Rimini Street (RMNI) 30 Oct 242024 Q3 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to Rimini Street Q3 2024 Earnings Conference Call. [Operator Instructions] This call is being recorded on Wednesday, October 30, 2024. I would now like to turn the conference over to Dean Pohl, VP, Treasurer and Investor Relations. Please go ahead.

Thank you, operator. everyone Street's welcome Earnings Quarter to Call. Conference like to Third Rimini XXXX I'd

with is which Relations. Today, GAAP me CEO call XXXX, under the the On today Investor September ended found and earnings release XX, Perica, on third our website quarter and copy Seth of Michael our be issued A CFO. of reconciliation we a press for statements in non-GAAP we tables and can financial heading President; our to measures is Ravin, certain financial measures following of the explanation the provided has believe in Gap] about release press meaningful why press the in the key these financial been are also and metrics. An included non-GAAP [Audio under release. the our measures they

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

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

more operations Rimini industry-leading engineering, the and mission-critical services software minutes, Oracle, joining you, third-party engineering call enterprise I'd with clients uniquely for XXX special investors to for excellent. Street. What and X Street's average and X.X XX/X, X different we We support time bottom response today. earn do. its Street employees an investors Rimini systems, and software. working in from for deliver in global full-time support unparalleled you, client are and end-to-end and of is XX an a Rimini Street X, Dean, Thank the leading award-winning serves to more VMware and designed Brazil. SAP of out thank support top of of time a innovation Rimini solutions provider large than to our know-how learn than and like enterprise provider capabilities. analysts, less to prospective everyone, about and extend where India joining us welcome score countries lab new first is process with systems X,XXX live satisfaction average X to

Our services client and achievements.

our For outcomes better helped such nearly cost years, significant operating successfully clients IT profitability. XX business have we as savings and achieve improved

goals, AI of billions and fuel accelerated other realized and in U.S. enhance competitive infrastructure, flexible innovation funded have clients enable growth. that Our and savings advantage organizational dollars investments

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all provide more XX extending of also like and costly, without also for any upgrades low-value useful to perform or systems VMware, software the We migrations. for while software support risky and or middleware years and databases, infrastructure need these of life

that with include clients innovation workflow application projects our also AI, modernization. automation, and We assist

strategic New partnership.

and partnership competitive I a the and software announced press as on model of new of details working the rival a the XX, SAP assigned enterprise of quarter, McDermott, model and During and the by Street Chairman earnings CEO, a vision third teams and Bill ServiceNow McDermott out on CEO on fierce Bill agreed and for to issued flesh were Rimini October partnership. they ServiceNow in model officially release The the XXXX. the call and former

view software. With operational partnership, integrated will and and global design, ERP also solution. useful existing and other shared advantage; and ServiceNow a "transformation help lifespan the without costly we value migration that for organization's Rimini manage of will client's future or across other clients upgrades, unified, intelligent a transformation ServiceNow's which not cloud partnership we Street. the for of software software and no Street announcement McDermott AI lifespan will and on-premise transformation. enterprise "ServiceNow's deploy, screen further and this Connect optimization increase this pane extend Street Oracle, their unlocks ECC enterprise organization a are and productivity Together, to helps paths ROI. software integrated software enhances press competitive as are believe portfolio, design other we siloed modernization With ERP enabling delivers a more customers workflows application with to As migrations partner SAP release, or S/XHANA solution, modern new of task and gives reduce maximize replatforming deliver brighter cost Infor mobile support provides AI interactions and enterprise systems achieve existing RISE, offer disruption" of required unprecedented significant supported data, be and and new an business users ERP maximize where potential." The be that S/XHANA capabilities, an and faster "single we existing only but that automation deploy since Microsoft or powerful their to there shop will and ServiceNow layer and the intelligent of and over SaaS partnership labor technology savings, the implement glass" requirements, in an experiences useful and an an ERP, and existing platform exclusive actionable Bill derive SAP, investments solution one-stop provides layer siloed existing that global and to Rimini new by new Rimini immediate for operational insights such

enterprise plan As time the a new included ServiceNow the to and include QX changes to support as for hybrid activity our software landscape client quarter results. we the a SaaS the on-premises, portfolio to new changes. XXXX software during services solutions, the layer of Sales our mix cloud new and needed integrate of adjust software, support over software and including and VMware.

