8x8 (EGHT) 5 Aug 212022 Q1 Earnings call transcript

Good afternoon. My name is Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to the 8x8, Inc. Fiscal First Quarter 2022 Earnings Conference Call. I will now turn the call over to Jennifer Graham Clary for the introduction.

you. Thank afternoon. Good include with will Wilson, of first our Financial Today's Sipes, a Chief results Dave Samuel Executive quarter Officer. agenda review Officer; Chief and

be Following question-and-answer there prepared will our session. remarks, a

forward-looking to earnings or measures Generally this of measures update CEO, with available not at earnings GAAP today, with comparable Principles, those no to some press cases, that, U.S. statements accordance involve vary forward-looking business, may them. and our the from you I our in analysis started, which the may With this the just prepared on on these investor.XxX.com. as COVID-XX impact actual the forward-looking slides, cause and reliance on measures performance A GAAP. factors that made today with risk provided over release future Dave or Before turn discussed we call not growth undue described is our to non-GAAP XxX's that Accounting obligation be statements were in as call as strategies, they on a SEC. XxX's financial plans its presentation get uncertainties with and Certain closest Investor call, comparisons will in about well of risks statements reflect Any caution as the have results in to we materially website Accepted year-over-year and and our put presentation to of filed are our pandemic. reminder discussion We reconciliation forward-looking includes our Relations now will product as reports together the that financial statements including Sipes. slides

thank Good joining you afternoon, today. everyone, us and for

Key CCaaS, continued above quarter results our respectively. on our high-end upmarket UCaaS and and the of enterprise, our strong the range growing business. and and both first revenue channel offering XX% at revenue of year-over-year, demand exceeded for drivers growth integrated execution XX% guidance Our total were service with expectations focus CPaaS

next excellence to and throughout strengthened operational like listed profitability X team vision years out framework driving X major together with fiscal advantage; for quarter, mindset, We and committed the and winning expanding first. areas our 'XX: to basis. are customer to our that as for focus these is position One, non-GAAP operational the culture laid a cash for Last X CPT use a operating organization expanding I improved our driving today's excellence; our we on first, product We two, first, would three, a base. partners; four, year platform update.

unique of UCaaS expand and our we the enterprise-grade cases First, intersection advantage, and center at R&D are and elements aggressively contact and focusing maximize working the specifically the investments intersection CCaaS. to UCaaS platform our to enhance our of between CCaaS, use

the employee silos During the a advances we engagement. integrated launched for following breaking optimize UCaaS, and between as CCaaS for employee we Communications offerings, industry on experience. and the products down demand CPaaS and by This communications XCaaS, to quarter, eXperience the the and customer launched cloud solution updates. and CCaaS customer the UCaaS Service Capitalizing

with rapid highlights We our for validate customers as the leadership and XCaaS. need analysts, organizations from are recognition announcements this at cloud vision and move channel receiving this broad fulfilling industry a to Recent partners strong clip. position competitor

growing others year-over-year. over XCaaS, future. the envisioning delivering embraced only are We also XX% X/X Customers of XxX's for proud ARR now to today and are in have now what very resulting be

optimal legacy XCaaS customer nationwide, They gain replace will Wren few with to and Let center me highlight will reporting recent to a their ensure support analytics on-premise business use and kitchens capabilities deeper a owned agents stores contact chose XXX retailer experience British privately and an including Kitchen, rapid than designer, deploy more and insights of X,XXX growth. employees, examples. to systems. manufacturer XxX XX

handling more ease and largest The visibility staff. for Teams we of selected and citizens. the Key CCaaS XxX They than across provides on-premise X,XXX for fully its proof UK U.S., support Compass companies XX in U.S., & there UCaaS include and public the than construction million call rescue X a a XxX drive of solution Crime referral, over and XX,XXX Salesforce Police, XxX quality public which County their After England experience to more government college and in speech than of XXX support and with X.X fire solidifying and of a Fire XX Essex, agents. U.S., in one School In community the of use reliable XxX their experiencing bright Service we Arizona platforms will system California. than concept, we're to won UCaaS Microsoft supports wins XxX privately more schools. improve services more for selected sector, policing, more the and aging, process students of in further across help Additionally, members strong review UCaaS management word held They Essex of upskill Public referenceability cost a needed stations integrated solution XCaaS oldest employees. Also and and employees, entities their mouth K-XX capabilities communication globally. Unified integrated The with support East County they X,XXX and to across failing in Essex fire our gain and leadership and customer and more Commissioner employees In position. total XX-day to XX,XXX improvements which for and thorough locations. Fire serves spot Voice communication sector analytics ownership. Rescue X,XXX to software use, lower and the Fresno, students. of JSJ, needed a and growing to was in won flexibility better selected a capabilities operational replace an District, the with Cochise, communication UCaaS Central XXX than to selected the

