Welcome to the 8x8 to acquire Fuze. My name is Juan, and I will be coordinating your call today. If you would like to ask a question during the presentation, you may do so by pressing star one on your telephone keypads. I will now hand over to your host, Kate Patterson, 8x8 Investor Relations to begin. Kate, please go ahead. Thank you, Juan, and good morning to everyone. Thanks for joining us so early. On today's agenda, we'll include an announcement that 8x8 will acquire Fuze, Inc. With me on the call are Dave Sipes, Chief Executive Officer, and Samuel C. Wilson, Chief Financial Officer. Following our prepared remarks, there will be a question and answer session. Before we get started, just a reminder that our discussion today includes forward-looking statements about 8x8's future financial performance, as well as its business, products and growth strategies and the impact of the acquisition of Fuze. We caution you not to put undue reliance on these forward-looking statements as they may involve risks and uncertainties that may cause actual results to vary materially from forward-looking statements, as described in our risk factors in our report filed with the SEC. Any forward-looking statements made on this call and presentation slides reflect our analysis as of today, and we have no plans or obligation to update them. Certain financial measures that will be discussed on this call, together with year-over-year comparisons in some cases, were not prepared in accordance with U.S. generally accepted accounting principles or GAAP. A reconciliation of those non-GAAP measures to the closest comparable GAAP measures is provided in our presentation, which is available on 8x8's investor relations website at investors.8x8.com. As of December 1, 2021, the financial statements of Fuze as of and for the nine months ended September 30, 2021, have not been finalized, but are expected to be included in the Form 8-K following the close of the planned merger. The basis of presentation for the interim financial statements is expected to be consistent with the audited financial statements as of and for the year ended December 31, 2020, which were furnished on Form 8-K dated December 1, 2021 by 8x8. The preliminary financial data of Fuze discussed on this call and presentation has been prepared by and is the responsibility of Fuze's management. The Fuze financial statement information discussed in this call has been prepared on a different basis than the company's financial statements and should not be viewed as a proxy for what those numbers would have been had they been prepared on the same basis as the company's financial statements. With that, I will turn the call over to CEO Dave Sipes. Thank you, everyone. Today, we are announcing our intent to acquire Fuze. With this transaction, we expand our capacity to innovate, broaden our enterprise customer base, increase our operational scale, and extend our global presence. The two companies share fast cloud communications DNA, a focus on enterprise customers, and a partner-centric go-to-market strategy, creating a natural fit between the two organizations. The combination will accelerate our XCaaS strategy and is aligned with our strategic priorities. The communications market is in the early stages of a massive shift to the cloud, and our differentiated approach is resonating with customers. This is the right time to extend our XCaaS leadership and set the stage for long-term gains. Our acquisition of Fuze creates the opportunity to accelerate our product roadmap and extend our platform advantage while maintaining our commitment to non-GAAP profitability. IDC predicts that by 2023, the cloud communications addressable market will be over $75 billion. While only 15% cloud penetrated today, the industry is moving to the cloud, and the preference is for an integrated UC and CC solution. In a recent survey conducted by Hanover Research, 87% of IT leaders who identified their organization as forward-looking said that an integrated UC and CC communications platform is the future of business communications. As remote hybrid work becomes the new normal, we believe it is not a question of if organizations will transition their communications infrastructure to the cloud, but when. When I joined the company a year ago, we increased our focus and outlined our strategy to advance our XCaaS platform with increased investment in contact center functionality. 