RingCentral, Inc.

Greetings and welcome to RingCentral's third quarter 2020 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the full presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I would now like to turn the conference over to your host, Brian Goodman, Head of Investor Relations. Thank you. You may begin.

Thank you. Good afternoon, and welcome to RingCentral's third quarter 2020 earnings conference call. I'm Ryan Goodman, RingCentral's Head of Investor Relations. Joining me today are Vlad Shminis, Founder, Chairman, and CEO, Anand Eswaran, President and Chief Operating Officer, and Mitesh Dhruv, Chief Financial Officer. Our format today will include prepared remarks by Vlad, Anand, and Mitesh, followed by Q&A. Some of our discussions and responses to your questions will contain forward-looking statements, including our fourth quarter and full year 2020 financial outlook and our assumptions underlying that outlook. These statements are subject to risks and uncertainties. Actual results may differ materially from our forward-looking statements. A discussion of the risks and uncertainties related to our business is contained in our filings with the Securities and Exchange Commission and is incorporated by reference into today's discussion. In particular, our business is currently being impacted by the COVID-19 pandemic. The extent of its continued impact on our business will depend on several factors, including the severity, duration and extent of the pandemic, as well as actions taken by governments, businesses and consumers in response to the pandemic all of which continue to evolve and remain uncertain at this time. RingCentral assumes no obligation and does not intend to update or comment on forward-looking statements made on this call. Unless otherwise indicated, all measures that follow are non-GAAP with year-over-year comparisons. A reconciliation of all GAAP to non-GAAP results is provided with our earnings release and in the slide deck. I encourage you to visit our investor relations website at ir.ringcentral.com to access our earnings release slide deck, our gap to non-gap reconciliations, our periodic SEC reports, a webcast replay of today's call, and to learn more about RingCentral. For certain forward-looking guidance, A reconciliation of the non-GAAP financial guidance to the corresponding GAAP measure is not available as discussed in detail in the slide deck posted on our Investor Relations website. With that, let me turn the call over to Vlad.

Good afternoon, and thank you for joining our third quarter earnings conference call. We hope all of you are safe and in good health. I would like to start this call with a warm welcome to our newest board member, Ms. Mignon Clyburn. Mignon was an FCC commissioner for nine years, but she was committed to closing the digital divide. Prior to her federal appointment, Ms. Clyburn served 11 years on the Public Service Commission of South Carolina. Now, Turing Central. With a substantial part of the global workforce continuing to work from home, we see that cloud communication solutions are becoming a core tenet of business continuity. RingCentral's importance to our customers for their communication and collaboration needs continues to increase. Leveraging this megatrend, we delivered a solid third quarter. We saw continued strong adoption of RingCentral, as our customers are going through their digital transformation journeys. And the numbers are there to prove it. For Q3, total ARR grew 34% year-over-year to $1.2 billion. Customer mindshare grew at a level we have not seen before, with record new logo business up over 60% year-over-year. Additionally, we see pipeline expanding and macro-related retention metrics continuing to stabilize. Anand and Mitesh will provide more details. Underpinning these trends is a customer's clear need for a complete communication solution that combines all major means in which people communicate, message, video, and phone, or what we refer to as MVP. Individually, each mode, message, video, and phone, is important. But seamless integration across these three modalities is what makes RingCentral a standout in the enterprise cloud communication space. RingCentral MVP transforms transactional calls, messages, and meetings into a persistent system of record and engagement for all of enterprises' external and internal communications needs. Android Central does so elegantly and effectively, as is evident by our recent recognition from the prestigious Academy of Inactive and Visual Arts. We are proud and humbled to have won a W3 Gold Award in the General Website Application Service category and two W3 Silver Award for Best Visual Appeal Experience and Best Visual Appeal Utility. But superior user interface is just the beginning. It is the strengths of our well-proven, born-in-the-cloud platform that enables us to win with 5.9 reliability, world-class global coverage, deep feature capabilities, and an open platform. Building on these strengths, our innovation velocity continues to accelerate. On the video side, last quarter, we released over 70 new and innovative features, including additional security controls, waiting rooms, filmstrip viewing mode, in-meeting device switching, network quality indicators, and the dark mode, amongst others. We continue to rapidly innovate and carry a rich roadmap ahead. We also enhanced our open platform with fully integrated high-volume SMS capability. This enables our customers to use the RingCentral platform for SMS order notifications and appointment reminders without need for third-party CPaaS solutions. And importantly, we announced expansion of RingCentral Global Office across six continents and broadened our European platform presence to now include Germany with local data residency. This will allow us to better serve large international customers. COVID has been a tailwind for us as legacy on-premise solutions are now simply inaccessible by most employees. But let's look ahead. In the post-COVID world, we don't expect things to go all the way back to the way they were at the end of 2019. Businesses are already planning for a hybrid world where part of the workforce will continue to work from home for the foreseeable future. RingCentral is uniquely positioned to address this new world of work via a differentiated ecosystem of strategic partnerships with major on-premise system vendors, as well as a number of leading global carriers. To that end, we have some exciting updates that Anand will share with you shortly. In conclusion, our business has never been stronger, and we see tailwinds continuing. Our well-differentiated, global, secure, reliable MVP platform and unique ecosystem of strategic relationships give us preferential access to over 180 million users worldwide. or nearly half of the on-premise PBX install base. The cloud is winning, and RingCentral is winning in the cloud. And we believe the best is yet to come. Stay tuned for additional exciting announcements on both the technology and go-to-market funds. With that, I'd like to wish everyone a healthy and safe holiday season, and I will now turn the call over to our President and Chief Operating Officer, Anand Aswaram.