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

And lastly, it’s an opportunity to engage directly. Again, that’s a little bit farther down the list for us. We first need to do the first two, but certainly, an opportunity. And needless to say, India is second largest country in the world population wise, by far, the largest where we can legally do business given — otherwise, restrictions in China. So definitely an area of growth for us as we look forward.

Operator: The next question is from Jim Fish with Piper Sandler. Please go ahead.

Quinton Gabrielli: This is Quinton on for Jim. Vlad, we wanted to echo the congratulations and well wishes for the new role and look forward to working with you, Tarek. On the Microsoft Teams 2.0 opportunity, we continue to hear strong results from this product across your channel partners. When Microsoft talks about their 17 million PSTN users on the platform, do you think all 17 of those — 17 million of those players make sense as the addressable market for the 2.0 opportunity, or are you more focused on the G2K players? And then just on the penetration side, how do you see that penetration of that opportunity today?

Vlad Shmunis: Yes. Well, look, it’s super hard to talk about all when you’re talking about large numbers. But again, as we look at the landscape, Microsoft is packaged into E1, E3 and E5 tiers. E1 and E3 have no business telephony included, can be upsold, but not included. And E5 does have it, but is still positioned behind us features wise and global reach wise. So look, it’s been our major introduction last quarter, this past quarter. It continues to do well. We — I think on earnings — in prepared remarks, we talked about Republic Airways. Importantly, they are a Teams customer, and the plan is for them to be using our embedded dialer as part of the technology suite that they’re standardizing on. We continue — and you’ve heard me say this before, Teams has been, and we believe for the foreseeable future, will continue to be a growth driver for us.

We were, I would say, at parity up until Q1 or late Q1. I don’t think we’re at parity anymore. I think we’re leading now as far as quality and user experience that our integration has to offer. So, it is basically the best integration that we know of in the marketplace. Very importantly, you saw some of these other announcements from us and in particular, RingSense for Phone. And I just want to stress that that will also be available in the Microsoft version of our packaging. And by the way, as a side comment, it will also be made available to all of our 15,000 partners, including GSPs and strategics, okay? So, it will all play in together, will make us stronger. Rest is GTM and getting to add back. And actually with Tarek’s joining and his absolute focus on operational excellence and efficiencies, we’re having pretty high hopes here that we will be getting more add backs in all segments, not the least being enterprise.

Operator: The next question is from Siti Panigrahi with Mizuho Securities. Please go ahead.

Siti Panigrahi: I also extend my best wishes to Vlad and Tarek. Tarek, looking forward to working with you. And I want to ask about your growth at this point. I understand you talked about various factors influencing growth. But now that, let’s say, Avaya coming — reemerging out of bankruptcy and there are partnerships that’s coming back, when do you think that growth will trough? And when should we think — and what are the drivers you think — all this product you talk about, when do you think we’ll start seeing growth to reaccelerate again?