$X sales, in We achieved acquisition transactions new also TCV logo client million. improved sales delivered XX quarter and major new including over the with brands

in we Rimini services from the the quarterly right X. year-over-year of managing for Oracle by sales despite litigation quarterly Street methodical which to litigation leads, Oracle pleased fielding our course, was led nearly The our strategy focus intensely to team on including in headwinds are With the results there led leadership and and that organizations North Oracle the agreements XXXX, activities and and that billings sales XXXX year-over-year the improvements marketing they growth, complement marketing large closing Additionally, contract Pacific negative X.X% Rimini approach update. the organizing more through and execution. Oracle detailed by our no around America go-to-market with the QX renewal down respect current for the termination driving years, full has business regions. We billings wind XXXX in on teaming have included several in filed and as of to sales were QX during renewal and and its more cases Street in X. and solid discipline pipeline litigation and building more extensions team, improved and been litigation PeopleSoft Rimini were against right were reflected billings. Asia Rimini XX right X, X demonstrated and and focused and services was known and believe quarter, improvement revenue related professional run Rimini an improvement Rimini

$XX.X and Two, the are filed fees appeal. With to the award However, appeal the Rimini attorneys' that And further there of on in Rimini X injunction. which X pending Rimini appeal of for the Oracle three, each XXXX, findings to a against X by Court costs X Rimini the Rimini effect. to motion to litigation Rimini of respect related X, million and Appeals. District in the injunction currently Court's respect to Oracle merit a and With appeal appeal findings arguments that One, decision Court there injunction Rimini the are X Street a the of remains post-trial and prior appeal the matters before Rimini before arguments made the X is X, was of oral oral of injunction. Rimini's were on submitted to on X X XXXX. Rimini June injunction, Rimini briefings stay of Appeals permanent were X of

On of Court appeal, the date with attorney's With pending. court's our fees notice XXXX, appeal XX, we the of the the brief of our XX, of is is October opening this court respect XXXX, Oracle on with in the to September compliance million costs paid the report, January Oracle decision filed $XX.X on we and XX, order. full due As and in XXXX. Appeals

the date report, As of of the company's appeal remains this pending.

note see provide with company's material and Please beyond filed and disclosures this today, the predicted. Summary. company's XX-Q related and financial additional at Oracle, injunction we the are disclosures with the respect press we statements to still with please provide Rimini For X with cannot nor on still releases, filings the also court time, our additional information XXXX, additional because report and are guidance regarding Commission. disclosures Form that commentary outcomes matters to Oracle XX, in the SEC the Securities quarterly able Exchange court be potential litigation to the and unable are the October the pending information litigation impacts the in and provide our filings future nor to results, of before U.S.

with We return successful compared that litigation our growth continuing value shareholder and our conclusion. to the right performance to Oracle a execution the and right bring prior actions to to led and the in profitability, investments X that a with to confident accelerate take an enhance pleased are quarters. We quarter making are uptick to remain we third

ultimately if litigation reorganize matters summarized the above its a does Street our However, to and detailed on in it our could filings, Rimini have adverse business financial impact or not costs not prevail SEC optimize operations does results. material in and post-trial adequately

to you, Michael. over Now

XXXX. for XX% Seth, international represented XXXX year-over-year Thank X.X%. and retention the million thank decrease represented X.X%. year-over-year rate up joining makes XX at third subscriptions, recurring was of $XXX.X least within quarter $XXX.X XX%, United the you the million, the service for a was subscription for revenue XXXX you, clients months. revenue, States third our with of everyone. QX quarter XX% Revenue while XX%, noncancelable which total third for results. of quarter, us, XX% for Clients of for decrease a revenue Annualized was revenue Revenue of approximately

excludes Gross X.X%. third revenue margin was for for which million for the year third to a were year. quarter time to was compared gross billings prior the of however, compared quarter. of quarter, quarter the increase noted, basis, prior $XX.X year compared basis for million XX% stock-based sequentially prior the revenue margin, Gross quarter third third margin and of the third XX.X% the Seth XX.X% of revenue of non-GAAP third the XX.X% quarter compensation revenue this the As points XXX for year to in an increased On for expense, XX.X% first exceeded $XX.X for quarter.

