RingCentral Inc (RNG) 2023 Q4 法說會逐字稿

Good afternoon, and welcome to the RingCentral Fourth Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Will Wong, Vice President of Investor Relations. Please go ahead.

下午好，歡迎參加 RingCentral 2023 年第四季財報電話會議。 （操作員說明）請注意，正在記錄此事件。我現在將會議交給投資者關係副總裁 Will Wong。請繼續。

Thank you. Good afternoon, and welcome to RingCentral's Fourth Quarter 2023 Earnings Conference Call. Joining me today are Vlad Shmunis, Founder, Chairman and CEO; and Sonalee Parekh, CFO. Our format today will include prepared remarks by Vlad and Sonalee 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.

謝謝。下午好，歡迎參加 RingCentral 2023 年第四季財報電話會議。今天加入我的還有創辦人、董事長兼執行長 Vlad Shmunis；和財務長 Sonalee Parekh。我們今天的形式將包括 Vlad 和 Sonalee 準備好的發言，然後是問答。我們還在投資者關係網站上提供了與今天的電話會議同時進行的幻燈片演示，您可以在 ir.ringcentral.com 的財務業績部分找到該演示。

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 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.

我們對您問題的一些討論和答覆將包含有關公司業務運營、財務業績和前景的前瞻性陳述。這些陳述存在風險和不確定性，其中一些風險和不確定性超出了我們的控制範圍，並且不能保證未來的表現。實際結果可能與我們的前瞻性陳述有重大差異，我們不承擔在本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，請參閱我們向美國證券交易委員會提交的文件以及今天的收益發布中包含的資訊。

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 now 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以非公認會計原則進行同比比較。我們的收益發布和幻燈片中提供了所有 GAAP 與非 GAAP 業績的對帳。對於某些前瞻性指引，現在可以提供非 GAAP 財務指引與相應 GAAP 指標的調整表，如我們投資者關係網站上發布的幻燈片中詳細討論的那樣。

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

這樣，我就把電話轉給弗拉德。

Good afternoon, and welcome to our fourth quarter 2023 earnings call. First, I'd like to welcome 2 new Board members. Ned Segal and Prat Bhatt to the RingCentral family. Ned is a seasoned executive with more than 25 years of technology, finance and capital market experience, including at Twitter, Intuit and Goldman Sachs. Prat is an accomplished technology industry veteran and financial expert, having served as the Chief Accounting Officer at Cisco Systems for over 20 years. I look forward to working with them both.

下午好，歡迎參加我們的 2023 年第四季財報電話會議。首先，我對兩位新的董事會成員表示歡迎。 Ned Segal 和 Prat Bhatt 加入 RingCentral 家族。 Ned 是一位經驗豐富的高階主管，擁有超過 25 年的技術、金融和資本市場經驗，曾在 Twitter、Intuit 和高盛任職。 Prat 是一位卓有成就的科技業資深人士和財務專家，曾在思科系統公司擔任首席會計長超過 20 年。我期待與他們兩人合作。

I also want to warmly thank Allan Thygesen for his 9 years of service on our Board as he will be transitioning off the Board in Q2.

我還要熱烈感謝 Allan Thygesen 在我們董事會 9 年的服務，因為他將於第二季退出董事會。

Now moving to our results. We ended the year on a strong note. In Q4, total revenue rose 9%, above the midpoint of our guidance. ARR rose 11% to $2.3 billion. We also achieved record profitability with quarterly operating margin of 20.5% and free cash flow of nearly $100 million, well above our outlook. Our strong finish to 2023 positions us well to execute on our strategy in 2024 and beyond.

現在轉向我們的結果。我們以強勁的勢頭結束了這一年。第四季度，總營收成長 9%，高於我們指引的中點。 ARR 成長 11%，達到 23 億美元。我們也實現了創紀錄的獲利能力，季度營業利潤率為 20.5%，自由現金流接近 1 億美元，遠高於我們的預期。 2023 年的強勁業績使我們能夠在 2024 年及以後執行我們的策略。

(inaudible) CEO to deliver on our strategy of one, delivering durable growth and value from our core; two, expanding our TAM by turning RingCentral into a multiproduct AI first communication leader. To that end, we have recently added 3 new products to our portfolio. RingCX, our native AI first contact center; RingSense for Sales our conversation intelligence platform for sales professionals and RingCentral Events, our new virtual, hybrid and on-site events platform. And three, driving continued robust free cash flow generation while materially reducing SBC and maximizing free cash flow per share growth over the long term.

（聽不清楚）執行長將實施我們的「一」策略，從我們的核心實現持久成長和價值；第二，透過將 RingCentral 轉變為多產品人工智慧第一通訊領導者來擴展我們的 TAM。為此，我們最近在我們的產品組合中添加了 3 種新產品。 RingCX，我們原生的人工智慧第一聯絡中心； RingSense for Sales 是我們銷售專業人員的對話智慧平台，而 RingCentral Events 是我們新的虛擬、混合和現場活動平台。第三，推動持續強勁的自由現金流生成，同時大幅減少 SBC 並最大限度地提高每股自由現金流的長期成長。

Our [right-to-win] is rooted in our industry-leading reliable, global, fully featured business communications platform that now includes cloud PBX, cloud contact center and video meetings, webinars and events, all infused with state-of-the-art AI capabilities. As a testament to our industrial leadership, in November 2023, the RingCentral was named a leader in the Gartner Magic Quadrant for Unified Communications As A Service, Worldwide Report for the ninth consecutive year. And we are excited to report that Aragon Research, an independent third-party research firm just named RingCX as a leader in intelligent contact center for SMB. We believe this is a testament to RingCentral's ability to continue delivering a superior, differentiated solution in a competitive market. We are proud to have built a $2.3 billion recurring revenue business that is growing, profitable and serves over 400,000 customers across enterprise, mid-market and SMB.

我們的[致勝之道]植根於我們行業領先的可靠、全球性、功能齊全的業務通信平台，該平台現在包括雲端PBX、雲端聯絡中心和視訊會議、網路研討會和活動，所有這些都融入了最先進的技術藝術人工智慧能力。 2023 年 11 月，RingCentral 連續第九年在 Gartner 統一通訊即服務魔力像限全球報告中被評為領導者，證明了我們的產業領導地位。我們很高興地報告，獨立第三方研究公司 Aragon Research 剛剛將 RingCX 評為中小企業智慧聯絡中心的領導者。我們相信，這證明了 RingCentral 有能力在競爭激烈的市場中繼續提供卓越的差異化解決方案。我們很自豪已經建立了 23 億美元的經常性收入業務，該業務不斷增長、盈利，並為企業、中端市場和中小企業的超過 40 萬名客戶提供服務。

Within enterprise, which we define as customers that generate $100,000 in ARR or more, I am particularly proud to report that this segment has just achieved $1 billion of ARR. This is a major milestone for our company. In fact, in this post-COVID world, enterprise continues to be a strong growth driver for us. Today, we count almost 20% of Fortune 1000 companies as our enterprise customers. Among these are 2 of the world's 3 largest hotel brands, one of the world's largest car rental company and many leading Fortune 500 financial service companies. Notably, the majority of our enterprise customers utilize our solutions integrated with and alongside Microsoft Teams. This strong presence with large customers and within the Microsoft Teams environment is a testament to the trust our enterprise customers have in our products and our ability to add value to the Team's environment.

在企業（我們將其定義為 ARR 為 100,000 美元或以上的客戶）中，我特別自豪地報告，該細分市場剛剛實現了 10 億美元的 ARR。這是我們公司的一個重要里程碑。事實上，在後新冠疫情時代，企業仍是我們強勁的成長動力。如今，財富 1000 強公司中近 20% 都是我們的企業客戶。其中包括全球3大酒店品牌中的2家、全球最大的汽車租賃公司之一以及多家領先的財富500強金融服務公司。值得注意的是，我們的大多數企業客戶都使用我們與 Microsoft Teams 整合的解決方案。在大客戶和 Microsoft Teams 環境中的強大影響力證明了我們的企業客戶對我們的產品的信任以及我們為團隊環境增加價值的能力。

Our new advanced integration with the Microsoft Teams is the key reason enterprise customers select RingCentral. This includes customers such as Republic Airways, one of the largest regional airlines in the U.S. Overall, enterprise continues to be a growth driver for RingCentral with a positive long-term outlook.

我們與 Microsoft Teams 的全新高階整合是企業客戶選擇 RingCentral 的關鍵原因。其中包括美國最大的支線航空公司之一共和航空等客戶。總體而言，企業仍然是 RingCentral 的成長動力，具有積極的長期前景。

Let me now share some additional highlights of why customers that I just noted continuing to choose RingCentral to power their communications.

現在讓我分享一些額外的亮點，說明為什麼我剛剛提到的客戶繼續選擇 RingCentral 來支援他們的通訊。

Broadly speaking, customers have historically picked us because of our 99.999% or five nines reliability which we achieved for the 22nd straight quarter, robust feature set regulatory compliance and depth and breadth of our integrations. Here are some examples of key large wins and expansion for this quarter. One is the Fortune 100 insurance provider that purchased 20,000 UCaaS seats to connect its distributed broker network made up of thousands of field offices. Another one is a global 500 retailer that purchased 18,000 UCaaS seats to power communications across its more than 2,000 stores. And finally, a Fortune 500 global health care solutions company, who have added millions of dollars to their existing contracts. One of the key integrations for this customer is a reliable and powerful calling capabilities embedded in Microsoft Teams, which they have already deployed to their employees.