8x8 has established an early lead in integrated cloud communications with our XCaaS platform, and we are the only Gartner UCaaS Magic Quadrant leader also recognized in the CCaaS Magic Quadrant. As we execute this strategy, we are already generating a steady stream of new innovation that makes us more competitive and advances the cloud communications industry. Our innovative Microsoft Teams integration and the introduction of Frontdesk, a tailored cloud experience for receptionists and operators, are two recent examples. The strong customer response to these innovations is driving 30%+ year-over-year growth in our XCaaS and enterprise segments. The acquisition of Fuze accelerates our strategy by immediately and significantly increasing our innovation capacity to expand our XCaaS platform advantage. The 8x8 and Fuze development teams have the same SaaS and cloud communications DNA. Further, the two teams share common development methodologies and programming languages. We look forward to welcoming our soon-to-be new colleagues to the team. Kate? In addition to common SaaS and cloud communications DNA, 8x8 and Fuze share a customer-first culture, a focus on global enterprise customers, and a partner-centric go-to-market strategies. For example, Fuze is focused on the enterprise and has built an install base of approximately 300 enterprise customers and more than 400,000 total business users. With this acquisition, we simultaneously expand our install base and create a multi-year cross-sell opportunity that builds on our already strong enterprise momentum. Fuze has also pursued a global approach, and their mix of international revenue is similar to 8x8's. The combination will increase our distribution in Europe, particularly France. Both companies also have well-established and complementary channel relationships. I strongly believe this transaction will deliver significant value to the customers and partners of both companies. Consistent with our customer-first culture, we are committed to supporting Fuze's customers on the Fuze platform, and we will offer the best of both platforms to all customers. For those Fuze customers that want the full benefit of XCaaS, we intend to offer a seamless upgrade to 8x8 XCaaS. Our XCaaS vision for empowering all employees and fueling business agility is aligned with the requirements of forward-thinking organizations everywhere. The XCaaS platform is allowing customers to realize the benefits of integrated cloud communications with increased flexibility, improved customer experiences, and lower total cost of ownership. By combining our engineering resources, we increase the resources dedicated to innovation, enabling us to further advance our XCaaS platform. The transaction delivers value to 8x8 and Fuze partners by providing unparalleled choice for their customers. Fuze partners will immediately have the opportunity to expand their relationship and revenue opportunities by offering 8x8 Contact Center solutions integrated with the Fuze UC solution. Over time, partners of both 8x8 and Fuze will benefit from solutions that bring the best of both platforms together. To summarize, cloud communications has never been more relevant, and we are proud to be shaping the future of communications at such a critical time for organizations as they navigate what is now a lasting hybrid workplace. Customer experiences and expectations are evolving rapidly and require unparalleled agility from companies, employees, and their technology. We are enhancing the experience between UCaaS and CCaaS to unite the employee and customer experience. XCaaS, Frontdesk, and other game-changing innovations from 8x8 are delivering tailored experiences to every employee persona, enabling cross-company collaboration. With the acquisition of Fuze, we immediately increase our capacity to innovate and extend our XCaaS platform advantage. We also broaden our base of enterprise customers, increase the scale of our operations, and expand our global presence. I believe our common cloud communications DNA, complementary go-to-market strategies, and enterprise-centric global approach to the market will enable a seamless transition to a unified organization. It is an exciting time for in the industry innovators and 8x8 in particular, and we appreciate your investment and support. We look forward to keeping you updated as our industry and company advance. Thank you. I will now turn the call over to Sam for a quick review of the financial aspects of the transaction. As Dave stated, we are early in the transition to cloud communications, a large space which third-party analysts have pegged at growing to over $75 billion by 2023. At 8x8, we believe our XCaaS product uniquely addresses the industry preference for an integrated solution, and by acquiring Fuze, we have an opportunity to grow in this category. We add great engineering talent and plan to bring the best of both platforms to all customers. We see this combination as highly beneficial to both customers and investors. To summarize the deal terms, 8x8 will pay approximately $250 million in total consideration to acquire Fuze at roughly half cash and half equity, subject to certain closing adjustments. Fuze will use part of the cash consideration to retire outstanding debt, and we are acquiring the company debt-free. As is customary, we anticipate filing a resale registration statement after the closing for shares to be issued in conjunction with this transaction. We expect the transaction to close during the first calendar quarter of 2022, our fiscal fourth quarter, subject to applicable regulatory approvals and customary closing conditions. Both boards of directors have approved this transaction. Until close, both companies will continue