It depends on how they’ve organized their contact center. We believe that RingCX will be a viable player. It will compete well based on features, based on the fact that it is AI first, it is a next-generation product built on next-generation pure cloud architecture. Pricing will be competitive, if not disruptive. And look, I tell you, people, you, certainly not the list of them, have been asking, okay, well, where is your own contact center? Here is answer. Here it is. So, we’re in beta now. Early results are promising or better. Feedback has been great. We’re obviously learning on that feedback and incorporating and expect more to come. And I tell you, with me now having more time to concentrate on little housekeeping items like getting products out, expect it will be a strong player in that area.
Sonalee Parekh: And if I could just add something there. You can just imagine that with proprietary economics, the contribution margin on Ring X will be — RingCX will be much higher than what we drive today on RC CC.
Samad Samana: Understood. And maybe some — just a quick question on the CCaaS, on the ARR disclosure that $300 million plus o the data that you gave, it implies a really robust growth, right? So, it’s like north of 30%. One, I want to see if that math is right. And then for UCaaS, so it would make it kind of more like high single digit. Is that the right way to think about those two growth rates for the go-forward future?
Sonalee Parekh: Yes. So I think a couple of points I’d make. So yes, we are very pleased with how the CCaaS business is growing. And the last time we updated you, we said that we’d update you every other quarter on where we are. So this quarter, I’m proud to say we’re now at $330 million of ARR. And what I would say there is that we’ve seen great success, obviously, in selling RingCentral MVP with RingCentral Contact Center. And over 60% of our large $1 million-plus TCV deals include both UCaaS and CCaaS. And what I would say there is we really are uniquely positioned relative to all of our competitors to offer that — both UCaaS and CCaaS in one single — from one single vendor, which is what we truly believe, particularly enterprise customers are looking for.
In terms of what we’re seeing on the UCaaS business, we still are growing well above the market in terms of revenue market share, absolutely. And if you look at any of the third-party data, Synergy, Gartner, et cetera, we are continuing to take revenue share there. So, I would say, absolutely CCaaS growing well above the market and UCaaS still continuing to take revenue share relative to the overall market.
Operator: The next question is from Brian Peterson with Raymond James.
Brian Peterson: Congrats to Vlad and Tarek. But Sonalee, I wanted to follow up with you. You mentioned that on some of the efficiencies that you’ve recognized you’re going to be reinvesting in the third quarter. I’d love to understand how much of that is more product oriented versus go-to-market-oriented? And how should we be thinking about potential efficiencies going forward, should those be reinvested as well? Thank you.
Sonalee Parekh: Yes. So great question. And as I said earlier, we strongly exceeded our Q2 profit margin outlook. It was about a 200 basis-point beat. So we were at 19.4%. But we still need to invest in the business. And there are areas of strength that we are seeing in select verticals where investments, including in AI, and Vlad has said he’s going to spend more time there, are expected to drive greater product differentiation and incremental demand. So in Q3, we will be investing in those areas given the opportunity we see. And part of that will include investing in some of the higher performing marketing channels that we believe will drive more sales. That being said, if you look at the overall full year margin outlook, that is very much still increasing.
