RingCentral (RNG) 7 Aug 232023 Q2 Earnings call transcript

Good afternoon and welcome to the RingCentral Second Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Will Wong, Vice President, Investor Relations. Please go ahead.

you. Thank welcome quarter and call. earnings RingCentral’s to afternoon XXXX second conference Good

me Founder, and incoming Shmunis, are Sonalee and CFO. Joining Vlad Robbiati, Chairman today CEO; Tarek Parekh, CEO;

and include by today prepared format by Q&A. will Vlad, Our Tarek Sonalee, followed remarks

presentation have which Investor call, Relations on also ir.ringcentral.com. find can under will We results available with section that at coincide our slide a today’s you website the financial

performance company’s and questions Some will to contain business discussion operations, regarding statements our financial of your the outlook. and forward-looking responses

are guarantees statements and may some performance. These to forward-looking to subject uncertainties, obligation these control results no our update of risks call. our beyond statements statements, and which undertake this and differ Actual of are materially from are we not future after

the to are that Securities the earnings as discussion uncertainties the release. and indicated, to refer Unless complete well our measures year-over-year please Exchange contained a in follow filings related information otherwise today’s non-GAAP Commission with as For of comparisons. our business, and with risks all

A is release provided reconciliation deck. slide with non-GAAP results to in the earnings and our all GAAP of

certain measure For as not reconciliation guidance, our on in financial the website. deck Investor discussed slide in posted is detail the available corresponding the Relations forward-looking guidance to non-GAAP a GAAP of

With the that, call I’ll turn over Vlad. to

and has and more this I Robbiati RingCentral. this know that date. I’d a Tarek RingCentral’s you’ve in to warm extend I will as thank second call. transitioning on quarter we’ll about the effective Chairman like next been be talk for quarter news earnings CEO, on August Tarek, to appointed later joining that afternoon, XX. to Executive welcome you Good our has likely for busy conference call. a This been exciting seen

our has team, the to also Company Mo shaping leaving endeavors. I Katibeh, in meaningful pursue partner to a will out business. our map, the who all take of about and best pivotal Mo product be evolving in Mo the team, wish road behalf our other winning On building in entire coming the efficiencies opportunities. moment driving we culture, played to future Board our role ecosystem, say a expanding weeks words a few his the and want the myself,

RingCentral week, Events development of Session last product the virtual acquisition leading of fits engagement the competitive the customers, delivering Events experiences a to well to welcome virtual and point. events. On complete our event we allows The of complex video price and from includes users Hopin, meetings, set corporate Hopin us easily announced online Hopin would teams I Hopin technology hybrid and provides side, a and Session’s that at to and engaging video technology. the talented meetings video rooms and from all more and webinars, lines provider Hopin strategy the for up events hybrid with portfolio and now Events like audience with family. personalized

Today, first this years ARR. to quarter. as XX reported turn call CEO is earnings XXth call, of my let’s Now, nearly and today and to million over years is XX proud have during stands time, financial say at number a this no $X.X missed long ever billion. $XXX we RingCentral. our On ago, This exception. is period not the earnings the we guidance in our I’m

growth our and quarter continued was to against innovation. execute solid sustainable, plan continue QX delivering of another we as profitable

XX.X%, free year quarter spending. our The of translated XX%, profit our and ARR another record end This approach and points well in increased the flow. margins above also to the improvement demonstrates range, our cash above disciplined record revenue another the profit of model outlook. XX%. leverage our improvement to last guidance grew to high X versus grew quarterly total For quarter, second percentage and Operating

is the our which while profitability increased company. this delivering We’re lifeblood continuing in of innovation, also invest to

all new was all, on innovations. that pioneer, leveraging RingCentral the RingCentral has to contributing contributor complementary intelligence. innovation. RingCentral connectivity, prove been and But to computing. beneficiary conversation of most of megatrends now cloud and of and an early and and important founded that is these be a again grew expects the mobility megatrend impactful is this the may emerging the to major be to there

Conversation the service business intelligence enhancing it business improving communications has impacting of productivity, customer is highly outcomes. positively as relevant for and potential employee

DeepAffects, company, of of our intelligence is potential RingSense commercial several for now first conversation which the this XXXX, AI a the year, ago. acquired we RingSense platform. saw intelligence December years In our March announced We product, Sales. of we foundation conversation In

significant Sales. for we RingSense we March, RingCX, omnichannel products, intelligent words today, for earlier about A native products. two new and RingSense introduced Since Phone center. have And new announced these our updates contact few new to