Additionally, XCaaS and to Social and for XxX Care experience improvements cost Partnership health enable a Kent experience. provide patient efficiency compliance seats staff. work-from-anywhere integrate XxX year-on-year, care, safety NHS & Medway selected will with XCaaS provider an security enhance NHS X,XXX of platforms for mental and Trust, ICT key secondary improve

thirdly, using retail of with CPaaS deliveries. Coca-Cola, the companies than Our SMS embeddable that funds portfolio video mobile a strongly enabling orders is to in QX. one customer medical-based treatment. XxX selected API Viriyah, part insurance of customer-facing CPaaS API XxX Partners APIs and Asia for using leadership notifications. claims largest platform strategy to is the Southeast experience recently mobile to Indonesia as for funding Thailand's crowd enhance API in secure dividends. onetime first patients service. and applications They focused provide donation built We their already SMS The outlets And video XXX,XXX interaction and small their and the managing CPaaS raise in specifically paying XxX performed announced for extend Indonesia, help large experience WeCare.id is more of the verification CPaaS to Europacific is by password

applications. and now the Service, as its analysts secure customers our over in experience Additionally, solutions. we or quarter-over-quarter Research Aragon mobile market Furthermore, We continue Globe both as integrated our XCaaS. Centers. Collaboration customer participants were we developer Sullivan's including complete Recently, to the recently have meetings Strategy web Global solution. for XXX JaaS. Xx by and and recognition entire and signed as a a Award well a Communications embed for is meetings Competitive for Industry continue rallying Furthermore, grown up. leader UCaaS responding, to named base experience The Intelligent Frost vision our into XXXX & has JaaS, platform, are received integrated we as Contact XX,XXX Globe best-in-class released Unified for video Leadership support employee Research management active developers around for XXXX we receive across for CCaaS video meeting Jitsi and and Aragon

partner-first major second leveraging business the XxX differentiated and is make across area models channel and a win with agency together strategy. Our relationships focus and partner to easiest wholesale by billing our to do

formed and in Channel our strongest a results. fastest-growing increase to providing America's and connectivity growth was year-over-year key over partnerships ARR. than of strategic had now continued customers XX% year-over-year. which XX% We begin QX. more partners. segment, representing XXX their customer momentum channel-first and several our Partners, delivered in channel was XCaaS focus, Enterprise We distributor me cloud XX% with and formed record a upmarket a build. X,XXX year-over-year our ARR, with services, Let over up to XX% with XXX,XXX strategy as XxX Sandler than our with quarter upmarket master technology We strong partnership greater of agent

Solution monitoring, Offers Providers AppFoundry for enrolled also enrolled the We Genesys in AWS enabling and WebRTC we Callstats the marketplace. next-generation into Private

to pace XCaaS SMS, contact the to synchronization as continued deal as solution. for our and adding such Teams announced Microsoft previously significant sizes Teams to led well larger MMS as contact This opportunities capabilities solution, our as capabilities Microsoft we innovation by XxX sell During such for quarter, center of and center adoption offering rapid certified Teams a our fax. additional present

vendor include wins high communications contact selected electronic the Some over resilient a capabilities. and employees to Teams China availability. platform of with XxX integrated across supplier They and U.S., Electronics, Infinite components, and XCaaS provide Mexico with Microsoft a who XXX with sought leading single global consistent center

They Services, integration. a XxX sought to Voice their contact for in quickly single a with users. employees first with selected recently will XXX Microsoft after the their support Marketing vendor on-premise to XX enhancement and XxX hours, Voice deployed and We CCaaS communication Additionally, agents. of provider systems. issues services, platform leading XX X,XXX Teams XCaaS selected and and their company XCaaS Teams that for UCaaS supply initiative And experience we improve locations announced MS technology XX Archway XX legacy Teams a of chain XxX we Microsoft global and for with support customer experience employee biopharmaceutical center

the area XX.X%. Our In non-GAAP third throughout gross organization. to regard, to XX.X% from is increased sequentially operational we this excellence margins focus drive

