RingCentral Inc (RNG) 2023 Q1 法說會逐字稿

Hello, and welcome to RingCentral's First Quarter 2023 Earnings Conference Call.

您好，歡迎來到 RingCentral 的 2023 年第一季度收益電話會議。

Let me now please turn the call over to Will Wong, Vice President of Investor Relations.

現在讓我把電話轉給投資者關係副總裁 Will Wong。

Thank you. Good afternoon, and welcome to RingCentral's First Quarter 2023 Earnings Conference Call. Joining me today are Vlad Shmunis, Founder, Chairman and CEO; Mo Katibeh, President and Chief Operating Officer; and Sonalee Parekh, Chief Financial Officer.

謝謝。下午好，歡迎來到 RingCentral 的 2023 年第一季度收益電話會議。今天加入我的是創始人、董事長兼首席執行官 Vlad Shmunis； Mo Katibeh，總裁兼首席運營官；和首席財務官 Sonalee Parekh。

Our format today will include prepared remarks by Vlad, Mo and Sonalee, followed by Q&A. We also have a slide presentation available on our investors website that will coincide with today's call, which you can find under the financial results section at ir.ringcentral.com.

我們今天的形式將包括 Vlad、Mo 和 Sonalee 準備好的評論，然後是問答環節。我們還在我們的投資者網站上提供幻燈片演示，與今天的電話會議同時進行，您可以在 ir.ringcentral.com 的財務結果部分找到它。

Some of our discussion and responses to your questions will contain forward-looking statements regarding the company's business operation, 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.

我們的一些討論和對您問題的回答將包含有關公司業務運營、財務業績和前景的前瞻性陳述。這些陳述受風險和不確定性的影響，其中一些是我們無法控制的，並且不是對未來業績的保證。實際結果可能與我們的前瞻性陳述存在重大差異，我們不承擔在此次電話會議後更新這些陳述的義務。有關與我們業務相關的風險和不確定性的完整討論，請參閱我們提交給美國證券交易委員會的文件中包含的信息以及今天的收益發布。

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.

除非另有說明，否則以下所有指標均為非公認會計原則，並進行了同比比較。我們的收益發布和幻燈片中提供了所有 GAAP 與非 GAAP 結果的對賬。對於某些前瞻性指導，我們的投資者關係網站上發布的幻燈片中詳細討論了非 GAAP 財務指導與相應 GAAP 措施的協調。

With that, I'll turn the call over to Vlad.

有了這個，我會把電話轉給弗拉德。

Good afternoon, and thank you for joining our first quarter earnings conference call. We had a solid start to 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.

下午好，感謝您參加我們的第一季度收益電話會議。我們今年開局不錯。第一季度的結果表明，我們推動健康、盈利增長的戰略正在取得成效。總收入增長 14% 至 5.34 億美元，高於我們指導範圍的上限。 ARR 增長 14% 至 22 億美元。

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. Sonalee will provide more color on our profitability shortly.

營業利潤率同比增長近 700 個基點至 17.2%。這也高於我們的指導，再次創下季度記錄。我們較高的利潤率是由於持續的成本控制、運營效率的提高以及我們去年採取的行動帶來的好處。當宏觀環境改善時，這些行動使我們變得更強大、更專注。儘管宏觀經濟仍不確定，但我們繼續專注於我們可以控制的事情。這包括推動持續創新和保持我們提高盈利能力和自由現金流的紀律方法。 Sonalee 將很快為我們的盈利能力提供更多色彩。

You've heard me talk about driving 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, Mo 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.

您已經聽過我談到推動創新和合作夥伴關係是我們成功的基石。至於信任，我們連續第 19 個季度實現了 99.999% 的可用性。在合作夥伴關係方面，Mo 將為我們與渠道、戰略合作夥伴和全球服務提供商的進展提供更多色彩。我現在將重點介紹本季度我們取得的一些關鍵創新成就。

We believe these innovations over time will increase our customer value proposition and create additional expansion opportunities within our large customer base. This includes 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.

我們相信，隨著時間的推移，這些創新將增加我們的客戶價值主張，並在我們龐大的客戶群中創造更多的擴張機會。這包括 RingCentral for Teams 2.0，我們的下一代 Microsoft Teams 嵌入式應用程序； RingSense，我們的新人工智能平台及其第一個商業應用程序，RingSense for Sales； RingCentral for Frontline Workers，它將新的即按即說功能與 RingCentral 視頻和消息傳遞相結合；我們與 Vodafone business 合作，發布了 RingCentral Overlay，它可以在傳統語音服務之上啟用我們的消息傳遞和視頻協作功能。現在讓我提供更多細節。

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 99.999% reliability, global availability, advanced analytics, industry-leading features and third-party integration capabilities entirely within Team's single pane of glass.

首先，我們最近發布了 RingCentral for Teams 2.0。該解決方案將 RingCentral 的世界級雲 PBX 功能帶入 Microsoft Teams，提供完全原生的體驗，無需第二個應用程序。這意味著最終客戶現在可以在 Team 的單一管理平台中享受 RingCentral 著名的 99.999% 可靠性、全球可用性、高級分析、行業領先的功能和第三方集成功能。

Second, RingSense. In the past, I've talked about 4 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. [And this] 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.

第二，環感。過去，我談到了推動我們業務發展的 4 個大趨勢。這些是向混合工作的轉變、企業對移動性的持續採用、對分佈式勞動力的日益依賴以及對來自單一供應商的基於雲的集成 UC 和 CC 解決方案的渴望。 [並且這個]大趨勢現在已經出現，它是真正具有革命性的，那就是人工智能。借助 RingSense，我們現在能夠在整個 RingCentral 產品組合中註入 AI 功能。作為世界上最大的 UCaaS 提供商之一，我們處於獨特的位置，可以為我們的客戶提供對他們對話的強大洞察力。

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 are currently transitioning our own sales team from a third-party conversational intelligence solution to RingSense for Sales as well as testing it with a number of customers in closed beta.

借助 RingSense for Sales，這是我們在該產品組合中的第一個產品，我們將能夠為銷售團隊提供參與評分、關鍵字分析和 AI 生成的建議等功能。我們目前正在將我們自己的銷售團隊從第三方對話智能解決方案過渡到 RingSense for Sales，並在封閉測試中與許多客戶進行測試。

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 2x 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 stand-alone solution or as an add-on to RingCentral MVP. Mo will provide more details.

第三個是面向一線工人的 RingCentral。這個強大的解決方案將新的即按即說功能與 RingCentral 視頻和消息傳遞相結合。 Gartner 估計有 27 億一線員工，是辦公桌員工數量的 2 倍多。借助我們的解決方案，所有行業的一線員工都可以使用任何智能移動設備與他們的前台和後台團隊無縫高效地聯繫。它現在作為獨立解決方案或作為 RingCentral MVP 的附加組件提供 Beta 版。莫將提供更多細節。

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 UCaaS communication solution in the future.

第四，RingCentral Overlay，它為傳統客戶啟用 RingCentral 消息傳遞和視頻協作功能。這項與 Vodafone Business 合作的創新使混合勞動力成為可能，並成為這些客戶在未來轉向我們完整的 UCaaS 通信解決方案的墊腳石。

In summary, it was a solid quarter across growth, profitability and innovation. We continue to innovate enhancing our differentiation. We are also laser 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.

總而言之，本季度在增長、盈利能力和創新方面表現出色。我們不斷創新以增強我們的差異化。我們還非常關注效率，我們預計這將在未來產生強勁的自由現金流。這為我們的未來做好了準備，這就是為什麼我對擺在我們面前的機會感到如此興奮。

Now let me turn the call over to Mo to go over the quarter in more detail.

現在讓我把電話轉給莫，讓他更詳細地回顧一下這個季度。

Thanks, Vlad. We had a solid quarter with healthy growth across the portfolio. An example of the win contributing to this healthy growth is a Fortune 500 company that purchased 5,000 seats of UCaaS and 5,000 seats of CCaaS. They selected RingCentral for 3 main reasons.