Sales. innovating for RingSense We’ve First, a fast been pace. at

our added improve and have to We features positioning. customer many competitive feedback address

Calendar it agents Some makes which track of Calendar; third-party Microsoft which leaders AI-driven whether on and these or which Outlook enhancements such scoring, include: provides with XX easier and improve analysis, to HubSpot, AI Deal as Dynamics, integrations pitch; applications, pipeline insights helps are win/loss win/loss to health risk; at Gmail Salesforce, are AI-analyzed see improve of leading deals for customer from and based progressing conversations their sentiment interactions rates. sales coaching, and effective effectiveness selling

AI collaborate closed conversation deep RingSense call leverage Leveraging and and summaries, organizations to captioning; Second, A voice post transcription boost to insights efficiently. and for highlights apply more analysis. key enables insights few sentiment their conversations productivity include: RingSense to live and for intelligence, Phone Phone. and

important to we believe more efficient will RingSense RingCentral as billions post-call is of traffic for well allow as to conversations for analysis. drive Together, improved as productive outcomes. of hosting insights it will live so voice Phone effective of gain via minutes calls lead users. on business and to them be more millions many

least, Last not but RingCX.

million proven for excess MVP and ARR, great Center RingCentral inContact. case well have of $XXX business CCaaS Contact is have now with by integration. that of NICE conclusively CCaaS We With seen is UCaaS RingCentral powered success selling we our that in the

inContact integrates NICE from a with as differentiated into it solution single offering joint respective well is Quadrant-leading our provider. Magic products Our a unified

see partnership continued and continue potential. invest in significant this We to

our to in introducing However, would simpler now additional to center suited an solution native a need for use better why intelligent contact That cases. also we customers, recognized are be that RingCX. listening is we’ve

a believe powerful use, in administrators. RingSense engagement be ability an offers this that integration. is via to the of we’re good and getting with includes conversational RingCX RingSense general pricing. for experience and disruptive well and Sales, workforce and insights its AI-powered availability summaries early, by native availability a received initial of will omnichannel as ease It also for its because product is It partner expected management RingCX also agents integrated Phone OEM RingCX We quickly as XX+ of transcripts, well be year. end all currently controlled deployed but feedback. for are

innovation summary, In operational strong solid execution. it our was by and quarter, highlighted another

RingCentral SaaS to leader world the the I When two companies improve we customers. beginnings, founded our in around a with CEO world. become how have one space to a businesses ago, we back succession. were communicate humble in From startup the internally of Now pure-play and recognized and the ambitious unfunded their largest over tiny, decades an mission with those

our of anniversary XXth IPO. the marks XXXX September

for right believe CEO the this Tarek the the Given for today, a time financially, we’re right strong and job. And is I position is succession. person in operationally the

ground been has the our since a business is senior highly to and leader. position a which has to get running January, a our one. day to an business, him unique key member of hit Board know Tarek our He Tarek culture. in I given our believe team accomplished opportunity is on

business, on am As of what plan product most, is for actively future. strategy, what incredibly development. focusing and engaged together I we about accomplished the I’m love the myself, energized my to innovation in have and stay proud

will the additional call for Tarek now I this, turn With to over remarks. some

the CEO. Thank you, be have behalf consider gratitude I express Board, RingCentral’s on immense you ever our second privilege for distinct let all it me to built. And Vlad. of a

company took global XX,XXX paying approximately enterprise users million an and a bringing ecosystem. You dollar X idea an this serving together partner end expansive from to multibillion

future. ever-present a which to to results and on are build for stakeholders. And principles, our customers and enduring I for our drive we an have commitment potential RingCentral’s is I delivering foundation and believe our vast. Vlad all first, people innovation on core aligned

These as the greater of drive we and execution profitability cornerstones performance be to focused through operations continue of our our will strategic initiatives.

personally, his And me importantly, behalf from the I to on the like thank and luck. of tenure contributions Board during Mo for would him made best and the of he has wish that

more to over go call let in quarter turn the me to detail. Now, over Sonalee the

best of valued again. partnership you, Thank with new role. your going continuing thank to Mo and forward. I’m working his much to forward for looking our I’d excited partnership very and also like the to be him Tarek, wish in contributions you equally Vlad. luck I’m

for second the provide our now and full then the discuss outlook third I’ll and quarter year. quarter highlights from business

Subscriptions and within industry revenue our ARR such $X.XX and by retail as was was guidance driven verticals public was XX% strength of services, Growth professional to sector. financial $XXX versus our last healthcare, above where billion. and year are key mission-critical, year-over-year XX% million products up range.

