RingCentral (RNG) investor relations material

Strategic vision and AI integration

• Focus on maintaining leadership in business voice and leveraging AI to enhance, not replace, human connections in communications.

• AI is seen as a rejuvenating force, improving efficiency and value in B2B2C interactions, especially through products like RingCentral AIR.

• New AI-driven products are increasing human-to-human connections and reducing reliance on voicemails, benefiting both businesses and consumers.

• AI is embedded in both monetized and core products, enhancing user experience and productivity.

• AI is critical to achieving ambitious revenue targets, with the largest new product being an AI-first contact center.

Financial discipline and growth priorities

• Emphasis on profitable growth, margin expansion, and disciplined capital allocation to drive shareholder returns.

• Over $500 million in free cash flow enables debt reduction, stock buybacks, and continued investment in innovation.

• $250 million annual R&D budget, with a significant and growing share dedicated to AI and CX development.

• Management balances investment in innovation with margin leverage, aiming for continued profitability and cash flow growth.

• Pricing strategies are closely managed to maintain gross margins and ROI, with willingness to decline deals that don't meet thresholds.

Product innovation and market expansion

• Transitioning from a single-product to a multi-product portfolio to capture a larger share of customer spend.

• RingCentral AIR is expanding beyond the existing base, with a new AIR Everywhere initiative targeting broader markets and phone systems.

• Standalone AIR pricing starts at $59 per account, with a consumption-based model similar to ChatGPT.

• Infrastructure for AI products is a mix of AWS and GCP, optimized for cost and performance.

• Renewed partnership with NICE targets both high-end and low-end contact center segments, leveraging seamless integration.