從廣義上講，客戶歷來選擇我們是因為我們連續 22 個季度實現了 99.999% 或五個 9 的可靠性、強大的功能集監管合規性以及我們整合的深度和廣度。以下是本季度重大勝利和擴張的一些範例。其中之一是財富 100 強保險公司購買了 20,000 個 UCaaS 席位，以連接其由數千個現場辦事處組成的分散式經紀人網路。另一家是全球 500 強零售商，購買了 18,000 個 UCaaS 席位，為其 2,000 多家商店提供通訊支援。最後，一家財富 500 強全球醫療保健解決方案公司在現有合約的基礎上增加了數百萬美元。該客戶的關鍵整合之一是 Microsoft Teams 中嵌入的可靠且強大的通話功能，他們已經將其部署給員工。

The additional spend is a testament to their confidence in our ability to deliver a full communications platform and add value to the Team's environment. Leveraging our core strengths, we are now expanding into adjacencies, such as CCaaS, hybrid and virtual events and conversational intelligence for sales. These categories have addressable markets that more than double our current opportunity to over $70 billion, providing multiple vectors for us to drive long-term profitable growth.

額外支出證明了他們對我們提供完整通訊平台並為團隊環境增加價值的能力充滿信心。利用我們的核心優勢，我們現在正在擴展到鄰接領域，例如 CCaaS、混合和虛擬活動以及銷售對話智慧。這些類別的潛在市場使我們目前的機會增加了一倍多，達到 700 億美元以上，為我們推動長期獲利成長提供了多種載體。

Industry analysts and customers alike are already recognizing our ability to deliver in one of our key adjacencies, mainly CCaaS. In the latest report, Aragon Research placed RingCX's ability to deliver powerful AI functionality, which includes automated quality management, coaching and conversational analytics, while being easily deployed, easy to use and easy to maintain and all at a disruptive price point.

產業分析師和客戶等已經認識到我們在關鍵鄰接領域之一（主要是 CCaaS）提供交付的能力。在最新報告中，Aragon Research 認為 RingCX 能夠提供強大的人工智慧功能，包括自動化品質管理、輔導和對話分析，同時易於部署、易於使用和易於維護，而且價格具有顛覆性。

Regarding customers, we now have over 100 paying RingCX accounts, up from about 50 when we launched in November. And these accounts include 2 Fortune 1000 enterprises who each purchased over 1,000 seats. We also now have hundreds of paying RingSense for Sales customers after having just launched in the second half of 2023.

關於客戶，我們現在擁有 100 多個付費 RingCX 帳戶，而 11 月推出時只有 50 個左右。這些客戶包括兩家財富1000強企業，每家都購買了超過1000個席位。自 2023 年下半年推出後，我們現在還擁有數百名付費 RingSense for Sales 客戶。

Lastly, approximately 6 months ago, we acquired Hopin Events business. We are happy with this acquisition and view it as a key addition to our portfolio. Since relaunching as RingCentral Events, hundreds of customers have hosted virtual and hybrid events on this platform in the past few months. This includes many large Fortune 500 companies and well-known businesses such as Spotify, Reddit and HubSpot. We continue to see strong demand for our Events platform. With recent improvements in packaging and pricing and the addition of AI product features for Events, we expect to significantly scale this business over time. Notably, we recently won Harvard University over a well-known [video-first] competitor. Harvard chose us because of our advanced branding capabilities, level of production and superior [SMB] user experience.

最後，大約 6 個月前，我們收購了 Hopin Events 業務。我們對此次收購感到滿意，並將其視為我們投資組合的重要補充。自從重新推出 RingCentral Events 以來，過去幾個月已有數百名客戶在這個平台上舉辦了虛擬和混合活動。其中包括許多大型財富 500 強公司和知名企業，例如 Spotify、Reddit 和 HubSpot。我們繼續看到對我們的活動平台的強勁需求。隨著最近包裝和定價的改進以及針對活動的人工智慧產品功能的增加，我們預計隨著時間的推移，該業務將顯著擴大。值得注意的是，我們最近擊敗了一位著名的[視頻優先]競爭對手，贏得了哈佛大學。哈佛大學選擇我們是因為我們先進的品牌能力、生產水準和卓越的 [SMB] 用戶體驗。

While it is still early for our new products, given the level of traction we are already seeing, we believe we can achieve at least $100 million in ARR from RingCX, RingSense and RingCentral Events collectively by the end of 2025. We expect these new products to be meaningful contributors to our strategy of delivering long-term profitable growth.

雖然我們的新產品還為時過早，但考慮到我們已經看到的吸引力，我們相信到 2025 年底，我們可以從 RingCX、RingSense 和 RingCentral Events 總共實現至少 1 億美元的 ARR。我們預計這些新產品為我們實現長期獲利成長的策略做出有意義的貢獻。

Importantly, going forward, our multiproduct strategy will be augmented by taking an AI first approach to everything we do. AI is revolutionizing the way the world works and communicates. The pace of AI innovation in our industry is accelerating. We have a robust road map of new AI best features that should help differentiate our core and new products from the competition. Over the course of this year, we are planning to announce many more AI-rooted innovations that will enhance both employee and customer experiences. Stay tuned for some exciting products and innovation announcements at Enterprise Connect at the end of March.

重要的是，展望未來，我們的多產品策略將透過在我們所做的一切事情中採用人工智慧優先的方法來增強。人工智慧正在徹底改變世界的工作和溝通方式。我們產業的人工智慧創新步伐正在加快。我們擁有新的人工智慧最佳功能的強大路線圖，這將有助於我們的核心產品和新產品在競爭中脫穎而出。今年，我們計劃宣布更多基於人工智慧的創新，以增強員工和客戶體驗。請繼續關注 3 月底 Enterprise Connect 上的一些令人興奮的產品和創新公告。

We will leverage our broad go-to-market capabilities as we execute on our AI first multiproduct strategy. In that vein, I am pleased to welcome Brightspeed formerly known as Centurylink, who will join other valuable members of our global service provider family that now includes AT&T, BT, Charter Communications, (inaudible) and Vodafone amongst others.

在執行人工智慧優先的多產品策略時，我們將利用我們廣泛的市場進入能力。本著這項精神，我很高興地歡迎 Brightspeed（原名 Centurylink）加入我們全球服務提供者大家庭的其他重要成員行列，該大家庭現在包括 AT&T、BT、Charter Communications（聽不清楚）和沃達豐等。

Speaking of Vodafone, we started with Vodafone U.K. in Germany and in 2023, we expanded with Vodafone into Italy, Portugal and Spain. And we're super excited about the recent enterprise wins with Vodafone landing a 15,000-seat deal at IKEA, Germany. And last but certainly not least, profitability. We have greatly expanded our profitability with operating margins improving from 12% in 2022 to over 20% exiting 2023. We also more than doubled our adjusted, unlevered free cash flow to $325 million for the year. We continue to expect to drive further margin expansion and robust free cash flow generation in 2024 and beyond. Another important factor in creating shareholder value is minimizing [SBC]. I and our entire senior management team and the Board are laser-focused on and committed to delivering meaningful improvements in 2024 and beyond. Sonalee will provide more color shortly. In closing, we exited 2023 as a stronger, leaner, more profitable business and we are well on our way to becoming an AI-first multiproduct portfolio company. Our opportunity is large, our strategy is clear, and we are [heads-down] executing. I'm optimistic about our future, and I'm happy to be back at the helm leading RingCentral's next chapter.

說到沃達豐，我們首先在德國與沃達豐英國合作，並於 2023 年與沃達豐一起擴展到義大利、葡萄牙和西班牙。我們對沃達豐最近在德國宜家獲得 15,000 個座位的合約感到非常興奮。最後但同樣重要的是獲利能力。我們的獲利能力大幅提高，營業利潤率從 2022 年的 12% 提高到 2023 年的 20% 以上。我們的調整後無槓桿自由現金流量也增加了一倍多，達到 3.25 億美元。我們繼續預計 2024 年及以後將進一步推動利潤率擴張和強勁的自由現金流產生。創造股東價值的另一個重要因素是最小化[SBC]。我和我們的整個高階管理團隊以及董事會都高度關注並致力於在 2024 年及以後實現有意義的改進。 Sonalee 很快就會提供更多顏色。最後，到 2023 年，我們將成為更強大、更精簡、利潤更高的企業，我們正在成為一家以人工智慧為先的多產品組合公司。我們的機會很大，我們的策略很明確，而且我們正在[埋頭]執行。我對我們的未來感到樂觀，並且很高興能夠重新掌舵，引領 RingCentral 的下一個篇章。

With that, thank you, and let me turn the call over to Sonalee.