Additionally, we center million, up in contact the center CCaaS strong roughly are for from end ARR was a seeing from integrated roughly customers $XXX $XXX leading is XXXX. plus demand by contact traction continued solution. driven The UCaaS of million at

for tools the into airlines Republic Airways, money. XX urgent of in routing Republic quarters, U.S. win integrate reach well attendants quickly cloud of contact regional Republic the power the scheduling company’s any flight their integrated which with them legacy challenges, center, to with Their not these platform the our advanced system and required pilots phone contact solve frequent maintenance. on saving reliability on-prem help past will industry-leading also our An center to is The the its call while changes. all Airways example recent of competitive one largest did RingCentral’s relies and Airways FiveXs provide

marketplace. for App, Airways Embedded to RingCentral traction Teams in our continues new Importantly, X.X Republic great the plans see to utilize which

Moving will to non-GAAP noted. be to results I referring unless otherwise profitability.

to was margin gross differentiated was customers XX%, again subscription our Overall with as $XX ARPU last value offerings. continue Our consistent above quarter.

margin. ARPU solid strong supports our gross Our

to last the expense marketing improved which spend was Operating the efficacy efficiencies down Sales driven XXX last quarterly basis sales marketing, our generated across took of to well increase and basis and points the November. we margin leverage versus year. due last XX.X%, rose The was notably operating year XXX in headcount and by business, actions another as marketing points versus most record. as

As impact a not salespeople. did customer-facing reminder, those actions

of an adjusted profitability be the operating flow improvements to to quarterly leverage, free our and increasing on record cash driven continue flow translated improving free throughout million The our basis. conversion. business cash Our into efficiencies flow unlevered $XX free cash by

capital repurchasing shares investments, employ inorganic our organic Our flow allocation free debt and strategy that generation us and cash robust maturity. to a allows includes addressing evaluating dynamic convertible

vectors. we able were against all quarter, three these This execute to of

to million aggregate Loan principal The $XXX convertible $XXX repurchase paid we our notes. $XXX and quarter, second repurchase million funded the our XXXX hand during with First, was million amount Term of in on cash A. from

rate X.X% times. can we into is X.X times our approximately our that debt we exit as A. on interest be of Based X.X% Term following a our year. step outlook, the as net further XXXX quarter We on trailing on fixed swap on results, X of second to also ratio than our entered continue net floating our a results repurchase. And to XX-month modestly The leverage expect Loan agreement Term based fixed weighted deleverage. we the A approximately cost is the interest less leverage our down Loan and in This

shares we at of quarter, repurchased average $XXX approximately the $XX. of approximately million in an Second, price

share $XXX Additionally, December million, authorization XX, our quarter, effective XXXX. during new approved repurchase the through a Board second for

Lastly, from as we last video assets to offering. our augment week, Vlad acquired Hopin mentioned,

the XXXX. to While we about acquisition impact expect expenses and in on an immaterial our are excited addition, have revenue we the

Before market to the I seeing on and provide are today. I’d with our guidance, full additional the year macro third provide you trends quarter we details like in

Macro trends versus Sales continue approval. go last cycles through with consistent decisions remain customer quarter. last largely additional elevated to and buying of year are layers

hiring within base slowed and their customers our are existing as seeing We employee have less also count. rationalized upsell

cloud to lead driven demonstrating strong, on-prem demand marketing remains Importantly, continued conversion. consistently flow for

Now guidance. turning to

of total growth X% to revenue we XX% of X% revenue to the X%; of XX%; and to $X.XX XXXX, of margin XX.X%; to $X.XX. For expect non-GAAP quarter third growth subscriptions non-GAAP of EPS operating

and are into second Note portion a the the the innovation operating quarter. in we outperformance activities we in of that reinvesting quarter third delivered go-to-market profit

and strength in drive areas in investments, where product are AI are differentiation expected of there including select to Specifically, demand. verticals greater incremental

the XXXX. Now moving full to year

A, XXX midpoint, We growth basis more XX% points growth prior expect this of inclusive continue year to $X.XX and revenue total that basis prior outlook to XX%. interest Term And up points than operating is Loan this And to margin to At XX% Note the from of not our EPS of expect $X.XX. subscriptions XX XX%. outlook. our above expense we did to versus of revenue $X.XX of is and include. our of non-GAAP XX.X% non-GAAP now $X.XX last outlook which

achieve originally that last $XXX adjusted much pleased Additionally, expected. achieve free cash we able year we be now than would in roughly of original in XXXX, earlier XXXX. than $XXX quarter, our flow flow, noted full million to $XXX share to free unlevered that I’m of cash earlier target we had to expect million a million to we