謝謝，弗拉德。我們有一個穩健的季度，整個投資組合都有健康的增長。一家財富 500 強公司購買了 5,000 個 UCaaS 席位和 5,000 個 CCaaS 席位，這有助於實現這種健康增長。他們選擇 RingCentral 有 3 個主要原因。

First, our ability to integrate seamlessly into Teams, providing 99.999% reliability and deep integrations into ServiceNow, Salesforce and other key aspects of their employees' workflows.

首先，我們能夠無縫集成到 Teams 中，提供 99.999% 的可靠性並深度集成到 ServiceNow、Salesforce 和員工工作流程的其他關鍵方面。

Second, our integrated UC and CC platform. Beyond the simplicity of having a single vendor to manage, the entire organization can now use a single communications platform. This results in increased customer satisfaction and potential new revenue opportunities. For example, if no one at a local branch location picks up after a certain number of rings, the call can now be easily forwarded to its contact center.

其次，我們的集成 UC 和 CC 平台。除了管理單一供應商的簡單性之外，整個組織現在還可以使用單一通信平台。這會提高客戶滿意度和潛在的新收入機會。例如，如果在一定次數的響鈴後當地分支機構沒有人接聽電話，現在可以輕鬆地將電話轉接到其聯絡中心。

And finally, the company is projecting to save millions of dollars by standardizing on a single platform, removing maintenance costs, shadow IT and telco fees. Reducing costs is a key value proposition for all of our customers, especially in today's environment. We continue to see good traction within our core business because of our ability to help customers save money.

最後，該公司計劃通過在單一平台上進行標準化、消除維護成本、影子 IT 和電信費用來節省數百萬美元。降低成本是我們所有客戶的一個關鍵價值主張，尤其是在當今的環境中。由於我們幫助客戶省錢的能力，我們繼續在核心業務中看到良好的牽引力。

Forrester, a third-party research firm, recently published a new report on the total economic impact of using RingCentral MVP and Contact Center together. This report concluded that customers are seeing a [111%] return on investment with an average payback of under 6 months. In addition, Forrester concluded that using RingCentral UCaaS and CCaaS together had 3 key benefits: first, call handling time was reduced by 45% versus 20% for a stand-alone contact center; second, internal contact center and UCaaS IT support tickets were reduced by 30%; and third, time to close each ticket was reduced by 60%.

第三方研究公司 Forrester 最近發布了一份關於結合使用 RingCentral MVP 和 Contact Center 的總體經濟影響的新報告。該報告的結論是，客戶看到了 [111%] 的投資回報，平均投資回收期不到 6 個月。此外，Forrester 得出結論，同時使用 RingCentral UCaaS 和 CCaaS 有 3 個主要好處：首先，呼叫處理時間減少了 45%，而獨立聯絡中心則減少了 20%；第二，內部聯絡中心和 UCaaS IT 支持工單減少了 30%；第三，關閉每張工單的時間減少了 60%。

Moving on to our Teams practice. In Q1, seats within our Teams business more than doubled year-over-year. With our updated RingCentral for Teams 2.0 solution, which is available in beta today and will be generally available this summer, we are able to provide an even better user experience. And that's not all. Most Teams users are on E1 or E3 licenses, including many in key customer-facing verticals such as health care, retail and professional services. Those customers chose RingCentral versus Teams phone given our deep integrations, reliability and advanced feature sets all at a very attractive price point.

繼續我們的團隊實踐。在第一季度，我們 Teams 業務的席位同比增長了一倍以上。借助我們更新後的 RingCentral for Teams 2.0 解決方案（今天提供測試版並將於今年夏天全面推出），我們能夠提供更好的用戶體驗。這還不是全部。大多數 Teams 用戶都擁有 E1 或 E3 許可證，其中包括醫療保健、零售和專業服務等主要面向客戶的垂直行業中的許多用戶。這些客戶選擇 RingCentral 而不是 Teams 手機是因為我們的深度集成、可靠性和高級功能集都以極具吸引力的價格提供。

For example, UKG, a leading provider of HR, payroll and workforce management solutions, is currently using RingCentral with Microsoft Teams. We integrate seamlessly within their existing workflows, enhancing both their internal employee experience and their customer communications.

例如，領先的人力資源、薪資和勞動力管理解決方案提供商 UKG 目前正在將 RingCentral 與 Microsoft Teams 結合使用。我們與他們現有的工作流程無縫集成，增強了他們的內部員工體驗和客戶溝通。

Now let me give you an update on our go-to-market. First, strategic partners. Avaya recently emerged from bankruptcy a few days ago, and we expect that their contribution will ramp in the latter part of the year. Also, Mitel continues to perform in line with expectations and closed a $1 million TCV transaction in Q1.

現在讓我向您介紹我們上市的最新情況。第一，戰略合作夥伴。 Avaya 幾天前剛剛從破產中走出來，我們預計他們的貢獻將在今年下半年增加。此外，Mitel 的表現繼續符合預期，並在第一季度完成了 100 萬美元的 TCV 交易。

We're also seeing good traction with many of our GSP partners. Charter, one of our newest partners, performed well. We also launched with Vodafone Business in additional European geographies. Lastly, our new partnership with AWS, while still in early days, is developing well and we expect to be on the AWS Marketplace later this year.

我們還看到許多 GSP 合作夥伴的良好牽引力。 Charter 是我們最新的合作夥伴之一，表現良好。我們還在其他歐洲地區推出了 Vodafone Business。最後，我們與 AWS 的新合作夥伴關係雖然仍處於早期階段，但發展良好，我們預計將在今年晚些時候登陸 AWS Marketplace。

Now channel partners. They represent about 40% of our ARR base and continue to help us broaden our reach. The channel is an important part of our go-to-market, and we continue to ensure that incentives are aligned with the value that they bring. In fact, we recently launched our RingCentral IGNITE program that enables partners to manage all go-to-market and customer lifecycle activities without RingCentral sales assistance, which, in turn, provides economic benefit for all parties.

現為渠道合作夥伴。他們約占我們 ARR 基礎的 40%，並繼續幫助我們擴大我們的影響力。渠道是我們進入市場的重要組成部分，我們將繼續確保激勵措施與其帶來的價值保持一致。事實上，我們最近推出了 RingCentral IGNITE 計劃，使合作夥伴能夠在沒有 RingCentral 銷售協助的情況下管理所有上市和客戶生命週期活動，這反過來又為各方提供了經濟利益。

Moving to international. I'd like to highlight 2 international deals that we closed with our partners. The first is with a European athletic retailer with over 2,000 stores. They selected a RingCentral solution to help them streamline communications across their retail stores in France. They purchased thousands of MVP seats and also added our new frontline push-to-talk capabilities. This will allow store members to easily and securely communicate through voice, video or messaging with a push of a button and all without additional hardware.

走向國際化。我想重點介紹我們與合作夥伴達成的兩項國際交易。第一個是一家擁有 2,000 多家商店的歐洲運動用品零售商。他們選擇了 RingCentral 解決方案來幫助他們簡化法國零售店之間的通信。他們購買了數千個 MVP 席位，還添加了我們新的前線即按即說功能。這將使商店成員只需按一下按鈕即可通過語音、視頻或消息輕鬆安全地進行通信，而無需額外的硬件。

The other is a regional government body in Europe that recently selected RingCentral to provide video and messaging to more than 55,000 users. This was a great win and demonstrated the power and value RingCentral video and messaging can provide a large organization on a stand-alone basis.

另一個是最近選擇 RingCentral 為超過 55,000 名用戶提供視頻和消息的歐洲地區政府機構。這是一場偉大的勝利，證明了 RingCentral 視頻和消息傳遞可以在獨立的基礎上為大型組織提供的力量和價值。

Lastly, I want to discuss the current demand environment. The macro remains consistent with the trends we've been seeing over the last few quarters. Also, sales cycles remain elevated versus last year as customer buying decisions continue to receive significant internal scrutiny and additional layers of approval. We're also seeing less upsell within our existing base as customers have slowed hiring and rationalize their employee counts. However, win rates remain stable and lead flow remains consistently strong, demonstrating continued demand for on-prem to cloud conversion.