謝謝您，讓我把電話轉給 Sonalee。

Thanks, Vlad. I will now provide highlights from the fourth quarter and full year 2023 and then discuss our guidance for 2024. In Q4, subscription revenue of $547 million was up 9% year-over-year, above the midpoint of our guidance range. ARR of $2.33 billion was up 11% versus last year. Our enterprise ARR grew 13% versus last year to $1 billion. We saw good traction in our 1 million-plus TCV deals. We finished with a seasonally strong Q4, resulting in over 100 large deals for the year. Within SMB, ARR rose 9% versus last year, and mid-market ARR grew 10%, and we believe the demand environment has begun to stabilize.

謝謝，弗拉德。我現在將提供 2023 年第四季和全年的重點內容，然後討論我們對 2024 年的指導。第四季度，訂閱收入為 5.47 億美元，同比增長 9%，高於我們指導範圍的中點。 ARR 為 23.3 億美元，比去年成長 11%。我們的企業 ARR 比去年成長了 13%，達到 10 億美元。我們在超過 100 萬筆 TCV 交易中看到了良好的吸引力。我們以季節性強勁的第四季結束，全年達成 100 多筆大型交易。在中小企業中，ARR 較去年成長 9%，中階市場 ARR 成長 10%，我們認為需求環境已開始穩定。

Moving to CCaaS. Once again, we saw more than 60% of our large, million-dollar-plus TCV deals include both UCaaS and CCaaS. CCaaS ARR now represents over $350 million of our total ARR base. Now moving to profitability. I'll be referring to non-GAAP results, unless otherwise noted. Subscription gross margin was 82%, consistent with prior quarters. Overall ARPU was again above $30. Additionally, we are seeing good traction with our new products. We have already sold thousands of RingCX and RingSense for Sales seats at ARPUs that are higher than our corporate average and expect new products to be accretive to ARPU and retention over time.

轉向 CCaaS。我們再次發現，超過 60% 的大型、百萬美元以上 TCV 交易都包含 UCaaS 和 CCaaS。目前，CCaaS ARR 占我們 ARR 總額的 3.5 億美元以上。現在轉向獲利。除非另有說明，我將指的是非公認會計準則的結果。訂閱毛利率為 82%，與前幾季一致。總體 ARPU 再次高於 30 美元。此外，我們還看到我們的新產品具有良好的吸引力。我們已經售出了數千個 RingCX 和 RingSense for Sales 席位，其 ARPU 值高於我們公司的平均水平，並且預計隨著時間的推移，新產品將增加 ARPU 值和保留率。

Operating margin of 20.5%, above our guidance for 20% rose 650 basis points versus last year. Our focus on increased efficiency and productivity and the significant operating leverage in our business continues to drive the meaningful increase in our profitability. Importantly, we generated quarterly, adjusted unlevered free cash flow of $97 million, a quarterly record.

營業利益率為 20.5%，比我們 20% 的指引高出 650 個基點，比去年高出 650 個基點。我們對提高效率和生產力的關注以及我們業務中的重要營運槓桿繼續推動我們獲利能力的顯著提高。重要的是，我們每季產生的調整後無槓桿自由現金流為 9,700 萬美元，創季度記錄。

Moving to our balance sheet. In December, we repurchased 253 million nominal value of our 2025 convertible notes for approximately $240 million. During the quarter, we also repurchased 2.1 million shares at an average price of approximately $31.

轉向我們的資產負債表。 12 月，我們以約 2.4 億美元的價格回購了 2.53 億面額的 2025 年可轉換票據。本季度，我們也以約 31 美元的平均價格回購了 210 萬股股票。

Now turning to the full year. Let me share a few key takeaways. First, we delivered growth that was above the market. Second, we meaningfully transformed our profitability and free cash flow generation profile. Third, we executed against our capital allocation policy that includes debt reduction, share repurchase and investing in innovation, both organically and inorganically. Now let me provide some more details about each. First, regarding growth. Total revenue of $2.2 billion was up 11%. We began to see stabilization of demand in the second half of 2023. Second, profitability. We added over $210 million of incremental subscription revenue in 2023, while keeping our operating expenses roughly flat. This was driven by the reduction in sales and marketing expense, which as a percentage of total revenue, declined 370 basis points versus last year as we optimize our marketing spend, increase the productivity of our sales teams and continue to be disciplined in compensating partners based on the value they create. This resulted in operating margin rising 670 basis points versus last year to 19.1% and adjusted, unlevered free cash flow margins, increasing from 5.2% to 14.8%.

現在轉向全年。讓我分享一些要點。首先，我們實現了高於市場的成長。其次，我們有意義地改變了我們的獲利能力和自由現金流產生狀況。第三，我們執行了資本配置政策，包括有機和無機的債務削減、股票回購和創新投資。現在讓我提供有關每個的更多詳細資訊。首先，關於成長。總收入達 22 億美元，成長 11%。 2023年下半年我們開始看到需求趨於穩定。第二，獲利能力。 2023 年，我們的訂閱收入增量超過 2.1 億美元，同時營運支出基本上持平。這是由於銷售和行銷費用的減少所推動的，隨著我們優化行銷支出、提高銷售團隊的生產力並繼續嚴格按照合作夥伴的薪酬標準，銷售和行銷費用佔總收入的百分比比去年下降了370 個基點。取決於他們創造的價值。這導致營業利潤率比去年上升 670 個基點至 19.1%，調整後的無槓桿自由現金流利潤率從 5.2% 上升至 14.8%。

Regarding free cash flow, we generated $325 million of adjusted, unlevered free cash flow for the year, which exceeded the midpoint of our guidance by roughly $30 million. The significant increase in our free cash flow reflects our increasing profitability as well as efforts we have undertaken to optimize upfront channel commissions and improve our working capital efficiency. Lastly, we executed against our capital allocation policy that we have previously shared.

關於自由現金流，我們今年調整後的無槓桿自由現金流為 3.25 億美元，比我們指導的中位數高出約 3,000 萬美元。我們自由現金流的顯著增加反映了我們獲利能力的不斷提高以及我們為優化前期通路佣金和提高營運資金效率所做的努力。最後，我們執行了先前分享的資本配置政策。

In 2023, we strengthened our balance sheet as we repurchased 839 million of our 2025 convertible notes and 41 million of our 2026 convertible notes at a meaningful discount, and we were able to reduce our gross debt by over $90 million. We exited the year at 2.6x net debt to adjusted EBITDA, down almost 2 turns compared to 2022. We also repurchased roughly 10 million shares for $315 million or approximately $31.50 per share. Our Board increased our repurchase authorization by $150 million, and we currently have $200 million remaining on our total authorization.

2023 年，我們以大幅折扣回購了 8.39 億張 2025 年可轉換票據和 4,100 萬張 2026 年可轉換票據，從而強化了我們的資產負債表，並且我們能夠將總債務減少超過 9,000 萬美元。我們以調整後 EBITDA 的 2.6 倍淨負債結束這一年，與 2022 年相比下降了近 2 倍。我們也以 3.15 億美元或每股約 31.50 美元回購了約 1,000 萬股股票。我們的董事會將回購授權增加了 1.5 億美元，目前授權總額還剩 2 億美元。

Lastly, we acquired an event platform from Hopin while continuing to invest in the development and launch of many new products. We accomplished a lot on the financial front in 2023. In 2024, our priorities are to: one, invest in the business to drive growth; two, expand profitability by remaining disciplined on our spend and focused on increasing efficiency and productivity; three, significantly reducing SBC expense and net share dilution. And four, continue to deploy a capital allocation approach centered around deleveraging, share repurchase and both organic and inorganic investments.

最後，我們收購了Hopin的活動平台，同時持續投資許多新產品的開發與推出。 2023年，我們在財務方面取得了許多成就。2024年，我們的重點是：一是投資業務，拉動成長；第二，透過嚴格控制支出並專注於提高效率和生產力來擴大獲利能力；三、大幅減少SBC費用及淨股權稀釋。第四，繼續部署以去槓桿、股票回購以及有機和無機投資為核心的資本配置方法。

Let me now expand on each of these priorities. First, investing in our business to drive growth. Growth in our core business remained stable as the UCaaS market is large and continues to expand. Additionally, as Vlad noted, we expect new products to meaningfully increase our TAM and contribute at least $100 million of ARR by the end of 2025; second, expanding profitability. Going forward, in 2024 and beyond, we believe we can continue to grow revenue faster than operating expenses. We will continue to focus on increasing sales and marketing efficiency. This includes increased discipline with commissions paid to sellers and channel partners and reallocating resources to where we see the highest ROI. Third, and very importantly, SBC. As Vlad noted, the senior management team and the Board are laser-focused on reducing stock-based compensation and dilution.