We of we six XXXX. $XXX million as have in on way first months are our generated well already the

efficiency innovation business. continuing It initiatives, in to the demonstrates also target progress speaks and activity. invest are our the while targeted all making we updated Our power of on leverage the in go-to-market to inherent operating our

demonstrated of leading robust on free generation. We scale growth again to with innovation, flow continued ability us summary, well strategy model, coupled our focus profitable, product offering attractive for execute with success. believe our business In positions QX against our healthy cash our and driving differentiated and

With open that, the for questions. let’s call

from question go Instructions] Marshall Morgan Please ahead. is with Meta [Operator first Our Stanley.

like software felt and the your the What of you maybe Company to will was why of of right long. outside so with stepping but deciding go -- sorry traditional in enjoyed on kind working Really just choice? Thanks. Board, ongoing after see just aside obviously Vlad, guess, with to been kind you. with Thanks. the somebody realms? Great. engagement Tarek you terms has I he of be

Right. Hi, Meta.

Okay.

et Chair CEO, product asked. vision less But not I’m real actively and innovation, quite to I involved, aside. long-term be intend governance role. working to no introductions, stepping the I’ll I’m strategy, Executive Firstly, side. Obviously, an on stay on will transitioning around and so questions be cetera. Tarek

us. both room in specifically questions I it I length. Board great Tarek comp both he believe, was directly. very the -- understands for of the the committee Board of a well. here remind the landscape, and transition quite moving We also being the for on committees. speak see And for We have since member, of the at business, disclosure, He’s the he knows both very answer and of -- year. me seamless shares been us, way, an has very, the our with But by a rest and folks, also I active Tarek audit company who as December and understands member so last It forward. been importantly, can is partnership profitable we the the that discussed of very want Board our some to I to you growth. to that someone values, have shares our And strategy important

dimensions. of And being very heavy So profitable of Tarek both both and are on well-known is growth. those in words hitter both important, a -- those

had And accomplishments, of CFO, with a specifically what, both you for a some for years. and the Look, to HPE you why prior. Tarek your software can shed from I’ll of light. question, our and number Sonalee, and tell from working he’s at someone she’s industry, Tarek been is industry. not Maybe software Tarek the number major

absolutely. Meta. Hi Yes,

shifting So, a revenue proponent is the which yes, higher working such reporting much growth over years job HPE where much huge we he of Obviously, where areas, a HPE we into saw spectacular at a for did he as pleasure amount the growth. massive of base. I’ve Tarek and Aruba was investing is Edge, and a larger have at to of known him were XX really directly did of when the portfolio and HPE

business and GreenLake don’t also grew to significant then finally, divisions, was and So and a AI portfolio. it computing high-performance amount. But central overall pivot, see very the as-a-service the all aggregate the was the grower, and he sometimes above well Aruba in you the which then

successfully also profitability both has and CFO track whilst CEO a Tarek as cash both driving experience businesses growth importantly, And and and strong and a vast has as flow. and -- very record scaled

very, think we just very well So, he’s rounded.

from question Securities. Truist Terry Tillman next The is with

want an mean are on and my but to be Yes. ask our these question, provocative to. going be think a questions? I do And I then you I extra should Vlad, I answering still question. ask will I to able I calls have

financial, the to as know immense company’s to if into want would in appropriate, maybe I better this but as say around. sailing is also the And have or success. be interest, I sunset. not mind, Tarek just CEO. I’m speak Tarek I reiterate, me, basis, tend you worse. still my to me Look, for I financial going participate, to case-by-case a not But wants on look, I’m

So I stop don’t think soon. to going that that’s anytime

I you the growth. think is call quarters ARR the Thank We don’t about past, But actually, for in top have you of the left, could know what only us update line that give both. bookings, on how you. the bookings and there? rate would for the kind and year question Sonalee, to thinking My growth ahead in talked about have an Congrats two of ARR you’re visibility how I trend you you second half.