Steve industry's our and financially XX.XXX% financial a matters, Seger, five company. solution. and be nines launched backed to We Chief growing CCaaS model, sets leaving August Revenue Chief or continue from platform-wide promoted new will reference to org and our operating Ken margins cloud In across industry and only Officer, me; leverage UCaaS the Officer cash We an to Sales SLA operations. show cloud in X, integrated be to will reporting the Berryman benchmark first for This reliability. effective communications

the we Carmichael the in company's hired Additionally, be first-ever quarter, to CIO. Colin

citizens XXX,XXX to deployed expand Customers around cloud. their Examples business solutions match the and Our appreciate to improve across X meet area the our our paid to added million XXX the exceeds they XCaaS, as say, in to QX base, Council, which base. have to provides which for now fourth is our the with growth represented having mix users. installed move to employees. Buckinghamshire They focus very further strong and I'm ability XxX XxX customer X,XXX defend seats proud for experience. CCaaS previously of region, include UCaaS realized services now value organization needs

land-and-expand solutions including learning of XxX win provides for XCaaS support employees, They Calibre work enhanced Group, agents. more professionals. customer shift use center and hybrid which millions to to XXX Another XXX the contact is licensed for than engagement

for more deliver Germany, This coaching to XCaaS a customer total count to SMS adding to XxX evaluations more They in interactions. bringing added seats interaction seat electrical to Canada, review their speech nVent, Teams company, continues social and support and and Mexico and ability chat, every U.S., voice, extended for high-performance Voice with and XCaaS add and employees global quarter, X,XXX. comprehensive Microsoft to the Calibre Group the nearly locations. sentiment insight XCaaS, capture analytics Furthermore, to on agent

fiscal are To of the a the laid superior for Weisner be financial last fiscal is in in quarter new quarter. customer step a delivering hired Additionally, XxX a Walt leader for the Walt cloud I SaaS goals XXXX the first experience significant we XXXX. Officer. bar year responsible industry, customers summarize, to raising Customer globally. care is We and out forward communications Chief our plan seasoned our in who was end-to-end beat

well are our our industry team-first product-first, customer-first, CPT with to We our extend leadership platform advantage growth culture, positioned future drivers. integrated further and our

XCaaS envisioning competitors what with the we're Our in strategic cloud marketplace, the delivering are to being be and vision direction and today validated offering of a future. for our unified proud is

to Now, I Sam to cover over will the the turn finances. call

good and Dave, afternoon. Thanks,

Key did leverage. million, We performance $XXX than guidance. that sustain pleased We and not for Total was Usage delivered to million an drivers had from guidance increase of stronger professional operating revenue and UCaaS are solid XCaaS, categories, $XXX.X our shipments to services were results and and exceeded have above expected. standalone $XXX.X CCaaS, improved year-over-year especially, hardware from better-than-expected were a CPaaS. million the and product quarter a XX% revenue seasonal slowdown. quarter

generated of guidance. Looking $XXX.X revenue We increase million, above to at early to customarily regions do due an million million reopening. summer experienced and the $XXX.X telecom revenue, usage the see $XXX.X during in not we service XX% our seasonal year-over-year probably dip

our ARR $XXX XX% million end, Additionally, was CPaaS quarter accelerate we up quarter-on-quarter. witnessed year-over-year. Total business at

growth were the zero contributed the last service product wholesale investments delivering $XX strategic announced I years over business. Our CPaaS incorporated the in right XXXX, in our channel million want I revenue that Rationalizing will and point wholesale already will provide fiscal operating our exiting concentrate near-term last to to into results. decision market We and innovation opportunities. these guidance believe 'XX and are service this investors solid to services quarter the is shortly. we remind on several essentially basis services a In we be revenue XXXX, CPaaS fiscal in the resources is margin. fiscal XXX core rates headwind

quarter, We million $X.X zero at little at service roughly run in the and to are ended end. margin. the -- exiting a rate part the quarter's For business contributed of we revenue

year non-GAAP increased on as finished quarter points quarter, ago, XX.X% over improvement worse minus the approximately Non-GAAP was to First margin as sequentially than our discussed restructuring the Non-GAAP a XX.X%. gross XXX other nearly for quarter we sequentially call. the service XX.X% previous expected, business, wholesale earnings margin the margin revenue minus last in however, which came higher at from XX%. the XX.X%, minus basis we an

started have Customer capacity investments new strategic along in Officer. Chief making We deployment in with bringing a

in We higher-margin expect In on to profit business. total, gross grew XQ. we invest dollars as focus XX% further year-over-year

overall due to we gross as to started expect programs to we percentage reduce revenue. improve to Looking the COGS of total ahead a currently second quarter, have margins

