Financial Data and Key Metrics Changes - In Q4 2025, total revenue increased by 12% year-over-year on an organic basis, excluding cyclical revenue from political campaign messaging [14] - For the full year 2025, total revenue reached $754 million, up 10% organically year-over-year, with a non-GAAP gross margin of 58% and adjusted EBITDA of $93 million [16][18] - Free cash flow for 2025 was $57 million, significantly exceeding the cumulative target of $125 million set for 2026 [5][18] Business Line Data and Key Metrics Changes - Voice segment achieved 11% year-over-year growth driven by increased usage and adoption of voice-based AI applications [14][15] - Messaging segment saw organic growth of 12% year-over-year, supported by robust holiday messaging demand [14][16] - The enterprise voice customer category grew by 21% in 2025, with a record number of million-dollar plus deals contributing to this growth [16][17] Market Data and Key Metrics Changes - The company anticipates a 16% total revenue growth for 2026, with cloud communications growth projected at approximately 10% [18] - Political campaign contributions are expected to account for about 2.5% of cloud communications revenue in 2026, with no significant impact anticipated in the first half of the year [32][34] Company Strategy and Development Direction - The company is focused on high-margin innovation, particularly in AI voice tools and orchestration software, to drive future growth [4][6] - An inaugural share repurchase program of up to $80 million has been authorized, reflecting confidence in the business model and cash generation capabilities [6][25] - The company aims to achieve a 20% adjusted EBITDA margin and continue expanding gross margins and free cash flow beyond 2026 [18][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upward trajectory of the business, citing strong demand across voice and messaging segments [4][6] - The company is optimistic about the impact of AI on voice growth, viewing it as a significant tailwind for future revenue [52] - Management highlighted the durability of customer relationships and the importance of software services in enhancing customer engagement and retention [20][23] Other Important Information - The number of third-party conversational AI developers building on the company's platform has quadrupled over the past six months, indicating strong momentum in AI adoption [12] - The company has achieved a customer name retention rate above 99% and an organic net retention rate of 107%, showcasing strong customer loyalty [20] Q&A Session Summary Question: Insights on Enterprise Voice segment growth - Management acknowledged a slight tick down in Q4 growth but emphasized a strong annual growth rate of 21% and projected healthy growth into 2026 driven by large deals [30] Question: Political contribution impact on 2026 - Management indicated that political contributions are expected to be around 2.5% of cloud communications revenue, with more visibility anticipated as the year progresses [32][34] Question: Dynamics between cloud communication growth and total revenue growth - The difference is attributed to carrier messaging surcharges, with two major carriers announcing price increases that will positively impact revenue [38][43] Question: Competitive landscape with Twilio - Management noted that recent customer wins were from competitors like Verizon and AT&T, with no significant competitive pressure from Twilio observed [46] Question: Details on the insurance example and Google AI integration - The integration of Google AI within a complex Cisco environment was highlighted as a key factor in winning the insurance customer, showcasing the value of the company's orchestration capabilities [51] Question: AI's impact on business and competitive moats - Management described the company's extensive global infrastructure and customer relationships as significant competitive advantages, enabling durable growth and high margins [52] Question: Pipeline for voice AI and its revenue impact - Management indicated that AI is integral to enterprise conversations, with 2026 expected to be a pivotal year for AI-driven voice revenue growth [56]