RingCentral, Inc.

Hello and welcome to RingCentral's first quarter 2023 earnings conference call. Let me now please turn the call over to Will Wong, Vice President of Investor Relations.

Thank you. Good afternoon and welcome to RingCentral's first quarter 2023 earnings conference call. Joining me today are Vlad Shminis, Founder, Chairman, and CEO, Mo Kadiba, President and Chief Operating Officer, and Sonali Parekh, Chief Financial Officer. Our format today will include prepared remarks by Vlad, Mo, and Sonali, followed by Q&A. We also have a slide presentation available on our investor relations website that will coincide with today's call, which you can find under the financial results section at ir.ringcentral.com. Some of our discussion and responses to your questions will contain forward-looking statements regarding the company's business operations, financial performance, and outlook. These statements are subject to risks and uncertainties, some of which are beyond our control and are not guaranteed a future performance. Actual results may differ materially from our forward-looking statements, and we undertake no obligation to update these statements after this call. For a complete discussion of the risks and uncertainties related to our business, please refer to the information contained in our filings to the Securities and Exchange Commission, as well as today's earnings release. 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. 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, I'll turn the call over to Vlad.

Good afternoon, and thank you for joining our first quarter earnings conference call. We had a solid start of the year. Q1 results demonstrate that our strategy of driving healthy, profitable growth is paying off. Total revenue grew 14% to $534 million, above the high end of our guidance range. And ARR grew 14% to $2.2 billion. Operating margin rose almost 700 basis points year over year to 17.2%. This was also above our guidance and was once again a quarterly record. Our higher margin was driven by continued cost discipline, improved operational efficiencies, and the benefits of the actions we took last year. Those actions position us to emerge stronger and more focused when the macro environment improves. While the macro remains uncertain, we continue to be laser-focused on what we can control. This includes driving continued innovation and maintaining our disciplined approach towards increasing profitability and free cash flow. Finally, we'll provide more color on our profitability shortly. You've heard me talk about trust, innovation, and partnerships being the cornerstone of our success. As to trust, we achieved 99.999% availability for the 19th straight quarter. With respect to partnerships, more will provide more color on our progress with the channel, strategic partners, and global service providers. I will now highlight some of our key innovation accomplishments this quarter. We believe these innovations over time will increase our customer value proposition and create additional expansion opportunities within our large customer base. These include RingCentral for Teams 2.0, our next generation Microsoft Teams embedded app. RingSense, our new AI platform and its first commercial application, RingSense for Sales. RingCentral for frontline workers, which combines new push-to-talk functionality with RingCentral video and messaging. And in partnership with Vodafone Business, we have released RingCentral Overlay, which enables our messaging and video collaboration capabilities on top of legacy voice services. Let me now provide more details. First, we recently announced RingCentral for Teams 2.0. This solution brings RingCentral's world-class cloud PBX capabilities into Microsoft Teams with a fully native experience without requiring a second application. This means that end customers can now enjoy RingCentral's renowned 5.9 reliability, global availability, advanced analytics, industry-leading features, and third-party integration capabilities entirely within Teams single pane of glass. Second, ring sense. In the past, I've talked about four megatrends driving our business. These are shift to hybrid work, ongoing adoption of mobility by businesses, increasing reliance on distributed workforces, and the desire for an integrated cloud-based UC and CC solution from a single provider. A fifth megatrend has now emerged that is truly revolutionary, and that is AI. With RingSense, we now have the ability to inject AI capabilities across the entire RingCentral portfolio. As one of the world's largest UCaaS providers, we are in a unique position to offer our customers powerful insights into their conversations. With RingSense for Sales, our first offering in this portfolio we'll be able to offer sales teams features such as engagement scoring, keyword analysis, and AI-generated recommendations. We're currently transitioning our own sales team from a third-party conversational intelligence solution to Ring Sense for Sales, as well as testing it with a number of customers in closed beta. Third is RingCentral for frontline workers. This powerful solution combines new push-to-talk capabilities with RingCentral video and messaging. Gartner estimates there are 2.7 billion frontline workers, more than two times the number of desk-based workers. With our solution, frontline workers across all industries can use any smart mobile device to seamlessly and efficiently connect with their front and back office teams. It is available in beta today as either a standalone solution or as an add-on to RingCentral MVP. Mo will provide more details. And fourth, RingCentral Overlay, which enables RingCentral messaging and video collaboration capabilities for legacy customers. This innovation, in partnership with Vodafone Business, enables hybrid workforces and serves as a stepping stone for those customers to move to our complete UCAS communication solution in the future. In summary, it was a solid quarter across growth, profitability, and innovation. We continue to innovate, enhancing our differentiation. We're also later focused on efficiency, which we expect will generate robust free cash flow going forward. This sets us up well for the future and is why I'm so excited about the opportunity in front of us. Now, let me turn the call over to Mo to go over the quarter in more detail. Thanks, Vlad.