Ringcentral, Inc. · NYSE:RNG

Ringcentral — Q2 2021 Earnings Presentation

30 slides from Ringcentral's earnings presentation, Aug 3, 2021

  1. Slide 1: Q2 2021 Earnings

    Q2 2021 Earnings Key metrics above the high end of guidance Raising FY 2021 guidance August 03, 2021 ©2021 RingCentral

  2. Slide 2: Safe Harbor and Non-GAAP Measures

    Safe Harbor and Non-GAAP Measures 2 ©2021 RingCentral

  3. Slide 3: Table of Contents

    Table of Contents 1 Q2 Financial Summary 2 RingCentral Value Proposition 3 Q2 Financial Highlights 4 Guidance: FY 2021 and Q3 2021 5 Reconciliation: GAAP to Non-GAAP 3 ©2021 RingCentral

  4. Slide 4: Outstanding Q2 Across the Business

    Outstanding Q2 Across the Business Growth acceleration for integrated UCaaS and CCaaS solutions • RingCentral Office ARR1 up 41% Y/Y to $1.4 billion, an acceleration of 5 points Y/Y • Subscriptions Revenue up 37% Y/Y to $351 million, an acceleration of 5 points Y/Y • Executing well above ‘Rule of 40

  5. Slide 5: RingCentral Value Proposition

    RingCentral Value Proposition

  6. Slide 6: One MVP Platform Addresses Two Critical Needs

    RingCentral One MVP Platform Addresses Two Critical Needs Why RingCentral Wins Partnerships Communications Collaboration Trust Innovation PBX, Contact Center Team Messaging, Video 6 ©2021 RingCentral

  7. Slide 7: 12 Quarters at Five Nines Reliability

    12 Quarters at Five Nines Reliability 99.999% 99.995% 99.99% Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 RingCentral is fully redundant geographically in every location where the company operates. This is a key differentiator between RingCentral and its competitors as man

  8. Slide 8: Reliability Leadership: 100x better reliability vs. three nines

    Reliability Leadership: 100x better reliability vs. three nines 8.8 hours Annual downtime allowed by service level agreement 52.6 minutes 5.3 minutes 99.999% 99.99% 99.9% 99.90% 8 ©2021 RingCentral Trust Innovation Partnerships

  9. Slide 9: Certifications and 3rd Party Assessments

    Certifications and 3rd Party Assessments Global United States Regional Certifications and 3rd Party Assessments 9 ©2021 RingCentral Trust Innovation Partnerships

  10. Slide 10: Integrated UCaaS + CCaaS Platform

    Integrated UCaaS + CCaaS Platform Engage Voice Message Engage Digital Video Contact Center Phone 10 ©2021 RingCentral Trust Innovation Partnerships

  11. Slide 11: RingCentral Video: Rapid Innovation

    RingCentral Video: Rapid Innovation More Than Basic Video Meetings Next-gen video experiences Rapid Innovation Launch Live Switching 250+ New Features Since Launch Apr 2020 RingCentral Video Launched Presentation Modes Live In-Meeting Transcription 11 ©2021 RingCentral Trust Innovation Partnerships

  12. Slide 12: Cloud PBX Access Across 110+ Countries

    Cloud PBX Access Across 110+ Countries Global Office Local numbers Points of Presence Austria India (Q3’21) Belgium Israel Croatia South Africa Australia Italy Czech Republic Hong Kong Lithuania (Q4’21) Denmark Japan Luxembourg Estonia New Zealand Netherlands Finland Singapore Norway France South Ko

  13. Slide 13: Open Platform

    Open Platform 6,000+ Standard/customer integrations 60,000+ Developers 13 ©2021 RingCentral Trust Innovation Partnerships

  14. Slide 14: Differentiated GTM Partner Network of Industry Leaders

    Differentiated GTM Partner Network of Industry Leaders Global Service Providers Strategic Partners Partners listed alphabetically. 14 ©2021 RingCentral Trust Innovation Partnerships

  15. Slide 15: A Leader in the 2020 Gartner Magic Quadrant for UCaaS

    A Leader in the 2020 Gartner Magic Quadrant for Unified Communications as a Service, Worldwide This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from RingCent

  16. Slide 16: Q2 Financial Highlights

    Q2 Financial Highlights er S

  17. Slide 17: Q2 2021 Financial Highlights: Strong momentum across all metrics

    Q2 2021 Financial Highlights: Strong momentum across all metrics $ Metric Y/Y Growth Subscriptions Revenue $351 million 37% Revenue Other Revenue1 $28 million 34% Total Revenue $379 million 36% ARR Total ARR $1,516 million 37% RingCentral Office (UCaaS + CCaaS)2 $1,431 million 41% Direct and Partner

