okay. which versus Both trying level Are than for year, acceleration the more seeing what the going you

it gives this year. any I'm months sense, five Well, in you for if Asia of

So here six countries. think, in, last and been into growing think five, I fastest think strongest of Pacific new I've plan countries we what, weeks. the -- the a I there Asia -- I sector, in greenfield lot few opportunities region the is as that's just been has the break out

across we're we're and the think more Europe focused And starting think watching, get on improved Middle the even I as performance Canada. I and across again, and U.S. East, to

you're U.S. of and a in that stay globally, while as the realm because sort now, that to world. split, fairly probably the in to I expect the I XX/XX that again, rest I revenue we right range 'XX. lift between split for would of think, expect to stay So similar

from today Cowen come next will Wood Our Company. & question with Derrick

reps. tenured just Seth, what performance in you is It's a do and Derrick. force place some on more Congrats color improving the for like more there and productivity to Andrew mentioned is Americas Maybe there on work you sounds quarter. there? sales other the it is what have better in the -- could on and improve

America have cultural well country size the really Americas conversations. get events, people little region really with do bit we challenge. one-on-one around to different really, of getting Every when has The think is differences. we a challenge I people the represents we events, its into

us done hard clients in very that where world. we post-pandemic mix the It's still prospects. We're group for over U.S. It's and conversations group in world. have a get get the We all successful to this to It's folks hard of together.

a in America a or world. bit around in do And on some the of rebound events has sales that's had the effect the grow is and the problem. really a seeing slower we've problem U.S. on adopt post-pandemic still It We're that actually more North in-person to the America I world. think back reluctance seen been little attend that, really why marketing than more

sellers North the and are well across America really U.S. doing and Our Canada. in

ones I we're marketing we a on done. the a It still post-pandemic problem, bit pandemic prospects a that's have And know little basis. around world. mentioned, it high-quality little the to a mix States, a of to and this a with being transactions engaged pipelines, as before having get in we're only get very problem. the everyone United for in problem in playing and the I with And not was seeing a it's still some the growing is engagement more global problem But We're more true U.S. people

where that's So focused. we're

extra close people do and which got our we've some strategic think I more and made that will changes allow we've build business. bear some fruit, I go to pipes some ways some bigger believe answers will out that

in to I'm we some again, people we're just the able We engage messaging very doing bullish tweak growth So Americas, be just resonating and think still well. the on of to, very have things into basis of got very, more get I marketing. these global a is them. events to of the But more

And different think and you've today this? this suite. just the for and Seth, to start clients were before clients, on how announcement new And talk to revenue? asking Watch builds was to interesting your contribute Observability about from what in provided then, is Maybe we can that Rimini about when do

announce already Protect. publicly. Rimini us these It's revenue. been our doing security years. We've you've Recently, for announce suite, didn't just We seen several products contributing to them

You've Connect. Rimini suite, seen us our announce interoperability

as we've just which Rimini revenue Consult, a Watch, you're is whole these got our And observability professional of is platform. few There's Rimini new now. watching growing well. that the service ones. a are X and our part products of also accelerating Now is pronged This business where the -- approach of

like what investing that been market This we're been last of doing for we've few actually for them publicly, services. these it in asking trusted are the customers Street They us Rimini want this the to because them. we offering broader the bringing we've to reason quite a the products products We're selling and kind like talent business the because to and they these they the us, is with while. more. table out They want do for is vendor. suites from out build but bring we're is years of to doing amazing us engineering And

are suite market do. solutions want us of why early a us wider now that's the strategic delivering what products I sales all services. to they And of and we're very been and And partner has capabilities. in these bigger we've is products the with full asked become And said to exactly what

and in starting of But X has adoption. and I was traction, we've showing you're that the think lines single growth. the fourth released see continue that every to product quarter, the they

investing that of our ones they're for the strategic and and right products in So confidence this we've the in underlines services them. customers right broader this that set made again think decisions

that last fair to off in last think it, versus prior characterize you've And building a or conservatively, way quarters about more conservative approach should question, it Michael, to that understand I for want a taken we to how guide think that? first guidance you, the you like it sounds sounds, we or one prior maybe year. Is

certainly remarks, is feel to are believe but fair the period that I fair really would characterize in strongest that's it. in we to momentum need the we a still good Seth's over statement. We quarter. we that I quarter we a where That way comparison. the built fourth our highlight close, do have current

to session. Mr. like question-and-answer to closing This Ravin call for concludes the turn today's I'd remarks. back

there joining for thank important fourth Sure. for building Street to executing, our was call. the and want thank to and want Thank I Again, I really in of you our year think building also And I Rimini of the everyone new for year and getting us. market. it out year efforts the the quarter and to fourth I year very fantastic job pandemic, full And products us for the many, team coming think full services, out much. first many quarter colleagues did a a 'XX. our them XXXX

those good continued next the our want in natural in with you having all you Also and we'll wars. between man-made many and earnings keep then, thoughts charitable that suffering wishing health to say need I quarter the course, on for of again way and do our first disasters forward support and harm's that XXXX. to pretty on we're looking again, call, soon Until

to stay So who with them. are away we rest in live get thoughts lucky world of that, us again, the from for our a things but like

everybody. Thank much, you very

attending. today's for you Thank concludes This conference call.