RingCentral, Inc.

Good day and welcome to the RingCentral third quarter 2026 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 Steven Horwitz, VP of Investor Relations. Please go ahead.

Thank you. Good afternoon and welcome to RingCentral's third quarter 2026 conference call. Joining me today are Vlad Shmunis, Founder, Chairman, and CEO, Kira Makagon, President and COO, 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 risk and uncertainty, 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. If the call is replayed after today, the information presented may not contain current or accurate information. 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.

Good afternoon, and thank you for joining us. We delivered another strong quarter in Q3, with subscription and total revenue above the high end of our guidance. We also achieved record GAAP and non-GAAP operating margins. Free cash flow generation remained strong, which enabled us to reach an important milestone of reducing gross debt to under $1 billion as of today, which is ahead of schedule. These results reflect RingCentral's leadership in agentic voice AI, healthy demand, and our continued focus on expanding operating margins through disciplined execution. We're building on this momentum by investing in innovation that strengthens our market position and brings AI and human agents together on a complete, integrated customer engagement platform. Our strong momentum with agentic voice AI has been recognized by Business Insider, which named RingCentral to its America's Most Innovative Businesses list. Innovation has always been a driving force behind RingCentral's success. We pioneered the shift from legacy communication systems to the cloud. The megatrend of AI represents an even larger opportunity and a powerful tailwind for Incentral. We're leading this next transformation with agentic voice AI, making customer interactions more efficient, intelligent, and actionable. Our AI results provide strong proof points for our building success. AI receptionist or AIR now has more than 22,000 customers, up nearly 4x year-over-year. ACE, our AI conversation expert, is approaching 7,000 customers, up 60% year-over-year. And our newest lightweight contact center offering, CEB, or Customer Engagement Business Solution has reached more than 14,000 paying customers, growing nearly 50% quarter over quarter. Nearly two-thirds of CEB customers have also purchased one or more of our AI products. Importantly, RingCentral AI, which we define as customers using at least one native paid AI product, now represent approximately 15% of total ARR or over 400 million, doubling year over year. This cohort of customers also has meaningfully higher ARR pool and net retention. These trends demonstrate how AI is expanding wallet share The momentum we're seeing is rooted in our well-established position as a leader in consumer-to-business communications. Voice and SMS remain central to how consumers engage with their business providers, such as doctors, bankers, insurance agents, and a host of other service providers. RingCentral is the leader in consumer-to-business communications with a platform carrying approximately 40 billion minutes, 14 billion calls, and 4 billion text messages annually. Importantly, our customers can utilize the bridge context in their own conversations to generate actionable insights, automate tasks, and drive resolutions through the use of our AI products. Our carrier-grade network, global scale, security, and decades of operating expertise in invoice creates an opportunity for us to become a critical infrastructure layer for business communications and is a significant barrier to entry. Our ability to connect consumers with their service providers at scale well positioned us to deploy AI agents across all stages of a consumer-business interaction, whether it be human-to-human, human-to-AI, or human-to-AI and back-to-human, otherwise known as a human-in-the-loop. For a little more color, AI agents can handle routine inquiries, automate workflows, and resolve issues autonomously. When judgment, empathy, or specialized expertise is required, a human can step in. In healthcare, for example, AI can help manage routine interactions while bringing in a qualified professional when a patient needs medical advice. Another strong competitive mode for us is our distribution reach. Alongside our direct sales force, we have a global ecosystem of more than 16,000 channel partners and resellers. including some of the leading global service providers such as AT&T, British Telecom, Charter Communications, Optus, Telus, and Vodafone, amongst others. Our GSP and channel partners are increasingly incorporating our AI portfolio into their product lines. Their established customer relationships and local expertise create a distribution advantage that is difficult to replicate. Let me close with three key points. First, RingCentral has a deep and defensible mold in a large and expanding market. Our global voice infrastructure, billions of calls, text messages, and minutes that we process every year, and integrated customer engagement platform provide a distinct foundation for strengthening our leadership through agentic voice AI. Our partner ecosystem gives us the reach to scale these capabilities globally. Second, our investments in agentic voice AI strategy are delivering tangible results. Growing paid adoption, broader use of our AI portfolio, and stronger customer economics demonstrate how AI is expanding the value of our platform and accelerating our business. Third, Our large and growing TAM combined with disciplined execution and operating model leverage is resulting in a strong and improving financial profile. We are growing revenue, expanding profitability, and generating substantial free cash flow and free cash flow per share. With our growth debt now below our stated $1 billion target, we now have the balance sheet strength to continue investing in innovation while also delivering sustained long-term shareholder value via share buybacks and dividends. I want to thank our employees for their innovation and execution, our customers and partners for their trust, and our shareholders for their continued support. I'm excited about the opportunity ahead and confident in our ability to deliver. With that, I will turn it over to Kira.