Yes. Sure, Terry.

free know, reiterated our operating on that’s do second guidance full and raised we we typically much cash and ARR. year guide more on guide well on margin the our as don’t today good And half, you provided As we flow. as visibility and very guided why color have around

But when million you the color, $XX about we in did about of ARR, you quarter. in of bookings terms think providing

holds, we to if slightly how able first be million has weighted, absolutely it’s ARR half half of the whilst guiding net that been means ‘XX. achieve. business that bookings of seasonality new think not historically So specifically, And should second about you if about more our we’ve generated in $XXX typical something we think

reiterating we both around basis do you And the points basis full ago. year ask didn’t versus points, QX on about specifically on is and year XXX subscription up margins, revenue year-over-year you of exceeded And outlook the guidance, -- are we strongly just revenue. the XQ by if but XXX which a

that, of raised midpoint we because points. of by margin guidance basis So, the XX the

continue And the And strive to know always now for will year, do XX%. we’re to margins. exit year looking we to for you the XX% we more. full least at So to XX.X% at, expect

next with Please Samana The Jefferies. Samad question from ahead. go is

with to echo, Vlad, working still and great then. been it’s to talking look now forward I’ll you every you and

a mentioned I the you maybe can business. CCaaS world. a just on do of -- into if you guess where question But you side maybe double-click So, the know fits product on the you of I new who see replacements? the that, that that would I that Are be targeting product? And after actually going -- more so, ARR follow-up is greenfield then, If have a CCaaS opportunity? with well. you as that who you’re

Sure.

you, Well, Okay. thank Samad.

Okay.

of RingCX, is what announcement. what and you’re as CCaaS as a that part over far portfolio look have And have so do that’s business as So, we unique? about our I asking We million $XXX well that’s -- think world. and communications that the and one unified makes twist we the is market. in It UCaaS, are ARR. is extremely the in CCaaS actually playing a there providers of twist CCaaS largest playing well us But here in the

is And to it’s -- this playing been This inContact day well. Okay? NICE have extremely obviously, inContact. unique between It’s us people this -- we where integration. and

Okay?

opportunity? center, they to new line see If until even an really just tend frankly, Now what’s now a involve not firstly, what us -- somebody we not would of the likely are, pure-play needs were business requests. requests, up we locked RFP. that don’t but we out, contact in -- so So a

we participating getting directly. expect opportunities with be RingCX, those and So to

remember. to one number that’s So

its an opportunity. is right to rights. means pricing. simpler X the a fairly any comes an with where come and without that product. smaller This businesses, question. unfortunately, product. but And just leaders Secondly, simpler with means requirements. that NICE We product. healthy the enterprise-grade greenfield necessarily not the into businesses -- it’s Gartner They in, has But a It’s into also inContact to core complexity of fantastic and high-end see in, and up X are is

that will they disruptive. on features, be that can center. compete contact can pure product depends very be first, next-generation next-generation architecture. smaller, they’ve based fact their And built on be It be We how cloud on the a a they viable well if not RingCX competitive, believe it It organized AI will based player. will on Pricing is large. it Okay? is

okay, Here I you, list look, the And answer. tell contact is not certainly of center? where your well, you, have people, them, own is asking, been

is. Here it

So, we’re better. promising results or beta are in been now. great. Feedback Early has

come. having obviously on player incorporating getting will now items We’re you, products tell And be like concentrate in out, housekeeping on expect it strong that and learning with feedback and a time to more to expect more me little that area. I

I if there. And could something add just

drive be the on imagine higher just will economics, that today be X will than Ring can RC with contribution margin You on what proprietary RingCX -- much CC. we

it you want just Understood. so plus quick on that would implies a $XXX And the right kind single CCaaS, of high like XX%. the One, right? Is maybe the digit. two to then I like some rates disclosure make it for growth, see north more for ARR on o about growth to -- it way that think go-forward million is the gave, And that it’s a robust future? question So, those if data the really of that right. math UCaaS,

Yes.

points make. I’d a So I of couple think

how So we’d are. said you yes, time we the we with updated on that where is pleased quarter business CCaaS you, the last are other we very every growing. update we And

of quarter, say this we’re I’m proud So to $XXX at ARR. million now

that both and in believe, we’ve And UCaaS -- offer our customers in are And success, $X million-plus deals great that over there and of single MVP And large vendor, competitors Contact enterprise is for. which one CCaaS what is particularly would looking -- truly Center. from one UCaaS is include what CCaaS. both seen what single would we say RingCentral to with we relative I there really say of are our all to selling I RingCentral obviously, positioned TCV XX% uniquely

market Synergy, we share, still look revenue there. third-party share the above market you In any terms absolutely. terms cetera, the on And of business, data, UCaaS revenue well in seeing of are Gartner, growing are to at what continuing we et if of take the we’re

still So, I market above continuing would relative market. overall the take share UCaaS to revenue say, absolutely and to CCaaS the growing well

next Brian with Peterson question The is Raymond from James.

