8x8 (EGHT) 4 Nov 242025 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Second Quarter 2025 8x8, Inc. Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Kate Patterson, VP of Finance.

you. Thank everyone. afternoon, Good Officer. include of of Wilson, fiscal and Chief Executive will the our results second Officer; Financial our Kraus, quarter XXXX Kevin a agenda our review for Chief Today's with Samuel

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

these that, investors.XxX.com. which Samuel to are GAAP. available at A release the closest or metric slides, and U.S. presentation website growth forward-looking plans non-GAAP, me let unless well of in and that forward-looking metrics, business, financial metrics GAAP today profitability future turn that vary is on and undue call reliance as as factors in the you cases, that are including call on as were and We All in these Relations presentation With focus or statements this statements comparisons comparable will the on principles as provided forward-looking on investments our in reconciliation noted. in accounting strategies. with Any call be non-GAAP report cash started, includes get not of have from These cause our they and not metrics year-over-year them. Wilson. described statements update as reflect to forward-looking today, made statements earnings involve results you the to Investor on accordance our our we risks together our otherwise risk with regarding to press products non-GAAP our in uncertainties this remind actual Before financial analysis generally our and some flow to I'll in about performance, discussion caution slides accepted statements discussed obligations we may with earnings prepared innovation over no and XxX's put filed materially SEC.

I delivered a us to Good total service fiscal quarter expected and of key than like results and to a believe we strength discuss doing our revenue performance GAAP am income. report share XXXX. to increasing quarter that the delighted and I afternoon, solid for testament Thank our go-to-market a to effectiveness better operating offerings. Also, you I second non-GAAP pleased strategies our that operating everyone. of of our am for today metrics we results are joining for profit the an generated this on quarter basis. financial very product the of

are as increase, to Descope, content early integrate Service. as leading revenue response a e-commerce It are Asia European APIs chose cloud technology XxX requirements. usage engine more rates QX high. and and customers; outlined added public We revenue expanded close they users all-time why and more an member of leadership and revenue is was solutions. remaining complex started. Asia conversations R&D to debt for vigilant Communications value conviction with it deliver of to XX% strategies revenue in we nearly Service. are and more year-over-year. We across focus allowing first globally; of basis. is customer engagement Group, new maintain build XX% single regions. us of innovation strong continues revenue a productivity; as the improve new platform identification day through reducing up more offerings midsized a Nuren experience Pacific ago, quarter-over-quarter roadshows a important from in creates visible WhatsApp a opportunities. is X win first a and the and sheet sales partner The a is our messaging, enables balance great Engagement continue and four, excludes to as CX three, While and and small and our communications our Pacific continue in recently two, a spark usage invest to is our enterprises; in authentication to transformation we than fact across our R&D capabilities leadership products active achieved than platform and of solution seeing that generated our growth on posted ever accelerating year-over-year five, management X with early, six, deliver ecosystem how Platform addressing our innovation our our fantastic. our our believe costs, sales bulk was these to fortress outstanding series our an this platform, still contact gets working. maintaining September in and which particularly progress indications solutions Briefly, customer APIs year-over-year real-time center platform business are Communications XX% example these Platform customers customers partners. Starting in with the Platform highest to by investors, Notably, XxX's quarter Malaysia-based leadership, on leverage merchants investment in The in non-GAAP to and Pacific on Asia my basis. a the in and and results on countries, extend digital we we while their still customers million-plus a that against years the on provider maintaining are: that X non-SMS in we Fuze, the Reinforcing Communications our one, This We everyone With than in automated X,XXX transformation by community. I grew innovation accelerate initiatives a saw our our establish as quarter. telephony; Service up

new Intelligent share our data artificial increased acceleration an XX% of sequentially than XX% a more the technology XXX% quarter. were prior including from of more other ecosystem Sales Assistant and few up year-over-year, from products than new partner points. Sales more intelligence-based products, me year-over-year. and Let solutions than Customer

is differentiated core pillars, accelerating. is growth believe reliable built introduced our usage more We than on and enhancing this which since X interactions focused products powerful, through I have reflects these hosted on AI, each capabilities. customer experience to X million AI were approach

can digital on while sentiment compliant. our and secure across enterprise interactions platform, prioritize topic AI-driven transcriptions, keeping data tagging voice and we all First, which deliver analysis comprehensive data accurate and summaries, processing

