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- **Revenue Resilience**: Q3 revenue $103.4M (-1.2% YoY), but core business (ex-PeopleSoft) grew 2.5%. Billings up 6.7% YoY (adjusted).
- **AI Momentum**: 26 new agentic AI ERP engagements with ServiceNow, all with existing clients. 2026 monetization expected.
- **Partnerships Pay Off**: GSA contract for U.S. government clients and American Digital partnership for full-stack ERP solutions.
- **Litigation Lift**: Oracle settlement removed barriers, with early signs of increased client engagement.
- **Profitability Improving**: Non-GAAP net income $6.9M ($0.07 EPS), up from $0.22 EPS YoY. RPO up 6.4% YoY to $611.2M.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue was $103.4 million, down 1.2% YoY, but excluding Oracle PeopleSoft, revenue grew 2.5%. ARR was $391 million, down 2.6% YoY. Billings increased 2% YoY to $66.5 million, with adjusted billings (excluding PeopleSoft) up 6.7%.
- **New Client Wins**: 17 new clients with TCV $63.1 million (vs. $48.7 million YoY), including 79 new logos. Notable wins in SAP support, VMware contracts, and 26 agentic AI ERP engagements with ServiceNow.
- **AI Strategy**: Launched agentic AI ERP solutions powered by ServiceNow, with 26 client engagements. Emphasized extending ERP system life through cost savings and AI-driven innovation without upgrades.
- **Partnerships**: Added to U.S. GSA Multiple Award Schedule for government clients and partnered with American Digital for full-stack ERP solutions.
- **Litigation Update**: Settled Oracle litigation, ending wind down of PeopleSoft services by July 2028. PeopleSoft revenue now 5% of total (vs. 8% YoY).

**【CFO Financial Commentary】**
- **Gross Margin**: 59.9% of revenue (60.7% YoY), stable excluding PeopleSoft. Non-GAAP gross margin 60.4%.
- **Operating Expenses**: Reorganization costs $752k Q3, total $7.7M since 2024. Sales & marketing expenses 36.7% of revenue (34.2% YoY). G&A 17.6% (15.8% YoY), impacted by one-time taxes.
- **Profitability**: Net income $2.8M ($0.03 EPS) vs. loss $0.47 EPS YoY. Non-GAAP net income $6.9M ($0.07 EPS) vs. $0.22 EPS YoY. Adjusted EBITDA $10.1M (9.8% of revenue).
- **Balance Sheet**: Cash & investments $108.7M (down from $119.5M YoY). Operating cash flow +$24.7M vs. -$18.5M YoY, driven by $37.9M litigation settlement.
- **Backlog**: RPO $611.2M (6.4% YoY), excluding PeopleSoft up 9.3%.

**【Q&A Key Highlights】**
- **AI Adoption**: 26 agentic AI ERP wins with ServiceNow, all with existing clients. Deal sizes not disclosed, but noted as early-stage with P&L impact expected in 2026.
- **Growth Drivers**: U.S. bookings up 6% YoY (excluding PeopleSoft), international growth driven by SAP and VMware. SAP support sales hit record levels.
- **Indirect Channels**: 82 quota-carrying sellers globally (73 YoY), with growing indirect channel pipelines. U.S. federal sales team launched with Merlin Cyber.
- **Retention**: Service subscription retention 89%, 85% noncancelable for 12+ months. AI solutions expected to increase stickiness.
- **Cost Optimization**: AI deployment to reduce service delivery costs. New CIO focused on internal AI adoption for efficiency.
- **Oracle Impact**: Settlement removed litigation-related barriers, with early signs of increased prospect engagement.


Rimini Street, Inc. (RMNI) Q3 2025 Earnings Call Transcript

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