I But follow and you. Congrats Tarek. Vlad with to to wanted Sonalee, up

going You be quarter. the mentioned as versus that well? And love you’re efficiencies much of we thinking in that how reinvesting recognized to third understand I’d forward, is some going on oriented potential should should be the reinvested to those that go-to-market-oriented? product you’ve how be of about efficiencies more Thank you.

Yes.

So great question. we exceeded XXX And QX a It about beat. earlier, as I our was basis-point said outlook. strongly margin profit

But So there, need in invest time including at there where we are seeing expected differentiation are has he’s select XX.X%. that strength are the in areas were more still drive we product Vlad investments, demand. and to AI, verticals in to going incremental to business. said And greater spend and we of

in we the some So will do And include if areas being investment see. channels That in you investing will outlook, part QX, we the sales. marketing margin year believe to increasing. performing look and be more that that investing given at balance is very drive of profitability. still But of said, growth those that higher opportunity in both, will overall we for want we much full the

introduced has upsell And deserve will And also the that upsell area in expect prior an we drive as the do this products we calls, being we’ve that see has that challenges. heard motion seen business investment some you’ve out feel call to will that the and where of us recovers. macro been new -- but

from Kash The Rangan with go next ahead. Sachs. question Goldman Please is

a all, the industry from Lehman -- First a bright, as our of I’ve really analyst hiring industry your congratulations my really, company Vlad, say it on Brothers former like. congratulations of as and XX-year stint CEO. to CEO on got is And public future equity bigger looks

to said question, I okay. if that, that’s a Having Tarek ask actually want

is learned that how on speak over First take impressive that languages, managed like with you’ve you being day, one me your look from you’ll that with questions get you. to beer to you But that. I’m the us? a very seat I it can that the you curious you six take us, into do impressive. Board working to maybe about on tell That’s company to conviction people what and share the the step Tarek of all, very hot forward gives

got about back, tremendous you being every And tech years a industry primary you’ve -- what as in -- do and company What RingCentral’s you’ve background, has see equity for long many an been challenges. the analyst time.

of what or challenge is going your forward? background, that you that primary how are there Thank is it’s to RingCentral’s with to I you towards that So be what just wanted you you bring cognizant And new these overcoming secret much going market, and and the acquisitions? do think pivoting be challenges congrats. segment sauce a in envision so them your future? whether

for thank you Well, very much the intro.

the it You ago, and years younger made Sonalee. with me we was analyst, feel with team equity were a same bit because an when was XX I

me reminding of for this. thanks So,

a to full Those use potential. you’ve future cases use mentioned, I And that that Let realizing that telling. combined very These that I’m has vast potential. way Vlad at I’m me saying lever very opportunity that stakeholders sure more contact where a here communications is keen about tremendous keen the center, value formidable. to heard use become RingCentral on answer and exists in continue obviously are from and a cases first to Frontier innovate sales are pervasive pursue, very our making intend to can and that reality all by in first all them. very forces, our develop the to and see and way all the look the at for RingCentral on any growth, UCaaS that we want Airlines grow. on opportunity on or for and quite for CCaaS cases office it’s creation something The are with from this Because capitalizing inside the the we and industry, practical is you unique the growth shareholders. is workforces continue at to that These RingCentral field way

I’m the the point what the in the will me honest, immediately way, in I stands between the not on start real have XXth stands vantage from, It’s going I the so early management stands waiting. the Ring. for to of be X figure understand bit have forward. then, time time upon more on what some operation way. coming I I it’s spent But doing know having be What in it moving the Board day a I somewhat. to of solid under to so with sure the we’re to true speak, And of months making really that I to so say my and way. spend the operations they’re going full-time to spending And think that in first hood, now But August. of to have where a can out be team, we business