Second, seamlessly an solutions. ecosystem duplicating without we processing like into our to of we applications efforts to transcription. believe what AI AI-driven approach allows best-in-class CX consistent insights be integrated This developed customers achieve our costly real-time

and assess native in CX we're third-party benefiting insights optimizations that identifying deployment, both full Third, investing human XxX elements, both tools across components. AI and operational AI the

services and with team on is we professional want. the outcomes from business is to a clients drive consulting providing support services, tool, technologies but AI that focused our our hands-on Finally, AI just their value its expanding turning are solutions swiftly customers sustainably. AI into our AI

to in new leading in an coupled an multiproduct Our focus business on increase logo lands. with outcomes acceleration business, is

ignites XX engine, on included of is quarter. commitment New and Contact the that as a of again, noting quarters. in customer percentage innovation logo growth for percentage relentless new business our logos each that X logo is from accounted has spark the an more second the It our in X the the increased success majority top bookings last worth Center focus several than new Service, the accelerator. deals If increased included is the products. Once our the in initial bookings of of

XxX is customer platform at multiyear Our highs. and loyalty on customers revenue the retention for

time value. higher a being faster are level to with a deployed satisfaction of customers and Our shorter

has quarters. customer metrics proactive our customer Our X,XXX coverage maintained our support has loyalty increased revenue-generating reduced And white for organization satisfaction of churn. world-class X top glove accounts consecutive and

we the public received. have awards our have of recognition in seen success We

the had our affiliated a for partner not UC satisfied of in-store to had used One XxX of differentiator, span not if our platform. it demonstrates will to UC locations solution. a A service largest was a integrate unique. XX,XXX them is been we solution to clear ultimately chose chance from an but Cisco CC the A to wins what more XxX a quarter solutions I X,XXX than provider solutions mean. experience and enable service piecemeal customer seamless The this scalable help single ability integrated retailer process their recommendation Their prove was not decisions employees. in specialty have critical on-premise and the their move factor CC years. a cloud X implementation leading and would X Their with had who to recommendation

in for Teams several cross-functional one they upgrade than team. $X the after an QX we using earned collaboration, a Health, Love to Coronis annual of Fuze by Customers Us a provider revenue. proof-of-concept example health period, XxX of more do. of This was million leading in paying GX, they A because This site, Badge revenue the off. quarter, review cycle on investments how care customer the is supported excellence are to extensive of another customer recurring chose success representing our center deals solutions customer management platform

Microsoft thrown states proud with more our of into Teams features presence XXX,XXX quarter-over-quarter Speaking Microsoft for be dashboards now base XX-plus Chat and also call Teams than Designs, to Federation Gartner liked with Magic decision. factors in and a capabilities visibility to XxX Center the across leader cloud a platform. Differentiated program Microsoft to is and our only Teams of Teams our evaluation besides were Teams grow Connect brand with chose to with be transcriptions UC agent like their strategic the and robust deliver itself continues users, key single to XxX trusted Operator leveraging our supports portfolio integrated comprehensive to partnership solutions. analytics accepted year-over-year. Operator Scandinavian XxX and integrations, in migrate Quadrant They Teams workspace and in. Contact showrooms Connect XX

growing commitment aligned to are has to outcomes our partner both go beyond programs our relationships deliver Another technology reseller with momentum our closely important our ecosystem. been commitment programs including to customers. Both partner technology aspect our partner of our and to our expanding

for they Industries and legacy contact for competitive their comprehensive turning solutions, partner They organizations; chose center Service focused on delivering to provider on-prem did omnichannel X/XX leading service in Buchanan XxX XxX system on relationships. business by Contact vision sign outcomes agents. levels. technology up value-added an nearly embraces into are vision, XXX our shared partner business believes migrating powerful exceptional mid-market advantage. reseller, our a a values our also managed XxX support they as Center and New and solution agent their our Buchanan multiple their A IT only this as Not enterprise

and we has integrated Descope. already ecosystem partners, us best-in-breed our also I our time a believe mentioned carefully curated value for tightly By customers. clear partner new offerings our community of for are solutions our partner with win been a customers. we technology expanded accelerated our Our offering and the to what

work last hard the and Regal and XxX a using dedication We X to XxX. our the in leader market, our We closing, years. tiers. customers, underscore QX campaign customer of results X confidence investors. strategic production. resonance reflect our They and in future initiatives our also marketing the have path In express conviction customer employees sell exclusive with I to high-volume a and and wins in added of management Regal.io, want the These in the the of my over in team the already gratitude partners, you, my to our increasing my

and journey commitment continue of trust innovation. growth empower and XxX our to to Your are what us

converting on We to momentum partners customers. committed details turn are the that, I excited for about our and investors, for back increased to this more the over financial With opportunities call Kevin, into value who's results. ahead will are and our quarter our