to operate independently. In terms of the financial model, we are currently thinking the following. We will fully integrate Fuze into 8x8. During the fiscal fourth quarter, we will have a stub period and expect the first full P&L quarter to be the first quarter of fiscal year 2023, ending June 30, 2022. Fuze's ARR is about 20% of that of 8x8's as of last quarter, September 2021. Calendar year-to-date revenue through September 2021 was between $94 million and $95 million for Fuze. Approximately 97% of Fuze's revenue is subscription revenue, and 3% is other revenue, namely hardware and services. On a non-GAAP basis, Fuze is unprofitable. We at 8x8 are profitable. We plan on the combined company remaining non-GAAP operating profitable. Cost savings can be achieved via COGS efficiencies, facilities consolidation, and limited G&A and sales and marketing optimizations. We plan on keeping engineering and most customer-facing roles. As stated in our long-term operating model, given the large market opportunity, we want to increase R&D spending as a percentage of revenue over time, and this is a step in that direction. We are currently assuming no cross-sell in fiscal 2023 because of the longer nature of contact center sales cycles, even though we believe the opportunity could be over $50 million of ARR over the next several years. In the year after the deal closes, we plan to further optimize our expense structure as we continue to grow. We believe this will make the transaction accretive to operating margin dollars in fiscal 2024, keeping us on track to achieve our long-term operating model. These model assumptions are preliminary, and we look forward to giving an update to investors on our fiscal guidance on our regularly scheduled earnings call. In closing, we are very excited about this transaction and the vast opportunity that lies ahead of us at 8x8. We are confident this combination will benefit all of our stakeholders. We are thrilled to have the Fuze team join us, and we look forward to a bright future ahead. Juan, with that, we'd like to open it to questions. If you would like to ask a question, please press star followed by one on your telephone keypads now. If you change your mind, please press star followed by two. When preparing to ask a question, please ensure your phone is unmuted locally. Our first question comes from Mike Latimore from Northland Capital Markets. Please, Mike, your line is now open. Great. Thanks. Yeah, congratulations on this deal here. I guess you gave some financial metrics around Fuze. Can you talk a little bit about the growth rate that it's had and also any, you know, purchase accounting effects we might see? All right. That one's for me, I guess. Thank you, by the way. The company's been a slow grower on a year-over-year basis. Right now we're gonna make further adjustments to get their accounting, as Kate mentioned in her prepared remarks, in line with our accounting that we would expect to give further guidance on our regularly scheduled earnings call. We'll have to make certain adjustments as a private company. They were mainly under ASC 605 accounting for the wonky accounts out there, and we're moving them to our standard ASC 606 accounting. The second part of your question, Mike? That basically addressed it. Okay. Then on the just the integration plan going forward, do you intend to have, you know, one 8x8 platform where you merge kind of the core aspects of each company's technology here? Also, you know, you talked about innovation at Fuze. Which of their, say, features or capabilities would, you know, you kinda keep if you do integrate? Yeah. We intend to support. We believe in customer choice. We're gonna support Fuze customers on the Fuze platform. Additionally, we will be offering seamless upgrade to 8x8 XCaaS for those customers that want the full XCaaS experience. We do intend to offer the best of both platforms to all customers and, you know, take any aspects that Fuze has generated and make sure we incorporate that into our platform today. Mm-hmm. Okay. Great. Thank you. Thank you. Our next question comes from Michael Turrin from Wells Fargo. Please, Michael, your line is now open. Hey there. Thanks. Good morning. You've talked about the importance of owning the stack historically. 8x8 has had, you know, UCaaS, conferencing, CPaaS, CCaaS. You just referenced that they were a relatively slow grower. Just more on maybe what it is you've gained from adding Fuze to the prior UC offering 8x8 had in place is helpful. Yeah. I think that this deal makes for us a tremendous amount of financial success. It allows us to accelerate our innovation in XCaaS that's already showing significant momentum in the marketplace. Their focus on enterprise and the customer base that we looked at is a very strong and healthy customer base, which additionally allows us to increase our global footprint that we talked about and, you know, aligns well with our channel strategy. I think it's a strong asset to integrate into the 8x8 elements and helps us to, through scale, accelerate innovation. Yeah. I really