The George Instructions] Sutton go question is Please with Hallum. [Operator ahead. Craig next from

you. I congrats mentioned to marketing-driven that Tarek. had welcome interested was been curious, I this you in quarter. Vlad really Thank My am just lead to and the flow Sonalee, strength that there side as and you give world. was an AT&Ts and the business? large Frontiers partnership no Mitels mention Can the partnerships, and of on us of just update the of Avayas the the had

pleasure. with absolutely, Yes,

Avaya, So Mitel specifically. you out called

the to We well. I’ll have service global and talk providers also as GSPs AWS,

healthy continues of more that from recently earlier, emerged our motions also to -- And traction updated impact bankruptcy. Mitel them. and do has to as from that. Avaya, quarter. seen as go-to-market execution continue a we’ve well, AWS, with On expect at come out contribute continue a I Avaya, know, And on So enabled and of expect new it’s seats back-end early. as execute still better their you contract slightly They loaded of Avaya to clip. from were we part said we this

really to the the good starting deals traction there, beginning started have and some close. we’re see We to to first pipeline see in

be track AWS to on we’re the later year. So, this live on Marketplace

to, of strong well. couple In have the terms you we’re that a of seeing GSPs where the and as Europe. that Vodafone other in talked more there one know, would come recently traction And we’re Charter, see to particularly with And call out continuing as execution I is more you are specifically there. of ones online, extremely GSPs

impact and to to ones we’re ramped then continue legacy see contribute. partners from. have beginning importantly, that the But have So solid very fully are we we these that new

And as rest story to continue our of So and a see those very, all for that’s we year overall overall our of a And growth. remain very the lot to this go-to-market. contributing beyond scope of part for you of know, the they partners partnerships. important for

The next Please question William is from Matt Blair. ahead. Stotler with go

engaged. Vlad, sorry be go. obviously, still to see we’ll But you

to India So, the the regulatory releases occasionally question. one of question going just congrats number geographic-specific forward a office plant course press Maybe were see position. chatting on you -- specific the hires, on cetera. with over to on the you compliance, openings, forward. Tarek, quarter, of what There over I the would landscape how love to relative how to about might geography, double-click et you then into And time? layer think opportunity the globe? business the elsewhere just that around there see in that look competitive

service actually the offer provider as literally in thank so services you, we far first concerned, be of area. these we’re to think Look, foreign we’re great to as firstly. India is Well, the Right. kind -- allowed that it’s firstly,

it’s our our would to huge first Look, forward, So office be extend into global let’s or India primary a technology. say, foot accomplishment.

be So a some manner. what or it with means, would then you have we business tone legal India, international U.S. a a local deliver in dial offices in base able if to other

at where So, of point. most we’re that’s this really seeing the demand

with now this all able be practice. GSP providers offerings strong in local growing in this you and importantly, with more BXB to we a partner area. know, more announcement and powering have And much as with capability, we their likely service to Secondly, the up are

to an down little opportunity. two, but first second And to business that’s China. -- certainly, needless directly. otherwise, lastly, largest far, engage country can wise, the given need where world do in bit first list farther legally the for to And restrictions is say, us. largest we India a the an opportunity do in We the it’s population Again, by

definitely forward. us an area of for So we growth look as

The Sandler. next Please from is go question with Jim Fish Piper ahead.

Tarek. to wanted role congratulations wishes for Quinton echo well look forward is we you, This and Jim. for with the the and new to working on Vlad,

Microsoft X.X -- this results product think XX hear Microsoft you those XX PSTN million Teams XX on side, or the million of make then more addressable opportunity continue those of penetration all sense X.X on partners. opportunity, are to that penetration the the GXK the for that of just players? how players do platform, channel strong the And talks see about on we across do focused users market as On opportunity, their When you from you your the today?

EX, at positioned us no EX Yes. EX large landscape, when and included, all included. numbers. But Well, we but upsold, not and EX tiers. into but the talking EX look, about it’s packaged EX can talk super telephony about have global again, Microsoft wise. and it, does still is is hard wise behind to look you’re have features And be as reach business

this we our continues it’s been Republic introduction look, -- We major It quarter, I remarks, on well. -- talked earnings last in think Airways. do quarter. prepared to past So about

on. the using a dialer our they’re the they that them are is Teams be plan embedded of part Importantly, for customer, as technology standardizing and to suite

and and for believe We will future, parity don’t I think anymore. has for the at up say, were, at driver before, or would parity we’re continue We growth continue -- to until you’ve heard I QX. say foreseeable been, Teams us. late this be me QX we a