our revenue QX operating good performance Cash non-GAAP our XXth service of range total guidance Fiscal a positive healthy. of in Thanks, beating financial for we cash solid operating fiscal and high everyone. quarter Sam, end in trends operations flow afternoon, expect We end for range flow revenue non-GAAP 'XX, the delivered to from high of profit, also row guidance and and meeting from continue. the was our operations margin. is QX and

over of and we the point results, out this our We debt million term value This of XX% $XXX of to $XXX subsequent reducing our August principal we a in September reduction million principal to debt today. of to our XX, debt I'm pleased also retired loan another million report term total balance since QX value a results that of with are represents repaid of conjunction million or of trended Relations $XX $XX our few doing of as we debt, refinancing. what provide view financial highlights shareholders website on to 'XX. on would end through And which Investor comprehensive release will is debt posted a primarily we do, press but call. I the we repayments. fiscal returning our said The loan

in from was Fuze represented non-GAAP service I in as service platform. of Fuze continued let customers on both revenue remind flow, versus remaining on that QX Before The subscription I offset in $XXX.X the the me revenue approximately be QX noted. was for and the continue, you service unless revenue by and base will platform otherwise customers XX% on QX XxX revenue of of metrics, remaining reflecting using expected. growth million, cash This except a fiscal 'XX. in decline X% revenue fiscal platform usage

like decline platform by out of that basis. our expect the customer approximately the during slightly platform expectations $X I to We benefited as and to X Fuze foreign complete rates to over we this XXXX. end percentage to of point quarters the beginning a the quarter year-over-year would revenue favorable of from million the calendar upgrades QX versus approximately $X.X on from XxX plan year the next quarter million exchange

ranges. revenue the margin revenue expectations delivered as a slightly and business. and service as on guidance Excluding midpoint QX XX.X%, our was FX increased XX.X% with usage for 'XX on consistent this in we our achieved we lower our Gross our Service expectations Platform favorability, total Communication of still above than

We with continue a QX to OpEx on million. operate expenses for envelope basis $XXX.X within QX at dollar flat with our operating

we noted is expenses, revenue the hedge impact on a our offset essentially by impact before, built As the FX margin. model operating natural have on on net we where into impact FX any minimizing have

demonstrates in compensation of X.X%, discipline. was due operating like QX end non-GAAP and to than least guidance in QX would performance. progress peers continued in percentage financials XX.X%, higher revenue years. at highlight stock XX.X% our line I strong our us range margin top above profitability our milestone high to helped QX a in QX, compensation at below that the The GAAP expense Our our our point of operating well lowest in stock-based GAAP sequentially that X as was financial attain a and our

in majority As we've lieu employees. our increased compensation cash of the of previously for stated, equity

our dilution Our as for cash compensation intention gets is it margin to in reduce the fewer increased excluded shares over isn't reflected financials. issuing by time, but operating non-GAAP non-GAAP

cash to the and sheet balance Turning flow.

was earlier. Our QX, the cash, $XX debt reduction million cash was in from restricted about the down end $XX balance $XXX.X cash million, end and of equivalents at by reflecting our as which noted QX, the of million I

for debt The which by is portion You liabilities this sheet the and will current debt current minimum following million the XXXX. XX XX, in value loan issuance discount of represents credit in principal September months $XX.X liability September term million $XX $XX current agreement term way, includes balance as million remaining since lowers the repayments payments The of million loan our notice QX that of costs. of only 'XX of our the the $XX on QX net principal required unamortized prepayments. million, required XX the represents fiscal million $X current balance, to payments By million $XX plus $XX today.

to innovation-led Days range business. and current days improved greater and as flow, outstanding With have our receivable sequentially, total align in our of sheet Accounts debt a net is principal is over million our As net today, our earlier, this more $XXX fiscal convertible of cash and we some balance XX perspective strategy. EBITDA XXXX, increased today on million well the progress opportunities growth At with approximately and ratio QX I and had 'XX solid million of pursue bookings To trailing of equity. value $XXX stated XX-month total sales that than to debt outstanding end ratio our $XXX deferred reflecting performance to X within the debt-to-EBITDA the for X.Xx. a of debt years, Xx. QX. of we flexibility revenue is is a August in of provide consistent last healthy

remaining a sequentially, in X.X%, deferred reflecting directionally increased quarter-over-quarter increase million improvement $XX consistent in and of increase backlog a performance obligation Our multiyear year-over-year contract our and our revenue. customer total the with

is financial As flow our months, XX in covers equity stabilizing $XX.X the million significant positive. a balance remained business, operations revenue force future strong for Cash recurring next RPO from our largely in which total and recurring stockholders' us. was revenue of QX, a majority a

