RingCentral, Inc.

And welcome to the RingCentral second quarter 2021 earnings conference call and webcast. At this time, all participants are in listen-only mode. If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Ryan Goodman, head of investor relations. Please go ahead, sir.

Thank you. Good afternoon, and welcome to RingCentral's second quarter 2021 earnings conference call. I'm Ryan Goodman, RingCentral's head of investor relations. Joining me today are Vlad Shmunas, founder, chairman, and CEO, Anand S. Warren, 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 third quarter and full year 2021 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, the success of vaccination efforts, 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. Rain Central 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 second quarter earnings conference call. We have established a track record of consistent quarter-over-quarter growth for 30 quarters and counting. And Q221 was no exception. RingCentral delivered another great quarter with RingCentral Office ARR growing 41% year-over-year to $1.4 billion. This is our highest level of growth in five years. It is also an acceleration in growth of five points year-over-year of a base of over $1 billion. We also delivered a record number of 1 million plus TCV wins, including one with over $10 million. So what is driving this performance? Customers are looking for cloud solutions to manage two things, their communications needs and their collaboration needs, each with distinct characteristics. For businesses, it all begins with communications capabilities, the central nervous system of any enterprise. Market opportunity is massive, with over 400 million legacy PBX users in play. Table stakes to deliver in this space are exceptionally high. Rich functionality, security, 5.9 reliability, quality of service, platform analytics, enterprise apps integration, and regulatory compliance are staples of an enterprise-grade PBX system. Businesses require all of these core capabilities, but also require them on a mobile-friendly platform. Selecting a communications platform is a critical enterprise-wide decision. Just as companies have a single corporate-wide email platform, companies usually choose one communications platform for the entire company. The communications platform may not be a disparate, siloed line of business decision. A purchasing decision requires a rigorous proof of concept and analysis which is where RingCentral excels based on our proven industry leadership and track record of excellent delivery. With over three quarters of on-premise sales historically done through channels and global carrier partners, the customer buying preference for cloud solutions continues to be through these trusted partners. And RingCentral leads here with our unique go-to-market partnership network. And as a definitive proof point, over two-thirds of our seven-figure TCV wins were brought in by the channel and partners. As for collaboration, there is team messaging and video conferencing. Team messaging improves internal message interactions and file sharing. Use of these capabilities has increased with modern mobile distributed and hybrid working environments. As we all learned over the past 18 months, video conferencing provides a viable alternative to in-person meetings. Users require an easy and reliable way to connect with high-quality video, audio, and screen share, along with core features like waiting rooms, breakout rooms, virtual backgrounds, etc. Additionally, as the world returns back to the office, video conference room solutions that support hybrid meetings are a must-have. RingCentral is well positioned to address both communications and collaboration needs of modern enterprises with our differentiated message video phone or MVP platform. This is complemented by our unique GTM strategy that now includes some of the world's best known incumbent PBX providers and leading carriers amongst our strategic partners. So, why do we win? Well, here is a tip. It's about trust, innovation, and partnerships. First, trust. Trust with enterprises is established over multiple years with consistent delivery of reliability, security, and data privacy. RingCentral has delivered a track record of 5.9 uptime over the last 12 quarters. This equates to around five minutes of downtime a year with no exclusions for maintenance windows. This track record is simply unmatched in the industry and it is literally a hundred times better than the three nines or close to nine hours of downtime that many of our competitors offer. As to security and data privacy, We will let our clean multi-year record speak for itself. Through continual investments in security, reliability, and data privacy, we have built one of the world's most trusted global communications platforms. Next, innovation. RingCentral has always been committed to a rapid pace of innovation. Our years of outsized R&D investing in a modern, scalable cloud-based architecture have enabled us to meet the stringent requirements expected of a leading enterprise communications system. Crucially, in addition, we have a complete portfolio of cloud contact center solutions that include our proprietary digital source engaged platform, as well as solutions from our partnership with Nice in Contact. Recently, we extended and expanded our relationship with Nice in Contact to include additional WFO and WFM capabilities, which is contributing now to our significant contact center win momentum in large enterprises. Next on the topic of collaboration, we now have the next generation award-winning video conferencing solution RingCentral Video with over 250 new features introduced since launch in April last year. This includes virtual backgrounds, waiting rooms, closed captioning, and many more. And we are now beginning to leapfrog with innovative new capabilities like team huddles, advanced web browser support, and live switching between devices, with more to come on this front soon. Rooted in this innovation and product strength, momentum for RCV is picking up across multiple fronts. First, all new customers get the integrated MVP platform with RingCentral Video. And customer response has been excellent. In fact, Customers choose us for the integrated MVP platform, and many of the $1 million-plus TCB wins cited RCV as a key influencing capability in their decision to go with RingCentral MVP. Second, we're making solid progress on migrating our installed base accounts of MVP customers from prior generation video to RingCentral video. We recently crossed the halfway mark in this transition. As a case in point, C&S Wholesale, the largest wholesale grocery supply company in the U.S., is now in the process of upgrading its user base of over 5,000 RingCentral MVP users to RCV. Third, our partners. Early in Q2, Atos announced a Vidya solution based on RCV. And later in Q2, Deutsche Telekom selected RingCentral Vidya for its own co-branded Vidya solution for its customers. We're optimistic that this trend will continue and additional strategic partners will line up and endorse RCV. And on that note, our partnerships. Our partnership-oriented go-to-market is enabling us to quickly and efficiently scale our global market reach. In Q2, our direct and partner ARR, which includes contributions from Avaya, Atos, AT&T, British Telecom, and Telus, grew 34% year-over-year to $860 million. This is a strong acceleration in growth of nine points year over year. And we're confident that this is just the beginning of a multi-year successful journey. Our unique go-to-market network continues to expand. We have had several exciting partner updates in recent months. First, we announced a new strategic partnership with Verizon Business. Verizon Business has already launched RingCentral with Verizon a co-branded cloud-based UCAS solution for their enterprise customers. This also speaks to our unique ability to onboard major carriers quickly and efficiently. Second, Alcatel Lucent Enterprise launched Rainbow Office powered by RingCentral in the UK. And third, we announced a partnership with Deutsche Telekom where we'll introduce a standalone, co-branded video solution based on RingCentral Video. Of course, all of these partnerships are based on their collective recognition of RingCentral's industry-leading standards of trust and innovation. In closing, we delivered an exceptional Q2, and with our speed of innovation, Along with the fact that most of our strategic partnerships are in the early or pre-launch phases, we feel confident that the cloud is winning and RingCentral will continue to be winning in the cloud. With that, I will now turn the call over to our President and Chief Operating Officer, Anand Eswaran, for additional color on our recent progress. Thank you. Thank you, Zach.