RingCentral, Inc. (NYSE:RNG) Q2 2023 Earnings Call Transcript

Operator: [Operator Instructions] The next question is from George Sutton with Craig Hallum. Please go ahead.

George Sutton: Thank you. My congrats to Vlad and welcome to Tarek. I am curious, Sonalee, you had mentioned that marketing-driven lead flow had been really the strength in this quarter. I was just as interested that there was no mention of the large partnerships, the Avayas and Mitels and Frontiers and AT&Ts of the world. Can you just give us an update on the partnership side of the business?

Sonalee Parekh: Yes, absolutely, with pleasure. So you called out Avaya, Mitel specifically. We also have AWS, and I’ll talk to the GSPs global service providers as well. So Avaya, as you know, has recently come out of — emerged from bankruptcy. They continue to execute on their new go-to-market motions that were enabled as part of our updated contract with them. And we’ve seen slightly better traction and execution from Avaya this quarter. And as I said earlier, we do expect more of a back-end loaded impact from Avaya, and we continue to expect that. Mitel also continues to contribute seats at a healthy clip. On AWS, well, it’s still early. We have started to see some really good traction in the pipeline there, and we’re starting to see the first deals beginning to close.

So, we’re on track to be live on the AWS Marketplace later this year. In terms of the GSPs you talked to, one of the ones that I would specifically call out is Charter, where we’re continuing to see extremely strong execution there. And as you know, there are a couple of other GSPs that have recently come online, particularly in Europe. And we’re seeing more and more traction with Vodafone as well. So we have the legacy partners that are fully ramped and continue to contribute. But then importantly, we have these new ones that we’re beginning to see very solid impact from. So that’s the story for partnerships. And as you know, they remain a very, very important part of our overall go-to-market. And we see a lot of scope for all of those partners to continue contributing for the rest of this year and beyond to our overall growth.

Operator: The next question is from Matt Stotler with William Blair. Please go ahead.

Matt Stotler: Vlad, sorry to see you go. But obviously, we’ll still be engaged. So, look forward to chatting occasionally going forward. Tarek, congrats on the position. Maybe just one question on — geographic-specific question. There were a number of press releases over the course of the quarter, specific to India with regulatory compliance, office openings, plant hires, et cetera. I would love to just double-click on the opportunity you see in that geography, how that might layer into the business over time? And then how you think about the competitive landscape there relative to what you see elsewhere around the globe?

Vlad Shmunis: Right. Well, thank you, firstly. Look, as far as India is concerned, so firstly, it’s great that we’re — we think we’re actually literally the first foreign service provider to be allowed to offer these kind of services in the area. So it’s a huge accomplishment. Look, our primary or first foot forward, let’s say, would be to extend India into our global office technology. So what it means, if you have a U.S. or some other international base business with offices in India, then we would be able to deliver a local dial tone in a legal manner. So, that’s really where we’re seeing most of the demand at this point. Secondly, as you all know, we have a strong and growing GSP practice. And with this announcement and more importantly, with this capability, we are now much more likely to be able to partner with local service providers in powering up their B2B offerings in the area.