wanna highlight the fact that it gives us access to additional 300 enterprise customers. Remember that Fuze was historically primarily a UCaaS-only play, and we know those customers do want a unified platform that we bring with our XCaaS solution. Secondly, you know, they've got great engineering teams, and the ability for us to add scale in this industry, along with great engineering talent already experienced in UCaaS and CCaaS, is just a benefit. That's helpful. Sam, it's been a little while since we've talked about the balance sheet. You've done a lot of work to clean up some of the efforts there. How do you think about preserving health or optionality now post-deal, given $130 million in cash is, you know, suggests that, you know, somewhat of a limited cash position post-transaction? Yeah. We have a financing plan in place. I have absolutely no concerns on the balance sheet at all. We monitor it, you know, obviously religiously, and our working capital needs are very small. Yes, we will have to work on making the balance sheet sort of repair itself over time. I just wanna highlight that we're gonna be non-GAAP profitable, which effectively means that once we get through any optimizations that we need to do, we'll return to cash flow positive. Since the deal will be accretive over time, this will allow us to strengthen our balance sheet faster than we would have had the ability to in the past. I mean, just a quick follow-on to that. You just, I know it's early in terms of evaluating the financial profile, but given their presence, enterprise, UC focus, is it fair to assume that this would likely prove gross margin accretive, at least from your initial impressions relative to 8x8's prior structure? A little early to say. On a gross profit dollar basis, no issue. A little early 'cause I'd have to adjust how to do some accounting. You'll see it in the press release. On a GAAP basis, their gross margins are lower than ours, but they also were subscale, and I think we have a lot of ability over time to raise their gross margins more in line with our gross margins. Got it. Helpful. Thank you. Thank you. Our next question comes from George Sutton from Craig-Hallum. Please, George, your line is now open. Thank you. A very interesting transaction. Obviously, this is a company that's been outraising series of rounds over the years at higher valuations. Can you just give us a sense of the scenario in terms of how this became available and, you know, how we got to today? Well, I think what we're able to do with Fuze and maybe they weren't able to do standalone is bring its scale and profitability. We intend to be profitable post this transaction, and I think that's one of the key factors of competing in the marketplace, and obviously the ability for us to combine innovation teams is key. The deal came about. We've been in conversations, and I've been in conversations with the CEO there for quite some time, and it felt like as we developed those conversations, it was a natural fit between cultures and between skill sets of the organizations. It just felt like it made a lot of sense and we were able to progress it through a mutual respect. Just curious from a channel partner perspective, when you go to a Fuze-only channel partner, what is the message to them? I'm thinking of deals in their current pipeline and how they'll ultimately get those to close with this pending transaction. Yeah. I think this is only, you know, beneficial to those customers where, we will support Fuze customers on the Fuze platform, so that will continue. We're also gonna bring the best of both platforms to all customers and provide options for those customers to, one, add integrated, you know, CC or two, move seamlessly to a full XCaaS experience over time. I think it just creates optionality. It also brings a larger, you know, organization and financially stronger organization. I think it's a net-net very positive for both the customers, prospects and, the Fuze partners. Gotcha. Makes for an interesting morning. Thanks, guys. Thanks, George. Thank you. Our next question comes from Meta Marshall from Morgan Stanley. Please, Meta, your line is now open. Great. Thanks. A couple questions for me. One, you know, obviously, you guys have a more integrated platform, and so just wondering, are there opportunities to kind of quickly bring to some of the contact center products, or would they need to kind of transition to an XCaaS portfolio in order to get that? And then maybe just a second question for me. You know, Fuze had kind of come in and out a couple of times of, you know, being more direct, being more channel-focused. Just, is the idea that it will become more channel-focused over time and kind of adopt the 8x8 strategy, or are there elements to kind of some of their direct business that you would kind of continue to adopt? I'll take the first one. You were asking about the contact center cross-sell opportunity, Meta. Yes. I mean, we have sold contact center on a standalone basis to link with other UCaaS, or even on-prem systems. There's no issue. We can bring