advantage to against investment We services we a and systems, software of focus support improvement methodical processes margin while our continue in gross our for products. Despite for new needs operational continuing expenses. through revenue staffing of improved as array VMware of opportunities this will growth our wider such efficiency, gross nascent and improvement are deliver to on take pleased with opportunities global leverage ServiceNow. Operating driving result on strategic margin focus models through to initiatives balance best-in-class

to to end $XX quarter from reductions our previous we continue our this end and plan, to implementation approximately XXXX. have the net costs XXXX of call, been quarter plan million reduce earnings on annualized in operating QX basis cost million Since of noted by execute an initiated $XX.X optimization As a net annualized measured achieved. QX

third million. cost with plan was quarter, this optimization $X.X the the associated reorganization charge For

the and basis, optimize our quarter to reorganization costs additional XXXX was we revenue structure. of Sales continue the XX.X% which third revenue as non-GAAP compared as administrative of excludes prior the non-GAAP quarter for stock-based a marketing third quarter. litigation is quarter. General of marketing of XX.X% of compensation revenue for revenue prior year On sales expense, excluding quarter and percentage during for initiative for XX.X% third percentage for XX.X% as due excludes costs, to a revenue basis, a On fourth outside percentage the cost quarter. was was revenue expect prior our to and expenses to XX.X% decline of of the year year earnings and optimization for as prior litigation a the of the stock-based revenue revenue, quarter expenses a mostly for to G&A the year XXXX XX.X% XX.X% of We for third compensation during compared third was third quarter QX of The quarter. incur third to to release. third XX.X% announced the revenue compared costs, the compared expense we expenses cost which

teams by as a in-house remain the elevated expenses for ongoing costs quarter Oracle fees activities. Professional litigation prior made third ongoing costs our of of to was our million are large peers the and $XXX,XXX other $X.X legal percentage for G&A revenue compliance and due necessary litigation cost and part year other quarter. third compared expected to and the compared in However, compliance to for to

a of to ordered their addressed was Oracle million in X amount costs in earlier, third quarter was and represented XX, Rimini accrual $XX.X expense case. reimbursement attorneys' on the for This related October Seth XXXX. to the paid the that there court As fees litigation full

third per compared XX, a third excludes revenue. release, cash $X.XX third of share. On flow share quarter. the the $X.XX The the quarter operating of XX.X% negative the short-term million for year compared $XXX.X investments third $XX.X third net investments basis, the We non-GAAP was million and quarter compared prior million cash and or operating prior XX% quarter or compared loss third prior diluted ended for net was to with to per year attributable for the Adjusted revenue short-term On of of year stock-based the year quarter compared of cash $XX.X diluted quarter margin, quarter, million of $XX.X third basis, and third September a outside decreased quarter. Our $XX.X XXXX, the quarter flow prior spend million prior balance for the cash for per year for for defined $XXX.X sum million press compensation, or as to Deferred share and September diluted compared negative to revenue the million billed of $X.X of was per year our future deferred decrease to XX.X% net of litigation deferred a the non-GAAP compared to XXXX, from of prior quarter. Backlog, year for revenue XX.X% the $XXX.X year EBITDA, the share. the third million million quarter diluted $X.XX income in XXXX, was XX, to of $X.XX third million. income revenue to prior shareholders includes of $XXX.X September revenue revenue, third quarter quarter the compared noncancellable million quarter. prior XX, $XXX.X $XXX.X third of was to which was as third which

