8x8 (EGHT) 3 Nov 212022 Q2 Earnings call transcript

Good afternoon. My name is Tania, and I will be your conference operator today. At this time, I would like to welcome everyone to the 8x8 Fiscal Second Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. time, Vice turn President this to call At Patterson, Kate of instructions] I the will over [Operator Investor Relations.

your begin may conference. You

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

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

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

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

work market exciting achieve. toward please vision we the quarter, welcoming resonating is begin $X of billion us an in Patterson our a at She me in milestone the in we our review companies and as Kate software time our to revenue, of XxX. join as joins Before goal ex-cast few

review our QX. progress of for and second to in high and in ARR of profitability across margins The delivered non-GAAP with revenue in over again ended turn future. gross quarter our the discipline per and above an the sequential a ago. end positive quarter the improvement XX% year range year Let's We year operating of our with plans the margin operational strength positive up delivered margin. operating consecutive from over our guidance $XXX We for continued million update on non-GAAP company third quarter. We flow and combined resulted non-GAAP cash revenue our and in performance, non-GAAP and operating a

our we some massive the provide on a market advantages. in new The to migration normal. hybrid the are trends competitive is context of workplace I me the believe based innings early cloud Let and communications.

As customers the vendor engagement. market demanding platform a customer are collaboration integrated communications, has and single demonstrated, for

to businesses are and allowing customer proud requirement more unifies flow this eliminating to delivering silos today. and and XCaaS to customer employee the agile responsive information an be for critical XxX experiences needs. speeding We on be by enterprise,

running unified and has technology XXth Gartner the the longest year announced makes by is been worldwide. a leader us as again This been cloud a MQ. differentiated Our UCaaS in the quadrant leader XxX in that widely marketplace. has We the magic recently included for in service as row recognized the a communications

seventh of the a in our recognized Gartner operational XxX also challenger strategic of for and the with for This base We magic one, UCaaS leader also is quadrant vision pillars. four, partners; year. the have straight service our expanding quadrant magic the been in recognized These the this driving only together two advantage. base as our million testament more is four the leading on expanding in of In and This Two, excellence. than and and recognition three, year, pillars growing of quadrant. as XCaaS. are allows frame highlights. clarity to position a May contact center a to objectives. I purpose users winning service business platform investments use magic our focus growth our contact profitability outlined our us business four to the will our I QX gain prioritize to achieve alignment and solid

and First, extended platform new and our introduced advantage global patented solution through We to XCaaS our we to to innovation. aggressively features countries territories our technology. expand our through continue new XCaaS reach platform

desk QX We adapt XxX also to advanced freeing experience UC receptionist introduction the empowers this desk. and in great shortly. longer desk, receptionist enhancements within effectively front provides personalized discuss the to in-person capabilities organizations interactions. experience deepened with our is a high that Front new Platform delivered contact with workplace. for revolutionary I'll for a they or no location or a a the hybrid center hardware composed of new first which visitors front the teams, as With included impression Microsoft product, volume tied integration XCaaS

as for and dedicated and with advanced customers to our customers. polling also Both vision resilience enterprise and further meeting video up sector, and business open and enterprise footprint, XCaaS Canadian adherence. including and cloud extended superior healthcare embracing announced new video technology. moderation, global our further storage and are enhance This strengthens large organizations for Canada meetings, solution We financial our This will provide quality emoji in We vertical markets, PBX public adding new reactions. services. of data enhanced service capabilities such sovereignty existing

supporting single Scotland's train than per their over park quarter and since their XXXX booking XCaaS services, zoo employees XxX investment wildlife Diego X,XXX will expanding UCaaS use and X triple The XXXX, seats. they and the over management expanded the They zoo have which zoo calls month, conservation example, speech help fiscal original more analytics and and QX purchase enhance and seats than alliance, agents. to in as For the platform NHS that upskill more in safari CCaaS total customer XxX investment the selected National a Scotland, operates lines XCaaS, Services, agents. supporting Diego now X,XXX vaccination health San their handles and non-profit every communications and quality integrated Diego San experience over XCaaS San organization vendor million

is the to important most for XxX our platform believe integration component Team of quarters routing innovation added with support. desk in the five Our and and strategy. shared call well now users enterprise beyond of drive an XxX solution us UC, QX, provide across consistent Since feature-rich front competition. keeps recording XCaaS we that In Voice NCC direct we the ahead And ago, far the integration I goes industry. it'll continue launch presence

