Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $192 million, an 11% year-over-year increase, normalized for the previous year's political campaign revenue [17] - Cloud Communications Services revenue reached $142 million, reflecting an 8% year-over-year increase on a normalized basis [17] - Adjusted EBITDA was $24 million, exceeding expectations due to higher revenue and lower spending [18] - Non-GAAP gross margin remained strong at 58% [17][18] - Free cash flow generated in the quarter was $13 million, with a trailing 12-month free cash flow growth of 35% year-over-year [18][21] Business Line Data and Key Metrics Changes - Enterprise Voice revenue increased by 22% year-over-year, driven by strong adoption among existing customers and new customer ramping [19] - Programmable Messaging achieved a normalized growth of 6% year-over-year [20] - Average annual revenue per customer reached a record of $231,000, growing 46% over the last three years [21] Market Data and Key Metrics Changes - The net retention rate for Q3 was 105%, and 107% when excluding political campaign revenue [20] - The largest customer category grew revenue by 7% year-over-year, more than doubling the growth rate from the previous year [20] Company Strategy and Development Direction - The company is evolving its business model towards a higher mix of recurring software-driven revenue and adding intelligent automation and value-added services [5] - The focus is on being the provider of choice for conversational AI deployment, with a strategy that includes native AI within CCaaS platforms and public APIs [7][8] - The Trust Services portfolio was highlighted as a key lever for competitive advantage, addressing customer challenges related to call answer rates [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued momentum in voice AI and increasing software revenue, positioning the company for a solid fourth quarter and start to the new year [22] - The company anticipates continued growth in Global Voice Plans and Enterprise Voice customers, along with a robust political campaign messaging season [23] Other Important Information - The company won the Technology Disruptor award from Ally Financial, recognizing its role in transforming customer experience [5] - The introduction of new AI-driven products, such as the AI Receptionist and Bandwidth Activation Agent, aims to enhance customer experience and operational efficiency [9][10] Q&A Session Summary Question: Can you characterize overall demand and customer conversations? - Management noted a record number of $1 million plus revenue customers, reflecting broad-based demand and healthy growth in voice [30] Question: What are the 2026 medium-term targets? - The company aims for above-market revenue growth, 60% and greater gross margins, 20% and greater EBITDA margin, and 15% and greater free cash flow margin [32] Question: How are new products impacting Enterprise Voice and Global Voice Plans? - New products are initially launched for enterprise customers but are quickly adopted by Global Voice Plans customers due to overlapping interests [49] Question: What trends are seen with the Number Reputation Management product? - The product addresses consumer trust issues and is expected to have a global opportunity, driving customer wins [70]

Financial Performance - Total revenue reached $756 million[12], with cloud communications revenue accounting for $555 million[12] - Adjusted EBITDA was $92 million[12], reflecting a 19% year-over-year growth[12] - Free cash flow amounted to $56 million[12], a 35% increase year-over-year[12] - The company is projecting approximately 10% year-over-year total revenue growth for 2025, normalized for political campaign revenue[40] Customer Metrics - Net Retention Rate (NRR) stood at 107%[18], indicating strong customer loyalty and revenue expansion[18] - Average annual customer revenue was $231,000[38], demonstrating a 9% year-over-year increase[38] Revenue Growth - Total revenue grew by 11% in 3Q25[20], while cloud communications revenue increased by 8%[20] - Non-GAAP gross margin expanded, reaching 58% in both the quarter and year-to-date periods[27] Future Outlook - The company raised its full-year 2025 EBITDA guidance to a range of $89 million to $92 million[40]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $174 million, a 7% year-over-year increase, normalized for 2024 cyclical political campaign revenue of $8 million [19] - Cloud communications revenue reached $133 million, reflecting a 6% year-over-year increase, also normalized for 2024 political campaign revenue [19] - Non-GAAP gross profit was $79 million, an 8% year-over-year increase, with a non-GAAP gross margin improvement to 59%, a two percentage point increase [20] - EBITDA grew by 40% to $22 million, exceeding expectations due to higher revenue and stronger margins [20] - Free cash flow performance was as expected, influenced by capital expenditures and working capital timing [20] Business Line Data and Key Metrics Changes - Enterprise Voice revenue grew 26% year-over-year, driven by strong demand from financial services and healthcare customers [21] - Global Voice Plans revenue increased by 4% year-over-year, supported by long-term customer expansions and new business from channel partnerships [21] - Programmable messaging accounted for 19% of cloud communications revenue, with a 9% year-over-year increase, driven by demand in key verticals [21] Market Data and Key Metrics Changes - The net retention rate for Q1 was 116%, with customer name retention above 99% [22] - Average annual revenue per customer reached a record $228,000, or $211,000 when excluding the political campaign benefit in 2024 [23] Company Strategy and Development Direction - The company is focused on disciplined execution, innovation, and delivering essential communications, with a strong emphasis on core platform growth [16] - The strategy includes expanding partnerships with managed service providers (MSPs) and system integrators to enhance market reach [30] - The company aims for double-digit core platform growth, profit expansion, and strengthening its capital structure for the full year 2025 [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic volatility, with no anticipated material impact from current tariff environments [19] - The company raised its full-year revenue outlook to a range of $745 million to $760 million, reflecting increased organic growth expectations [24] - Management highlighted the importance of AI integration in driving growth across all product categories, emphasizing the effectiveness of AI voice solutions [70] Other Important Information - The company received two Gold Stevie Awards for innovation in customer service and customer engagement initiatives [16] - Capital