現在讓我逐一闡述這些優先事項。首先，投資我們的業務以推動成長。 UCaaS市場規模龐大且持續擴大，我們的核心業務維持穩定成長。此外，正如 Vlad 所指出的那樣，我們預計新產品將顯著增加我們的 TAM，並在 2025 年底之前貢獻至少 1 億美元的 ARR；二是擴大獲利能力。展望未來，在 2024 年及以後，我們相信我們的收入成長速度將繼續快於營運支出。我們將繼續專注於提高銷售和行銷效率。這包括加強向賣家和通路合作夥伴支付佣金的紀律，以及將資源重新分配到我們認為投資回報率最高的地方。第三，也是非常重要的，SBC。正如弗拉德指出的那樣，高階管理團隊和董事會專注於減少以股票為基礎的薪酬和稀釋。

We expect to reduce net new grants in 2024 by over 50% from 2023 levels. This results in total stock-based compensation coming down by approximately 350 basis points in 2024. We expect further meaningful improvement in 2025 and beyond. Finally, executing against our capital allocation priorities, addressing our 2025 and 2026 converts is a key priority. $161 million of the 2025 convert remains outstanding at December 31, 2023. We plan to utilize a portion of our free cash flow to retire the 2025 convert by its maturity date in March 2021. Based on our 2024 guidance and deleveraging post pay down, our net leverage ratio will trend closer to 2x. Our low and improving leverage ratio, strong BB credit rating and strong free cash flow growth gives us numerous options for fully addressing our 2026 converts prior to maturity.

我們預計 2024 年的淨新增撥款將比 2023 年的水準減少 50% 以上。這導致 2024 年股票薪酬總額下降約 350 個基點。我們預計 2025 年及以後將出現進一步有意義的改善。最後，根據我們的資本配置優先事項執行，解決 2025 年和 2026 年的轉換問題是關鍵優先事項。截至2023 年12 月31 日，2025 年轉換債券中的1.61 億美元仍未償還。我們計劃利用部分自由現金流在2021 年3 月到期日之前註銷2025 年轉換債券。根據我們2024 年的指導和去槓桿化後付款，我們的淨槓桿率將接近2倍。我們較低且不斷改善的槓桿率、強勁的 BB 信用評級和強勁的自由現金流增長為我們提供了多種選擇，可以在到期前全面解決 2026 年轉換問題。

Beyond addressing our converts, we will allocate our free cash flow to investments with the highest returns. This includes organic and inorganic investments and share repurchases, and where we see an opportunity to take advantage of the dislocation between how the market currently values us and the inherent strength of our business. We expect all these actions will drive significant growth in our adjusted, unlevered free cash flow per share of approximately 25% in 2024 and to allow us to reduce share count in the intermediate term.

除了解決我們的皈依者問題外，我們還將把自由現金流分配給回報率最高的投資。這包括有機和無機投資以及股票回購，我們看到了利用市場目前對我們的估值與我們業務的內在實力之間的錯位的機會。我們預計所有這些行動將推動我們調整後的、無槓桿的每股自由現金流在 2024 年大幅增加約 25%，並使我們能夠在中期減少股票數量。

Now let me turn to guidance. Embedded in our guidance is the expectation that the macro environment and current business trends remain stable with no further improvement or deterioration in conditions. For the first quarter of 2024, we expect subscription revenue growth of 8% to 9%. Total revenue growth of 8% to 9%. Non-GAAP operating margin of 19.5%, non-GAAP EPS of $0.79 to $0.80.

現在讓我談談指引。我們的指引中包含這樣的預期：宏觀環境和當前業務趨勢保持穩定，狀況不會進一步改善或惡化。 2024 年第一季度，我們預計訂閱收入將成長 8% 至 9%。總收入成長8%至9%。非 GAAP 營業利潤率為 19.5%，非 GAAP 每股收益為 0.79 美元至 0.80 美元。

We also expect to incur restructuring charges of roughly $5 million to $7 million in Q1 in connection with the reallocation of resources to our new products such as RingCX and RingSense. For the full year 2024, we expect subscription revenue growth of 8% to 9%, total revenue growth of 8% to 9%. Non-GAAP operating margin of 21%. This is up 190 basis points versus 2023.

我們也預計第一季將因將資源重新分配給我們的新產品（例如 RingCX 和 RingSense）而產生約 500 萬至 700 萬美元的重組費用。對於 2024 年全年，我們預計訂閱收入將成長 8% 至 9%，總營收成長 8% 至 9%。非 GAAP 營業利益率為 21%。這比 2023 年上升了 190 個基點。

Stock-based compensation as a percentage of revenue is expected to be approximately 16% at the midpoint in 2024, and down from approximately 20% in 2023. We are also targeting a further meaningful improvement in stock-based compensation as a percentage of revenue in 2025 and beyond. We expect non-GAAP EPS of $3.50 to $3.58. Lastly, we expect an adjusted unlevered free cash flow margin of 17.5% or $415 million to $420 million. This represents a roughly 300 basis point increase versus 2023.

到 2024 年中點，股票薪酬佔收入的百分比預計約為 16%，低於 2023 年的約 20%。我們的目標是進一步有意義地提高股票薪酬佔收入的百分比。2025 年及以後。我們預計非 GAAP 每股收益為 3.50 美元至 3.58 美元。最後，我們預期調整後的無槓桿自由現金流利潤率為 17.5%，即 4.15 億至 4.2 億美元。這比 2023 年增加了約 300 個基點。

In summary, 2023 was a year in which we delivered above-market top line growth while achieving record profitability and free cash flow. Building on the significant margin improvement we achieved in 2023, we expect operating margins and free cash flow to continue to expand, all while reducing stock-based compensation. This is reflected in the over 600 basis points combined improvement in SBC as a percentage of revenue and free cash flow margins that we have shared in our guidance. We have put in place a strong financial foundation, and I believe we are set up well to deliver on our strategy of multiproduct growth and expanding margins in 2024 and beyond.

總之，2023 年我們實現了高於市場水平的營收成長，同時實現了創紀錄的獲利能力和自由現金流。在我們 2023 年實現利潤率顯著改善的基礎上，我們預計營業利潤率和自由現金流將繼續擴大，同時減少基於股票的薪酬。這反映在我們在指導中分享的 SBC 佔收入和自由現金流利潤率的綜合改善超過 600 個基點。我們已經建立了堅實的財務基礎，我相信我們已經做好了充分準備，可以在 2024 年及以後實現多產品成長和擴大利潤的策略。

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

接下來，讓我們開始提問。

(Operator Instructions) Our first question today is from Meta Marshall with Morgan Stanley.

（操作員指令）我們今天的第一個問題來自摩根士丹利的 Meta Marshall。

Great. Maybe Vlad, you could just speak to, given some of you stepping back into the CEO role, just whether there were any change in objectives between kind of different management that has been in the role over the last 6 months. And then maybe just on RingCX, clearly, you guys are seeing a lot of traction with new customers. Just any initiatives to sell that into the installed base? Or is that largely being sold to new customers today?

偉大的。鑑於你們中的一些人重新擔任首席執行官，也許你們可以與弗拉德談談，詢問過去 6 個月擔任該職位的不同管理層之間的目標是否有任何變化。然後也許就在 RingCX 上，顯然，你們看到了新客戶的巨大吸引力。有什麼舉措可以將其銷售到已安裝的基礎上嗎？或現在主要賣給新客戶嗎？

Sure. So look, couple of new changes. Look, the new management, as you say, has been around for a few months. So obviously, we're a large company and whatever momentum was carried into that period continued. But I would say that with me coming back and taking a fresh look at things, I think that you can expect a little bit more focus on technology and innovation. I think as you saw in the prepared remarks, there is renewed focus on becoming a multiproduct company and new product introduction. So you can expect to hear the word product from me a little bit more often than maybe from the prior management here.

當然。所以看，有幾個新的變化。聽著，正如你所說，新管理層已經上任幾個月了。顯然，我們是一家大公司，無論那個時期的勢頭如何，它都會持續下去。但我想說，當我回來並重新審視事物時，我認為你可以期待更多地關注技術和創新。我認為正如您在準備好的演講中看到的那樣，人們重新專注於成為多產品公司和新產品推出。因此，您從我這裡聽到“產品”這個詞的頻率可能比從前管理層聽到的頻率要高一些。

And there is continual concentration and focus on profitability and profitable growth. So that is not going to change. Another one is -- that I want to highlight is, I think there was some -- maybe confusion a few months ago about RingCentral, call it, retreating back into SMB. That is not what my plan is. RingCentral, our origins were indeed with SMB, but we've spent a better part of the last decade in expanding from SMB to an all-market company, including large enterprise.

並且持續專注於獲利能力和獲利成長。所以這不會改變。另一個問題是，我想強調的是，我認為幾個月前可能存在一些關於 RingCentral 的混亂，稱之為，退回到 SMB。那不是我的計劃。 RingCentral，我們的起源確實是中小企業，但我們在過去十年中花了更多時間從中小企業擴展到全市場公司，包括大型企業。

As you heard today, it is now a $1 billion business. It's not $1 billion -- it's not something that most people would walk away from and neither am I. And in particular, in the enterprise, it continues to be a growth vector for us. So it grows faster than the company overall. And we are extremely pleased with the traction we're now getting within the Teams ecosystem. And as you -- I believe in prepared remarks, you've heard that we count 20% of Fortune 1000 amongst our enterprise customers. So to be clear, it means that not you have [110] seats in a large company, but that these are $100,000-plus ARR deals, so these are real users and over half or I think, we're saying close to 60% of it are actually Teams users. So this gives me really great hope that, that segment will continue to perform.