announced replace for of more system wins than support selected City needed with tight to an on-premise Rochester seeing we XXX,XXX resilience business the colleagues more integration provide their They organizations are XXX,XXX customers ability aging included using for residents. with to XxX And Minnesota. Recent workforces their better from They We with support users. business XXX distributed more their and Microsoft of we to and examples employees. surpassed XCaaS Teams communication than provide XxX recently the population to Teams teams. and of customer voice Microsoft had that interact for anywhere

more on XXX,XXX They to London the than Voice Teams Borough than single Another win Microsoft support and X,XXX XxX more XCaaS government disparate a selected services was of cloud to for which residents. platform local employees. systems for provides Hounslow, consolidate

demand our portion for see to CPaaS continue We of strong portfolio.

and uses strategy Thailand's that XxX extend and resulted reliably to focus efficiently SMS Southeast the biggest to one Our in included in platforms promotions to our customers has in Wins this e-commerce strong Asia of quarter leadership new customers. for growth campaigns value API marketing region. top send

Quala, secure with operating and notifications. time Additionally, on SMS their customers platform omnichannel in one added passwords we uses technology and and insurance XxX an company the Thailand, informed keep to API Indonesia which

embed Additionally, Pimsy, of and provider Service XxX solution a compliant or as record video turned telehealth JAAS electronic for health secure its management HIPAA Jitsi a US-based customers. software to to

Another way solution our delivered and in center industry's integrated we cloud global In organizations advantage with platform phone we contact multinational Russia. first for is the QX, expansion. through extend operations

industry area. to China edition This Japan follows service our one. added also Rico fiscal and We of Puerto coverage first our in

infrastructure and XX PSTN cloud full leading a countries market in delivers Our replacement now services territories.

go leading new to fully a allows In a our more the of makes North cost XX are solutions They for their leading IT communication in example independent and for expanded unified distribution integrators XCaaS aggregator partner X,XXX Inscape markets. our QX, seats strategic capabilities, a community customers. MSPs market including revenue over organizations. Winning globally global SYNNEX's automotive ago. market through now agreement one XX% in global with availability distributor multinational year An SYNNEX the to is operating geographies total reach Corporation, coverage. extend promoting reduced international to partners is us solutions and for distributor channels XxX to second segments we scale system compared to to which and platform our Our technology empowered center selected of contact based with PLC, complexity our now and XxX engaged with America for our accounts and deliver analytics International efficiently. community and ideal revenue ours, ability XX% high XCaaS offer UK on to channel and speech industry. strategic is and our pillar, omnichannel, retailer a

with intermediary XCaaS needs They They And support engagement Holdings, ownership of partners United Teams capabilities lowered cost and increased supply from a robust contact Our retailer show year over number Supermarket reseller and XxX year XXX Howden communications pet increasing metrics XCaaS support transactions the selected included XXX ago. Microsoft selected States. integration more employees. wins year. in and channel XX% at employees. channel-led the to from ARR the customer Southeastern of European which is total world. of the is channel-led stores channel center largest Examples partner for a insurance leading engagement XX% our to and of Pet XCaaS increased over in XxX success productivity. with sports the than Salesforce active X,XXX The group Group

quarter base our ARR the of expanding for and to our ARR time. the another up Our users. increasing of Enterprise number third ARR with XX% pillar enterprise Growth first in $XXX,XXX with half with of our in base by more customers led more is installed than than record represented and XXX.

companies in existing this two years. more grown expanded through now than XxX also and United with one been saw which We rapidly X,XXX the the States communication XCaaS building customers, has is largest last products their period over including employees. of has deployments the partner SRS supporting in distribution,

a engagement customer home added over Another And the XX% XxX in XXX XXXX. to org who products and solutions garden enhance The and selling The to cloud its and They more continues to with platform Ireland. retailer stores Kingdom their in and a pillar throughout driving leisure fourth XXX time business. company support enhance customer the communication long excellence recently expanded digital flexibility agent client most is full leading firm support capabilities XxX's center. multi-channel and seats United improve experience. Sparkhound, strategic range the growing categories a contact commitment to The are selected collaboration customer to organization. their since consultancy to is operational for

