Rimini Street (RMNI) investor relations material

Industry disruption and AI adoption

• AI is seen as a disruptive force, but robust software platforms with deep integration and proprietary data are positioned to benefit, while thin, workflow-only applications face existential threats.

• Adoption of AI is gradual for complex, mission-critical systems due to regulatory, audit, and operational requirements; full replacement is expected to take 10–15 years.

• Companies are leveraging AI to build new capabilities on top of existing systems, improving efficiency and reducing costs without immediate system overhauls.

• Fear and hype around AI are causing decision paralysis among CIOs and CFOs, with many projects failing due to lack of clear strategy and understanding.

• Security and data privacy remain top concerns, especially for large enterprises handling sensitive information.

Business models, partnerships, and competitive moats

• Proprietary data, deep client integration, and trusted relationships are key competitive moats in an AI-driven world.

• Partnerships with leading AI and software firms (e.g., OpenAI, ServiceNow, Microsoft, Palantir) are enabling new solutions, such as voice-enabled AI agents and agentic overlays for ERP systems.

• Modular, layered architectures allow companies to swap AI components as the market evolves, ensuring flexibility and resilience.

• The market is expected to consolidate around a few major AI and software platforms, with commoditization likely outside the top players.

• Open source adoption is rising, but integration and security challenges persist, and market valuations are adjusting to reflect uncertainty in future revenue streams.

Financial performance and operational impact

• Both companies report strong financials: one with $1.755 billion revenue and 30%+ growth, the other with $400 million ARR and global reach.

• AI adoption is driving productivity gains, enabling growth with flat or reduced headcount, especially in non-mission-critical roles.

• Metrics like the Rule of 40 are evolving, with leading firms achieving Rule of 50 or higher through balanced growth and profitability.

• Internal innovation teams and cross-functional collaboration are critical for successful AI adoption and cultural change.

• AI is foundational to sales and client ROI, with some platforms delivering 600%+ ROI and significant client retention rates.