最後，我想談談當前的需求環境。宏觀與我們在過去幾個季度看到的趨勢保持一致。此外，由於客戶的購買決策繼續受到嚴格的內部審查和額外的批准層級，銷售週期與去年相比仍處於上升狀態。由於客戶放慢了招聘速度並使員工人數合理化，我們還發現現有基礎中的追加銷售減少了。然而，獲勝率保持穩定，潛在客戶流量始終保持強勁，表明對本地到雲轉換的持續需求。

With that, let me turn the call over to Sonalee to discuss our financials.

有了這個，讓我把電話轉給 Sonalee 來討論我們的財務狀況。

Thanks, Mo. I'll provide highlights from the first quarter and then discuss our business outlook for the second quarter and full year. Subscriptions revenue of $508 million was up 16% year-over-year and above our guidance range. On a constant currency basis, subscriptions revenue rose 17% year-over-year. ARR rose 14% versus last year to $2.2 billion. On a constant currency basis, ARR rose 15%. We continue to expect ARR growth to outpace subscription revenue growth in 2023. This is due to our enterprise business being more back half weighted.

謝謝，Mo。我將提供第一季度的亮點，然後討論我們對第二季度和全年的業務展望。訂閱收入為 5.08 億美元，同比增長 16%，高於我們的指導範圍。按固定匯率計算，訂閱收入同比增長 17%。 ARR 比去年增長 14% 至 22 億美元。按固定匯率計算，ARR 上漲了 15%。我們繼續預計 2023 年 ARR 增長將超過訂閱收入增長。這是因為我們的企業業務權重增加了一半。

Moving to profitability. I'll be referring to non-GAAP results unless otherwise noted. Our subscription gross margin was solid at 81.8%. Overall ARPU was again resilient and above $30, supporting our strong gross margin. Operating margin rose 680 basis points versus last year to 17.2%, another quarterly record. The increase was driven by efficiencies generated across the business, most notably in sales and marketing, which was down 420 basis points versus last year. Q1 demonstrated good progress on our path to driving best-in-class profitability and free cash flow, commensurate with our scale.

轉向盈利。除非另有說明，否則我指的是非 GAAP 結果。我們的訂閱毛利率穩定在 81.8%。總體 ARPU 再次保持彈性並超過 30 美元，支持我們強勁的毛利率。營業利潤率比去年上升 680 個基點，達到 17.2%，再創季度記錄。這一增長是由整個業務產生的效率推動的，最顯著的是在銷售和營銷方面，與去年相比下降了 420 個基點。第一季度在推動與我們的規模相稱的一流盈利能力和自由現金流方面取得了良好進展。

Regarding free cash flow, we generated $54 million in Q1 '23, which includes roughly $7 million related to onetime restructuring items. The improvement to our cost of customer acquisition, collections activity, vendor management and continued focus on driving efficiencies is leading to strong free cash flow conversion, and we expect continued improvement throughout the year. Our focus on growing free cash flow generation allows us to employ a dynamic capital allocation strategy that includes evaluating organic and inorganic investments, repurchasing shares and, importantly, addressing our convertible debt maturities.

關於自由現金流，我們在 23 年第一季度產生了 5400 萬美元，其中包括與一次性重組項目相關的大約 700 萬美元。我們的客戶獲取成本、收款活動、供應商管理以及對提高效率的持續關注的改善正在導致強勁的自由現金流轉換，我們預計全年將繼續改善。我們專注於增加自由現金流的產生，這使我們能夠採用動態的資本配置策略，包括評估有機和無機投資、回購股票，重要的是，解決我們的可轉換債務到期問題。

Regarding our debt, our free cash flow provides us many options in terms of how we address our convert maturities. While our 2 converts both carry a 0% coupon, and are not due until 2025 and 2026, still 2 and 3 years out, respectively, they are a top priority for us and for me personally. Based on our 2023 outlook and assuming our current capital structure, our net leverage will be less than 3x net debt to EBITDA for the trailing 12 months ending December 31, 2023, which we expect will continue to improve. Given the deleveraging profile, we believe we have a number of attractive choices to address our outstanding convertible maturities.

關於我們的債務，我們的自由現金流為我們解決轉換期限問題提供了很多選擇。雖然我們的 2 個轉換者都帶有 0% 的優惠券，並且要到 2025 年和 2026 年到期，分別還有 2 年和 3 年，但它們是我們和我個人的首要任務。根據我們的 2023 年展望並假設我們目前的資本結構，在截至 2023 年 12 月 31 日的過去 12 個月中，我們的淨槓桿率將低於淨債務與 EBITDA 的 3 倍，我們預計這一數字將繼續改善。鑑於去槓桿化的情況，我們相信我們有許多有吸引力的選擇來解決我們未到期的可轉換債券。

Now turning to guidance. While we outperformed our Q1 revenue outlook, we are still early in the year. Given the macro uncertainty, we are remaining prudent in our guidance. Taking this into account, for the second quarter of 2023, we expect subscriptions revenue growth of 10% to 11%, total revenue growth of 10%, non-GAAP operating margin of 17.5% and non-GAAP EPS of $0.74 to $0.76.

現在轉向指導。雖然我們的表現超出了第一季度的收入預期，但我們仍處於年初。鑑於宏觀不確定性，我們在指引中保持謹慎。考慮到這一點，我們預計 2023 年第二季度訂閱收入增長 10% 至 11%，總收入增長 10%，非 GAAP 營業利潤率為 17.5%，非 GAAP 每股收益為 0.74 美元至 0.76 美元。

For the full year 2023, we now expect subscriptions revenue growth of 11%, up from 10% to 11%; total revenue growth of 10% to 11%; non-GAAP operating margin of at least 18.5%, up from our prior outlook of at least 18%. Based on the midpoint of our revenue guidance, we expect operating profit dollars to grow at least 65%, up from at least 60%; non-GAAP EPS of $3.19 to $3.25, up from our prior outlook of $3.04 to $3.10.

對於 2023 年全年，我們現在預計訂閱收入增長 11%，從 10% 上調至 11%；總收入增長10%至11%；非 GAAP 營業利潤率至少為 18.5%，高於我們先前至少 18% 的預期。根據我們收入指引的中點，我們預計營業利潤美元將至少增長 65%，高於至少 60%；非 GAAP 每股收益為 3.19 美元至 3.25 美元，高於我們先前預期的 3.04 美元至 3.10 美元。

In summary, Q1 was a solid quarter. We exceeded guidance on both top and bottom line. We continue to see healthy growth in our business despite the current macro backdrop. We believe the market opportunity, our leading and differentiated product and a laser focus on balancing growth with increased profitability positions us well for continued success.

總之，第一季度是一個穩定的季度。我們超出了頂線和底線的指導。儘管當前的宏觀背景，我們繼續看到我們的業務健康增長。我們相信市場機會、我們領先的差異化產品以及對平衡增長與提高盈利能力的高度關注，使我們能夠繼續取得成功。

With that, let's open the call for questions.

有了這個，讓我們打開問題的電話。

(Operator Instructions)

（操作員說明）

The first question today comes from Samad Samana with Jefferies.

今天的第一個問題來自 Jefferies 的 Samad Samana。

Good to see the stable results. Vlad, maybe for you. I just was curious, you talked about a number of new products that increased innovation. And I'm curious, how do you think about those products, do you see them as ways to expand ARPU or drive cross-sell, upsell? Or do you see those as features that add value that will make it easier to acquire customers? Just maybe how should we think about whether there's a direct monetization opportunity, or is this a way to continue to attract more and more customers to the RingCentral platform?

很高興看到穩定的結果。弗拉德，也許適合你。我只是很好奇，您談到了一些增加創新的新產品。我很好奇，您如何看待這些產品，您是否將它們視為擴大 ARPU 或推動交叉銷售、追加銷售的方式？或者您是否將這些視為可以增加價值從而更容易獲得客戶的功能？也許我們應該如何考慮是否有直接的貨幣化機會，或者這是一種繼續吸引越來越多客戶使用 RingCentral 平台的方式？

Yes. Samad, great question. Look, it's a bit of both, and it depends. So for example, when you look at RingSense, our AI -- our entry into the AI space, that is absolutely a growth driver is how we see it. It will be monetized separately. I also want to point out that it is not only aimed to be an add-on to our existing customers or to RingCentral customers, in general, but we also designed it in a way that this could be a stand-alone product, working with other UCaaS, CCaaS and, frankly, even UC and CC solutions. It is a general purpose like that.