Our XX.X% improvement to XX.X% dedicated well gross in to focus operating from continued non-gap our contributed margins, in growth. area to We achieving as this sequentially remain has profitable committed as leverage. which increased

a organiz appointed SVP revenue sales Americas globally recognized executive also organization. was Allison board by first a led our focusing of billion Allison We She previously overseeing $XX a who has is Gleason top on mentality. directors. to Cisco multiple performing customer of sales

customer We Allison communications our built year market of and leverage strengthened In first ago, well a on the culture first, core a board. XxX, are massive we I migration is opportunity leadership XX just and created and the we a first joined cloud you team positioned with vision. communications. coverage and investments P our nearly based the been to beginning global market, have unified our team aligned customer C casts since differentiated to and R&D to T are welcome look want We product to team summary, thank It excited to support and platform over to their a keeping and your XxX effort Leading updated. the embracing technology to employee has ex at turn forward call everyone leading I appreciate will industry now contribution. optimize for I continued a are Sam. to analysts

during more from We Key than performance categories operating exceeded expected center year. shipments revenue year stronger quarter and and supply increase contact CPaaS pleased that in were over chain to up above an showed year our usage million than quarter. million have was than XXX.X XCaaS drivers issues. range, CCaaS to guidance delivered improved expected and with XX% of are weaker results guidance $XXX.X for over better revenue product endpoint both the year leverage. the Total and ongoing was our due revenue to other XX% offset ARR million $XXX This

in million quarter million business. this are total Last CPaaS roughly as was did business not margin revenue business quarter services as fiscal from XX year for minus the at non-gap more and margin revenue, last $XXX.X year service for dollars CPaaS margin XX.X% service XXXX This guidance fully a portion and revenue in $XXX basis year, and we revenue at other factor exited million service points margin ago, profit a over XX% than in X increased versus announced the $XXX.X year. basis margin year FY revenue increase million gross significant now low range contribute revenue. wholesale nearly approximately higher causes an at was reduced improvement of of in XXXX essentially the to up of second better the expected in new no a headwind and generated the second by approximately previous to exiting contributed were up we XXXX our revenue million XX improvement sequentially the Looking down $XXX.X that $X.X the non-AP X% growth our quarters total exiting range. beginning service XX% QX, in At quarter wholesale and the accounted XX.X% Total And million revenue, the in of minus percentage CPaaS XX year approximately grew over we part for points above of gross came an XX.X% minus margin million quarter quarter, shipments this were year non-gap XX% wholesale was of XX% operating a year. our endpoint from year, XX.X% a XXX year. over we QX fiscal ARR end business sequentially

continue the on As cost turning focused overall business, looking second to to drive we such the to the sequentially margin our we quarter, to and gross flattish XCA expenses. third quarter be of expect portions margins higher unit in Cox, as ahead improvement operating

as invest marketing year by to costs in platform R&D the center the XCA and was continue keeping G&A in cost our R&D year XX% plus growth. tight, We G&A non-GAAP and below while total within mainly contact of sales capabilities spending in XX% marketing and total plus measured plus revenue up sales

like over cash. maintain X.X a approximately total fourth positive item to the under We was expect end the restricted One second nearly the X.X% approximately $XX during year is to operations total collections. multi was the spending to Cash sheet, minor grow from us better X% balance slower a and before operating quarter, revenue, million than X% was positive to allowing of year overall We cash burn quarter profitability the discuss restricted than on for third quarter. returning non-gap X turning solid operating quarter from operations to margin, cash increased million cash, the generation non-AP expected quarter which cash to year. quarter and investments and excluding quarter. The margins total million a XXX, the of a deferred approximately hundred, increasing for million operations quarter on The quarter in cash $XXX.X balance cash up non-AP in our revenue basis. over million liabilities I'd positive was $X.X trend, at million X.X

approximately the million of quarter advance quarter. first for in second billing in million RPO towards move from was up $XXX service, we $XXX the As

conform the and made contracts one norms, include outlook. to now we industry a fourth quarter terms to reminder, with change turning with earnings from year and greater RPO a to policy As financial

brand our As we, investments and capacity to in first including this XCA awareness focused accelerating growth we R&D account. and CPaaS into taking increase business, update, making in exiting the strategy continue the low on to on the third and of focus sales quarter, margin revenue marketing quarter making changes XCA discussed all incremental in wholesale investing

