Oct 29, 2026 earnings call — Record SAP services sales and AI product launches
Revenue rose 8.3% year-over-year to $112.1 million, and the company reported record third quarter sales of services for SAP.
Revenue $0.1B (est $0.1B) · EPS $0.12 (est $0.09) · Next-quarter revenue outlook $0.1B–$0.1B
Key quotes
"During the quarter, we launched Rimini Govern for AI, a comprehensive governance, security and control offering, delivered as a service, to help enterprises quickly and easily deploy, manage and scale AI agents across their organizations."
"Sales included 17 new client transactions in the quarter with TCV over $1 million, and these contracts totaled TCV of $43.7 million."
"Gross margin expanded to 61.4% from 59.9% in the prior year period, rising 50 basis points sequentially from the second quarter to again exceed our key objective above 60%."
Analyst Q&A 3
Cost efficiencies and role of AI
Q (Richard Baldry · ROTH Capital Partners): The analyst asked where the recent cost efficiencies came from and whether AI (agentic AI) is reducing costs. He also asked about early feedback on the Gen AI suite, bias between buybacks and debt reduction, and plans for sales headcount.
A: Management said the cost gains are from process and operational improvements, moving labor to higher-return roles, and system investments rather than an internal agentic AI revolution. They said they do not yet see big cost cuts from agentic AI and that Gen AI traction is early—clients are still figuring out where to start and returns will take time. Finance said there is a near-term bias toward share repurchases, and headcount has been reduced from prior highs with future hiring focused on productivity, especially in sales.
"I think we're still not at much depth in terms of sort of an Agentic AI internal revolution that drives down costs." — Seth Ravin (CEO)
Drivers and meaning of billings growth
Q (Alex Fuhrman · Lucid): The analyst asked what drove the big rebound in billings and how that billing growth should be interpreted for future revenue growth. He wanted a bridge between current billing growth and revenue expectations.
A: Management said the company is targeting double-digit top-line growth and focusing on return on investment and sales execution. They pointed to more $1 million-plus deals, bigger strategic and global transactions, and an "AI-last" approach that first fixes processes and then deploys automation and AI. They said embedding innovation inside customers' existing budgets differentiates the company and is helping drive larger deals.
"I think the combination of our approach, our methodology and the fact that we are getting all of this innovation into customers inside their existing budget, it makes us very differentiated from other proposals that they're seeing." — Seth Ravin (CEO)
Pipeline quality, Oracle, partners, contracts
Q (Jeff Van Rhee · Craig-Hallum): The analyst asked for quantification and trends in the sales pipeline, how Oracle business compares to SAP, partner momentum and traction, and whether contract durations have changed.
A: Management said they are prioritizing pipeline quality over quantity, targeting roughly 25%–30% close rates and cleaning the pipe to avoid phantom deals. They reported strong improvements in Oracle sales alongside record SAP results, see big opportunities in Oracle, and said partner-driven sales grew to millions this quarter but the company is a few quarters away from getting 40% of pipeline from partners. On contracts, they said discussions around longer-duration deals have been consistent with the prior half year and RPO trends remain intact, with RPO typically peaking in the fourth quarter.
"So I think it really is much more a focus on quality over quantity." — Seth Ravin (CEO)