是的。薩馬德，好問題。看，兩者兼而有之，這取決於。因此，例如，當您查看 RingSense 時，我們的人工智能——我們進入人工智能領域，這絕對是我們如何看待它的增長動力。它將單獨貨幣化。我還想指出，一般來說，它不僅旨在成為我們現有客戶或 RingCentral 客戶的附加組件，而且我們還以一種可以作為獨立產品的方式設計它，與其他 UCaaS、CCaaS，坦率地說，甚至是 UC 和 CC 解決方案。這是一個通用的目的。

When you look at frontline workers with push-to-talk, it's a whole separate SKU in its own right. And again, it can stand on its own or can be added to customers. When you look at our work on Overlay, that's actually super exciting, yes? Because this is really the first time to where we are showing clear traction in areas outside of our core PBX in the cloud. So the whole point in Overlay is to integrate with legacy on-prem providers but augment the experience -- customer experience with our video and messaging. And this, we believe, will, a, it presents a separate monetizable opportunity in its own right as well as sets up for an easier migration path for those customers once they want to go ahead and embrace the whole cloud, okay? Am I missing something, can you think or good?

當您查看使用即按即說功能的一線員工時，它本身就是一個完全獨立的 SKU。同樣，它可以獨立存在，也可以添加到客戶中。當您看到我們在 Overlay 方面的工作時，這實際上非常令人興奮，是嗎？因為這確實是我們第一次在雲中核心 PBX 之外的區域顯示出明顯的吸引力。因此，Overlay 的重點是與傳統的本地提供商集成，但增強了體驗——客戶通過我們的視頻和消息傳遞的體驗。我們相信，這將 a，它本身提供了一個單獨的可獲利機會，並為那些想要繼續並擁抱整個雲的客戶建立了更輕鬆的遷移路徑，好嗎？我錯過了什麼，你能想到還是好的？

So again, a bit of both is the short answer. But having said that, look, anything we do, any value -- oh, I'm sorry. By far not last or the least is our Teams work, and what we call RingCentral for Teams 2.0. And look, that's a major, major step forward. We believe that we simply, at this point, have the best Teams integration in the market today in the universe. It's a completely seamless experience. What we have heard from customers, loud and clear, is that they -- if they have standardized on Teams, they would much prefer to operate within the Teams' single pane of glass. But as we all know, Teams does not really have a, call it, fully viable UCaaS solution, we do. And this is a very close integration.

因此，簡短的回答是兩者兼而有之。但話雖如此，看，我們所做的任何事情，任何價值——哦，對不起。到目前為止，我們的 Teams 工作並不是最後或至少是我們稱之為 RingCentral for Teams 2.0 的東西。看，這是向前邁出的重要一步。我們相信，在這一點上，我們只是擁有當今市場上最好的 Teams 集成。這是一種完全無縫的體驗。我們從客戶那裡清楚地聽到的是，如果他們在 Teams 上實現了標準化，他們更願意在 Teams 的單一管理平台內操作。但眾所周知，Teams 並沒有真正具有完全可行的 UCaaS 解決方案，我們有。這是一個非常緊密的結合。

So we feel -- look, we had good Teams business before, but we were far with the market, technology-wise, This, we believe, will really push us and position us well ahead of competition. Again, it will absolutely open new doors for us. So it is definitely a revenue driver moving forward. But we also believe will be -- will provide stickiness to our existing Teams' customers because it's just a much better experience.

所以我們覺得 - 看，我們之前有很好的 Teams 業務，但我們在技術方面與市場相去甚遠，我們相信，這將真正推動我們並使我們在競爭中處於領先地位。同樣，它絕對會為我們打開新的大門。因此，這絕對是推動收入增長的動力。但我們也相信 - 將為我們現有團隊的客戶提供粘性，因為這只是一種更好的體驗。

The next question comes from Sterling Auty with Moffett.

下一個問題來自 Sterling Auty 和 Moffett。

I just wondered if you could go maybe one layer deeper in terms of your discussion around how you're going to handle the convertible debt. Maybe you don't want to get into too much specifics, but anything that you can give around timing and how proactive you want to be with managing it as well as just what are some of the options that seem to be the most obvious for managing through.

我只是想知道你是否可以更深入地討論你將如何處理可轉換債務。也許您不想談太多細節，但您可以提供有關時間安排的任何信息，以及您希望在管理時間安排方面的積極主動性，以及對於管理而言似乎最明顯的一些選項通過。

Thanks, Sterling. It's Sonalee here. And thanks for the question. As I said in my prepared remarks, this is a very specific focus for us as a management team and for me personally. So a couple of points I would make without giving too much away. One is that we expect to generate growing free cash flow over the next several years. And you would have seen in today's print, along with expanding operating margin by nearly 700 basis points year-over-year, we also delivered a quarterly record on free cash flow. So free cash flow was $61 million in the quarter, and that was including about $7 million of restructuring charges. And we're clearly not done yet when it comes to free cash flow.

謝謝，斯特林。這裡是索娜麗。謝謝你的提問。正如我在準備好的發言中所說，這是我們作為管理團隊和我個人的一個非常具體的重點。因此，我會在不透露太多的情況下提出幾點。一是我們希望在未來幾年內產生不斷增長的自由現金流。你會在今天的印刷品中看到，隨著營業利潤率同比增長近 700 個基點，我們還創造了自由現金流的季度記錄。因此，該季度的自由現金流為 6100 萬美元，其中包括約 700 萬美元的重組費用。在自由現金流方面，我們顯然還沒有完成。

Within that, we have several options to address the convert. So one is using the cash that we're generating organically again, which will -- you will see improve throughout the year. Secondly, you may remember, last quarter, we announced a $400 million Term Loan A. That's a delayed draw facility which we have available to us through November of 2023. And we'll be opportunistic in terms of when and if we decide to draw on that, depending on market conditions. But with the financial profile we're driving and if you think about how rating agencies, for example, look at enterprises such as ourselves, and you think about our EBITDA profile, we will have other financing options available to us. So we'll have access to more conventional debt markets, which we can tap if we so desire. Today, the coupon on the convertible debt is 0%. That's a CFO's dream. So we will balance addressing the convert with other capital allocation priorities, but we will not allow the converts to go current.

其中，我們有幾個選項來解決轉換問題。因此，一個是使用我們再次有機產生的現金，這將 - 你會在全年看到改善。其次，您可能還記得，上個季度，我們宣布了一項 4 億美元的定期貸款 A。這是一項延遲提款工具，我們可以在 2023 年 11 月之前使用它。我們將在何時以及是否決定提款方面採取機會主義態度就此而言，取決於市場情況。但是，根據我們正在推動的財務狀況，如果您考慮評級機構如何看待像我們這樣的企業，並且您考慮我們的 EBITDA 狀況，我們將有其他可用的融資選擇。所以我們可以進入更傳統的債務市場，如果我們願意的話，我們可以利用這些市場。今天，可轉換債券的息票率為 0%。這是 CFO 的夢想。因此，我們將平衡解決轉換與其他資本分配優先事項，但我們不會讓轉換成為當前。

The next question is from Siti Panigrahi with Mizuho.

下一個問題來自 Siti Panigrahi 和 Mizuho。

Definitely, I just want to focus on profitability cash flow. It's good to see that progress even on the margin expansion side, Sonalee. So I understand that you're benefiting from some of the cost cutting and the headcount reduction you did announce earlier. But could you talk about some of the other drivers and progress there and driving margin expansion and also further cash flow conversion? How sustainable is that? How should we think about for the next few quarters or years?