正如您今天所聽到的，它現在是一項價值 10 億美元的業務。這不是 10 億美元——這不是大多數人會放棄的東西，我也不會。特別是在企業中，它仍然是我們的成長載體。因此它的成長速度快於公司整體。我們對 Teams 生態系統現在所受到的關注感到非常滿意。作為您，我相信事先準備好的發言，您已經聽說我們的企業客戶中有 20% 是《財富》1000 強企業的客戶。所以要明確的是，這意味著你不是在一家大公司擁有[110] 個席位，而是這些都是ARR 超過100,000 美元的交易，所以這些是真實用戶，超過一半，或者我認為，我們說接近60%其中實際上是 Teams 用戶。因此，這給了我很大的希望，即該部分將繼續發揮作用。

The next question is from Siti Panigrahi with Mizuho.

下一個問題來自瑞穗的 Siti Panigrahi。

Sonalee, very impressive margin expansion and cash flow generation. But if I look at your top line growth now decelerating from 11% to now high single digit in '24. So what needs to happen? Or is there a possibility for you to get back to this double-digit growth? And what are the key assumptions or driver for growth in this year that you embedded in your 2024 guidance? And what sort of conservatism baked into the guidance?

Sonalee，利潤率擴張和現金流產生非常令人印象深刻。但如果我看看你的收入成長現在從 11% 減速到 24 年的高個位數。那麼需要發生什麼？或者說你們有可能回到兩位數的成長嗎？您在 2024 年指導中納入的今年成長的關鍵假設或驅動因素是什麼？該指導意見中包含了哪些保守主義內容？

Firstly, thanks for your comments on profitability and free cash flow. And secondly, great question. I'm glad you asked it. On top line, I think it's really, really important for me to address it. We did take a deliberately conservative approach to the way we guide on revenue for this year because there is still some macro uncertainty out there. I mean, we're all seeing it. I think if you look across all the software companies that have reported up to now, and because of that uncertainty, we wanted to be prudent in the guide.

首先，感謝您對獲利能力和自由現金流的評論。其次，這是個好問題。我很高興你問了這個問題。最重要的是，我認為解決這個問題對我來說非常非常重要。我們確實對今年的收入指引採取了刻意保守的態度，因為仍然存在一些宏觀不確定性。我的意思是，我們都看到了。我認為，如果你看看迄今為止已報告的所有軟體公司，由於這種不確定性，我們希望在指南中保持謹慎。

And what I would say is we're being very prudent. And I do believe strongly that we can drive back to double-digit growth. This is not an operation. This is something we can realize based on the very strong building blocks we have that are in place already today. You've heard from Vlad, but I'm going to talk about new products as well. Customer and analyst feedback we're receiving from our new products gives me a lot of confidence and our ability to scale these products to at least $100 million of ARR by the end of '25. And that will have a very positive impact on our upsell, which you've heard me call out in the past have been impacted by the current macro environment.

我想說的是我們非常謹慎。我堅信我們能夠恢復兩位數的成長。這不是手術。基於我們今天已經到位的非常強大的建置模組，我們可以實現這一目標。您已經聽過弗拉德的來信，但我也將談論新產品。我們從新產品中收到的客戶和分析師回饋給了我很大的信心，我們有能力在 25 年底將這些產品的 ARR 擴展到至少 1 億美元。這將對我們的追加銷售產生非常正面的影響，您過去曾聽我說過，追加銷售受到當前宏觀環境的影響。

But as the macro improves, we do believe these will be important tailwinds, several percentage point tailwinds to our growth. So together with the incremental growth from new products, and the reacceleration from the core as a result of improved retention, we think that those are key catalysts to getting growth above the high single digit or 9% that you talked about just now. In terms of margins, just one other point I want to make is that the margin expansion for 2024 that I've guided to, which is 200 basis points, it would have been higher. However, we've made some investments in the business in '24 to drive growth in new products, including around demand gen and customer and channel incentivization.

但隨著宏觀經濟的改善，我們確實相信這些將是重要的推動力，對我們的成長有幾個百分點的動力。因此，加上新產品帶來的增量成長，以及因保留率提高而帶來的核心業務重新加速，我們認為這些都是推動成長超過您剛才談到的高個位數或9% 以上的關鍵催化劑。就利潤率而言，我想說的另一點是，我所指導的 2024 年利潤率擴張（即 200 個基點）會更高。然而，我們在 24 年對該業務進行了一些投資，以推動新產品的成長，包括圍繞需求產生以及客戶和通路激勵。

But also we have made a deliberate decision to shift a portion of our stock-based compensation to cash. So both of those elements together resulted in about a 200 basis point headwind to operating margin. So it would have been that much better in terms of the guide. And we expect to be able to continue to deliver annual margin expansion this year, next year and beyond that due to the operating leverage in the model.

但我們也深思熟慮地決定將部分股票薪酬轉為現金。因此，這兩個因素加起來導致營業利潤率下降約 200 個基點。因此，就指南而言，情況會好得多。由於該模型中的營運槓桿，我們預計今年、明年及以後能夠繼續實現年度利潤率擴張。

The next question is from Terry Tillman with Truist Securities.

下一個問題來自 Truist Securities 的 Terry Tillman。

Thanks for that extra color there, Sonalee. Just my multipart single question is just first on the $100 million target for ARR at the end of '25. I'm just kind of curious from here to there, I mean, are we talking like $25 million or $50 million in '24? Just trying to understand how much of a [steepness] we're going to need into '25. And then the second part of this question is on enterprise ARR, even with the conservatism, should we assume comfortable above 10% or maybe even low teens enterprise ARR growth.

感謝索納莉（Sonalee）提供的額外顏色。我的多部分問題首先是關於 25 年底 ARR 1 億美元的目標。我只是有點好奇，我的意思是，我們談論的是 24 年的 2500 萬美元還是 5000 萬美元？只是想了解 25 年我們需要多少[陡度]。這個問題的第二部分是關於企業 ARR，即使持保守態度，我們是否應該假設企業 ARR 成長率高於 10%，甚至可能較低。

So in terms of the actual $100 million target that we've set, I mean, we will certainly look for opportunities to give you milestone updates to that. But again, just leaving on the conservatism point, we feel like that is a very achievable number. And that will be mainly driven by RingCX. That will be the lion's share of it, but we think that we will continue to deliver across all the new products that we've introduced in the last quarter or so.

因此，就我們設定的 1 億美元實際目標而言，我的意思是，我們肯定會尋找機會為您提供里程碑式的更新。但同樣，只要離開保守主義的觀點，我們覺得這是一個非常可以實現的數字。這將主要由 RingCX 驅動。這將是其中的最大份額，但我們認為我們將繼續提供上個季度左右推出的所有新產品。

And I think importantly, when we thought about our guidance, we decided to specifically be very conservative on the ramp for 2024. So expect to see much more of that to hit in 2025 and beyond. So I'd say, really, Terry, like second half of '24 and then certainly in 2025, very, very strong contribution.

我認為重要的是，當我們考慮我們的指導時，我們決定對 2024 年的成長採取非常保守的態度。因此，預計 2025 年及以後會出現更多這樣的情況。所以我想說，真的，特里，就像 24 年下半年，然後肯定是 2025 年，做出了非常非常強大的貢獻。

The next question is from Ryan MacWilliams with Barclays.

下一個問題來自巴克萊銀行的 Ryan MacWilliams。

Great to see the year-over-year growth -- revenue growth implied in the first quarter, similar to the fourth quarter. So where are we overall in terms of the macro? Like are you starting to see bookings conditions improve generally? And do you see any changes in linearity like the things get better at the end of the quarter?

很高興看到年成長——第一季的營收成長，與第四季類似。那麼，從宏觀角度來看，我們整體處於什麼位置？您是否開始看到預訂條件普遍改善？您是否看到線性發生任何變化，例如季度末情況有所改善？

Yes. So on linearity, great question. So you've heard me the last couple of quarters talk about seeing bookings much more back-end loaded, and it was quite exaggerated in the last 2 quarters and particularly in that final month of the quarter. The way that we've guided for this year is really assuming no change to that linearity. So that's more back-end loading. However, we have seen some stabilization in some of the macro trends that you've heard us call out in the last 12 to 18 months.

是的。所以關於線性，這是一個很好的問題。因此，您在過去的幾個季度中聽到我談到後端的預訂量增加了很多，而在過去的兩個季度中，尤其是在該季度的最後一個月，這一情況相當誇張。我們今年的指導方式其實是假設這種線性不會改變。所以這是更多的後端加載。然而，在過去 12 至 18 個月中，我們已經看到一些宏觀趨勢趨於穩定。

And in particular, things like sales cycles, deal size, deployments, approvals, things like that. So we do see a stabilization. We've certainly seen that stabilization continue into Q1 where we are as we stand now. And the guidance today just assumes that continued stability.

特別是銷售週期、交易規模、部署、核准等。所以我們確實看到了穩定。我們當然已經看到這種穩定持續到第一季度，就像我們現在的情況一樣。今天的指引只是假設持續穩定。

Yes. And I just want to add to that a little bit. Look, bookings are actually pretty good. Bookings are strong. Given still a bit of instability in macro, upsell for us is a little bit more challenged. So when we say bookings, I mean new logos and new business in particular. So we are seeing strong demand there, okay? And that's really what we think would bode well for the future.