Turning to first quarter operating expenses.

we These investments plus about a to started, are started call, to Total last end was see our we that non-GAAP FY the plus G&A to by growth. we or to the our now FY talked marketing As early business growth. on expect below R&D sales as by XX% COGS begin the have in up XX% 'XX we spending basis, measured of revenue profitable on results and total 'XX. reinvest have accelerate revenue year-over-year, plus and

we revenue spending X.X% profitability 'XX towards last total as our goal. our move growth on operating As plan and exit call, X% stated basis. total at a on Non-GAAP maintain we were our continue to quarter non-GAAP grow below FY approximately margins plus to for the

Turning restricted at to quarter $XXX ended million. Total cash, cash the the investments balance and sheet. approximately

the of increase Cash Excluding from quarter-over-quarter. million, balance was the operations $X.X quarter. $XXX.X million $X an $XXX,XXX cash, approximately was million for restricted positive of

to which year-over-year. be $XX item nearly returning deferred around expect discuss probably We is final to operations XXX% XQ from breakeven before One cash in the quarter increased is up I'd XQ. revenue, and XQ, to during like positive under for burn in liabilities to million

contracts moved sheet. quarter, approximately on expect RPO the in and from to grow quarter. the towards fourth $XXX first was the advance of service in billing balance We million deferred up delivery million $XXX have revenue for

As a transcript conform for a norms. in policy made more change XQ we Please details. reminder, the see to to industry

financial the outlook. to Turning

strategy XX% quarter margin changes making our growth. on marketing XX, We be approximately this million quarter, focused we As to of 'XX a incremental we year-over-year the second established XQ making continue XX% total anticipate to discussed sales and XXXX, to update, account, $XXX $XXX.X first all accelerating ending into fiscal Taking follows: on in changes range million, instituting business, revenue in poor for exiting as investments we focus representing to growth. have enter including September of and guidance revenue

for $XXX.X While approximately be that the on margin anticipate this million range positive quarter to service business quarter revenue operating to is first $X.X in anticipate note We our slower new growth. fiscal full $XXX approximately ending million, to growth. to included outlook XXXX, with quarter non-GAAP year We we as quarter-over-quarter a a by million exited revenue million representing are outperformance to follows: raising outlook, $XXX range million, to of end. $XXX.X $XXX growth, million from March Combining guidance for XXXX to representing the year total million full XX% wholesale a raising XX% year-over-year be We are first please basis. of XX% XX, we $XXX in year-over-year

$XXX our $XXX representing million $XXX to range of raising are We to million million to from revenue range $XXX year-over-year XX% approximately to million, service growth. XX% a

had changes X%. community, signaled our have non-GAAP we've as our roughly we investor several metrics. We isn't of the this changes XQ margin feedback are quarter the IR maintaining coming. of we were discussions with on a calls, guidance to hoping Based I'm from operating on this previous surprise made

first shown we thank quarter. our the turn you, last long-term for model call the During and towards made questions. quarter, to progress operating on the our let over operator With me that,

[Operator Instructions].

from BTIG. Our comes question Matt with VanVliet first

Nice the job quarter. on

UK. lot recognition, a the channel you give You the if could how of number us like about analyst growth more you you're terms of that success? It a driving sounds And of and it's a on lot bookings through a deals that? maybe Europe large channel coming little UK and it specifically sounded But context industry like mentioned. seeing in really are talked recognition where the came and most curious from

you're still room curious most grow So success just there's channel? seeing the whether the to where in and

the across growth it -- congrats in and UK average But allowing strong customers, absolutely momentum mentioned as we're current on add center which in center you especially helps is into revenue more UK. for well verticals customers. product, you -- contact contact you overall and we're as in products the XCaaS as but the been into internationally our is get public on to land-and-expand a And customer We've UC ability -- perspective, enterprise UK segments, David, we sector strong our saw been the also as in have us improve product. all into improve which as growth very to the seeing multiple and seeing products us. retention that in -- goes integrated This thanks see, seats in strong for UC The Yes. the get quarter. well rates,

first. resonating as customers those channel our is organization. think that and And team is our point our and from the to go So job this strategy educate own to the I with at advantages then sales

some So that of are momentum. those we're the positive to reinforce efforts doing