當然，我只想關注盈利現金流。很高興看到即使在利潤率擴張方面也取得了進展，Sonalee。所以我知道你正在從你之前宣布的一些成本削減和裁員中受益。但是你能談談其他一些驅動因素和進展嗎？推動利潤率擴張以及進一步的現金流轉換？這有多可持續？我們應該如何思考未來幾個季度或幾年？

Sure, Siti. And I'm just going to hit the second part of your question right off the bat. It is very sustainable. And again, I'm going to repeat, there's more to come. We're not done yet. You saw the 700 basis point improvement year-over-year this quarter. But you also know that we raised our OP margin guidance for the full year. We're now targeting at least 18.5% operating margins and still very much exiting at least 20% in Q4. So not only is it sustainable, it's going to get better from here.

當然，茜蒂。我將立即回答你問題的第二部分。這是非常可持續的。再一次，我要重複一遍，還有更多。我們還沒有完成。您看到本季度同比增長 700 個基點。但你也知道我們提高了全年的 OP 利潤率指導。我們現在的目標是至少 18.5% 的營業利潤率，並且在第四季度仍然非常接近至少 20%。所以它不僅是可持續的，而且會從這裡變得更好。

Yes, we did take some actions at the end of last year, difficult actions that you're seeing flow through the numbers in the current quarter. I think the profit potential of our business model at scale is really starting to shine through. And we are continuing to focus on the productivity of our workforce and optimizing and driving down the cost of customer acquisition. This is something you've heard Mo and I talk about in the past, and that's an area that we are still really investing in.

是的，我們在去年年底確實採取了一些行動，你在本季度的數字中看到的困難行動。我認為我們商業模式的大規模盈利潛力真正開始顯現。我們將繼續關注我們員工的生產力，優化和降低客戶獲取成本。這是你過去聽過 Mo 和我談論的事情，這是我們仍在真正投資的領域。

Another personal example I'll give you, just from the finance side around efficiency actions, is in the procurement project that we're running. We had many, many manual processes from procurement to payment, as you might understand, for a company that scaled and grew as quickly as we did. And at the moment, within my finance team, we're implementing a software that will automate a lot of these processes, and that procurement initiative alone will be saving high single-digit millions, just that one initiative within finance.

我要給你的另一個個人例子，只是從圍繞效率行動的財務方面，是我們正在運行的採購項目。正如您所了解的，對於一家像我們一樣快速擴張和發展的公司，我們有很多很多從採購到付款的手動流程。目前，在我的財務團隊中，我們正在實施一種軟件，可以使許多這些流程自動化，僅採購計劃就可以節省數百萬美元，這只是財務部門的一項計劃。

There's also the operating leverage inherent in the business. We're focusing on higher ROI programs. We're really prioritizing how and when where we're investing our dollars. We're actively managing the workforce. So that includes opening up hubs in Dallas and Charlotte, which are lower-cost geos, versus making incremental hires in Belmont. For example, in my team, I'm not making incremental hires on the finance side in Belmont. Any of those new hires would be in lower-cost geos.

還有業務固有的運營槓桿。我們專注於更高投資回報率的項目。我們確實在優先考慮我們投資美元的方式和時間。我們正在積極管理員工隊伍。因此，這包括在成本較低的達拉斯和夏洛特開設中心，而不是在貝爾蒙特增加員工人數。例如，在我的團隊中，我不會在貝爾蒙特的財務方面進行增量招聘。這些新員工中的任何一個都將在成本較低的地區工作。

And then Mo will probably talk a little bit about what we're doing on the channel side. But we are very much looking at how we pay our partners and how we work with those partners. And that will drive further efficiencies and incremental savings as partners really take on a larger role in the overall soup to nuts sale process.

然後 Mo 可能會談談我們在渠道方面所做的事情。但我們非常關注我們如何向合作夥伴付款以及我們如何與這些合作夥伴合作。這將進一步提高效率並增加節省，因為合作夥伴真正在整個從頭到尾的銷售過程中發揮更大的作用。

And then finally, the vendor management consolidation where we're reviewing every contract, rationalizing licenses, bidding out our vendor contracts, everything to really get to best-in-class best practice.

最後，供應商管理整合，我們正在審查每份合同、合理化許可、競標我們的供應商合同，一切都是為了真正獲得一流的最佳實踐。

And one last thing I'll share just because you were pushing on the sustainability of this profitability. And I do want to also make a strong point on free cash flow. We shared last quarter that we would double free cash flow generation from a normalized level of $140 million in 2022 to at least $280 million by 2024, by fiscal year end 2024. I'm now confident we can achieve this level of free cash flow generation much earlier than end of fiscal year '24. And this level of free cash flow generation gives us a lot of flexibility around capital allocation and, importantly, addressing our convertible debt in a cost-efficient manner.

我要分享的最後一件事只是因為你在推動這種盈利能力的可持續性。我也想強調自由現金流。我們在上個季度分享說，到 2024 財年末，我們將把自由現金流的產生量從 2022 年的正常水平 1.4 億美元增加到至少 2.8 億美元。我現在有信心我們可以實現這一水平的自由現金流量產生比 24 財年末早得多。這種水平的自由現金流產生為我們提供了很大的資本配置靈活性，重要的是，以具有成本效益的方式處理我們的可轉換債務。

The next question comes from Meta Marshall with Morgan Stanley.

下一個問題來自摩根士丹利的 Meta Marshall。

Great. I just wanted to see if you could kind of break down with some of the upside that you saw to the quarter, that lower churn. Is that better pricing on renewals? Is that just slightly better net adds? It appeared kind of the mid-market was the greatest source of kind of incremental ARR growth. So just trying to see if that churn came in a little bit less than expected. Just any details on kind of that context would be helpful.

偉大的。我只是想看看你是否可以分解你在本季度看到的一些好處，即較低的流失率。續訂的定價是否更好？那隻是稍微好一點的淨增加嗎？中端市場似乎是 ARR 增量增長的最大來源。所以只是想看看這種流失是否比預期的要少一點。任何關於那種背景的細節都會有所幫助。

Thanks, Meta. Yes. So I think I'll start off just by addressing net retention, which again is a big focus for this management team. So we produced net retention, we came in at above 100%. And within that, churn remains stable on a percentage basis, so annualized churn on a percentage basis. What I will call out is stable churn on a larger base does actually mean higher dollar churn, but overall churn stable and within plan. Again, we're actively focused on it. We've invested in CSM, so customer success and analytics in this area as this is a big renewal year as COVID [left].

謝謝，梅塔。是的。所以我想我將從解決淨保留開始，這又是這個管理團隊的一個重點。所以我們產生了淨保留率，我們達到了 100% 以上。其中，流失率在百分比基礎上保持穩定，因此年化流失率在百分比基礎上。我要說的是，在更大的基數上穩定的流失率實際上意味著更高的美元流失率，但總體流失率穩定且在計劃內。同樣，我們積極關注它。我們投資了 CSM，所以客戶成功和分析在這個領域，因為這是 COVID [左] 的重要更新年。

What I would say is that we saw some pressure in upsell due to the macro, we believe, and that was mostly in enterprise. So you're absolutely right to call out that SMB was a bright spot. So we saw no material change to the dynamics in that business. And some customers within enterprise are starting to rationalize seats, given the headcount actions that they are taking internally. But we are very much focused on maintaining the logos and again, just investing actively in that area. Mo may want to add a bit in terms of the strength we're seeing on SMB.

我要說的是，我們認為，由於宏觀經濟，我們看到了追加銷售的一些壓力，這主要是在企業中。所以你說 SMB 是一個亮點是絕對正確的。因此，我們沒有看到該業務的動態發生重大變化。考慮到他們在內部採取的裁員行動，企業內部的一些客戶開始合理化席位。但我們非常專注於維護徽標，並再次在該領域積極投資。 Mo 可能想補充一點我們在 SMB 上看到的實力。

Sonalee, I think you nailed it. At the end of the day, strength in SMB, we're seeing that market stabilize. It's continuing to do well for us. Acquisition broadly across the board was strong. And then as Sonalee pointed out, stable churn. And these are the factors that we've utilized as we think about our go-forward guide as well.

Sonalee，我想你做到了。歸根結底，SMB 的實力，我們看到市場趨於穩定。它繼續為我們做的很好。廣泛的收購表現強勁。然後正如 Sonalee 指出的那樣，穩定的客戶流失。這些也是我們在考慮我們的前進指南時使用的因素。

The next question comes from Ryan Koontz with Needham.