  18. Slide 18: Total Subscriptions ARR: 4 points of acceleration Y/Y

    Total Subscriptions ARR: 4 points of acceleration Y/Y $ millions & Y/Y % growth $1,516 $1,407 $1,300 $1,179 $1,107 37% 37% 35% 34% 33% Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 18 ©2021 RingCentral

  19. Slide 19: RingCentral Office ARR (UCaaS + CCaaS): 5 points of acceleration Y/Y

    RingCentral Office ARR (UCaaS + CCaaS): 5 points of acceleration Y/Y $ millions & Y/Y % growth $1,431 $1,322 $1,215 41% $1,092 40% $1,018 39% 36% 36% Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 19 ©2021 RingCentral

  20. Slide 20: Direct and Partners Office ARR: 9 points of acceleration Y/Y

    Direct and Partners Office ARR: 9 points of acceleration Y/Y Includes direct, Avaya, Atos, Alcatel-Lucent Enterprise, AT&T, BT, Telus, and other non-channel partners $ millions & Y/Y % growth $860 $817 $750 $673 34% $643 33% 30% 25% 25% Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 20 ©2021 RingCentral

  21. Slide 21: Q2 2021 Results vs Guidance

    Q2 2021 Results vs Guidance: Key metrics above high end of guidance Q2 Guidance Q2 Results Subscriptions Revenue $332M - $334M $351M Subscriptions Revenue Growth Y/Y 29% - 30% 37% Other Revenue1 $24.5M - $25.5M $28M Other Revenue Growth Y/Y1 17% - 22% 34% Total Revenue $356.5M - $359.5M $379M Total

  22. Slide 22: Guidance: FY 2021 and Q3 2021

    Guidance: FY 2021 and Q3 2021 er S

  23. Slide 23: Raising FY 2021 Guidance

    Raising FY 2021 Guidance Prior New Subscriptions Revenue $1.388B - $1.396B $1.424B - $1.430B Subscriptions Revenue Growth Y/Y 28% - 29% 31% - 32% Other Revenue1 $112M - $114M $115M Other Revenue Growth Y/Y1 15% - 17% 18% Total Revenue $1.500B - $1.510B $1.539B - $1.545B Total Revenue Growth Y/Y 27%

  24. Slide 24: Q3 2021 Guidance

    Q3 2021 Guidance Q3 2021 Subscriptions Revenue $363M - $365M Subscriptions Revenue Growth Y/Y 30% - 31% Other Revenue1 $27.5M - $28.5M Other Revenue Growth Y/Y1 15% - 19% Total Revenue $390.5M - $393.5M Total Revenue Growth Y/Y 29% - 30% GAAP Operating Margin (22.1%) – (20.4%) Non-GAAP Operating Mar

  25. Slide 25: Reconciliation: GAAP to Non-GAAP

    Reconciliation: GAAP to Non-GAAP

  26. Slide 26: Reconciliation of Operating Income (Loss)

    26 RINGCENTRAL, INC. RECONCILIATION OF OPERATING INCOME (LOSS) ‘GAAP MEASURES TO NON-GAAP MEASURES (Unaudited, in thousands) Three Months Ended Six Months Sune 30, June 3, FT Ie 2 a0 Revenues ‘Subscriptions $ 351.203 $ 257,038 676426 $ = 500,142 Other 20,947 55,203 45,355 ‘Tal revenues Tas T7985 7,2

  27. Slide 27: Reconciliation of Net Income (Loss)

    27 RINGCENTRAL, INC. RECONCILIATION OF NET INCOME (LOSS) GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended june 30, June 30, 202 2020 202 2020 Net income (loss) reconciliation GAAP net income (loss) $ (110956) $ 509 $ (111,142) $

  28. Slide 28: Reconciliation of Cash Flows from Operating Activities

    28 RINGCENTRAL, INC. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES GAAP MEASURES TO NON-GAAP FREE CASH FLOW MEASURES (Unaudited, in thousands) Six Months Ended June 30, 2021 2020 ‘Net cash provided by operating activities $ 61,471 $ 40,109 Repayment of convertible senior notes attributable

  29. Slide 29: Reconciliation of Forecasted Operating Margin

    RINGCENTRAL, INC. RECONCILIATION OF FORECASTED OPERATING MARGIN GAAP MEASURES TO NON-GAAP MEASURES (Unaudited, in millions) Q3 2021 FY 2021 Low Range High Range Low Range High Range GAAP revenues 390.5 393.5, 1,539.0 1,545.0 GAAP loss from operations (86.2) (80.5) (295.0) (282.9) GAAP operating marg

  30. Slide 30: Thank you.

    RingCentral Thank you. O<%

RingCentral — Q2 2021 Earnings Presentation on 6ix