是的。我只想補充一點。看看，預訂量其實還不錯。預訂量強勁。鑑於宏觀經濟仍存在一些不穩定因素，我們的追加銷售面臨更大的挑戰。因此，當我們說預訂時，我指的是新標識，特別是新業務。所以我們看到那裡有強勁的需求，好嗎？我們認為這確實是未來的好兆頭。

Issue is a bit more with upsell and in certain cases downsell. And this is just as businesses are rightsizing. But hopefully, as the economy recovers, this too will turn back into a tailwind. But as you can -- you saw from our press release and the releases and some of the prepared remarks, look, we continue signing up new logos and very important logos. And to make this comment, I went into how well our enterprise segment is doing. But our SMB segment, which is a $1.3 billion business, is also going pretty strong. So I would say that it's certainly high -- far from being frothy. But I would say it's a general -- my general feeling is that things are healthy out there.

追加銷售和某些情況下的追加銷售存在更多問題。而這正是企業規模調整之際。但希望隨著經濟復甦，這也將成為一股順風。但是，正如您所看到的，您從我們的新聞稿和新聞稿以及一些準備好的評論中看到，我們繼續簽署新的徽標和非常重要的徽標。為了發表此評論，我探討了我們的企業部門的表現。但我們的中小企業部門（價值 13 億美元的業務）也發展得相當強勁。所以我想說，它肯定很高——遠非泡沫。但我想說的是，這是一個普遍的情況——我的整體感覺是，一切都很健康。

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

下一個問題來自美國銀行的 Michael Funk。

One for Vlad, if I could. So Vlad, improvement in playbook in a subscription-based model with slowing growth is to roll up smaller competitors and gain scale. Sonalee mentioned inorganic as a potential use of capital during her earlier remarks. So in your view, what is the argument against rolling up smaller competitors to improve scale at RingCentral and potentially grow margin faster and your dominant market share position.

如果可以的話，給弗拉德一份。因此，弗拉德（Vlad）對成長放緩的訂閱模式的改進策略是吸引規模較小的競爭對手並擴大規模。索納莉在早些時候的演講中提到無機作為資本的潛在用途。因此，在您看來，反對整合規模較小的競爭對手以擴大 RingCentral 的規模並可能更快地提高利潤率和您的主導市場份額地位的理由是什麼。

Yes. Look, so firstly, we are by no means averse to M&A. It has to make sense. We've highlighted our recent Hopin acquisition and how well it's doing for us. So I would say that in the Hopin case, it will be more of an adjacency versus a competitor. I think that there are different ways to look at this. But by going after adjacencies, you're acquiring or buying into new TAMs and new SAMs. And it would be, we think, deals like that would provide long-term tailwinds to the business as a whole and would set up well for long-term growth.

是的。首先，我們並不反對併購。它必須有意義。我們重點介紹了我們最近收購的 Hopin 以及它為我們帶來的好處。所以我想說，在霍賓案例中，它更像是一種鄰接關係而不是競爭對手。我認為可以有不同的方式來看待這個問題。但透過追求鄰接關係，您將獲得或購買新的 TAM 和新的 SAM。我們認為，這樣的交易將為整個業務提供長期的推動力，並為長期成長奠定良好的基礎。

As far as buying up competitors, look, there are many reasons to do it, such as various efficiencies that can be garnered. But then if we're talking about direct competitors, then it's a matter of what they do about the platforms, they run multiple platforms, do you move from one to the other? I think we have some relatively recent examples in the industry where even amongst our folks that, one would say, would be in our space where these types of mergers yielded results that were a little bit mixed. So you just need to be a little bit more careful.

至於收購競爭對手，你看，這樣做的理由很多，例如可以獲得各種效率。但如果我們談論直接競爭對手，那麼問題就在於他們對平台做了什麼，他們運行多個平台，你會從一個平台轉向另一個平台嗎？我認為我們在行業中有一些相對較新的例子，即使在我們的同事中，有人會說，在我們的領域，這些類型的合併產生的結果有點複雜。所以你只需要更加小心一點。

But certainly, at the right price, we would never say no. And I can tell you that we routinely look at numerous opportunities given our size and stability of our business. And very importantly, our most recent cash flow expansion in free cash and profitability, we do feel that we are a natural acquirer or natural consolidator. So always on a lookout.

但當然，如果價格合適，我們絕對不會拒絕。我可以告訴你，鑑於我們業務的規模和穩定性，我們經常會尋找大量機會。非常重要的是，我們最近在自由現金和盈利能力方面的現金流擴張，我們確實覺得我們是一個自然的收購者或自然的整合者。所以總是保持警惕。

That was very helpful and certainly look forward to host you next week in Boston for the NDR. So I look forward to seeing you then.

這非常有幫助，當然期待下週在波士頓接待您參加 NDR。所以我期待著屆時見到你。

The next question is from Samad Samana with Jefferies.

下一個問題來自 Jefferies 的 Samad Samana。

It's kind of a multi-parter as well. So on the new products, Vlad, big expansion of the portfolio. But they touch up against at least some of what your ISV partners also provide if I think about sales, events, how should we think about maybe where you fit into the ecosystem versus some of the companies that you partner with? And then certainly, just what are you assuming for UCaaS versus CCaaS versus other maybe as we think about 2024 ARR growth just because there has been kind of just big differences in the growth rates.

這也是一種多方合作。因此，在新產品上，弗拉德大幅擴展了產品組合。但它們至少涉及到你的 ISV 合作夥伴也提供的一些內容，如果我考慮銷售、活動，我們應該如何考慮你在生態系統中的位置，以及與你合作的一些公司的位置？當然，當我們考慮 2024 年 ARR 成長時，您對 UCaaS 與 CCaaS 與其他的假設是什麼，可能只是因為成長率有很大差異。

Look, no, great questions. Look, when you're saying some of the companies we partner with, I assume you're referring to RingCX vis-a-vis RingCentral Contact Center, which is hosted by NICE inContact. So assuming I have the question right. Look, they are designed to address different segments of the market and different use cases. By and large, NICE inContact is a well-established enterprise leader. They are able to -- and have proven success in hosting multi-thousand seat contact centers with very complicated use cases.

看，不，很好的問題。看，當您提到與我們合作的一些公司時，我假設您指的是 RingCX 和由 NICE inContact 託管的 RingCentral 聯絡中心。所以假設我的問題是正確的。看，它們旨在滿足不同的市場區隔和不同的用例。總的來說，NICE inContact 是成熟的企業領導者。他們有能力——並且已經證明成功地託管了具有非常複雜用例的數千個座位的聯絡中心。

And they sell a very nice niche in the upper end of the market. So we have this integration with them that's multiyear old. And it obviously has been quite successful for us and for them over the years, and we stay committed to that relationship. Having said this, we clearly see an opportunity at the bottom end of the market as well as maybe even with some of the larger customers, but with simpler, more streamlined workflows. And this is where we saw an opportunity to come in with a differentiated product. That's simpler to use, simple to deploy, a lot more cost-effective.

他們在高端市場上擁有非常好的利基市場。因此，我們與他們的整合已有多年歷史。多年來，這對我們和他們來說顯然都非常成功，我們將繼續致力於這種關係。話雖如此，我們清楚地看到了市場底端的機會，甚至可能還有一些較大的客戶，但工作流程更簡單、更精簡。這就是我們看到推出差異化產品的機會的地方。它使用起來更簡單，部署也更簡單，而且更具成本效益。

We truly are positioning it with disruptive pricing. And people are taking notice. And we are -- I think we mentioned we've doubled the number of logos in about 3 months. So we're happy with that result. We already have some larger customers in the thousands of seats, frankly, that was a pleasant surprise for us. But success -- breeds success. And Look, it's very early, but early signs are pretty positive. So for now, we believe that the 2 will coexist.

我們確實以顛覆性的定價來定位它。人們正在註意到這一點。我想我們提到我們在大約 3 個月內將徽標數量增加了一倍。所以我們對這個結果很滿意。我們已經有一些較大的客戶在數千個座位上，坦白說，這對我們來說是一個驚喜。但成功孕育成功。看，現在還很早，但早期跡象非常積極。所以目前，我們相信兩者將共存。

So Samad, just to answer your question about UCaaS, CCaS bookings growth breakdown. So firstly, you know we don't specifically guide on bookings and certainly not bookings or growth by product. But I can just give you a bit of color there. We do believe and certainly embedded in the guide and the comments I made earlier about we think we do see upside to where we're guiding. We believe we can grow faster than the market for each of these markets. So when I talk about the market, I'm talking about third-party data where UCaaS is sort of mid-single. We think we could grow significantly above that.