XXXX third representing be $XXX.X XX% December to to XXst, range the fiscal anticipate approximately revenue XX% year-on-year growth. a are as XXXX follows. million ending of guidance We million to We for in total quarter establishing $XXX.X

positive chain XX% quarter and expect to to endpoint supply with for to We over be other non-gap quarter in roughly full continued follows. as slightly with for operating ending and service guidance raising our our representing growth. year be have be basis shipments, to XXXX combining outlook, issues year, and on revenue We to of million approximately quarter to margin flattish a second year outperformance anticipate fiscal we over range we a expect down year quarter on XX, XXX XX% XXXX the of quarter, XXX are March revenue year

million and from approximately of We year outlook XX% revenue range $XXX year are $XXX million our to representing to total raising $XXX over million a $XXX growth. to XX% million

We raising $XXX to service maintaining $XXX.X And XX% XX% million guidance are of growth. range million million non-GAAP to margin our year of to $XXX representing of X%. to revenue roughly $XXX.X our over million a XQ from range are we approximately operating year

growth you to term and over remain the progress update and suitable we for that, demonstrates May. in business are increased let continued Our our questions. drive in With investments making an over model, operator call turn on to operating our me long time. results year margin the reacceleration our expansion confident, for we QX We which our strategy outlook thank continued discussed our the towards

Levine proceed. with ISI. Evercore Please first question Peter [Operator with instructions] The is

the demand get a XXXX? Hi, I'm calendar in so thanks end heading ahead, into better continue? to months, looking but look secular tailwinds we Chirag or we XX the expect Peter and and sense question. you. this potential you on your to in normal over to for a more are environment XX to saw for much do industry, year perhaps Ved be what of Levine the trends past right like calling Thank looking is things taking starting demand

Look, there's the place over I of that the last place. into in I in say going would calendar years, tailwinds XXXX, been have think kind two remain

and shift and would continuing say Dave industry launched change demand XCaaS, giving we to see a that really generation The in to so no been around branding better. analysts are or of improvements popular As us credit for and that pipeline. it we're I successful slightly our has general in lot has

remains It's grown XX% over XX%. our now literally cloud the over of you point. still enterprise that you're only this or at penetrated legacy demand XX% what strong. And, market in of half And is where see transformation we're to cloud, business at the seeing

So way cloud UC when accounts, that win CC environment giving single we go with and the we from to and legacy solution. differentiated way up of environment platform a into market set our the a us the combining and and is we over in bringing

XX the the in Teams' the the and our Microsoft world. allowing to and see the populous territories, is only in integration And, footprint And world nation is our that. most geographic unparalleled us fairly and largest and and Additionally, our through UC thirdly, literally you that to and nation global countries added win. expansion do into then player capability

momentum. number think we I So strong see of a

but I think points cloud the transformation that additional for demand. to secular strong underlying is legacy

Thank you.

next Wells is question Michael the with of Fargo. Tulin Your from line

questions. the taking you Appreciate thanks. there Hey

a as shape the a but guide seeing growth initially. out than mindful touch, you impact the of of has Just out what just the QX the you growth there all, seeing there's of that in us can two be were play appreciate just guide start guided And comes growth initially you how an we're a there? to QX the to course year, in implied if lighter of up -- little a year just much off is targets Is well. here, dynamics seasonal decline where a for dynamics business that the CPaaS the over suggests that's looking guide bit in point when through The expecting the stepping remind full the QX framed through you kind and the if we're profile at profile year or of

is Hey Michael, this take Sam. that one. I'll

year. mainly this was year. was last the the yes, year, but throughout throughout that fact driven profile about the $XX year, business that So some growing we by deceleration its did wholesale million profile the expected CPaaS was throughout the We expect the

the thought throughout So deceleration you forums publicly being, in said you if $X when in wholesale a a the $X 'XX, business fiscal this year. CPaaS that view you to other year see would $X is million, throughout basis, Then year $X year. million, roughly, that on the I've larger million, about million

expecting into development go Also in capacity, And been We do fiscal off of driven making kinds new by reacceleration so those CPaaS that the we're our demand driven we revenue of have of product roll the we that. expect 'XX, and by as generation, things. improvements sales business.