model. about points operating let's a Now few our discuss

of on QX. marketing QX were with sales, but vary customer XX% our structure cost cost between usage total in the and and growing Service the about operating QX revenue R&D the a our margin of and could to continues very Total 'XX. was be and level XX% in of it basis expenses to portfolio investment QX between XX% We innovation believe that a XX% of Our range, in to to our Communication Platform cost drive in structure and of revenue target slightly to structure as mix our between the We services. dollar of still to products XX% identical remain similar G&A 'XX right service and XX% at gross expect due XX% revenue, adoption and and subscriptions. virtually revenue,

for million higher revenue dynamics. operating XX% drives modestly to compared We between related guidance anticipate expect margin QX guidance revenue we anticipate include XX% investments revenue, of operating We sequential the in ranges operating these into to of specific slightly service be context other the follows: as of margin be total third December for to at vary to our lower XX, shipments, mix. in revenue mind, based hardware we based to this quarter schedules to XXXX, vary revenue to be of the revenue ending established million. million, as $XXX the revenue, upon Note can range model that gross service margin the other on revenue total $XXX fiscal of implying $XXX in XX% on million million range total and XX% we With total and to deployment and $XXX customer-specific guidance and QX revenue go-to-market The expenses so $X other can combination 'XX. operating revenue midpoint.

year XXXX, on XXXX We anticipate total fiscal provide the $XXX the March anticipate following revenue of in million guidance $XXX $XXX to the ranges. to the in range revenue million. We ending to $XXX be million. For million we of be service XX, range to

At benefits fiscal margin full-year revenue on translates our the and million between $XX this quarter certain seasonally in as a January. operating expenses and for non-GAAP to restart of taxes a guidance fourth We and a XX%. the remember solid operating between million continue $XX includes Please anticipate into higher employer midpoint delivering operating fiscal our income of focus range, year. and margin that XX.XX%

amortization about $X.X costs current We outstanding QX in QX debt expect interest upon interest our million million issuance to debt be including $X.X of in expense, based rates and balance. and

share doing We paid working as assume 'XX we loan of 'XX interest debt plus amounts for intend and deliver profitable thank is XXXX rate look due to $X.X interest approximately on progress and paid in or expect will that are that Putting cash not cash remainder to the like the term employer would XxX happen the straight X.X% approximately remains million semi-annually. QX this to $X.X be a quarter's us keep These QX that believe interest. questions. but on team interest results, ready the Operator, we in the interest us million QX of line, to we X%. towards convertible due growth. SOFR per in together, fully this Note together our reporting get increased on where of entire $XX the be always strategy right of vision I in the $X.XX. cash operations I million, and XXXX. continue consistent solid throughout timing typically and earnings to from diluted all for I for full-year cash cash anticipate $XX to believe our that for are fiscal to from to I We we with be seasonally the Progress prior fiscal range to our forward and go. in between decreases does path expenses expect flow flow things $X.XX to non-GAAP to comments. to million the operations

comes Instructions] MacWilliams from Ryan first the line Our question from [Operator Barclays.

And the see results? is would quarter. on to the sustainability Pleased compared trends how about drove you for that key factors results? these attribute improvement services sequential This should we the these the to revenue of MacWilliams. [indiscernible] What that think growth Ryan XQ drove prior

grew. This usage And is a Kevin here. Thanks robust Yes, XxX also, on for platform for quarter. revenue had pretty the platform the business our core the we question.

multifaceted saw it we So terms was in the growth this that of quarter.

nice our fantastic, better So I any strong was model, last the which recurring off retention retention does, great. for It a question. gross better Look, think that the the Kevin, thing, grow. and right? business gross to have foundation was we

leverage some So we're I new as gross retention high, and see think cautiously I would remains say positive as momentum, There to products. our in we is long continue optimistic.

more solutions. X in it. today to see And growth what Can to willing Got compared And great sales then of driving just adopt us help this you to understand ago? XXX% are year-over-year AI-based months the is these sale? features customers

along and I themselves we having in that can is lot but or they're so customers to e-mail a to answer services we, the the this point more outcome. going we're to something a AI, are I'm our willing is does into business where be write you, going sort mean, solve it's with I the think for momentum yes, do business reverse, it than professional solves right? seeing a X of year adopt the to it AI an So of first how more because was -- problem. and ago, I turn our think the months these of getting reason

improve a agent no into we're productivity and those do that, of even scoring, one Now business that's with outcomes. like things, we things actually being has AI things transcription problem it. summarization, meaningful to used detect like Once buying fraud, health automatic kinds turning