company's includes PeopleSoft to Support, services Rimini earnings wind call, As quarter. wind began services PeopleSoft that our Oracle previous noted for the in down products. would and Rimini the The for in products down Consult and third Manage the wind announced company down it project Oracle Rimini

clients provides company to is phases. the place expected process for PeopleSoft Oracle the several globally, services over As take wind-down to products

until for is the revenue or We ended products but significant U.S. when with of time, current approximately first cease September providing Oracle financial X more clarity federal months there for company activity Oracle. before The company's is to XX, months be respectively. Business around future suspend services ongoing or X% revenue to million September reductions impacts XXXX, as PeopleSoft unclear over expect the the services. from and to in able still continuing litigation X% for the of PeopleSoft million in company Revenue PeopleSoft-related Oracle litigation will courts providing guidance Oracle related $XX.X is $XX.X all XXXX, accounted the revenue outlook. X it XX, to ended for results

Securities Commission. Oracle, we'll information take remarks. in please and questions. disclosures our quarterly the the on now XX, regarding XX-Q with additional For prepared and our the October filed U.S. Form Operator, report with Exchange litigation company's concludes disclosures XXXX, see This company's on

from first from Brian Your comes the Instructions] line Partners. [Operator Kinstlinger question Global of Alliance

a I questions. handful got of

you cost-cutting quarter think that said. and year, your highlighted to end the next completed expect be by you completed I objectives, the first you of portion of First, of

fourth So will next quarter that of of some the year? Or quarter? the also remainder first be occur in will the in

here. Michael it's Brian,

We complete such plan high are the QX, quarter, XXXX planning current the the QX the the to that of and should expect by comparison to appropriate XXXX. see in quarter of of watermark end the you first

the bit a help manage long this of terms and related you a able Are was is? that jargon short, expectations then you in offering medium to then long-term new was I lot partnership. of to revenue your or can confused. And describe Okay. a concisely size what And ServiceNow for role -- objectives?

Brian, Seth.

questions. an got in bunch a lot. terms it's I you've course, Of It's of ServiceNow, a partnership. know important Listen, of the

combined We bring solution. The is unique that of to Street services products the set and a have all bottom work. a Rimini we're going doing is line together into

ServiceNow center Street will We above products ServiceNow layer team over in supporting. Rimini have of excellence that deploy we're our and the the a that

that's other whether product, an enterprise they're products SAP layer put along an Oracle ERP with ERP it. using, the So ServiceNow over we'll or

all and all work do all will connectivity those other we're design to that connect software and the while products managing underneath. layer the We to the

not So business. changing our we're

of layered business -- a think Our is cake.

replace we the layer, vendor First maintenance.

licenses. the the cake. don't by and the one the systems work, icing and now observability with We we directly actually and or of will The top. our that products. of AMS, licenses as their Think security and But through layer interoperability second services ServiceNow all the be we're over layer, we the Then professional ServiceNow we sold have it run all the partners. resell doing and on have consulting labor goes the

this terms fast it be about of that? time solutions Is think lot a going going more the of like How second to do some question, to that Is other is in half take your of of how ramp? it have? And you quickly?

to we're it. set of pieces think into have to that a going I move together. complicated come Well, It is

that look quarter. of this it the environments the take in are architecture, quarter. already. sales the of solution. We're of think going rest That We're interest prospects of will going the through of different demo to out take rest we at will I what process up beginning is So the the us lots many you're this environments. setting already But through process, building with probably simultaneously

for solution because issues lot learn with a getting and we're is about airplay people the Forrester, support. it inbound lot as quashing the very more all have analysts We Constellation, had of seen very, to about the Gartner, about to some people moving how requests nice comments a challenges of from you've third-party

the jumps We've enterprise are are replacing not got to get where in of type have to people of just migration. going another of want we would same they or an where all that as gets ahead solution of sorts SAP going Now the ahead, goes on RISE IA. things that that solutions by parts ERP, to

interest. of good lots So

in So running I we're think off and sales.

could end you the as of early even the next as or year early see happen think I things year.

