RingCentral, Inc.

Good afternoon, and welcome to the RingCentral Third Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Stephen Horwitz, Vice President of Investor Relations. Please go ahead.

Thank you. Good afternoon, and welcome to RingCentral's third quarter 2025 earnings conference call. Joining me today are Vlad Shmunas, Founder, Chairman, and CEO, Kira Macagon, President and Chief Operating Officer, and Vaibhav Agarwal, CFO. Our remarks today include 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 guarantees of 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 with 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 presentation, which you can find under the Financial Results section at ir.ringcentral.com. With that, I'll turn the call over to Vlad.

Thank you, Stephen. Good afternoon, everyone, and thank you for joining our third quarter earnings conference call. Let me begin by welcoming the talented people from Community WFM to the RingCentral family. We have now added AI-driven workforce engagement management capabilities that strengthen our Ring CX contact center solution. This also lays the foundation for a new standalone product line. We delivered another strong quarter in Q3 with subscription revenue growth at 6% year-over-year. These results reflect continued execution in our core business coupled with strong progress from our AI-led new product portfolio. In fact, our pure AI ARR is growing in strong double-digit rates sequentially, while also making meaningful contributions to overall ARR from these AI-enabled customers. Importantly, we are also delivering expanding margins, meaningfully lowering stock-based compensation, and generating strong free cash flows. This strong performance is rooted in our leadership in voice, the most mission-critical mode of communication for businesses. While voice continues to be an important means of intercompany communications, it is critical for consumers engaging with businesses, or B2C. This is particularly true in our top verticals, such as healthcare, financial services, retail, and professional services. Revenue from these verticals represent over half of our entire business. As a further proof point, overall voice usage on our platform remains robust and is growing in double digits. In short, voice remains a critical modality for business communications as missed calls result in lost revenues, missed opportunities, or worse. RingCentral has built a $2.5 billion business from ground up by providing a robust, global, secure, and reliable voice-first cloud communications platform that is trusted by over half a million businesses with tens of billions of minutes of annual use. RingCentral has been at the forefront of moving business communications to the cloud. If you think about our initial offering as RingCentral 1.0, it was about enabling digital transformation for businesses worldwide by transitioning their business communications from on-prem to the cloud. By leveraging our voice-first, global, secure, and reliable cloud business communications platform, we have built a strong leadership position over the last two decades. This remains to be the case to this day. In the next phase of our journey, which I call RingCentral 2.0, we built on this foundation to become a multi-product platform provider. Many customers prefer to purchase both their business communications and contact center solutions from the same vendor. Increasingly, organizations also need seamless interaction between contact center agents and other company employees to resolve customer inquiries. RingCentral has purpose-built solutions to meet these needs. There are situations where consumer inquiries are handled by employees who are not dedicated contact center agents. To support these scenarios, we enhanced RingEX with call queues, analytics, and other contact center-like functions. This has been extremely well received with over one-third of our overall inbound traffic now being consumed by such informal contact center use. As for dedicated customer engagement needs, we've introduced our own native AI-first contact center solution, RingCX. It is a fully integrated offering that's intuitive to use, easy to deploy, and is infused with AI from the start. This product has been well received with strong traction and double-digit growth. And now we're entering the era of RingCentral 3.0. We are innovating rapidly with the majority of our quarter-billion-dollar annual spend on innovation is now being dedicated to our new AI-led product. We are now expanding and extending our platform by adding a host of voice-first AI agents, as well as infusing AI across our entire product portfolio for a better customer experience and engagement. Why are we well positioned to win in this new AI era? RingCentral is the first point of contact between businesses and their consumers. This puts us in a unique position to deploy AI agents from the get-go, thus giving us a natural advantage as we lead the shift to intelligent business communications via agentic voice AI. To double-click, our agentic AI product portfolio covers every phase of the customer journey before, during, and after an interaction. Before the interaction, our AI receptionist, or AIR, handles inbound calls, routes them intelligently, and automates routine interactions before they reach a human. Since launch, AIR has seen strong early traction and is growing rapidly. For during the interaction, today we announced our new AI virtual assistant, or AVA. It's an AI agent that helps employees and agents in real time, surfacing insights, summarizing key points, and automating tasks to enhance productivity. And for after the conversation, our AI conversation expert, or ACE, formerly known as RingSense, analyzes calls, extracts insights, and provides actionable intelligence. is growing at a healthy double-digit pace and is helping customers understand and improve their customer experiences. Together, these AI-driven solutions, AIR, AVA, and ACE, complement RingEX and RingCX and are already contributing meaningfully to growth. We're investing significantly with over 50% of our approximately $250 million R&D spend now focused on our new product portfolio. And we remain on track to exceed the $100 million in ARR from new products by the end of 2025. Adoption of our new AI-led products is broad-based across various customer cohorts. from small businesses to large enterprises. Our GSP partners are also beginning to sell these new offerings, expanding our reach and accelerating adoption. Importantly, we have recently expanded our partnership with AT&T, which began offering AIR to their customers, highlighting our shared commitment to intelligent communications experiences. Our small business and GSP businesses together now represent over $1 billion in ARR and continue to grow in double digits with strong unit economics and increasing adoption of our AI portfolio. In summary, we're executing well across the board. Our core voice platform remains durable and mission critical. and we are expanding into new high-growth markets through RingCX and our AI-led product suite. We've evolved from a UCaaS leader into a multi-product, AI-powered communications platform with multiple growth levers. We are excited about the road ahead as we enter the era of agentic voice AI driving smarter, more efficient communications for our customers and sustainable, profitable growth for our shareholders. I want to thank our employees for their dedication and focus on driving innovation and our customers for trusting us to be the voice of their business. With a tenured and talented management team in place, a strong commitment to innovation And the loyal and growing customer and partner base were well positioned for this next phase of our AI-led evolution. With that, I'll turn the call over to Kira to tell you more. Thank you.