Our line Turrin Securities. comes next the question Wells of Fargo Michael from from

comments throughout on target. midpoint year on full few to But the the the a team prepared holding of acceleration remarks. Sam, is you had

focusing get just migration you through through a to growth to working the move what final better So could Fuze work could eventually as product a for the macro, areas on those it efforts And certain through business to year return maybe up. just walk or you the ultimately take is a there? perspective, it that you're see from us year-on-year

Well, okay.

this script, right? So number I trying quarter-on-quarter, XxX, customers year-on-year. pretty about the the So up the think XxX on which be is clear we're core to in platform, one,

digits So to new well future and single part for a products that right as drive high as now, pretty whatever, tomorrow, to but I starting company or whole the upgrade will business. continues one become stable X we to go mid-single which -- the XxX growth, shrink company's think mid-single things. that not corporate what's revenue. is getting larger growth the is the -- over get away to starts above core number to today going line we customers, which larger in Number XxX overall become is it's two, core And overall our digits, growing I growth and meaningful, to digits, Fuze, is drive that will of time. headwind of we're clear continued sight know

products continue off And Fuze the business so and continue to of to run new that's sort grow we to just -- the business. need

to impact is on just margins towards just just help across fairly in if just any holding a helpful. gross unpack And gross on any outperforming little product margin. one are side? margin. set, underlying those obviously the commentary the we're margin there bit Is maybe CPaaS? commentary Or Helpful. further consistent? a mostly you tied mix gross on And You're on us the seeing margin gross operating Can what

has that Yes, that's correct. margin. this lower business accelerated a The and platform quarter, well has pretty

underlying remained mix has it will, The So very if steady. you UCaaS, margin, driven. CCaaS is

you maintain We to lot on profile do that of it a is see. which mix But majority in us, slight For impact as that gross will the business. great see of our margin the work having changes. some to

you just out blow there my of a more more But AI also term this large. Wall because one may too short a Street gross products. on we margins -- thing these little the in that of comments little usage-based would launch as add we'll I on guys suppression be

improve So cases the of amount the adoption as customer the increases. margins of customer use and number

and models cetera, getting a running, working, up cetera. to upfront So the it there's an et customer cost deployed, getting getting et

in new just we few our driving as so right, it's new or at as near-term there, product of compression, have a may part points, a of And you're new what grows, products of there not here shift. customers that the mix on is some margin business of basis be grows, but gross points little basis bit number thousands

make And aware sure so to I that. that sort you're of want of

from comes of Our Mizuho. the from next line Siti Panigrahi question

this see going customers good kind it's Any back to this kind the ratio. are their you you of seeing I'm AI those comment debt-to-EBITDA and agents But of of improvement that on so Sam, question trends in from solution that And in terms how funding are the to adoption, what human number trend AI they're who product? of you're adopting would share? seeing

okay, what so Right now, me it. Yes. is -- take seeing let we're

sorts, being things form We're core voice kinds AI-based. chatbots seeing kinds Agent Assist, bots So all products things some and on around you talk technologies clearly in AI-based. We're are campaign that CIDP, are about management those or that are adopted being things, of We're of of things the AI those seeing seeing right? all front, like adopted. and are scoring, certain those that health fashion

more it future. is terms future. of now, where customers not saying agents. In more seeing make useful use of and attrition. capabilities give what so with that see center not is right additional mine. we now productive, #X is situations -- where lower it's contact that Instead, right not The they're -- we as numbers, right not dealing shortens going their on agents what it cycle agent I'm agents the happen trends, happen this just saying to number the see training generally lower Assist you number we're Agent with I'll seeing time. I'm the going that I'm of is to adding customers to not they're case in in don't the now. saying a is the doing are we're example. like Those average third-party Remember, something simple XX%

like so productivity. ramping comes when meaningful to very training of things And time shortening is X-week it

this seeing think what that's of a of right not now, And see We're humans with sort so thing. robot's we I lot raw replace Siti.

makes small mid-market trend you sense. guys weakness? did you Okay. of where Any different That wondering segments? strength But by disclosing see enterprise. the sort of or stopped And kind

Yes.

quarter, a reasons, closing for host growth usage-based we stopped business, of last ARR So et in cetera. our

continue that it's right? focused And -- enterprise, same really so we saw the trend past, yes, on we're that multiproduct the sale. to We in

been to And The that we've on sorry, very we segment. headwind small is tail businesses. extensively micro been -- growing the businesses haven't focused and so that

with the customer And the so generally change that's seeing count keep up not in where we're enterprise.

our but comes customers. half So more XCaaS the type sort than I think knows from of revenue number, Kevin