That's of helpful. growth they're the function to leverage last year new step still terms of do about investments where starting And initiatives mentioned I pretty know here, Sam, we've more gotten in on we over production Or pay just and the but where a Curious in? quarters bigger then, ones Are side terms of like it here ahead burn, at in in now guess, overall off of, through executives amount what few plus. from of duration? much should fair cash we made you margin seems you that us we're investments the of we a I think the have further the -- forward? most

Okay. there. A couple of things

growth exit now to being on get as mean, that I very much we operating non-GAAP at our 'XX. we we offense So want year first margin being and fiscal we're no the back into this more. and revenue X% is accelerating off, profitable mean I reiterated a to

of those as so R&D contact sales our ongoing and continuous the an stream of and much more would as our a on capacity dollars And putting things marketing types increasing basis. investments as I don't really I say, spend, center view towards increasing chunky

slow that we growth kind And so in of continue kind expect towards as margin number would linear just X% revenue. of exit to reinvest accelerating I operating of

with next Our Marshall question Meta Morgan comes from Stanley.

second congrats so the for you on kind some the business have just just and quarter. just clarity. can stats of I wholesale I to Great, gave and a wanted ask CCaaS

on could headwind a So are a much of this quarter second, whether kind -- million if the you you had then if headwind the this as still -- wholesale what the $X.X million you see still that’s from a at of was headwind any just you wholesale of just that expected point? business? you business? saying pure there of didn't had pure because number as Or And that consider on rewinding $X.X give was to ARR down in

Okay.

that. take will I So

So it's $X.X million.

this we So of May. exiting quarter business, down earnings were were we on and it in April the last time bit the mentioned took and we into little as a it call, ramping as going

so exited run zero $X.X the And We we business. consider we quarter, million had quarter what rate. of for the at wholesale a

it's we of number ARR. I Yes, there exact So fully number, of It's by little I'd bit the be exited is small the in but I don't quarter's know, headwind but my a very surprised. a end. off immaterial. head, it's it million, don't is $X know top there.

things X combined. those So

So to some the trying the is didn't One most produce did I of throughout repeatable. reiterate not two exited was much we business things: all revenue, we that but quarter. produce that's there is that We

Okay. just follow-up last one And -- sorry, that. on then

the grew stat didn't on ex-wholesale were growing it is That business wholesale. wouldn't -- more the -- the right? of grow you than you sequentially what removal The CPaaS would be of about the kind Just saying, it sequentially. including CPaaS business

have the non-wholesale about that. business grew what Yes, correct. XXX% sequentially fairly more is been should you're I nicely I Yes, we're clear said and when sequentially. core talking

question comes next from Markets. Latimore with Mike Our Northland Capital

there. Yes. Great. quarter Excellent

the close On level service XX% level? removal a to margin, gross to of kind the sustainable business, improving with the that obviously gross is of but wholesale of sort

I'll up take if be don't and I that will fired from Yes, probably go one. here. I

margin gross time. an linearly objective So go to not it go time but over is ours to higher topic Dave necessarily get like of it the our going definitely up every a to with It's quarter, to get higher. we'd that service all it's

of international ARR Okay. of a good international or wins. like And listed bookings something is then number Any update you percent that? on or what

and I real to be number will real need will and a XX-Q our I from third just have you. quick. If quick pull get question, quick real ask in tomorrow, that that It the you

just Okay. was strong. Got said CPaaS on I you -- it. guess

Or So you primarily just center contact is the you into cross-sell to -- think developers? selling I this CPaaS business, that's also too? to wanted left, are your

a It's both. experiencing We're business. Yes. developer predominantly

example this wins Coca-Cola earlier, You deployment, we didn't and one business we quarter we customer won Medical that that also in an they're see for several XCaaS had Asia CPaaS messaging mention we're that excess the they Alliance seeing solutions. other customers appointments UK. is But in there. Southeast added the existing to the alerts doctors. leveraging and but capabilities And and And our in they're using that for with that

So that's one example.

we get do So both.