Samad，我只是回答您關於 UCaaS、CCaS 預訂增長細分的問題。首先，您知道我們不會具體指導預訂，當然也不會按產品進行預訂或成長。但我只能給你一點顏色。我們確實相信並且肯定嵌入了指南和我之前發表的評論中，我們認為我們確實看到了我們所指導的方向的好處。我們相信我們能夠比每個市場的市場成長得更快。因此，當我談論市場時，我談論的是第三方數據，其中 UCaaS 處於中等水平。我們認為我們的成長可以顯著高於這個水平。

And then for CCaaS, I think the market, again, it's below 20% in terms of what third-party data is saying. And certainly, RingCX will be well above that. But overall, we believe we will grow faster than the market in both of those segments.

對於 CCaaS，我認為根據第三方數據顯示，市佔率再次低於 20%。當然，RingCX 的表現將遠高於此。但總的來說，我們相信我們在這兩個領域的成長速度將快於市場。

The next question is from Kash Rangan with Goldman Sachs.

下一個問題來自高盛的卡什·蘭根 (Kash Rangan)。

Yes. Vlad, you talked a lot about new products, et cetera. What does the new product direction of RingCentral look like over the next few years? Where do you see untapped opportunities for innovation that can get the company back to reaccelerating growth, as Sonalee pointed out? And it's always good to see founders being involved in the business. At this stage, it's good to have you back. But founders, I'm sure, you will agree more than anybody, Vlad, are not satisfied with the single-digit growth rate. I mean they're inherently growth people. So how do we put that -- put your new product strategy in the context of your real aspirations for the company and what are the things that you could be doing differently in the next few years?

是的。弗拉德，你談了很多關於新產品等的話題。未來幾年RingCentral的新產品方向是什麼樣的？正如 Sonalee 所指出的那樣，您認為哪些尚未開發的創新機會可以讓公司重新加速成長？看到創辦人參與這項業務總是一件好事。在這個階段，很高興你能回來。但我相信，弗拉德，創辦人比任何人都更同意，他們對個位數的成長率不滿意。我的意思是他們本質上是成長型的人。那麼我們該如何表達——將您的新產品策略置於您對公司的真正願望的背景下，以及您在未來幾年中可以做哪些不同的事情？

Yes. Yes. Look, so we are, I would say, at the early stages of executing on exactly the strategy that you've outlined. So we are now -- and frankly, for what I remember, really maybe for the first time in our existence as a public company, we are now actively talking about NPIs, new product introductions, and about becoming a multiproduct company. I can tell you that it sounds simple, for sure, you have 1 product, what's another one to add. It is actually a big deal, okay, to go from a single product where you have a sales force trained to sell 1 particular solution, where you have product people who are specialists in 1 particular area and only that particular area, where your technology base only needs to address 1 use case, support, et cetera. So everything now needs to be done several times over, which is a heavy lift.

是的。是的。聽著，我想說，我們正處於執行您概述的策略的早期階段。因此，坦白說，據我所知，作為一家上市公司，我們現在可能第一次積極討論 NPI、新產品推出以及成為多產品公司。我可以告訴你，這聽起來很簡單，當然，你有 1 個產品，你還需要再增加一個產品。這實際上是一件大事，好吧，從單一產品開始，你有一支經過培訓的銷售人員來銷售一種特定的解決方案，你的產品人員是某個特定領域的專家，並且只有那個特定領域，你的技術基礎只需要解決 1 個用例、支援等。所以現在所有事情都需要重複多次，這是一項繁重的工作。

But we think that juice might be worth the squeeze here because it opens up new TAMs for us, largely expands our cumulative TAM. And very importantly, provides us with a new buyer personas. So your addressable market increases as well in addition to the TAM increasing, okay? So if you look at our just recent introductions, look, we've had -- we've reintroduced or introduced RingCX just last quarter, okay? And it already has over 100 logos. We have repackaged Events -- RingCentral Events, that was also last quarter, and we've announced a very major win -- we announced a very major win with Harvard today. That's a big deal. That was a head-to-head win against a very well-known and well-funded competitor, let's say, okay?

但我們認為，果汁可能值得在這裡擠壓，因為它為我們開闢了新的 TAM，很大程度上擴大了我們累積的 TAM。非常重要的是，它為我們提供了新的買家角色。因此，除了 TAM 增加之外，您的潛在市場也會增加，好嗎？因此，如果您看看我們最近推出的產品，您會發現，我們在上個季度重新推出或推出了 RingCX，好嗎？它已經擁有 100 多個徽標。我們重新包裝了活動——RingCentral 活動，這也是上個季度的事情，我們宣布了一項非常重大的勝利——我們今天宣布了與哈佛大學的一項非常重大的勝利。這是一件大事。這是對一個非常知名且資金充足的競爭對手的一場正面交鋒的勝利，可以這麼說，好嗎？

So we think that these are early signs of successes to come. If you think about it, the goalpost that we've set of $100 million in 2 years, from these new products, it's meaningful. And I guess you can say, well, gee wiz, RingCentral is a $2.3 billion company was it worth another $100 million. But certainly it is a big deal, okay? Because it's as of today, if we had that, it would be for additional points of growth. So that by itself would put us into double digits. And this is early. So core belief here is that by redoubling on new products, not introductions, I mean, we cannot be introducing the product per quarter. That would be a little bit hard to manage. But RingCX gets squarely into the cloud contact center market, which is large, growing faster than the traditional UCaaS market. So it will be a growth driver.

因此，我們認為這些是即將成功的早期跡象。如果你想一想，我們設定的目標是在 2 年內透過這些新產品實現 1 億美元的目標，這是很有意義的。我想你可能會說，哎呀，RingCentral 是一家價值 23 億美元的公司，它還值 1 億美元嗎？但這肯定是一件大事，好嗎？因為從今天開始，如果我們有的話，那將是額外的成長點。因此，這本身就將使我們的業績達到兩位數。而且這還早。因此，這裡的核心信念是，透過加倍努力推出新產品，而不是推出新產品，我的意思是，我們不能每季都推出新產品。這會有點難以管理。但RingCX 直接進入了雲端聯絡中心市場，該市場規模龐大，成長速度快於傳統的 UCaaS 市場。因此它將成為成長動力。

Events is a completely different buyer persona for us. We are now able to sell to marketing departments and sales departments and something that we're never able to do with our traditional products. So we believe that's going to be a meaningful business. And meanwhile, we see continued stability in our base. We are able to gain substantial new logos, both in SMB and enterprise. I already covered that. So I think I believe that all of this will be adding up. And I'm optimistic that we can, over time, get back into double-digit growth, even as we cross the $2.5 billion mark and beyond that.

對我們來說，活動是完全不同的買家角色。我們現在能夠向行銷部門和銷售部門銷售產品，這是我們傳統產品無法做到的。所以我們相信這將是一項有意義的業務。同時，我們看到我們的基礎持續穩定。我們能夠在中小型企業和企業中獲得大量新商標。我已經介紹過了。所以我想我相信所有這些都會加起來。我樂觀地認為，隨著時間的推移，我們能夠重新實現兩位數的成長，即使我們的收入已突破 25 億美元大關或更多。

I mean it's a heavy lift, but we do have a strong team. And most importantly, we have -- we are playing in markets which are still grossly underpenetrated. And we are one of the large and profitable companies, one of the few large, profitable companies for playing in the space.

我的意思是，這是一項艱鉅的任務，但我們確實擁有一支強大的團隊。最重要的是，我們正在滲透率仍然嚴重不足的市場中開展業務。我們是大型且盈利的公司之一，也是為數不多的涉足該領域的大型且盈利的公司之一。

The next question is from Ryan Koontz with Needham.

下一個問題來自 Ryan Koontz 和 Needham。

I want to ask about the competitive environment and the shift toward AI features and new products. And how are you seeing that shift impact the decision criteria of your customers and maybe just want to buy UCaaS or CCaaS you're seeing that on the forefront? And how is it changing the types of competitors you bump into, whether it's legacy player or maybe like Zoom or Dialpad that's more focused on AI.

我想問一下競爭環境以及向人工智慧功能和新產品的轉變。您如何看待這種轉變對您客戶的決策標準的影響？也許您只是想購買 UCaaS 或 CCaaS，您在最前沿看到了這一點？它如何改變你遇到的競爭對手的類型，無論是傳統玩家還是像 Zoom 或 Dialpad 這樣更專注於人工智慧的玩家。

Yes. Well, look, I'll just speak about ourselves. I won't comment on what Zoom or Dialpad or anyone else is doing. I would maybe question a little bit saying that any of them are more concentrated on AI than we are. We do see ourselves as an AI-first company. RingCX, in particular, is leveraging our RingSense technology, which is our AI platform and that is having very good traction out there. Our growth is very much in my mind at least.

是的。好吧，聽著，我只談談我們自己。我不會評論 Zoom 或 Dialpad 或其他任何人正在做的事情。我可能會質疑說他們中的任何一個都比我們更專注於人工智慧。我們確實將自己視為一家人工智慧優先的公司。尤其是 RingCX，它正在利用我們的 RingSense 技術，這是我們的人工智慧平台，並且具有非常好的吸引力。至少在我看來，我們的成長是非常重要的。

My understanding is very much tied to specifically, it being an AI-first product, okay? And look, AI in a way is a great equalizer. With AI technologies, we can go against industry incumbents. And we don't need to replicate the entire feature set to be competitive just because the way that people approach, for example, customer service is radically changing with availability of LLMs. And [IVAs] and just as a game shift from, hey, let's empower or power up more agents versus let's handle more transactions at quality, but save companies money by letting them reduce their contact center staff.