that been some are doing that already expect that Dave's things of We -- the we've to land. starting

of things arrive some are coming then And roadmap on before will the the that

Sam. helpful, That's

one but Just little looks I just more the growth a enterprise been ARR healthy, consistent. segment still SMB sequentially particular more mid-market and know in are lighter. on has mid-market the ARR the metrics, by

are that hit when two that the So or the segment or what CPaaS the phone running more there talking segment seeing shipment segments other those in issues elements mid-market there cases some would might directly between or the certain driving you're reason you're difference mid-market be any endpoint use enterprise? that you're is within into, of about and

is stickier a there. we growth we CC, these of UC XCaaS we have that the you transforming in the when purposeful and doubling enterprise our Well, in enterprise XCaaS size combine we've important And focusing customers, customers vision, how CC combination I customers, continued account enterprise market they're customers. what UC to note think larger focused and XCaaS you and as target it's that shift of company our why core the on sell to to resources our, on into the the That's to see retention go invest see longer and we're customers.

wind rates. higher have We

and on seeing will go you're the the we, year market So fiscal into focus of go as us of which we as to market, the higher set our very upper, activities up transformation end nicely a 'XX.

affect the on then of bunch endpoints the the really topic issues chain companies, now this is think among pretty And I whole chain Okay. having, supply issue supply we're is that up universal ARR. revenue it show so a and of our of was and though, does Where pretty revenue. doesn't other $X.X That's was subscription mainly part contracted down million forecast, sequentially, as our right. really noticeably

aren't going in We expecting visibility. everything now supply that next rectify is the the to right see chain on have based quarter, we we it least kind itself at where that's

on it so a And headwind revenue. bit is a of total

Your next Meta question the line Stanley. comes of Morgan from with Marshall

Your open. line is

the Great. that of if with seeing guys and, fiscal of questions is was headwinds could guide million you you if that ongoing Thank of the the much one, and second just, versus for for kind in could half the and there. And Sarah, just just kind you. how the of A about of or remind of, then kind kind what cell first couple you year what Thanks. routing me, half. talk of QX in of kind of wave you're us consider direct XX should activity we of environment how second channel

Hi.

huge in take very is Microsoft Dave. launch the that direct I'll Now majority today. are as obviously we're suites a opportunity users teams a vast quarter the just first significant within platform productivity at and users over being thousand Teams, a those of on platform the on this since routing into now of part messaging is not is integration an attaching enterprise the five and hundred opportunity team's communications communications the that enterprise

there's and expanding, success One elements. I I and is win. experience. go superior market a user think There. say four the So we we've that's today, we've key seen to end why seen would we

powerful is tools. admin Second

very functionality deep we channel all but little that employees. and And is win is voicemails. Third which team's add the we group apps. the things just that go the and, those to know, in well for our the mobile on each end facts, to continue and added as and I'll users you experience, already desktop front on with recently those, directly and and go user presences We've we areas. functionality, included fourth of already a desk and end into like SMS adds recording go power And a as capability robust

that's So powerful value a users. for added capability those

together class, know, platform. how an know, is Second you prospect really couldn't good of and previously make on is competes channel. is, we enterprise by tools just in. quality the core workers, also employees, coming the globally and UC And powerful And but doing to frontline with with all third, integration with the reporting other Softcat with receptionists, you October that world the they with knowledge strong analytics from that solution. with powering center winning those then CC our work a There's market eight third who a get that management teams to that all workers, adopted channel call across countries go agents, and and admin continue website actually you of and blog not contact series X voice our

half of fiscal. broken and down QX total business 'XX exited 'XX, $X wholesale so produced year of QX business million for in in last part I then see fiscal last think the So the $X million got you're your in the follow second I million quarter. about that's something that right. but wrong, fully of $X in you if All the We looking about up answer that XxX question, by in CPA website. the and, And on second on revenue you it could know, QX

So this it it's was of about quarter, revenue growth. zero a and X% headwind year on year

statistics, headwind in of, kind numbers, as then growth a there, any a we consider just And look just know, Great. to headwind your should consider context that how terms you you over should is That any at or helpful. we the we much ARR

headwind to growth. percentage couple ARR points It's a

of Some meet those our did criteria. CPAs

did of customers revenue criteria, meet our consecutive a threshold. months CPAs those which of is six Some minimum