expenditures for the quarter were $10 million, focused on network expansion activities [23] Q&A Session Summary Question: Insights on enterprise voice growth and pipeline - Management noted a strong pipeline for enterprise voice customers, with more million-dollar deals signed in the quarter than ever before, indicating robust growth potential [29][30] Question: Confidence in back half of the year amidst uncertainty - Management expressed confidence in continued growth driven by enterprise voice traction and a resilient voice business, while acknowledging potential risks in programmable messaging [35][36] Question: Drivers behind increased average revenue per customer - The increase is attributed to more enterprise voice customers utilizing the Maestro platform and expanding their business, along with cross-selling opportunities [39][40] Question: Future of the partner ecosystem - Management highlighted the growing contribution from partnerships with large MSPs, which are expected to enhance deal cycle efficiency and complexity management [45][46] Question: AI's role in growth across product categories - AI is seen as a significant growth driver, enhancing customer experiences and operational efficiencies across global voice, enterprise voice, and programmable messaging [66][70]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $174 million, a 7% year-over-year increase, normalized for 2024 cyclical political campaign revenue of $8 million [20] - Cloud communications revenue reached $133 million, reflecting a 6% year-over-year increase, also normalized for 2024 political campaign revenue [20] - Non-GAAP gross profit increased to $79 million, marking an 8% year-over-year growth, with a non-GAAP gross margin improvement to 59%, a two percentage point increase [21] - EBITDA grew by 40% to $22 million, exceeding expectations due to higher revenue and stronger margins [21] - Free cash flow performance was as expected, influenced by capital expenditures and working capital timing [21] Business Line Data and Key Metrics Changes - Enterprise Voice revenue grew 26% year-over-year, driven by strong demand from financial services and healthcare customers [22] - Global Voice Plans revenue increased by 4% year-over-year, supported by long-term customer expansions and new business from channel partnerships [22] - Programmable messaging accounted for 19% of cloud communications revenue, with a 9% year-over-year increase, driven by demand in key verticals including e-commerce and financial services [22] Market Data and Key Metrics Changes - The net retention rate for Q1 was 116%, with customer name retention above 99% [22] - Average annual revenue per customer reached a record $228,000, or $211,000 when excluding the political campaign benefit in 2024 [22] Company Strategy and Development Direction - The company is focused on disciplined execution, innovation, and delivering essential communications, with a strong emphasis on the Maestro platform for enterprise voice and AI integration [6][10] - The strategy includes expanding partnerships with managed service providers (MSPs) and system integrators to enhance market reach and customer engagement [11][31] - The company aims for double-digit core platform growth, profit expansion, and strengthening its capital structure in 2025 [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic volatility, raising the full-year revenue outlook to $745 million to $760 million [20][25] - The company anticipates continued growth in enterprise voice and global voice plans, with a focus on maintaining strong customer relationships and expanding service offerings [34][36] - Management acknowledged potential risks in programmable messaging due to its exposure to retail and digital engagement markets, but emphasized the essential nature of voice communications [36] Other Important Information - The company received two Gold Stevie Awards for innovation in customer service and customer engagement initiatives, reflecting its commitment to customer satisfaction [17] - The company ended the quarter with a cash and securities balance of $42 million and no borrowings under its credit line [23] Q&A Session Summary Question: Insights on enterprise voice growth and pipeline - Management reported a strong pipeline for enterprise voice customers, with more million-dollar deals signed than ever before, indicating robust growth potential [30] Question: Confidence in back half of the year amidst market uncertainty - Management raised the second half outlook, expecting double-digit organic growth driven by enterprise voice and global voice plans, while monitoring risks in programmable messaging [34][36] Question: Drivers behind increased average revenue per customer - The increase is attributed to more enterprise voice customers utilizing the Maestro platform and expanding their business, along with cross-selling opportunities [39] Question: Durability of gross margin performance - Management expects margins to remain stable throughout the year, with confidence in achieving medium-term targets [41] Question: Future of the partner ecosystem and its contribution - Management highlighted the growing importance of partnerships with MSPs and the potential for increased sales through these channels [45][49] Question: Strategies to regain share in the messaging business - The focus will be on driving deliverability and expanding channels, including RCS and RBM, to enhance customer engagement and grow the messaging business [51][54] Question: Success factors in the healthcare vertical - The Maestro platform's ability to integrate innovation into complex healthcare environments is a key differentiator, with opportunities for expansion into other verticals like hospitality and manufacturing [58][60] Question: Key drivers for Global Voice business growth - Management expects Global Voice plans to double its growth rate, driven by onboarding new customers and leveraging channel partnerships [63]

Financial Performance - Total revenue for 1Q25 was $752 million[15] - Cloud communications revenue for 1Q25 reached $545 million[15] - Adjusted EBITDA for 1Q25 grew by 50% year-over-year to $88 million[15] - Free cash flow for 1Q25 increased by 94% year-over-year to $50 million[15] - The company is raising full year 2025 total revenue growth guidance to 9-11% when normalized for 2024 cyclical political campaign revenue[36, 37] Revenue Growth - Total revenue grew by 7% year-over-year in 1Q25[18] - Cloud communications revenue grew by 6% year-over-year in 1Q25[18] - Enterprise Voice revenue grew by 26% year-over-year[19] Customer Metrics - Net Retention Rate (NRR) was 116%[12, 23] - Average annual customer revenue increased by 20% year-over-year[23] Gross Margin - Non-GAAP gross margin increased to 59%[44]