我的理解與具體而言密切相關，它是一個人工智慧優先的產品，好嗎？看，人工智慧在某種程度上是一個很好的均衡器。借助人工智慧技術，我們可以對抗產業現有企業。我們不需要複製整個功能集來保持競爭力，僅僅因為人們處理客戶服務的方式隨著法學碩士的出現而發生了根本性的變化。 [IVA] 就像遊戲的轉變一樣，嘿，讓我們授權或增強更多代理，而不是讓我們以高品質處理更多交易，但透過讓他們減少聯絡中心員工來節省公司資金。

So we think that for RingCX, in particular, it would be a great tailwind. Same for Events, okay, which is the 2 products we're highlighting. Again, it is absolutely ripe for AI innovation. And we'll have a lot more to say about both of these and some more at Enterprise Connect, which is coming up next year. Now as far as our core product is concerned, look, when all is said and done, why do people buy RingCentral given the other options in the market? And the answer is to me at least, is relatively straightforward. So as they buy us a, because we're stable, we're always up. We have 5 to 6 9s availability for many years and counting. And for -- we are being told, this is absolutely industry best, okay? So this is one reason. Second reason is we are global and regulatory compliant across the world. Wherever we are allowed to do business, and there are still some countries that are closed, unfortunately, for example, China. So okay, we're not going to be a regulatory compliant and we're not offering services there either.

因此，我們認為，特別是對於 RingCX 來說，這將是一個巨大的推動力。活動也是如此，好吧，這是我們重點介紹的 2 個產品。再次強調，人工智慧創新的時機已經完全成熟。我們將在明年舉行的 Enterprise Connect 會議上對這兩個問題進行更多討論。現在就我們的核心產品而言，歸根結底，考慮到市場上有其他選擇，為什麼人們還要購買 RingCentral？至少對我來說，答案是相對簡單的。因此，當他們購買我們時，因為我們很穩定，所以我們總是向上。多年來，我們有 5 到 6 個 9 的可用性，並且還在增加。我們被告知，這絕對是業界最好的，好嗎？所以這是原因之一。第二個原因是我們是全球性的，並且遵守世界各地的監管規定。凡是允許我們做生意的地方，仍然有一些國家是關閉的，不幸的是，例如中國。好吧，我們不會遵守監管規定，也不會在那裡提供服務。

But everywhere else, we'll check all the boxes. So companies large and small can be -- can feel safe from that perspective for using us or reselling us, okay? Then there is -- then there is feature set, okay? And we've said that we pioneered the space. We've been added for the longest. We simply have more features and more integrations than anyone else out there, and that includes even some of the larger competitors that you can easily think of, okay? And very importantly, it's our commitment to data privacy. We are religious about our customers' data just as we are about our data. And that is a commitment coming in from the highest levels. And it's just something that our customers don't tend to be concerned about is data privacy or our commitment to security.

但在其他地方，我們會勾選所有複選框。因此，從這個角度來看，大大小小的公司在使用我們或轉售我們時都可以感到安全，好嗎？然後是——然後是功能集，好嗎？我們說過我們是這個領域的先驅。我們被添加的時間最長。我們只是比其他任何人擁有更多的功能和更多的集成，甚至包括您可以輕鬆想到的一些更大的競爭對手，好嗎？非常重要的是，這是我們對資料隱私的承諾。正如我們對待自己的數據一樣，我們也非常重視客戶的數據。這是來自最高層的承諾。我們的客戶往往不關心資料隱私或我們對安全的承諾。

So this is why people buy RingCentral. Now what does it have to do with AI. If you take all of that and overlay AI on it, then you simply get a more powerful solution, okay? People, given our size and our status in the field, people don't need to buy RingCentral for AI alone, okay? But if you combine this industry-leading, stable, global, secure platform with state-of-the-art AI capabilities, then we think you have something that's quite differentiated. And that will truly take us into this decade and beyond. I don't know when the next magnitude of innovation will happen that could compare with what we are now experiencing with AI.

這就是人們購買 RingCentral 的原因。現在它與人工智慧有什麼關係。如果你採用所有這些並在其上疊加人工智慧，那麼你就會得到一個更強大的解決方案，好嗎？大家，考慮到我們的規模和在該領域的地位，人們不需要僅僅為了人工智慧而購買 RingCentral，好嗎？但如果您將這個行業領先、穩定、全球、安全的平台與最先進的人工智慧功能相結合，那麼我們認為您將擁有非常與眾不同的東西。這將真正帶我們進入這個十年及以後。我不知道下一次大規模的創新何時會發生，可以與我們現在在人工智慧方面經歷的創新相媲美。

We're super early there and opportunity to innovate and to differentiate are literally boundless, okay? So again, I would really urge all of you to please visit us at the Enterprise Connect. We'll have more to share then. And obviously, results will speak for themselves, but you can expect that even as we are very much moving towards a better balance between growth and profitability and perhaps what we said in the years past. Our commitment to innovation is unwavering. We have well over 1,000 engineers involved with the company. It is not an area that we're saving on or skimping on so expect more goodness in that area.

我們處於非常早期的階段，創新和差異化的機會實際上是無限的，好嗎？我再次強烈建議大家參觀我們的 Enterprise Connect。到時候我們會有更多內容可以分享。顯然，結果會說明一切，但你可以預料到，即使我們正在努力實現成長和獲利能力之間的更好平衡，也許正如我們過去幾年所說的那樣。我們對創新的承諾堅定不移。我們公司有超過 1,000 名工程師。這不是一個我們要節省或剋扣的領域，所以期待這個領域有更多的好處。

The final question today is from Brian Peterson with Raymond James.

今天的最後一個問題是布萊恩彼得森和雷蒙德詹姆斯提出的。

A nice job on the free cash flow ramp this quarter. Sonalee, I appreciate all the color on the demand environment. But let me hear about what's going on at the top of the funnel. How has that trended? Any notable changes in mix there via a partner versus direct or enterprise new products, would love to get any perspective there.

本季自由現金流成長做得很好。 Sonalee，我很欣賞需求環境中的所有色彩。但讓我聽聽漏斗頂部發生了什麼事。趨勢如何？透過合作夥伴與直接或企業新產品進行組合的任何顯著變化，都希望在那裡獲得任何觀點。

Yes, sure. Thanks for the kind words on free cash flow. So in terms of what we're seeing in the demand environment, I would say there's not a really big change to call out. One thing that I would just comment on is we did see a stabilization in SMB. We saw strong trends from the enterprise side of the house. And we don't really tend to give you much more breakdown in terms of segments or what we're seeing from the segments. But in terms of how the guidance is reflecting what we're seeing, it's assuming this continued stabilization, so no real improvement.

是的，當然。感謝您對自由現金流的美言。因此，就我們在需求環境中看到的情況而言，我想說並沒有真正大的改變。我想評論的一件事是我們確實看到中小企業的穩定性。我們從企業方面看到了強勁的趨勢。我們實際上並不傾向於向您提供更多關於細分市場或我們從細分市場中看到的內容的細分資訊。但就指導如何反映我們所看到的情況而言，它假設這種持續穩定，因此沒有真正的改善。

So if we were to see an improvement, for example, in the upsell environment or if we were to see traction from some of the steps we're taking around churn to improve net retention, then that would be upside in terms of what we've laid out to you today.

因此，如果我們看到改善，例如在追加銷售環境中，或者如果我們看到我們圍繞客戶流失採取的一些措施來提高淨保留率，那麼這對我們來說將是有利的。今天已經給你列出來了。

The other thing I just want to say before we conclude the call, Vlad and I and the senior management team are extremely focused on SBC. And hopefully, you saw that in the way that I guided there's meaningful, meaningful reductions in 2024. So we're guiding to 16% coming down from 20%. But we're not going to stop there.

在我們結束通話之前，我想說的另一件事是，Vlad 和我以及高階管理團隊都非常專注於 SBC。希望您按照我指導的方式看到，2024 年將出現有意義的削減。因此，我們的指導方針是從 20% 降至 16%。但我們不會就此止步。

Net new grants for '24 will be down by approximately 50%. but we will continue on our drive to bring that down. And you should expect further several hundred basis point improvement as you look forward to 2025.

24 年的淨新撥款將減少約 50%。但我們將繼續努力降低這種情況。展望 2025 年，您應該預期還會進一步提高數百個基點。

This is something that we take very seriously and thanks for calling out the free cash flow and mentioning the free cash flow, but we care about free cash flow per share. And hopefully, you will have noted that the free cash flow per share growth that we will deliver for you in 2024 is 25% year-over-year growth. So I look forward to spending more time with all of you in the conferences coming up over the next several weeks. But just wanted to be sure that, that point was taken home.

我們非常重視這一點，感謝您提出自由現金流並提及自由現金流，但我們關心每股自由現金流。希望您會注意到，我們將在 2024 年為您提供的每股自由現金流年增 25%。因此，我期待在接下來幾週舉行的會議上花更多的時間與大家在一起。但只是想確定這一點已被帶回家。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。