Two more queue. and in back for me, get the I'll

gross The to first introduced have about on alluded yet of Michael, -- margin. that gross hire? even you had see the some you can and this services, is new when you this, pressure it's short And your you've the your these to talk on we businesses be and/or quarter what Do margin the in impact new might term? offering third in for new VMware?

it is investment. the in early Brian,

mix. However, managing as in our I remarks, prepared we noted my are

margin. We acceptable make sure can and timing are we deliver managing an gross our to the investment

offerings, of notion earlier does lower gross in accurate stages overall the have than your average corporate the is that a However, margin. typically new it

relates question last cash to my EBITDA. then And flow and Okay.

quarter as stands haven't the You the third to Oracle it payment on made numbers.

look cash wondering, I'm there guess flow is I if excluding So I major that, versus EBITDA, a at disconnect.

through So the me can the over flow on you cash walk challenges few quarters? last

in cycle in XXXX a we see year first the cetera, have cash we of date, experienced our half contracts, burn the second half year. the we that typical invoicing of of in Brian, et So the based where we flow pattern, and and to typically on our generate calendar

recognize, you current since be and noted has gone out on a timely quarter a drain payment that you've will as the course, the cash Of to basis, flow.

question Rhee line next Craig-Hallum. the Jeffrey Van comes from of from Your

for couple me. A

give seasonality. billings of referenced, going positive another First, billings the guide, referenced -- formal big Seth, know How I you're is growth, couple number you billings at on but mean, to not a quarter? of post still numbers. do just growth quarter. good looking billings a QX where scenarios QX, a I Are realistic Michael can me we quarters you obviously, now, you positive just the

a quarter. billings would see we reason post don't be that a couldn't I anything positive

seasonality. Of course, on we pipelines, we've course, think the a over I look focus you perspective, clear looking based at we've pretty our downs quarters, we've of sequential numbers is, And that few ups been where been QX as been and at that expect from last firm. our quarterly in

I what XX the in back was deals look million. mentioning, You and $X over TCV

I numbers. that some think was good

the think a numbers. offerings noted number The where prepared where XX% as not sure I'm needed had Street the we from growth. revenue the last of think few been the I performing billings. be, our that North challenges of America, in on remarks areas listed I a opportunities. growth it the challenge years for near that And seeing business was as North and one know, story causing saw of of And you that over line course, anywhere the in we America X.X% to a Rimini we've have revenue-generating and we kind of in perspective, of of engine has all our solid global we're top distribution creates

that that North fact it's saw we billings notable So growth in North America, some good America QX. in the

me retention, months XX on a retention number. was is enough. up, but number, Fair wrong, if on I correct And the -- it then while think I'm Yes. the trailing

of that you what next and you but into quarter? event, read, what that events very tends over is given over year. had lag. what a trailing kind churn some trend to -- a number telling it And last going year number to how know see I tell some you What you gives customers your this And that, does next is few serious be quarters? it later year in about this So overall the several are this you quarters? retention did the the

seen period truly, a there what Jeff, think, revenue actually that quarter. onetime for QX from the I the QX that had QX add number we QX, in pretty held bites we subtract big and course, if see in you ended been of quarters trend to And beginning were QX we positive indicated large the Well, that's from this some is in growth onetime downward was and third flow-through revenue down didn't what a last take loss that watching the that the that, PeopleSoft we've for Or Was in these the the proven And few a of we had a that events of the we've in has truly saw that think that and were would out for. steadying everyone number analysis. that we contracts slide our in revenue wind retention? current you over quarter, we you QX that take. stability few I that have one

And the prepared in So it's I that's mentioned why we really it think remarks. important.

with to to numbers could breaking out from going top of important. of we we that to onetime kind those you side, I think coupled quarter. it our wind a if this, out you those would flow-through forward, show And helpful down And how the for out, that was thought out ongoing events did PeopleSoft we sort take business. see in think positive true so the express as growth have the line that's I try figure the renewal break Jeff, been