So it. it's a be I couple fair haven't percentage haven't out, to points. I memorized

of And CPAs give holidays, a a then just a I a head. business, seasonal of mean, little of our bit and top on, with can't a SMS I general, But it over messaging of growth. little off nothing natural Chinese you it's couple, uptick does new the quarter a see couple but, the slower around my business So fourth everyone, to year, for just going bit then but points

comes of question Ryan Koontz next from with line Needham. the Your

Your line is open.

strength It us how you have and in channel great your you, the know you guys are and whether the know, development's in on like real it's the front. progress walk Europe. Thanks different the appreciate international international progressing looks historically, you Maybe how some geographies, question. the through markets it. going I UK

Sure.

number international areas those where you we that there's as since And the and and countries. internationally. also we've have solutions. for ourselves That's about in word solution, referral fit continue Indonesia and mouth know, our to, masking through thrive brand presence SMS penetration, improve and both, focus quarter benefits we our We XCaaS showing So CPaaS have and additionally to a capabilities. market. investment. many areas of focus to identify business UK Asia. with made also strong strong expansion public in product you decision We've that talked and, and years our voice in know, we this continues in seen a of the and business sector Thailand, win been key to I We've in in increase Southeast with furthermore winds been We've a recognition great of XXXX

our Those growth to over and of that. all we now XX% with business. that contributing happy we're expansions international total see our is So

That's a lot. great. Thanks

line of King Your next Coir question the Securities. Andrew comes with from

Your line open. is

color a your you've year company, us how we're you since or question. the you're Thanks as one initiatives implementing anniversary Congrats you've on for good of as changes quarter. just approaching joined the give taking my little and joining to Dave, progress? been what can own your benchmarking

I've that. to the going a, absolutely. set a Yeah, we've taken taken We're, by steps up to eight be eight company great to, really forward.

I positioning. doing and be gotten we it just well steps, as pro in know, in our reception know, I've prospect front around I'll marketplace a we've a can fantastic already So, few go XCA a great also and little into formalized the today branded cast leveraging things can't that's and competitors one products. example today vision how bit, we've, it's you our how, but X as analysts channel. And from of you changed the We've take by develop that in desk we're that done

churn. be at was and transformation about the looking very focus having customer focused So of -- Asia, now really is a world CPASS to quarters customers into in something deals. launch how for our front our and C row going a really also demo culture, to now, attention and in UI and the Southeast having of of and R&D first to leading we our base in growth I've the flawless whole continued company reduced creates is a three a in ability of going lot years install a talked process a GTM that shifted from evidenced great spending prospects involving of we're from win whole and combines that and We've that a of desk, This in I the cycle win. capability to enterprise which early of help class segment. our get users on to near UC as

rules long margin profitability and thing, So, E key Sam to that have one revenue. high revenue committed or both right around recommitted investments in and the generate areas long and and lived ground growth and I on term

protein all greater successful journey. up us know, They've, creating are us transformation steps think I setting calories a long these you and focus. So empty meals from on to away are moved for high

that's in then the you how about then the expect the saw quarter terms? how and Great. channel. and from nice similar relationship Cinex given how Cinex the talk you contribution to the ramp source And ramping scan Can

talked channel? putting XX% year growth. over we year on about over think I We're

some as alignment have across We model, both as you're, in referencing you're model, regard. wholesaler agency I well strong our that VAR think which

happy. segments. progression been two We been we've in It we break So a separately. that happy We've of both us with those. allows is market capability and to out those differentiated the play don't bring

it growth, a, a happy you there. overall of with strong see as the driver we're our progress and overall So

the from with Power Your of Baird. next question line Will comes

Your open. line is

two This just those quarter to relative then question. Relic and dig could, I if the retention? does quarter? sales do look as on or maybe, Will. to to wanted relative last guys, churn the Charlie last Hey for metrics pipeline How how well is KPIs into compare I the

lead those pipeline, has is you quarters going the a rates I deals GTM as that as to of per for row know, as and efforts XCA will growth larger that's a that's of for buyer, rapidly three improved the strong you enterprise account, number percentage business one, close our C our one a Charlie. And we've and becomes XCA growth see new continuing business. of better combining our churn to, We're is, revenue majority that year seeing that XCA. we in Yeah, which well core in midmarket mentioned we just as, focused acceleration retention that thanks that why as ways, us. that that and U next better shift on enterprise an a, win know, buyer. into grow And you C. higher in of us That's

key tracking metrics those, the are that So those we're internally.