So will UC that. that more that's than to just customers grow. And think contact trend center, continue that have I products potentially

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

that most of customer you success with noted lucrative? as just get underlying or clearly you're bookings. a I a lot of wanted just business. kind having the guys seeing a maybe type success? traction what XxX like expansion vertical you kind certain or in Is where new a question, then You to And sense there And finding customer are of second channels channel seeing were of kind

comment, expected than faster last could the kind transition this was you Fuze quarter? you if Just or of slower

Okay.

go-to-market was of It there. kind X channel So and and things our Fuze.

channel best new the source partners. -- last overall really channel see that. continued reseller we're of the improvement, side, business on proud was So any through quarter direct logo not of and Global actually to

direct in our do on still the but America. was backdoor We're focused So a we've of business. growth is better North by business which indicator growing The driven more our a sort of that's close with company, business. and something is to managed direct we reseller international our channel-first business, are

just a to And so think testament that's what doing. we're I

directly seeing enterprise via RFPs. us customers come more are We and to more

bit get we're We're used Meta, it's was there. down reasons if shut -- an that acceleration see to accelerate just we of next for we or little on is Fuze think the one from guidance make would I key, for than and get hoping in starting the that but what's continuing are put year pushing don't to us. kind than it teams worse moved on us to behind end progress Fuze okay we But We're to behind expected, Fuze I really On of still get a upgrade happen, to and so Fuze, quarter. are of because expect continuing a us. that. And And platform. can. because a I this customers we lot certainly wider I the We're know track benefit little cycle. as may of the ranges think better over you really the this our bit more we like was calendar we you to the was -- going to hard

line of the next comes Power from Our William from Baird. question

Thanks. Great. Okay.

and You And that's trying is more kind of the there's bit I Maybe sure key guidance in kind anything a tying guess, of I onetime for not into revenue make I to to sequentially. issue just all drivers It one just strength be there kind the that service there. referenced guess talk little think that, down the quarter. like of sounds of sources the the the the really of CPaaS was to just of that. upside. sustainability

that. trying just drivers of understand So to the

All right.

On general, Will, in quarter. because think in call in business expecting sustainability what have expectations, strong contracted general, don't be revenue. and on as relative to I we the the knows, Platform-as-a-Service the everyone quarter, I to were usage-based on love businesses your usage obviously, question above

want neck is out the you to far. this call of really part So where stick the guys me my

try cautious. I little at a to least be So always

a things We in are of our CPaaS doing business. number

R&D, I've team We kinds impressed and just future things, the which have running on I'm drives the innovation, been capacity really money on CPaaS spending on got And sales of business. those with. business,

it's over in the the that great. investments platform paying last think And two so are year itself is our front, Number from benefits. I

to talked some feedback our with our I stuff in call away coming on the And up CPaaS we capabilities always add-on customers. the about beginning kinds the the so future events. do the and routing, resonating our look, business, of the New us, packaging, intelligent did. bot carriers by definitely There's omnichannel, changing being in I of the security. around said, our of things. briefly We've descope blown in a That the Year. year around Our and tribulations got Chinese was positive on roadshow the calendar got we've trials pricing those various

quarter, was line. cautiously drawing the the CPaaS It would where linear month overall say, very that nothing but optimistic business a like start the and we're business, business So onetime month. don't There a on in want stronger-than-expected like we go. was could I I quarter, by to take you

conservatism piece there's like that slightly weaker sounds sequential driving it on some So the that perhaps is revenue service guide?

conservative we Definitely, have don't we be our visibility. CPaaS, in Yes, to trying with the guide. are

mentioned is pick bit And a little I and to always of because want of a it, get we bit know I Kevin a FX. cautiousness up cautious, of there's thing tailwind. we little be when but did a just tailwind other The

it think you how much said I was?

Yes, $X.X million.

that could some so to flip And degree. potentially

don't So exactly. we that's FX don't We rates. know going forecast where

we bad do FX, really forecast when it. we're at And that's

Will, the the want that to bit, be little other we equation of just of of. side a that's cautious So

maybe kind just view broader spend, Any quick updated X Okay. a cetera, you're willingness from of versus cycle et a what customer ago? of And quarter to just kind second a one. perspective, or seeing macro on maybe sales

or a what number behavior it's on But take -- if pill it's fiscal purpose number fiscal of companies, of it's know more our don't there fiscal quarter but by see little the I by Look, fourth fourth companies' they a other I Not this fourth some quarter, of irrational quarter. is accident. strange the And is bit a Yes. their quarter. competitors.

quarter. this reverses think quarter next it usually I fixated very it's on and out