that relatively quickly. I do wanna highlight, though, in my prepared remarks, I did say I didn't model any cross-sell through fiscal 2023, just given the sales cycles are generally somewhere around 6+ months. I didn't wanna, you know, lean too far ahead of my skis in terms of opportunities. Yes, we do think there is a hunger among that enterprise, mid-market and enterprise side of Fuze for contact center capabilities. I did mention also that it's, you know, our best case right now is the $50 million plus opportunity of additional ARR from just that cross-sell. Then I'll let Dave handle the direct versus channel thoughts around that. The channel approach is very similar in our channel approach, and I think there's strong overlap between the partners. I think it's gonna be a natural fit as we bring, you know, welcome those partners into 8x8, and combine our channel efforts as a unified organization. They will obviously, you know, move towards our channel approach, which has been consistent over time. But I think there's no inconsistency with how Fuze is operating today. I think it's a pretty strong fit. Great. Thanks. Thank you. Our next question comes from Tim Horan from Oppenheimer. Please, Tim, your line is now open. Well, congratulations, guys. Is this mostly incremental new channel partners for you? Sorry if I missed it, but can you give us a little bit more sense on the ultimate expense synergies and, you know, a little bit of color, you know, where they come from or qualitatively or quantitatively? Thanks. Yeah. I think there's gonna be a fair amount of some overlap in the channel partners, but there will be definitely incremental partners that operate with Fuze that don't operate with us, that we're gonna welcome with open arms to join our program and add our products to that. I see that as expansionary for us as well as there's geographic expansion for us in Europe. I'll let Sam- Yeah, I get the cost synergies question. Look, I mean, there's obvious areas right off the top, right? Our gross margins are materially higher just 'cause we're, you know, 5x larger roughly in size. Easy opportunities on the COGS side, particularly with, like, carrier relationships and those kinds of things to bring their unit economics much closer to our unit economics. There's overlapping facilities, as Dave mentioned, on geographic. They're about 30% international, and we're about 30% international. We've got facilities consolidations we can do. There are some other kind of easy things to do around G&A consolidation and those kinds of things. They were unprofitable to the tune of about $4 million a quarter. non-GAAP basis, we're profitable. It's $2 million in cost savings we need to go get to remain non-GAAP profitable, and we've committed that to our investors. Thank you. Thank you. Our next question comes from Matt VanVliet from BTIG. Please, Matt, your line is now open. Yeah, thanks for taking the questions. Congratulations on the deal. I guess, first, do you have a general sense in terms of what you're modeling or what you're planning in migrating existing customers to the XCaaS platform? Look, right now our plan is to let Fuze customers stay on Fuze platform. You know, I think it's very early to talk about anything like that. Right now the opportunity is to analyze the situation, cross-sell contact center into a base that desperately wants it and let the customers, you know, seamlessly transition to XCaaS when they feel ready. Just following up on that, is the price point of the XCaaS platform at all sort of above and beyond what legacy Fuze customers are pricing? Or should we think about the $50 million in ARR cross-sell opportunity as being purely CCaaS into the existing base? That number is purely CCaaS into the existing installed base of, Fuze. Okay. Last one on sort of expanding the global scale. Sam, thinking about the question maybe a little different angle here, does this maybe offset future planned CapEx or headcount growth that you know we've all been sort of modeling already, and you just kind of offset or pull that forward now? Or should we think about you know there's still plenty of you know geographies that you need to continue to expand there, and this is just kinda bulking up regions that you already have a strong presence? Well, I would say this is bulking up regions we have a strong presence with the exception of France. They're stronger in France than we were, and so that's definitely an opportunity for us. In terms of general footprint overlap, it's pretty, as Dave mentioned, pretty complementary. I do wanna highlight, though, there is some pull forward in the sense that we get just phenomenal engineering teams. You know, we're absolutely gonna put those onto our joint products as quickly as possible. This is really about picking up a tremendous amount of talented engineering and product management, et cetera, and bringing that to bear as quickly, 'cause there's such a huge opportunity in the market right now, particularly around integrated products. You know, we absolutely believe that innovation gets rewarded very