And a I get for feel business. add that billings better you You the the growth. plus think

that's course, I'd state? we're Of are bottomed that turn. plus We're curve? showing turnaround think and think business moving numbers optimistic up that us. up in the are a the ourselves we I mildly question, say back answering we've made the is the And And little bottom we a bit. the what at Have we

to need wasn't blip. to fourth trending, a consistency we coming into Now show that the show it quarter and we're just

Seth, What measures, pushing of mean, the trying same the cash control flow. how time, to on we aggressive some? a the about are do terms own? do go you you're of margin, Does you number here? this hold sales front Where obviously, get drive drive some pretty you've from on sales in I Does plateau? hiring. that to -- At headcount? kind been trying sales think cost that feeling its through Is thinned

interesting Jeff, about the That's were the quarter, Well, good. thing we for third numbers, QCC really the sales. against XXX% nearly

The year, of we about QCC. XX% first the half of were

that I we number the sellers shows are think XX about performance-wise, again, that, right So right of XX, at heads.

Some felt good. those, those new. of because course, in But ramping they're thought, stage of numbers, I really

to believe to squeeze we'll continue sales further. it. So We're going get engine that. the watch of We we can more out leverage

that house, over the on XX%. up margin side gross the saw of You

all the the in metrics are right direction. numbers seeing So think moving we're and I

is culture. commit change X:XX trouble America through Steve that with a thought some We've got and driving Europe. just good job great quitting fact everybody as CRO, in in removed I the getting of the complete at in to numbers, North was a have weekly some sense sales ANZ the come up we're a with leadership, in of urgency a up trouble work some afternoon. who we've morning got really think we the think solid on. But down at numbers, we I We've that little doing X:XX seeing force

with to the lot I'm more We XXX% attainment above Kevin the with on focused we've leading think he good things energetic the leading sorry, back average discipline a growth Maddock sales, moved back from attainment, had We're last discipline. XX% team sales more team. seeing ran renewals team that much really -- got North we I to a America. When he's force. returning

that I and there's got a up optimistic be things reason the at bottom think we've we of are, in a from side. into fact, either So coming lot position. And other moving up to slightly it

on Last for the ServiceNow. me then

customer this in about Based the Talk I a what's been how I customers' sense fleshed a reaction. the reaction to is discussions. get customers, out one helpful the more think in thus is time it vision of Talk maybe you're the far? line. said little but the vision? detail thing, on like was about mean, you

of pane to out enterprise reasons the months. we've people of from I ahead the think one X of executive move the said, systems for as Jeff, it your it They're really, them the a think of house. most a use to besides on months. to these on third it has users lot they pressure calls the biggest for, many, a jobs. if that And unofficially response glass the we reaction to of the move ServiceNow this vendors, Functionally, forward level, so that single do in that's of across this ago. of with positioning and run enterprise beautiful the out layer phone capability, a of software the were be AI quarter. excellent. UX world by many been can with They're they The level, that at we across years lot as silos. The these the actually connect people And couple been has to their these been get mobile can the to the is XX that But underneath being "old" streamline they're to been at putting it can this same that UX mobile systems been to long this and I've excellent. upgrade and impression of idea can UX like don't replace the brand-new new out working has We've are able But users and a the imagine forward users the because UIs. they doesn't jump software for working And rip system are products they have believe used used seem UI. Think with XX, tasks view since out they're projects if modern the absolutely that is that huge, doesn't massive fact rolled excellent, for well changed user replaced. of working got have remodeling interface top, system. time.

can X put the even can leapfrog cost remodel the I these without because distraction can AI. do and enterprise-level get customers I all to you you all it. I systems. can give interesting they your big risk, value can really workflow ahead you're you -- you done can will I when having to X I across potentially faster give is years guys you can enterprise years this upgrade. with and even you so give I and give other I automation. things can than do than house, that ERP without more And

why So to this clients. it's interesting so is

be I going significant a think it's very opportunity. to

thousands left, example, Infor just yet SAP, of done migration an and upgrade number clients Dynamics may mentioned Oracle even that on I we think group or huge customer you that haven't on a for of have the in noted interested Microsoft, and are that are of customers, a those these all this.