I also et past deal That's that I is the So see from RPO, think I up. is Obviously, our high, the talked some But success. cetera, pipeline in record a is and think which offsetting it our can about is is seeing that having you am fact, we're we've that. pipeline up.

fact is strategy capabilities that situations showing and I seeing fit, are So offsetting offering. We market our the our clearly the and we're in product products are product portfolio right? innovation appreciative that is think where very customers

my pointed tell XX% pipeline products growing, new growing is lack my I whatever. I the But et leading of it's just cetera, growing much in is year-over-year of don't by that driven competitors, you fourth fiscal direction. that by RPO as are and desperation my quarter, indicators know our so is right this investment how and the or some know of the my long And as I will are

question America. of next from the Funk Bank of comes Our from line Michael

revenue So from coming thanks again for percentage Fuze. revenue, service of

X% think said this I and last quarter. year you XX%

So So to if that guess, $X my of platform? from that much about is I how XxX declined, that right, year-over-year, migrated migration Core Core million, much math but grew the $X.X Fuze? How million of year-over-year. XxX

-- actual get Michael, go me let it's we the Kevin. numbers. Yes,

up. that looking he's While

tell one you Core XxX... I will that, the even So is without thing

Still grew.

Still grew.

Yes.

that time from number, So he's going without in to did and the one year-on-year pocket migration Fuze wasn't at quarter-over-quarter Core make to grew XxX to give quarter. growth the last you spreadsheets. right just can of X,XXX I left you all think we sure quarter look but ahead the -- of his last find upgrade it any just But pocket. contribution

Yes.

So where in so it's the upgrades or over. about QX that moved $X.X 'XX million as Fuze

what expand strange behavior. framing future on And you define Okay. fiscal Can quarter That's mentioned you that exactly companies then, or very helpful you some comment, strange in behavior the potential. by fourth that? Sam, their with meant growth

the put thinking they're shit they in what the of bad with some crazy wonder just marketplace. I pricing

understand because you're that have and deal mean, you, we it's because always cycles down customers I price I it's honest of but do not don't low, think that those slows helpful, In us. because usually kinds investing the good it end, if and counterproductive the I and for just I thinking future overall, win isn't they slows in -- they're -- this the when to things, not what of your both deal with deals just down it be the cycles. obviously, just just So I'll you it's product ask,

behavior. that's so And what I meant strange by

quick the last count XX slowing you seat decline I in change in of a rate a could. Have really or change One the either seen if one, Yes. months, in in a decline appreciate just customers seat well, products count, reversal any the count? of in you're change? as selling in but rate in from the I more seat change that now legacy

Okay.

tell but I'm answer. this full get to I'm to very is going -- second what going very out be going in that, I'm just the So to you me to answer because give cautious be a yes,

the UC But accelerating seeing sales. I that's sure is I'm seat industry working. CC We us. are think not and how

I to proposition necessarily And that's think those years a is order. the my phenomenal has overall. not X sales organization because fact driven restructuring be world new to XxX, by that substantially CRO lot both And our busy last the macro over of my value could the changed. of very the for industry

of the Levine comes question from Our Peter from Evercore. next line

you of us of up growth cycle, Sam, monetize? off us through talk you much XXX AI Can just Fuze that scale bigger the remind I and excluding but exchange part to or said like us in you're usage AI to know a more. kind it's story, of kind continues early and how gave us up. a XX% as products the help obviously But acceleration solving walk value usage is a AI, stats follow-up year-over-year, you like is outcomes maybe becoming the that you how coming us the like through is of monetization Meaning you're for. usage? quarter-over-quarter, what value business obviously, monetizing there of can capture help the

try question, answer, you because give sort to Okay. shaking I'm reasonable I'm question. a it's to That of but and is multifaceted a going multifaceted a

Okay.

So, we AI, it monetize on ways. multiple

have So, sell-with for sell-through that and our model. the model CPaaS partnerships the we involve AI,

sell-with that on may we'll introduce get usage So, prospect company, that the or whatever selling, revenue product model, case to the cut the future. a may the the cut and or jointly we based on the we're a in be

it paper. model, sell-through we're our actually the putting on On

and buy customer common or then a that's a assistant higher lower of at price. some at where correspondingly with price intelligent we those And sell things pretty so

were in usage about You general. asking also

we find use we what these these models, land So, sell models with case. the customer we one when generally AI-based is

we and a minimize value. them selling that, this to really we fast is try customer time we do likes But purposely The do when the value, platform. we that ROI we So, it fairly time hard we're to to get to relatively If make get fast a want it. quickly, straightforward. reason