rapidly. Maybe one more. There's obviously been a few other sort of consolidation of legacy players as we've seen, you know, Mitel basically kinda fold underneath RingCentral, Vonage, but Ericsson. Do you feel like there's you know a significant amount of additional consolidation of smaller vendors in the market that's necessary? You know, how attractive are future deals of similar scale or maybe smaller scale here to further grow the 8x8 brand? Yeah. For us, this is really about furthering our XCaaS strategy and the innovation and roadmap that this brings to us, so it fits nicely into that. I wouldn't say there's a consolidation strategy. This is more tactical to execute our existing strategy of XCaaS. The reasons Fuze makes sense in that is really the unique customer base that they've been focused on, being enterprise, being global, fits very nicely with our XCaaS target customer and, you know, gives us a great cross-sell opportunity as well as this great engineering team. So, to me, I feel it is a unique deal for us. I think it should be viewed that way. Great. Thank you for taking the question. Thank you. Our next question comes from Will Power from Baird. Please, Will, your line is now open. Okay. Excuse me. Thanks. Yeah, I guess I'll try to squeeze in a couple here. I know, Sam, I guess you indicated you expected limited growth or Fuze has had more limited growth maybe, more recently. Is there a way, though, to kind of break out what they've experienced in enterprise versus SMB? Because I think they had more of an enterprise focus, and my suspicion is that was probably growing a little bit better. I know it's a bigger focus for you. I think that'd be helpful just to understand how that, you know, plays into your increasing enterprise focus, too. I think your premise is correct. It's something that we plan on updating investors on in the future as we get full access to the numbers inside of each individual's respective customer. We'll then segment them into our ARR categories and add them in. You'll definitely see that. I mean, when you think about 300 customers, right, it's about a third increase to our ARR in enterprise. Yes, they are disproportionately growing in enterprise. Their install base is disproportionate into enterprise. As Dave mentioned on the previous question, that's a tremendous opportunity for us to get a lot of great enterprise customers in a very good financial sense. Okay. Maybe just to, kind of follow up on that, I think you'd laid out some of the midterm and longer term financial growth expectations. I guess I was a little unclear how Fuze was impacting that versus what your prior expectations, you know, for growth might have been. The idea here is that we're gonna acquire you know a bunch of engineering teams that then we're gonna turn loose on furthering the XCaaS roadmap faster. Just given the opportunity and what's going on in the marketplace right now, that makes tremendous sense. That in turn will feed into future you know revenue growth and those types of things in our long-term model. I did say that I do expect that as we you know combine the two entities over the next year, that this would be accretive to 2024 operating dollars. I do you know think that's absolutely the case. Like as we get larger size and scale, it gives us cost benefits, efficiencies, unit economics, and all those things. It'll just take a little bit of time to play out. Okay. Well, it sounds like, you know, one of the big benefits to you all is picking up the engineering talent. I know Fuze had, you know, probably a decent sized professional services team and all that. I suppose it'd be additive. Is there anything from a technology standpoint that Fuze brings to the table? Maybe you gotta get, you know, still under the covers more on some of that. I know they had some of their own contact center capabilities, but also partnered with some of the bigger contact center providers. Are there any capabilities there that might be additive to what you already have on the CCaaS front? Yeah. I think, number one, the company has an enterprise DNA, right, throughout the organization, and we talked about those different functions that we'll incorporate and some, you know, with 8x8 and will accelerate our movement as we've been moving to enterprise. On a product capability, there are some elements, you know, but everyone does things slightly differently, and we're gonna be able to take those elements that have been done slightly differently, and we believe we'll be able to incorporate that pretty quickly into our overall platform, bringing, you know, all these benefits to everyone. I do see there will be some in that regard, but it is. You know, our platform is pretty complete at this point across those most capabilities. It's a segment of what we'll be doing. Okay. Thank you. Thank you. Our next question comes from Catharine Trebnick from Colliers. Please, Catharine, your line is now open. Yeah, thank you for taking my question. Congratulations. Could you parse more on international? Are they also in Asia Pac? Then a little bit more