下一個問題來自 Ryan Koontz 和 Needham。

I wanted to ask about the Teams environment. I had a chance to see your 2.0 at Enterprise Connect and was really interested in that. We've also heard anecdotally that Teams phone edge are really slowing. I'm sure that's due to the macro in general. But I wonder if you're seeing any impact on that in terms of your upside opportunity to sell the turnkey Ring UCaaS solution versus opportunities to sell into Teams as your own app inside of Teams. Appreciate any color on that.

我想問一下Teams環境。我有機會在 Enterprise Connect 上看到你們的 2.0，對此非常感興趣。我們還聽說 Teams 電話優勢確實在放緩。我確定這是由於一般的宏。但我想知道，就銷售交鑰匙 Ring UCaaS 解決方案的上行機會與將 Teams 作為您自己的應用程序出售給 Teams 的機會而言，您是否看到了任何影響。欣賞上面的任何顏色。

Thanks, Ryan, and thanks for coming by and checking out the demos. Right now our -- as we've said in our prepared remarks, we're seeing strong growth with our Teams 1.0 business, if you will, over 100% seat growth year-over-year. As we think about Teams 2.0, it really is an opportunity to drive traction with what is already a fairly substantial Teams' base through a significantly improved experience versus what we offer in our 1.0 product, and frankly, as Vlad pointed out, what other competitors in the market are offering. And our motion there is really about targeting E1 and E3 users that don't have a Teams phone license and constitute the vast majority of the Teams users that are out there.

謝謝，Ryan，感謝您前來查看演示。現在我們——正如我們在準備好的發言中所說的那樣，我們的 Teams 1.0 業務正在強勁增長，如果你願意的話，席位同比增長超過 100%。當我們考慮 Teams 2.0 時，它確實是一個機會，通過與我們在 1.0 產品中提供的體驗相比顯著改進的體驗來推動已經相當龐大的 Teams 基礎，坦率地說，正如 Vlad 指出的那樣，其他競爭對手在市場上提供。我們的動議實際上是針對沒有 Teams 電話許可證的 E1 和 E3 用戶，這些用戶構成了那裡的 Teams 用戶的絕大多數。

And this plays directly into our BAU sales motion, if you will, where as part of the discovery process, we are talking to our customers about what solutions they're using today. Are they on an on-prem legacy solution? Some of them may tell us that they're a Teams user, and to the degree that they're a Teams user, then we pivot into offering the value and the benefits of our integrations, our analytics, all, frankly, at one simple valuable price. And then to the degree that a customer needs Contact Center as well, CCaaS, we're able to integrate that and bring that to life.

這直接影響到我們的 BAU 銷售活動，如果你願意的話，作為發現過程的一部分，我們正在與我們的客戶討論他們今天使用的解決方案。他們是在本地遺留解決方案上嗎？他們中的一些人可能會告訴我們他們是 Teams 用戶，並且在某種程度上他們是 Teams 用戶，然後我們將重點轉向提供我們的集成、我們的分析的價值和好處，坦率地說，所有這些都在一個簡單的有價值的價格。然後，如果客戶也需要聯絡中心，即 CCaaS，我們就能夠將其整合併付諸實踐。

So to simply answer your question, there's a fairly material number of Teams users out there today. We continue to see that as a key growth opportunity for us moving forward, and it only gets better with our 2.0 solution.

因此，為了簡單地回答您的問題，今天有相當數量的 Teams 用戶。我們繼續將其視為我們前進的關鍵增長機會，並且隨著我們的 2.0 解決方案，它只會變得更好。

The next question comes from Brian Peterson with Raymond James.

下一個問題來自 Brian Peterson 和 Raymond James。

Congrats on the strong quarter, guys. So I just wanted to start on the enterprise in the top of funnel. I know you mentioned that ARR growth and the revenue growth in enterprise was the delta there. What are you guys seeing in the top of the funnel that gives you confidence that, that enterprise will step up in the back half of the year?

恭喜這個強勁的季度，伙計們。所以我只想從漏斗頂部的企業開始。我知道你提到 ARR 增長和企業收入增長是那裡的三角洲。你們在漏斗的頂部看到了什麼讓您有信心，該企業將在今年下半年加強？

Thanks for the question, Brian. Appreciate it. As we think about the top of the funnel, our lead flow is still quite strong. And as I mentioned a few minutes ago, we are seeing broad acquisition strength across the board. The dynamic that's in play, and quite obviously driven by the macro environment, is the upsell, downsell, 2 sides of the same coin are impacting our enterprise business.

謝謝你的問題，布賴恩。欣賞它。當我們考慮漏斗的頂部時，我們的潛在客戶流量仍然非常強勁。正如我幾分鐘前提到的，我們看到了廣泛的收購力量。正在發揮作用的動態，很明顯是由宏觀環境驅動的，是向上銷售、向下銷售，同一枚硬幣的兩個方面正在影響我們的企業業務。

And so as the macro improves, our ability to sell our traditional product set into the enterprise, organically, will improve with it, one; and then two, and obviously, this takes a little bit longer, but as you think about the new innovations that Vlad articulated, they become new cross-sell, upsell opportunities as well as an acquisition, a wedge strategy, if you will, the ability to go sell these new products as a stand-alone and then pull through our UCaaS and CCaaS solutions along with it. So those are the dynamics that are playing out. Thanks for the question.

因此，隨著宏觀環境的改善，我們將傳統產品集有機地銷售到企業中的能力也會隨之提高，一個；然後是兩個，顯然，這需要更長的時間，但是當你考慮 Vlad 闡述的新創新時，它們成為新的交叉銷售、追加銷售機會以及收購、楔形策略，如果你願意的話，能夠單獨銷售這些新產品，然後將我們的 UCaaS 和 CCaaS 解決方案與它一起推出。所以這些就是正在發揮作用的動力。謝謝你的問題。

Next question comes from Matt Niknam with Deutsche Bank.

下一個問題來自德意志銀行的 Matt Niknam。

I'm just curious if you can talk about the cadence of bookings over the course of the quarter. And more specifically, I guess, was there any drop off in March or any spillover into April? And then just one quick follow-up. On small business ARR, obviously, very resilient. I'm just wondering if you can comment on what's driving the relative resiliency there maybe relative to just midsize and enterprise.

我只是想知道您能否談談本季度的預訂節奏。更具體地說，我想，三月份是否有下降或四月份有任何溢出？然後只是一個快速跟進。對於小型企業 ARR，顯然非常有彈性。我只是想知道您是否可以評論是什麼推動了相對於中型和企業的相對彈性。

Sure. Matt, Sonalee here. I'll take the first part of the question, and then I may hand over to Mo just on -- specifically on SMB.

當然。馬特，這裡是索娜麗。我將回答問題的第一部分，然後我可能會移交給 Mo，特別是關於 SMB。

So in terms of linearity on bookings, as you know, we don't guide specifically on bookings. But I think in the current environment, it is worth giving you some color. I won't speak specifically month by month, but yes, we did see much more back-end-loaded bookings. So March was the lion's share of bookings for this quarter. And as you know, we have guided or given some color last quarter around ARR growth being higher than total revenue growth for the full year '23, and we still expect that to be the case. And as you know, enterprise bookings anyway tend to be more back-end loaded. So we are seeing more of that trend in the current environment.

因此，就預訂的線性而言，如您所知，我們不會專門針對預訂提供指導。但是我覺得在現在的環境下，還是值得給大家點顏色的。我不會逐月具體說，但是是的，我們確實看到了更多的後端加載預訂。因此，3 月是本季度預訂的最大份額。如您所知，上個季度我們已經指導或給出了一些關於 ARR 增長高於 23 年全年總收入增長的顏色，我們仍然預計情況會如此。如您所知，企業預訂無論如何都傾向於更多的後端加載。因此，我們在當前環境中看到了更多這種趨勢。

So I'll hand over to Mo just on -- who can talk to the SMB trends.