and as user has as I experience to integration we’re that now leading far quality think offer. our

integration marketplace. that So, know it the is the basically of we best in

our available And a also GSPs okay? comment, including partners, as us saw strategics, stress you be Phone. available to all of XX,XXX just to of side will our the importantly, version Microsoft Very particular, announcements and packaging. these RingSense other of I the by made that will that some for from and also And in be it want way, in

getting Tarek’s efficiencies, So, add be segments, and to getting least and enterprise. in focus we’re it stronger. make and will not in is joining all with more on that And will being add will his the here we backs play pretty GTM excellence back. all us operational hopes Rest actually absolute high together, having

ahead. from with go Mizuho The Securities. next question Please Panigrahi Siti is

talked and to coming point. Avaya and I this -- want when again? that, drivers various do -- Tarek. you at my think influencing Vlad will say, I back, think should growth. forward ask And that do I to product of coming reemerging about, looking Tarek, you you your think think there about growth this wishes understand best the all you bankruptcy factors partnerships we also when to But trough? are out extend And growth to about let’s growth are that’s now working you reaccelerate and seeing with you. -- talk when what we’ll start

probably how obviously, time make not best this guided And we’ve guided. forward-looking remarks. the we’ve Yes. look, to is Well,

in long have So after next how and the you’ll a time now just RingCentral present -- is our But time, to wait guide quarter guide company. year true for until has first beyond. a very this and we multi-product directionally,

product have quiver full well employees, EX needs and we both, of so And customers CX. the of of a addressing centers as as offerings, contact

to you if And an able who at past number hybrid very events from have with quarter, augmented names is who this for customers you been announcements to asset high we’ve assets. Hopin’s So product. look were portfolio a acquire just amongst and we completed really and the just virtual has They be new extremely of Hopin market. our story, of unicorn, who Hopin. to video their They’ve those this fortunate the are and pioneered flying. And well-received this

hybrid where prior down interesting, investments less have okay? virtual I tell events rooms, getting meetings, not now, virtual way, webinars on continue the and just sales, now are more, to And to no events. you involved, by interesting, airfare purely and So obviously, we that. double with been which Hopin video But can and has still we events COVID is is us events, still making being expensive,

have So to In an that does complete seem really Microsoft our there. doesn’t portfolio particular, events product.

to one good differentiate. be So, this area would

general, if Ring, those gets customer in the stay exposed and account with an is what And we to to in find we’re us. tend customers look,

all expand these to land and as view into and account springboard of we a there. get then So from

on So, video the side. that’s just

well Then there and contact center whole have two. stand-alone just on And positioning, that where Then our own disruptive product okay? that, AI think we have will is we RingCX. the on on opportunity. it be features, addressed as on I that’s native generates, now that integrated So pricing we already as value

look, it’s And interesting.

News don’t terms their breaking here -- of I guess, customers’ service late Well, do training data. is news changed announcing be is on now their Zoom, they that. will that and that we

customer, that the be to doing We results be other of intermixing. own doing are means will particular system, we on and customers’ training that not training have to enhance data intend with

or if it, upon that billions RingCentral. to are of minutes, callers millions you millions fact tens are of about and of customers. moving serving think we hundreds that So, with billions we But think the get of direct it’s experience that who we

fact into scale, breadth step. that the the our big we are network able and that So interweave depth partnerships conversations. of of we, given and those intelligence That’s all to now a

job he’ll now own keeping I’m we will ideas the bringing and And new than any So his ships are years. an playbook own in think well coming in product well think sure Tarek. enhance. last have steady last the But team without the the we so we look, Mo again, few in guide, And the months. further is done years the XX blood be or has with time outstanding differentiated, think more his we energized. changing in last in few positioned. We is that

on we again, let So anyone won’t work operating and down. hopefully,

The next question Needham. from is Ryan Koontz with

AI up you that? the forward cetera? model little follow affect a think capabilities. the own et do a talk that DeepAffects. great versus to on versus how cash infrastructure for flow, got bit going partners? And like wanted there I can cloud It that your on from you about requirements in-house Can sounds the about building you’ve team public How

no cloud, public infrastructure. XXX%

all -- Sorry, public, margin. all but short answer, high

the and presentation. session, attending question-and-answer Thank also is our you conference for now concluded. today’s concludes This

now disconnect. may You