The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst
: .Vlad and Mo, congratulations on a fantastic start to the year. Mo, I couldn't help but notice, but you talked about the megatrends and one of the
trends was Microsoft. And I wanted to just get behind that a little bit more. Do you see this as a trend whereby Microsoft customers that have
purchased the E1 bundle are increasingly looking to a specialist provider like RingCentral to augment their capabilities?
And I also wanted to understand, I think you've thrown an eye-popping number, 400% to 500% growth in your Microsoft practice. Can you just
elaborate that a little bit? And besides that, it was great to see that the ARPU trends are very stable. I think there was a fear that, that is going south,
but you certainly did a good job talking about the stability there.
And one for Vlad, of course, you're not going to be forgotten. With the changes -- tremendous changes in the management team, you've brought
on board some really experienced executives from outside the company. How do you think it's all going to gel together from a go-to-market,
finance, strategy [standpoint], what are the changes we should be expecting or you should be expecting from your new management team?
Question: Matthew Alan Stotler - William Blair & Company L.L.C., Research Division - Analyst
: I think I'll just ask a follow-up on Microsoft and maybe a little bit more pointed. We saw this morning that Avaya announced that they were expanding
their relationship with Microsoft, their co-selling relationship, to not just include contact center but also the entire One Cloud portfolio. So I wanted
to see what you can share in terms of confirmation that, that includes a co-selling relationship for a Blackpoint Office? What that implies for that
product, the opportunity there? And then any thoughts on the potential for an expanded go-to-market relationship with Microsoft in the future?
Question: Peter Marc Levine - Evercore ISI Institutional Equities, Research Division - Analyst
: You -- I guess you addressed it on the prepared remarks, but can you walk us through or quantify what the incremental margin contribution looks
like on a partner deal, led-deal versus direct? And kind of as we think about the model longer-term in terms of profitability, like where do you think
that leverage comes from?
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