I'm so license that gets model, on the by else. developing layer revenue piece that Just clear for the the you're abstraction or sold somebody

should you, I to that's or So relevant revenue say. not to you

offering that. you're layer, the way of managed to that is the Is ServiceNow think right top the about support by on play layers and else, services is your layer layer and So revenue somebody then abstraction sold the it?

correct. all involved not years They subscriptions, licenses. the the service get all do we and years for manage the That's to it all build all it and and and And the we licenses. We're in come.

line of from question Derrick from TD the comes Cowen. Your Wood next

expectations impact the of some for for on the more when Jared future? will I quarter if just in curious was Derrick. down in little could majority winded is PeopleSoft have a the you this from maybe and color on revenue get This the then

Good to too. will We wind down call a do over have of the there, and this tail have the also looking contracts. you and substantial at Yes. number question time. We're understanding how on good

contracts, as servicing think when XXX with be somewhere said, we of not said we're we've commitment. say we going I yet that's able to around completely all stop to sure varying will we're lengths product. why really PeopleSoft And

and business. we new However, we PeopleSoft on new clients shut when shut the off off did we announcement, generally made taking

was that the phase. first So

be Second plans working to in the that all want about to phase to was let start we talking about phase, and a them them what wind-down with moving. are clients contacting know their

And where that have number dialogue, thoughts might course, already next-generation we've doing been them a they Of beginning of and that. on go.

waterfall no, didn't plans. cannot our We will notified been of I an lot that line. different them make very movements down just a everyone's the or revenue exact yet. don't and give fall. desire to So when But intent Different wind of rate falloff know to you customers, revenue And plans have yet.

And help so or and talking we're make about those how them just adjustments. accelerate beginning can those discussions we

relative to And Alcatel-Lucent And some of initial to solution them walk Rimini what then VMware the your select maybe is the maybe this going Okay. I advantages from and compared us solutions? business, drove or win, on expectations? other your SAP through the appreciate this cost how to color. maybe that

Sure.

and Again, I off takes nice the discussions to have layer IT through structure. while. It this the a we customers. an And mean in VMware a the that lot layer, because pipeline So it's important of with is with a is a go business. running. mission-critical

just And to in much Again, have through one their with are VMware licenses. optionality as them their a to renegotiate order helping regarding potentially and we're to things. eventually in do time we're a That's options. go option. lot We few them understand their teams. try with spending buy helping One, engineering of what different time ways,

POC a a to these They options they other a like Nutanix of VMware. other these and cycle have a you're make they're The while. so some a a have other of to take Second, make a those they're of test solutions environments, building could tests. change if to that you and solutions. going out go to is large few many, one, of of to process so It looking choose problem comfortable. negotiate use for any testing contracts, to deployment cycle, thousands platform. clients, And different sure through prove years at Then could then copies take to is running

to forced massive subscription. to customers that just So years have offering price change right underneath to now increase includes this from opportunity X a get initially into a contract for to being we're out up

reportedly getting customers XX before, bills paying for it same Some right to are do paying that and to offering XXx the they're what now. we're were price they

And in and way up -- banks so institutions. it's today, supporting all all financial the We're we're well. continents to going customers doing

of going with service. very it's well. So types the are very and different we're working Customers industries, happy in all

last Good encouraging Awesome. one all to And XX I me. it clients to then hear see that quarter-over-quarter. was thought the new for color.

color any want Just you strength? to make on that driving what's

think Well, of your back for a a challenge I new I when new whole take an in than focus prior back didn't bag, you all reps' those and those cross-sell sale on services cross-sell new you put services because logos. calls common that bunch it's and up again, before new to want about the in to traditionally customers to sales we them talked existing open think, And they out a those that run is new all and getting know we client. to easier now all the very they wanting going have

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