$XX.X All And million; in and rounding $XXX.X There some the is right. quarter, United revenue there. million. for States international,

Okay, thanks a lot.

next comes Levine Peter from Our with Evercore. question

Congrats quarter. on good

You called out UCaaS. recently

So how you and maybe thoughts reaction in your missing today? And view was you curious filling initial gaps what are your know Zoom-FiveX investments on feel CCaaS landscape? or to give your Just X thoughts competitive or questions. changes perhaps What or us the are on the acquisition?

Yes.

X those combination, platforms with that we on compete So are today.

a are So fundamentally, can being that. few together. draw the Quadrant driven is known our X and over change I that it's talked to that Magic under think that the we've the the the rate haven't saying people business is not bringing extreme build And -- which it's been One own from at landscape. by we that center is is, XX% XCaaS, for $XXX validation center era contact it the we Gartner landscape customer or It UC is it is the I conclusions other you have vision XX-year time of demand And and and believe revenue CC do really a do about your build coming before, solution. doesn't challenger. contact something over. but run a million functionality. growth approaching year-over-year is of

or hard that go can't yourself it's today. and develop you So

solution. this less I and between UC other the for ending. partnered when while is but fine customers be -- weren't CC there era partnering of is was solutions think other The it's to And obvious,

a more reliability They They more. work they I with integration. think manageability customers, across want integration more they want vendor that. well, want frameworks term want and long that single

the integrated do where era our at the did XCaaS and our it's XX% product, we event I an continue of that's industry entering And be has area think year-over-year. well message, growing CC So to our X/X of an which or and last in now integrated an XX% since UC analyst we're owned on farthest over received. the along call, solution we and business business and of been

that's So we the going really it's see where by we see where driven industry being and demand. and customer it

just of as have gaps For don't continue center then contact capacity push I your centers, to which really as we gaps, on handle is down the and contact first omnichannel part think well, more concurrent in we much more question, some agents, expansion and to continued larger up really larger scale, the side.

to of platform things. handle We those added translation of of the on this capabilities XXX-plus kinds So more more languages a social, more types sort languages. bunch chat, of quarter,

about and cloud. and move the So boundary to it's the to scale enable pushing the larger enterprises larger really to boundary feature

is What of nature looks second given or know kind hiring are the retention one what in trending? goals, maybe then your competitive how environment last it Sam. And one is How like of -- for half? to I the how think, Curious in here hiring you, of kind today? the plans

very our in been hiring we're Look, markets. strong. success organization, many we're has a having And global and

Valley-based organization, to strictly we're and for our hybrid not needs, mobility Silicon and So too, catering workforce. we're employees'

we're strong So employee yes. and team that, in to we're element very having our believe base, team, success first I pro

Power Baird. Will from comes question next with Our

and both I strong customer the both growth, nice I Yes. quarter, numbers the growth, first just the question. year-over-year. come really Great. XXX,XXX sequentially in like want guess, enterprise back to Okay. to ARR customer looked growth. It

key XCaaS to trying is get of So better you I Just just How that key perspective drivers much that. understand much further versus to improvement? contributing market channel that? of How to there. is drivers the would coming the to any on the love

Yes.

So the our enterprise our really perfect customers. for a future there and is and mid-market XCaaS it's elements, fit

the do had as alongside elements of So more doing XCaaS in as as the the the well with our cross-sell I addition enterprise, our quarter. organizations, that is partners for for messaging. those into and of see there's opportunities We Sandler you alignment. channel we're enablement think such which that Partners do Sandler greater channel

Let me along just ask you kind just those of lines.

many mean channel solution As evolution? your them go-to-market you partners, pushing about about mean I you where are opportunity? in XCaaS, XCaaS? that them the for key really combined think are XX% think understand how of as I you of

don't is I own even Yes. we our -- that. mean XCaaS. in in early have organization, we're sales this every And pushing representative sales

our materials talk -- house, our sales organization, that's entire about it partners. I and our with our talked when -- RFEs, enablement, in and about our own marketing start we So across I

framework, So all of a same able something controls five CC analytics in team can't we of having integration security that's a XCaaS end UC that a that to does, hit single the and benefits administration of platform like point and reliability both be things part having And being nines unified platform, employee organization, of is having single describing done company -- we're at across XCaaS accountability day. across the and elsewhere. having those whole the across that every the our do your

very messages those early. across -- getting I we and think it's So ingrained. it's And

for from now so focus end And us the that's the through year. of huge a

Craig-Hallum. with Your Sutton next George from question comes

I wanted on to make sure one clear I'm thing.