depth on the enterprise customers, you know, vertical markets, maybe are they more specific in the healthcare versus finance? Thanks. Yeah. The international mix is very similar, around 30%, as ours. International offices, sales offices include U.K., France, Australia, which have significant overlap with ours by the addition of France. On verticals, there's been a focus in manufacturing that they've been successful with. Those are all areas that will be beneficial as we expand in those areas. Then on the technology front, going back to that, doesn't Fuze have some video capabilities and what do you plan to do with those? Yes, they have video capabilities. We plan on adding their scrum teams into our video scrum teams. Are you gonna make that a larger piece of the XCaaS product? Is that the plan? I'm pausing for a sec, Catharine, on the word larger. We have a great product in our Jitsi Video product, and we'll continue to improve it and evolve it and add features to it, but we love our video product, and we love our open-source connection with our video product that allows for speedy innovation. I think the extra scrum teams will certainly help in that area. All right. Thank you. Thank you. Our next question comes from Ryan MacWilliams from Barclays. Please, Ryan, your line is now open. Thanks, guys. Hey, Sam, love to hear a little more about the color on how you get to $50 million in potential cloud contact center synergies. You know, Fuze has been sold as an add-on into those larger enterprise customers over the past few years. Do you have any idea of like the percentage of those enterprise customers that could utilize 8x8 Contact Center? Thanks. Yes. We have done preliminary analysis based on customer size and what they own and how they use the product that leads us to believe that $50 million number is solid. It could actually even be higher if we get a little aggressive with those assumptions. Yes, we've looked at the quality and shape of their install base, where it's at, what's been done to date, and what the opportunity is on a go-forward basis. I think I answered your question right. I'm not 100% sure, though. You're there for sure. Then just on, you know, acquiring Fuze and your focus on contact center and mid-market enterprise, you know, should we expect like any difficulty in the SMB segment, or just less attention there? Or is this like really a testament to the kind of the future of the strategy for 8x8, which is up market? Thanks. I think the latter. I mean, it's where we're moving. We've talked about moving mid-market and enterprise. That's where their install base and their focus as an organization skews towards enterprise. It'll be, you know, relatively more accretive on an enterprise ARR basis than an overall ARR basis. It's perfectly aligned with our XCaaS target customer. If I can just make one small comment on the small business side. I mean, one of our core premises as a cloud communications company is that we give enterprise class features to a small business because we're that cloud provider, we're managing it for them. We're giving them these tremendous capabilities that historically had been only capable to Fortune 500 companies or Fortune 100 companies. The more innovation we do with XCaaS, the more it benefits the small business segment because they get access to capabilities and features that historically has been in that rarefied now managed by us for them. I see it as nothing but beneficial over time. Appreciate the color. Thanks, guys. All right. Thank you. As a reminder, to ask any further question, please press star followed by one on your telephone keypad now. Our next question comes from James Breen from William Blair. Please, James, your line is now open. Thanks for taking the question. Just wondering about any discussions you've had with Fuze sort of as you went into this process around their customers asking for more products. You know, was it a situation where they either had to invest internally to build out the product set or sell the company, and so this was sort of the most logical expectation? Yeah, we see the market moving to, you know, XCaaS, which is a combination of contact center and UC. That was an area where Fuze was moving in that direction. Obviously, we're a lot further along in that aspect and a leader in that aspect. I think it fits where the market's moving, where their customer demand was moving and even where they were moving as an organization. It accelerates. Just to clarify, I wanted to follow up among the other questions. You know, of their total number of customers, do you know how many are just taking one product right now? Just to think about how that upgrade potentially could work over time. That's a great question. I actually don't have the number off the top of my head, but it's a very small percentage. Okay, great. Thanks. As a final reminder, to ask any further question, please press star followed by 1 on your telephone keypads now. We currently have no further questions. This concludes today's call. Thank you for joining. You may now disconnect your lines.