RingCentral (RNG) Piper Sandler 5th Annual Growth Frontiers Conference summary

IT spending and AI adoption trends

• IT spending remains healthy and is growing, with AI taking a larger share of budgets and customers seeking measurable ROI from AI investments.

• Customers prefer integrated AI solutions from existing vendors over assembling point solutions.

• Communications and customer engagement remain mission-critical, with AI becoming a top priority in these areas.

• Demand and sales cycles are stable, with increasing focus on AI-driven solutions.

SMB and customer acquisition strategies

• SMB segment is experiencing double-digit growth, supported by a multifaceted customer discovery and sales approach.

• Investments are shifting from traditional SEO to AI-led search and content strategies.

• Direct sales, upselling to existing customers, and channel partnerships are key growth drivers.

AI product penetration and growth outlook

• 13% of the customer base has adopted at least one paid AI product, representing $350 million in ARR.

• AI product users show higher net retention and ARPU, with significant runway for further adoption.

• AI products are growing faster than the core business but still represent a small portion of total revenue.

• Continued innovation and product development aim to expand AI adoption and its contribution to growth.