Rimini Street NASDAQ: RMNI outlined its strategy to expand beyond third-party enterprise software support by helping customers modernize existing ERP environments with managed services, integrations and artificial intelligence tools, according to comments from CFO Michael Perica and VP and Treasurer Dean Pohl at a company presentation.
The company, founded in 2005 by CEO Seth Ravin, provides support primarily for Oracle and SAP enterprise resource planning software. Pohl said Rimini Street has grown to more than $400 million in annual recurring revenue, serves customers in 150 countries and maintains a presence in 22 countries. He said the company has helped 6,700 clients generate $10 billion in savings since inception.
Support business remains the core offering
Perica said support accounts for approximately 88% of Rimini Street’s revenue and that the company currently serves about 1,600 enterprises. The company’s model is to replace software vendors as a provider of support for licensed applications, particularly Oracle and SAP ERP platforms.
Rimini Street charges roughly half of what vendors charge for support, Perica said, while also supporting customer custom code. He argued that this approach can allow customers to defer or avoid vendor-mandated software upgrades, which can involve significant upfront spending and multiyear implementation projects.
“Our core business model is give you optionality and control of your IT ecosystem,” Perica said. He said businesses typically spend a substantial portion of their technology budgets maintaining existing systems, while Rimini Street aims to free more resources for modernization and transformation initiatives.
The company cited a 4.9-out-of-5 customer satisfaction rating and said it targets a 10-minute response time for priority-one support tickets, while averaging a two-minute response time. Rimini Street operates global capability centers in locations including India, Malaysia, Brazil and the United States, according to Perica.
AI strategy targets existing ERP environments
Management emphasized that its AI strategy is intended to add agentic AI capabilities on top of existing enterprise systems rather than require customers to migrate to a new ERP platform. Perica described the approach as “Agentic AI ERP,” using artificial intelligence models, automation and integrations to address specific business workflows.
The company’s Rimini Connect product is designed to connect newer technologies and models with older ERP releases, according to Perica. He said customers can choose among paid, open-source or smaller language models, or use technologies from partners including ServiceNow.
Rimini Street also offers Explorer Packs and customized engagements intended to identify AI and automation use cases. Perica said the company can work with customers’ existing technology providers or bring in other partners where appropriate.
In response to an analyst question, Perica said the company’s sales approach generally begins with replacing vendor support, then can expand into managed services and innovation projects. Managed services can free internal IT staff to focus on automation, AI and modernization efforts, he said.
Perica said the time required to progress from an initial support engagement to a broader AI-oriented relationship has historically ranged from about nine months to two or three years, partly because of annual contract cycles. However, he said the sales cycle has been shortening as customers become more aware of alternatives to major platform upgrades.
Retention, financial targets and capital allocation
Perica said Rimini Street’s gross revenue retention rate increased to 90% in the most recent quarter, compared with the mid- to upper-80% range previously. He attributed the improvement to customer interest in retaining control over their existing technology environments and using modernization tools without immediately replacing core systems.
He identified two primary causes of customer churn: migrations to software-as-a-service platforms and mergers and acquisitions that result in companies standardizing on a different system.
The company said its remaining performance obligations have expanded since the third quarter of 2025 as customers pursue more engagements and longer-term arrangements. Perica said Rimini Street is focused on maintaining gross margin above 60% and expects operating leverage to improve in the second half of 2026. Management has set a longer-term objective of reaching the “Rule of 40,” combining revenue growth and profitability metrics.
Perica said that, excluding the company’s declining PeopleSoft business, second-quarter revenue grew 10%. Rimini Street agreed through prior litigation with Oracle to phase out its PeopleSoft support offering by July 2028; Perica said the business now represents about 2% of revenue.
The CFO also said Rimini Street has repurchased shares during its most recent open trading window and paid down debt during the year. He described the company as being in a net cash position, with a fixed-rate swap on its term loan credit facility and a $35 million revolving credit facility.
Addressing litigation, Perica said external legacy legal spending is now de minimis, though the company expects to maintain elevated legal and compliance capabilities because of the regulatory and legal framework governing third-party support services.
About Rimini Street (NASDAQ:RMNI)
Rimini Street, Inc is a global provider of enterprise software support, managed services and consulting. The company helps organizations maintain and optimize business applications from software vendors including Oracle, SAP and IBM, offering an alternative to the vendors' standard support programs.
Its services include third-party application maintenance and support, software management, interoperability assistance, security services, database administration, technology consulting and application management.
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