the given the of quarters then that or and we've their to drive. use quarter-on-quarter, it landed last that's value kind to becomes deploy And we up given what use what of what the see cases case, over quarter-on-quarter deploy see turns very sales. time significantly it deploy same-store then all expand if because fast of Almost use platform, come scenario. our number They So, out set case? that use them in, to we that we've sort the the sales bot, usage what as grown if the really we of where happens this them is we we we of out working. usage next have X significantly X we What services -- if they ramp. if all we Same-store this get customers concept case, continue professional

think almost we're slightly case, turn like and way, these And that retention. that fully say time help complex to think case, would over along hence, revenues, monetizing. to thing into cetera. gets better should use year-over-year. is as more obviously each so, partner use the and it's XX% the more greater -- et complex is than more of more which that customer, as achieve other a become we strategic product advantageous use better simple part I And a the gets and more growth case, we I the more And the us used, I the

talked off about And million. call maybe then quarter, in it, the just X% you of kind $XX of one dynamics piggyback the Fuze

of is that capture what the number, XxX willing. If to a of in you're you that terms of If percentage or do you annualize to there sight to expect were platform? line transition

to is. the that expecting like some And on employees than with But forth putting maximum is, amount we're we're that of listening to it can, resources a less me. is a make but of we I and there discussion to host of Yes, transition that happen. reasons, a XXX% transition mean, any we'd call, won't my number all for look, answer this the lot

'XX. calendar of end the By

that of front or are... in putting you're Any you're anything -- sales incentives folks offers that your that

the incentives Customer Assistant Yes yes. for transition, on that AI to of out example, month are give or for things those them example, customer, kinds sort Intelligent of to it. available to try the to go like, and a of if to the free guys you for advantage And give talking you, an go some sell about we'll make for the Offers technologies there's and X we're happen. our deal XxX some sales platform to

the from of from comes Co. question & Needham Ryan next line Koontz Our

guide? Nice to we setting sequential RPO is kind that of see think your How down visibility should pick up Sam, given subscription how about the revenue going forward the here. indications sort of those of kind it RPO? of particular in trajectory segments customer of your of -- of lumpy? some do Is of it you for some expectations the here Or the near risks you think are term? seeing around

my legitimate always Ryan, let on question significantly platform. And frequently, is It's voice the even it's there's a tough completely me answer. of there contracted of side the actual a contracted of And these revenues, less not businesses, if -- it's usage-based question. more usage revenue. of is into why. the a bit amount than necessarily we to say When get

cautiously month, of we kind there's being contracted zig the for simply And it we're zag? future is used seeing interactions definition number And a in zig line of seeing about contracted. could increase RPO. know revenue, significantly zag number a or that's revenue seeing be We're so, contracted where is straight by increase Intelligent or not smaller or business Could backlog we're and me underlying momentum. Customer of an right? It what it's the optimistic in Absolutely. of RPO, think a very I either, which future, x but Assistant per makes it an may

consumption-based more, of seeing I a do like say RPO are straight request pricing time. we we of It lot that In financial from opportunities that in like grow line. to model. won't usage business customer the some it we how get will to linear commercial in think a other a want push much or consumption-based that deals. a on and And what I depend future over customer so, is and be I or things general, And will more say, would have

think we that's so need just about. something And all to that

a just And quick follow-up, please.

international seeing any for they along in you come kind big to On your of fee there? this some these markets of do like up U.S., you the AXP stuff Are cloud person? charges CPaaS business, AXP are seeing core APAC the of

let's be increases. XXXX, big But in price and pushed No. through XXXX pretty clear, those carriers XXXX

price don't of us. unlike it XXXX, pushing mild that some seeing prices the because up think because I So feel in be years pushed we necessarily they've here, had X -- need we're so I much. to prices They this higher done saw they most they obsessed seen we've actually year, increases like through about what already to

it, need coming And we're is so, of machine because whole bullish the I registration of in say think bit thing, I a Goldberg the the on pretty right don't U.S. market et we RCS a now cetera. future. would

So we've got innovation product around some going RCS.

about I'm that we're shortly the things. to those pushing But not hear kinds sure carriers should You see from much of to going and more forward. expect

conference Samuel At this over the time, back closing I would to Wilson, now turn to like CEO, for remarks.

you, I shareholders our to to customers, All really our listen time everyone, want out right. of We to their our for us. taking appreciate partners, the Thank for and it. importantly, our day employees joining call. busy earnings this thank most

company on we think right earlier, sort the mentioned the of I path. is As

next Our Thank hold, we quarter. look again you. you is forward updating transformation to getting and

concludes for This conference call. Thank today's you participating.

may disconnect. You now