about capabilities. years about So talked center contact -- integrated for talked we've and we UCaaS last quarter, and

what's to of you But a it, employee I ago clear, just understand terms months product? XCaaS functionality an and the saw be As I changed? couple blogs did want what has of we're you're on I the CX just up be actual in functionality. branding relative to that. different clear, to Now and building quarter-over-quarter want I things

Yes.

of like things nines added we platform both UC Microsoft there's framework. about we We and the look, goes to CC, across five SLA these talked that that talked a we integrated which presence of the Teams, launched. number examples our about and are So

then contact so and And we polishing UC doing where across capabilities. see And and our capability our enhancement, we elements comes those future are we're and omnichannel center investments every CC, scalability both improvements. bring and all

is Jitsi market of much a first how and that the on thing other One rest engine a video some their much the become capabilities I becoming of you. decisioning. services? am proving the you Got is newer to lead curious I'm Jitsi mentioned. for And believer in your of of

a is we about. launched, a have developers lot it as that an we JaaS element Just talked we on newer of

business interesting across CPaaS the think both or I -- offering elements. our a Jitsi employee also underlying that free for product offering. an as So experience it from into all our as our that come well meetings element a is capabilities and it's go those And

Xx increase the since growing -- developer -- base an rapidly it's it's saw it it's that's is but something with in the So newer, example. as the you smaller,

& Our comes Koontz Company. from next Ryan Needham question with

phone, the ARPU? that some Circle how I trends back enterprise your hear to price shifts million strength you how and Teams kind on pretty points, and about you're users and seeing of the quoted price then And XX to see prop Microsoft points bundling there, you're and active responding customer can daily there. up there market? aggressive impacting help how

Yes.

as fax, and to SMS, of things and first, call call cycle think we there's settings, our of differentiate product that integration, logging and X across Teams I So us out we're One like on all that's goes cues and well the employees. are innovation continues. UI. managing environment. help and forwarding in these in Microsoft win added previous and rules, And we've showing elements addition And such our contact presence that that We wins from accessible things and MMS is, as Teams announced, Teams as account in the Microsoft there. center

the product those. are capabilities So obviously, keep and growing we robust,

in powering certified frontline second doing XX-plus that we're but countries. globally workers, I we the and inside remain pillar organization, center an we're is, think aligned third knowledge just A contact workers, sales, employees all across and with company-wide, also not pillar agents, is, Microsoft.

such pillar in For that were as a Service And perspective the selling by Micro as or Gartner with first then Microsoft. in example, or the partners we Ingram vendor was are included Magic offerings Center Microsoft we Virgin certified align Contact PaxX that is, Business. ScanSource Quadrant for Media channel the or a fourth channel

pillars of into and that business. it's we're So some to a successful that are be strong key those in taken the leveraging market, enterprise us

old ability contact users, radically Teams a pricing mix have the services we -- non-Team and statement our And one relationships to the crazy pricing. don't across right. group across professional cost around users, out as we both that to XX across et the reasonable of those or Yes, line but world our occasionally see the I'll lower with really value per separate centers, I for not work different desk, the across then world, of cover match just question. relationships cetera, don't seen being And things, becomes have compelling proposition. ability total deal carrier of flexibility, All of pricing having XX that ownership itself we what out pretty offer. a incredibly carrier the then sort you the works when of all separate add

So any in pricing don't -- particular see just particular. pressure from I Teams I

Instructions]. [Operator

with Our of next question Bank comes Daniel from Bartus America.

Congrats This on on is the for great Tanika Dan. quarter.

IT between UCaaS to trying guys and customers slightly better. you tied integrations drivers see the Or are was more more to two? for I So management the Do the the bundling to understand benefits drawn CCaaS and simplicity?

Yes.

So there's And talking together customers. that by goes would experts employees people organization as all -- it say. I company-wide are in collaboration connecting well as get your to you both, across with the

employee in you're So an only a a it or that's point subset just the organization, UC analytics It the do can a you networks. global IT powers It provides integration perspective, XXX-degree a if single CC. other employees, quality, view single brings applications. one. of you for From also also gives every which your into across a work accountability for of and reliability, maintainability single framework organization, it enterprise not

would administrability some advantages think goes those IT as both across I say, well users of manages. of it I them, So but as kind are

our today's session today. you concludes This question-and-answer attending well our conference presentation. for as for Thank as

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