因此，我將移交給 Mo，他可以談論 SMB 趨勢。

Yes. So thanks for the question. As you think about the opportunity to close cycle time dynamics, we articulated that we're still continuing to see elongated cycle times vis-a-vis Q1 of last year. Now as you think about SMB/SoHo and SMB space, obviously, that opportunity to close is significantly faster. And one of the dynamics that played out for us during the quarter was, frankly, very good execution by our marketing organization that we've talked about historically that we were going to rationalize brand spend, we were going to improve the efficacy of our marketing demand gen motion, and that is playing out. With less, they were able to drive more pipeline. That pipeline closes fairly quickly down market and is one of the reasons that you're seeing the strength in the numbers that we were able to put up. Thanks for the question.

是的。所以謝謝你的問題。當您考慮關閉週期時間動態的機會時，我們明確表示，與去年第一季度相比，我們仍在繼續看到更長的周期時間。現在，當您考慮 SMB/SoHo 和 SMB 空間時，顯然，關閉的機會要快得多。坦率地說，本季度對我們產生的影響之一是我們的營銷組織執行得非常好，我們過去曾談到我們將合理化品牌支出，我們將提高營銷效率demand gen motion，這正在發揮作用。用更少的錢，他們能夠推動更多的管道。這條管道很快就關閉了市場，這是你看到我們能夠提供的數字實力的原因之一。謝謝你的問題。

Next question comes from Peter Levine with Evercore ISI.

下一個問題來自 Evercore ISI 的 Peter Levine。

Maybe, Mo, one for you is you called out Avaya reemerging from bankruptcy. And I guess you would have seen some kind of impact from the channel. Was there -- I mean I guess when they were in bankruptcy, was there an impact in the first half? And then if so, can you maybe quantify what that impact was? And then maybe second for Sonalee. ARPU above 30. Can you maybe dissect what core UCaaS pricing looks like if you were to exclude Contact Center from that number?

也許，Mo，一個給你的是你呼籲 Avaya 從破產中重振旗鼓。而且我想您會看到該頻道的某種影響。有沒有 - 我的意思是我猜當他們破產時，上半年有影響嗎？如果是這樣，您能否量化這種影響是什麼？然後可能是 Sonalee 的第二名。 ARPU 高於 30。如果您要從該數字中排除 Contact Center，您能否剖析核心 UCaaS 定價是什麼樣的？

Thanks for the question, Peter. So to talk about Avaya, look, they just emerged from bankruptcy a few days ago at the very beginning of May. As we've said before, we're expecting that their contribution will ramp in the latter part of this year, obviously, tied to putting the restructuring behind them. We're comfortable that the contractual provisions that we have in place are going to allow us to achieve the minimum commitment volumes that we talked about last quarter as well as the enablement of new go-to-market motions including wholesale, integrations, additional integrations that we're building tied to Avaya legacy contact center, et cetera, et cetera. And frankly, to the degree that they're not able to achieve those minimum commitments, if that ever happens, then we're comfortable that there's mechanisms in place to address that as well.

謝謝你的問題，彼得。所以說到 Avaya，看，他們幾天前在 5 月初剛剛從破產中走出來。正如我們之前所說，我們預計他們的貢獻將在今年下半年增加，顯然，這與將重組拋在腦後有關。我們感到欣慰的是，我們現有的合同條款將使我們能夠實現上個季度談到的最低承諾量，並支持新的上市行動，包括批發、整合、額外整合我們正在構建與 Avaya 遺留聯絡中心等相關的服務。坦率地說，就他們無法實現這些最低承諾的程度而言，如果發生這種情況，那麼我們很高興也有機制來解決這個問題。

So with that, Sonalee, I'll turn it over to you to talk about ARPU.

因此，Sonalee，我會把它交給你來談談 ARPU。

Yes. Thanks for the question, Peter. So as you know, we look at and run the business and disclose ARPU on a blended basis. And I'm happy to say that the trend was stable there. As you know, CCaaS has higher ARPU, a significantly higher ARPU than UCaaS. But even when you take out the CCaaS number from overall ARPU, they're generally holding steady. There was a little bit of weakness in UCaaS relative to CCaaS, but it's very, very mild. Overall, very stable and stable within a range. And there was some -- some of that was actually FX, to be clear. Some of the softness was FX, but it was -- it's very marginal.

是的。謝謝你的問題，彼得。因此，如您所知，我們在混合基礎上查看和運營業務並披露 ARPU。我很高興地說那裡的趨勢很穩定。如您所知，CCaaS 具有更高的 ARPU，明顯高於 UCaaS。但即使你從整體 ARPU 中取出 CCaaS 數字，它們通常也保持穩定。相對於 CCaaS，UCaaS 有一點弱點，但非常非常溫和。總體來說，很穩定，穩定在一個範圍內。還有一些——需要明確的是，其中一些實際上是外匯。一些軟性是 FX，但它是——它非常微不足道。

Yes. Spot on, yes.

是的。沒錯，是的。

And no material change.

而且沒有實質性的變化。

The next question comes from Michael Funk with Bank of America.

下一個問題來自美國銀行的 Michael Funk。

This is Matt on for Mike. It's great to hear that the demand environment is broadly holding up. Can you call out any incremental strength or weakness you saw in specific verticals this quarter?

這是邁克的馬特。很高興聽到需求環境普遍保持良好。您能否說出本季度您在特定垂直領域看到的任何增量優勢或劣勢？

Yes. Thanks, Matt, for the question. As we've talked about in previous quarters, the strength that we're seeing relative to verticals really ties back to areas that are very focused on what we call business to consumer, a.k.a. verticals and companies that sell or service end consumers as their customers. So health care, financial services, retail, professional services, public are generally the areas that value UCaaS and the services that we provide, frankly, because voice reliability, service uptime, et cetera, has got to be rock-solid because it's the difference between happy customers, driving revenue, et cetera. Those are still the verticals that are doing really, really well for us and provide meaningful opportunity as we look ahead.

是的。謝謝馬特提出這個問題。正如我們在前幾個季度所討論的那樣，我們所看到的相對於垂直行業的優勢實際上與非常關注我們所謂的企業對消費者的領域有關，也就是垂直行業以及將最終消費者作為其客戶進行銷售或服務的公司.因此，坦率地說，醫療保健、金融服務、零售、專業服務、公共通常是重視 UCaaS 和我們提供的服務的領域，因為語音可靠性、服務正常運行時間等必須堅如磐石，因為它與眾不同在滿意的客戶、增加收入等之間。這些仍然是為我們做得非常非常好的垂直領域，並在我們展望未來時提供有意義的機會。

The next question comes from Matt Stotler with William Blair.

下一個問題來自 Matt Stotler 和 William Blair。

Maybe just a follow-up, and maybe this one's for Mo, but it's based on something Sonalee mentioned earlier. And so we talked about last quarter was some efficiency improvement initiatives around partners specifically and shipping incentive structures and those relationships. Just maybe give an update on the level of acceptance you're seeing with those changes at partners and then any kind of early indications on the impact on productivity of those relationships.

也許只是一個跟進，也許這個是給 Mo 的，但它基於 Sonalee 之前提到的內容。因此，我們在上個季度談到了一些圍繞合作夥伴的效率改進計劃，特別是運輸激勵結構和這些關係。也許只是更新您對合作夥伴的這些變化的接受程度，然後是關於這些關係對生產力影響的任何早期跡象。

Very good. Broadly, we did not see any impact year-over-year relative to our partnerships tied to the changes that we've made. As we disclosed last year -- I'm sorry, last quarter, ALE and Atos are no longer exclusive. We remain partners with them. They continue to have a large on-prem base, and they're going to be compensated as seats are sold. That's generally the model that we've been targeting. That model, we find, drives the right incentive structure and behavior. And then broadly from our channel partners, we're continuing to see the lead flow is steady and no meaningful change quarter-over-quarter.

非常好。從廣義上講，我們沒有看到與我們所做的改變相關的合作夥伴關係的任何同比影響。正如我們去年披露的那樣——對不起，上個季度，ALE 和 Atos 不再是排他性的。我們仍然是他們的合作夥伴。他們繼續擁有龐大的本地基礎，並且會在售出席位時得到補償。這通常是我們一直瞄準的模型。我們發現，該模型推動了正確的激勵結構和行為。然後廣泛地從我們的渠道合作夥伴那裡，我們繼續看到潛在客戶流量穩定，並且季度環比沒有有意義的變化。

The only other comment that I'd make and going back to my prepared remarks is the launch of what we're calling the RingCentral IGNITE program. And we've had a variant of it out there for a while, but we're really putting some wood behind the arrow, if you will. And what this program does is serve as another way for us to help continue driving our sales and marketing percentage of revenue in the right direction over time.

