Terry Tillman: Congrats to you both. My question for the call is actually, Sonalee, I think in the past, you talked about ARR bookings, how that would trend ahead of top line growth. We only have two quarters left, and I don’t know what kind of visibility you have in the second half. But could you give us an update on how you’re thinking about ARR bookings for the year and the growth rate there? Thank you.
Sonalee Parekh: Yes. Sure, Terry. As you know, we don’t typically guide on ARR. And we do have good visibility on the second half, and that’s why we guided and reiterated very much our full year guide today and raised our guidance on operating margin as well as provided more color around free cash flow. But when you think about ARR, in terms of providing you color, we did about $60 million of bookings in the quarter. So that means we’ve generated about $120 million of net new ARR bookings in the first half of ‘23. And if you think about how our business has historically been slightly more second half weighted, whilst not guiding specifically, we think if typical seasonality holds, it’s absolutely something that we should be able to achieve.
And just if you do — you didn’t ask specifically around the guidance, but we are reiterating the full year on both revenue and subscription revenue. And on margins, we strongly exceeded the 2Q outlook by about 200 basis points, which is up 800 basis points year-over-year versus Q2 of a year ago. So, because of that, we raised the midpoint of the margin guidance by 25 basis points. So for the full year, we’re now looking for 18.5% to 19% margins. And we continue to expect to exit the year at, at least 20%. And you know we will always strive to do more.
Operator: The next question is from Samad Samana with Jefferies. Please go ahead.
Samad Samana: I’ll echo, Vlad, it’s been great working with you and look forward to still talking to you every now and then. So, maybe just a question on the CCaaS side of the business. I know you mentioned where the new product fits into the world. But I guess if you — can you double-click on that, maybe who do you see — is that more of a greenfield opportunity? Are you targeting replacements? If so, who would that be that you’re going after with that product? And then, I actually have a CCaaS ARR follow-up as well.
Vlad Shmunis: Sure. Okay. Well, thank you, Samad. Okay. So, as far as RingCX, is I think what you’re asking about and that announcement. And look — so what do we have that’s unique? We have a CCaaS business as part of our portfolio that’s well over $300 million in ARR. It actually makes us one of the largest CCaaS providers in the world. But there is a twist here and the twist is that we are playing and playing extremely well in the unified UCaaS, CCaaS communications market. Okay? This is where people — we have this integration. It’s unique to this day between us and inContact — NICE inContact. And obviously, it’s been playing extremely well. Okay? Now what — so what’s the new opportunity? So firstly, we are, frankly, up until now — not that we were locked out, but we don’t really tend to see pure-play requests, line of business requests.
If somebody needs a just a contact center, they would likely not even involve us in an RFP. So with RingCX, we expect to be getting those opportunities and participating directly. So that’s number one to remember. Secondly, NICE inContact is a fantastic product. Gartner has its rights. They are up and to the right and 1 of the 2 core leaders without any question. But it’s also an enterprise-grade product. It’s a high-end product. And unfortunately, that means complexity and that means fairly healthy pricing. We see an opportunity. This is where the greenfield comes in, to come in, not just necessarily into smaller businesses, but into businesses with simpler — with simpler requirements. Okay? And they can be smaller, they can be very large.
