Rimini Street, Inc. (NASDAQ:RMNI) Q4 2022 Earnings Call Transcript

Brian Kinstlinger: But then to follow up on the 1Q guide, the $7 million to $9 million decline would be the largest sequential decline in the company’s history also. And I heard you, your answers about guidance, but I’m trying to understand the rationale of you talking about your business being so strong, but they’re not providing a number that really helps investors will understand the strength of your business. So $7 million to $9 million, is that actually in the realm of possibility? And what would have to happen for you to decline revenue 7% to 9% outside of FX? Or is FX already hurting you badly?

Seth Ravin: I think, Brian, again, the answer that we’ve talked about, which is the conservative nature I think that’s the right answer. In terms of would we have that kind of actual decline versus the reality, I think we’ll know in the coming weeks. As you know, we’re very back-end loaded on our sales. We’re very back-end loaded in figuring out a rev rec when it’s said and done at the end of the quarter. So I think there’s some variability there, and we’re just taking the conservative track. And hopefully, we will have an upside surprise on that.

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

Seth Ravin: Well, if it gives you any sense, I’m in Asia for five months of this year. So I think that’s the plan — there is — I think the strongest and fastest growing region has been the Asia Pacific sector, a lot of greenfield opportunities out here as we break into new countries. I’ve been in, I think, what, five, six countries just in the last few weeks. And I think we’re watching, again, improved performance across Europe and the Middle East, and I think across the U.S. and as we’re starting to get more focused even on Canada. So right now, I think, again, you’re sort of 50/50 split between the U.S. and the rest of the world. I would expect to probably stay in that realm for a while because as we lift revenue globally, that split, I expect to stay fairly similar to that range in ’23.

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

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

Seth Ravin: I think Americas represents a little bit different challenge. Every region has its cultural differences. The challenge with America is really around the size of the country getting people to events, we do really, really well when we get people into events, we have one-on-one conversations. We have group conversations where we mix clients and prospects. It’s very successful for us all over the world. It’s hard to get that done in the U.S. It’s hard to get a group of folks together. We’re still in this post-pandemic world. We’re still seeing in the U.S. more reluctance to attend in-person events that we’ve seen adopt and grow back around the world. And I do think that, that’s had some effect on why the North America or actually really America has been a little bit slower in the rebound on the post-pandemic world.