我要發表並回到我準備好的評論中的唯一其他評論是我們稱之為 RingCentral IGNITE 程序的啟動。我們已經推出了它的變體有一段時間了，但如果您願意的話，我們確實在箭頭後面放了一些木頭。這個項目的作用是作為另一種方式幫助我們隨著時間的推移繼續朝著正確的方向推動我們的銷售和營銷收入百分比。

And how does it do that? One, it provides economic incentive for our partners to take on more of the sales and marketing motion themselves and not include our own direct sales base. This is a great motion. Many of our channel partners have long-standing relationships with on-prem legacy customers that they're now able to go work with, move them over to RingCentral and do it without any additional incentive. This drives economic benefit for all parties. And early days, but we're seeing very solid interest from the channel partner community about this motion as well.

它是如何做到的？第一，它為我們的合作夥伴提供經濟激勵，讓他們自己承擔更多的銷售和營銷活動，而不包括我們自己的直銷基地。這是一個偉大的動議。我們的許多渠道合作夥伴與內部部署的遺留客戶有著長期的關係，他們現在可以與之合作，將他們轉移到 RingCentral 並且在沒有任何額外激勵的情況下進行。這為各方帶來了經濟利益。在早期，我們也看到渠道合作夥伴社區對這項動議非常感興趣。

The next question is from Ryan MacWilliams with Barclays.

下一個問題來自巴克萊銀行的 Ryan MacWilliams。

This is [Andy Conlan] on for Ryan MacWilliams. I was just curious how your renewals fared in the first quarter maybe compared to the fourth quarter and if you've seen any changes in these customer renewals as a result of macro.

這是 [Andy Conlan] 替補 Ryan MacWilliams。我只是想知道您在第一季度的續訂情況與第四季度相比如何，以及您是否看到這些客戶續訂因宏觀因素而發生任何變化。

Well, we don't guide on renewals, but what I'll bring you back to is a comment that Sonalee made, which is we're seeing the churn as a percentage is stable and doing well. As we mentioned, in the enterprise space, upsell and downsell, frankly, 2 sides of the same coin. There is some pressure on the downsell side at the renewal time frame as our enterprise customers who have been impacted themselves by the macro are doing some degree of rationalization of seats tied to their own needs. But again, broadly speaking, the churn percentage has remained stable quarter-over-quarter, year-over-year.

好吧，我們不指導續訂，但我要帶你回到 Sonalee 發表的評論，我們看到流失率穩定且表現良好。正如我們所提到的，坦率地說，在企業領域，追加銷售和向下銷售是同一枚硬幣的兩個方面。由於受到宏觀影響的企業客戶正在根據自己的需求對座位進行一定程度的合理化，因此在續訂時間範圍內，降價銷售方面存在一些壓力。但同樣，從廣義上講，流失率環比、同比保持穩定。

The next question comes from Catharine Trebnick with Rosenblatt Securities.

下一個問題來自 Rosenblatt Securities 的 Catharine Trebnick。

It looks like we've left our connection to Catharine.

看來我們已經離開了與凱瑟琳的聯繫。

The next question comes from Terry Tillman from Truist.

下一個問題來自 Truist 的 Terry Tillman。

This is Bobby Dee on for Terry. Just one on Contact Center. For those larger million-dollar-plus deals, is Contact Center attached still in the over 60% range? Or has there been any notable up or downtick in attach year-to-date?

這是特里的鮑比·迪。只有一個關於聯絡中心。對於那些更大的百萬美元以上的交易，Contact Center 是否仍然在 60% 以上的範圍內？或者今年迄今附件有任何顯著的上升或下降？

Stable. We're continuing to see our $1 million-plus TCV deals have more than 60% attach of CCaaS. And really, this boils back to what we've seen historically, which is in the legacy UC, CC space, about 60% of all of the CC seats sold were from the same vendors that were selling UC to those customers. It's a very obvious buying motion. It drives significant economic benefits to customers, as I laid out in my prepared remarks, recently validated by Forrester, an independent third-party consulting company.

穩定的。我們繼續看到超過 100 萬美元的 TCV 交易有超過 60% 的 CCaaS 附加。實際上，這可以追溯到我們歷史上看到的情況，即在傳統的 UC、CC 空間中，所有售出的 CC 席位中約有 60% 來自向這些客戶銷售 UC 的同一供應商。這是一個非常明顯的購買動作。正如我在準備好的評論中所述，它為客戶帶來了巨大的經濟利益，最近由獨立的第三方諮詢公司 Forrester 驗證。

Today's last question comes from Michael Turrin with Wells Fargo Securities.

今天的最後一個問題來自富國銀行證券公司的 Michael Turrin。

Sonalee, I just want to go back to margin. You're unlocking a lot of margin expansion in fairly quick order. You had some useful commentary around the sustainability of those improvements. Is there anything you can add around how you ensure you're driving the right level of optimization and still leaving enough in the tank for growth to hold in above double digits going forward as well? Just curious on how you manage the balance through this.

Sonalee，我只想回到保證金。您正在以相當快的順序解鎖大量利潤擴張。您對這些改進的可持續性發表了一些有用的評論。關於如何確保您正在推動正確的優化水平並仍然在坦克中留下足夠的增長以保持在兩位數以上的增長，您是否可以添加任何內容？只是好奇你如何通過這個來管理平衡。

Yes, sure. I mean, you've heard us say that we're focused on driving healthy, profitable growth. So we absolutely are and always will be a growth company. What I said in previous calls and tried to reiterate today is we are seeing the benefit of scale in the model. We're actually seeing the profit potential of the business model starting to shine through. And that's from lots of efficiencies we found within the workforce, within optimizing our cost of customer acquisition.

是的，當然。我的意思是，你聽說過我們說我們專注於推動健康、有利可圖的增長。所以我們絕對是而且永遠是一家成長型公司。我在之前的電話會議中說過並在今天試圖重申的是，我們正在看到模型中規模化的好處。我們實際上看到商業模式的盈利潛力開始顯現。這是因為我們在員工隊伍中發現了很多效率，在優化我們的客戶獲取成本方面。

And you may remember last quarter when we talked about the actions we were taking, we were very specific not to touch frontline salespeople. And that is something that is still very much part of the RingCentral playbook in terms of becoming significantly more profitable and significantly more cash generative. We are protecting the P times Q selling motions within the portfolio.

你可能還記得上個季度我們談到我們正在採取的行動時，我們非常明確地不接觸一線銷售人員。就顯著提高盈利能力和產生更多現金而言，這仍然是 RingCentral 劇本的重要組成部分。我們正在保護投資組合中的 P 次 Q 賣出動議。

And some of the things that we've talked about, Mo was talking about lowering customer acquisition within the channel, I talked about vendor consolidation, reviewing contracts, rationalizing licenses, being disciplined about expense, being disciplined about hiring in some of the G&A areas where we still have a bit of work to do, but we feel like we've come a long way. So what I would say is that we feel like we're getting the balance right. And I very much believe that we need to invest for growth. And one of the great things about optimizing your cost base is it frees up cash to be able to invest in future growth. And that's what this team will be focused on.

我們談到的一些事情，Mo 談到了降低渠道內的客戶獲取，我談到了供應商整合、審查合同、合理化許可、嚴格控制開支、嚴格遵守一些 G&A 領域的招聘我們還有一些工作要做，但我們覺得我們已經走了很長一段路。所以我要說的是，我們覺得我們正在取得正確的平衡。我非常相信我們需要為增長進行投資。優化成本基礎的一大好處是它可以釋放現金，以便能夠投資於未來的增長。這就是這個團隊將關注的重點。

Thank you all, and that concludes our call for today. You may now disconnect.

謝謝大家，我們今天的呼籲到此結束。您現在可以斷開連接。