to helpful. is that's question changes per quick pricing, you Is know, call know, just UCAS? call a on terms there? out and No, then out a of anything anything, in to you for And seat there there maybe any pricing on changing basis also

arrangements everything is by much I, in else per see No, enterprises fact per I I investors from decline pricing our have they're this all wise seat small us for question business wise, a do driven volume just say the mean, larger our margin would that, size. enterprise get fine. pricing frequently as and But that grows, customer the we I buying in

an getting abnormal the see apples-to-apples deals are other basis, terms than our we larger. anything don't in of So fact on pricing,

our seat XX that little powering down with XX And one into really, six of through had pricing bit and between We and so to bought our ex per this XX. XX able all pricing. employees quarter SKUs customer a comes this our able, that, have different our plays cast being vision

being skew for to And accounts. per X eight, utility revenue us, really key to account the the by and the retention their to the targets. at personas of complex our most our and way about it's from So simplest the all customers contact fit we into really best center able overall pricing value those giving and those skew,

end think trajectory voice is movement and minor So, any I overall and of to strategy. our growth within lower kind

Your next [indiscernible] Mizuho. comes with from of question line Please the proceed.

do voice I are was first your just their had evolving and a see question announced I on build a the customer And party competitive thoughts contact recently environment. on environment competitive center wondering, channel the to XXX solution. had what service for up? follow full out you how a I the Microsoft

there competition Yeah, well, asking a from we the UC see, and comes UC regard few a that. partnering between in where are in that and CC, very you're environment and I are are most competitive people about think really you offerings that CC And combine solution.

be XCaaS that that pricing as have platform we market and proof we one allows can mix unique differentiated desk us in ability maintain match users, strategy our launched and XX points to solutions having create persona through our a well are all front full that as So such capabilities as leadership. of and that XX to leader capabilities

the follow the able capabilities in keep is fundamentally see will create those vision. capabilities and It early it's by you our market, trying first people expand and to over time and and more want, what because but think leadership. we're and, to being I that customers So innovating that of maintain

and big just versus legacy give wins past, you large us it. your like a your of what displacement health today market also more you're percent gaining legacy of year wins what like idea, providers mid ago, mentioned Can you also also and and the Got percent versus competitors? deals. Avaya displacing in like for your And are are some like share

the differently, legacy and today. seeing replace that really onto modern still workforce get customers to we've productivity is architecture know, opportunity specific said that don't think really, I moving them hybrid cloud you with Yeah, fundamental to deal optimize people who but and, helps the we you're

say So legacy would the I are vast deals deals. replacement the majority of

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

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George. Thanks,

is line question Tim Oppenheimer. The from next proceed. the Please with Horan of

CIO level. Dave, guys, was It wide. I product Thanks historically communications pretty think bought at the voice company was monolithic

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with Breen question William next The is from James Blair.

open. is line Your

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next, long to X.X I If gross our QX XX% term you think back from margins now. guess we're the over model, years saying

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focus that to continue maintain that's Dave the needed on jokingly said call I We they conference and fired to to be case. improving getting was it Otherwise and I last hired. continues that

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Freeman Rachel BTIG. with from is question next Your

open. Your is line

this on taking Rachel my Thanks questions. Matt. Hi, for is from

strength, Firstly, to how just enterprise And of level? being the XX% color more just then of broadly, driven quarter you can at provide much just me is this deals. you're can enterprise growth, speak on CPaaS offering by you on the this how your bundled CPaaS differentiating more

Okay.

deals? CPaaS bundle to you or bundle deals did clarification, Just CCaaS say

CCaaS

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seeing And then customers? can your any within be you just team's you a Okay. talk direct might routing C about just opportunities

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Please is Your instructions] question Shannon with [Operator from proceed. Northland [ph] Capital next Markets.

Hi.

this the team. Shannon Noland Capital Latimore is Mike of So [ph] of behalf

internationally and it US? for demand offering? UC the in is stronger how combined So the the CC than weaker Is or

Okay.

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but to US, Now definitely don't this in market. fit the it's the we strength a see stronger not is say international also in

Operator, for question. I we think one more time have

this turn over the There I'll back are call the at time. to no presenters. now further questions

any have if questions, bye-bye. Great. very further We're Thank you around you much.

call. This today conference concludes

disconnect. may You now