Slide 1: 1Q 2025 Financial Results
1Q 2025 Financial Results ©2025 RingCentral
Slide 2: Safe Harbor and Non-GAAP Measures
Safe Harbor and Non-GAAP Measures This presentation includes forward-looking statements within the meaning of the federal We provide guidance on forecasted non-GAAP operating margin, non-GAAP tax rates, securities laws. These statements relate to, among other things, our business strategy and non-GA
Slide 3: Company Results
Company Results $2.53B $612M 21.8% ARR Total Revenue Q1‘25 Q1’25 Operating Margin Up 7% year over year At high end of guidance Above guidance ↑ 400k+ $130M $166M Customer Accounts Free Cash Flow Q1’25 Debt paydown Q1’25 Global customer base Quarterly record ★ Net leverage 2x 3 ©2025 RingCentral
Slide 4: Consistent #1 Market Share in UCaaS
20% RingCentral is a Business Communications Leader 15% Zoom Consistent #1 Microsoft 10% 8x8 Market Share Cisco in UCaaS 5% ~40% Other* ~36% 0% Source: Synergy Research Group, Worldwide Subscribers + Seats for 1Q 2022 to 4Q 2024 4 UC Market Tracker, May 5, 2025 ©2025 RingCentral * Not to scale
Slide 5: Trust Our 25 Year Journey
Trust Built on world-class 99.999% reliability, security, and privacy Our 25 Year Innovation Leading innovation in UCaaS + CCaaS, Journey… AI, and open platform Partnerships With partners, GSPs, and developers
Slide 6: Voice-first AI Multi-Product Portfolio
Voice-first AI Multi-Product Portfolio RingEX RingCX Cloud Business Phone System Omnichannel SMS, Fax AI Quality Management Team Messaging Agent Assist/Supervisor Assist AI Receptionist (AIR) Intelligent Virtual Agent* (IVA) AI Assistant Workforce Engagement Mngmt* (WEM) Events & Video Intelligent |
Slide 7: On track to achieve $100M+ ARR
$100M+ RingCX RingSense On track to achieve RingCentral Events $100M+ ARR RingCentral AIR from new products >$50M ARR by end of 2025 2024-end 2025-end 7 ©2025 ©2025 RingCentral RingCentral
Slide 8: Smaller businesses
Smaller businesses (<100 employees) • Approximately 30% of ARR • Double digit growth in Q1 ‘25 • Acceleration for two quarters in a row • Payback period <18 months • Strength in Healthcare, FinServe, Retail, Travel & Transportation 8 ©2025 RingCentral
Slide 9: GSPs
Cincinnati Bell + Hawaii Telcom GSPs Powerful Route to Market Represents >10% of ARR Double digit growth Netherlands Expands international reach Payback period <18 mo Australia Mexico Canada Germany US & Canada 9 ©2025 RingCentral
Slide 10: Larger businesses
Larger businesses (100+ employees) • Strong deal activity in $1M+TCV • 50%+ of $1m+TCV has multiple products • MS Teams integration MAUs: >30% Y/Y • Strength in Healthcare, Insurance, Professional & Consumer Services, Retail, Manufacturing 10 ©2025 RingCentral
Slide 11: Integrated with Microsoft Teams
Integrated with Microsoft Teams >30% Y/Y Increase in MAU Voice Embedded Dialer in Teams Direct Routing for RingEX & RingCX 11 ©2025 RingCentral
Slide 12: Our Strategic Priorities
Our Strategic Priorities 1 Build upon our leadership in UCaaS and infuse AI across our entire portfolio 2 Expand TAM through our multi-product portfolio, led by RingCX and AI 3 Drive profitable growth and improve customer engagement across our entire business 12 ©2025 RingCentral
Slide 13: AI for Every Phase of the Conversation Journey
AI for Every Phase of the Conversation Journey Before During After AI Receptionist (AIR) AI Assistant RingSense Voice AI Agents AI for personal productivity AI for business productivity AI Agent Assist AI Quality Management AI for real-time agent guidance AI insights, targeted agent improvement AI S
Slide 14: AI Receptionist (AIR)
NEW AI Receptionist (AIR) Creates a new category with an AI phone agent that uses generative AI to automatically answer customer inquiries and transfer calls. Key Capabilities ✓ Handles routine customer inquiries ✓ Smart call routing to right person or department ✓ Delivers SMS confirmation details
Slide 15: Customers on AI Receptionist as of May 7, 2025
1000+ Example Outcomes Customers on AI “100% of calls answered” Human Capital Ventures Receptionist as of May 7, 2025 “175 calls answered monthly by AIR” Jay-Hill Repairs “2-4 hours saved per agent per day and 50% drop in call handling time” Owen Security 15 ©2025 RingCentral
Slide 16: RingSense for RingEX customer momentum
RingSense for RingEX customer momentum Key Capabilities ✓ AI powered coaching ✓ Keep CRMs up to date ✓ Summarize conversations 2,800+ Customers 2,000+ Customers 1,200+ Customers 800+ Customers 600+ Customers Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 16 ©2025 RingCentral
Slide 17: RingSense Customer Example
RingSense Customer Example “ It used to take us 25 minutes to review an agent’s full call. Now we GR: add logo image of can do it in under 2 minutes. That’s a healthcare biz time savings of 92% – not including on right the time saved by letting the agent see their own call reviews rather than having
Slide 18: RingCX Strong Traction
RingCX Strong Traction 1000+ Customers 700+ Customers 500+ Customers 350+ Customers 200+ Customers Q1’24 Q2’24 Q3’24 Q4’24 5/7/25 18 ©2025 RingCentral
Slide 19: RingCX Customer Examples
RingCX Customer Examples One of the largest auto dealer groups in U.S. • Deploying RingCX, RingEX, and RingSense • Distributed across 100 locations • Standardizing communications to improve call performance • Enhancing CX for sales and support NHS Hertfordshire • Serves a community of 1.2 million in
Slide 20: AI Quality Management
AI Quality Management Summarize performance on 100% of interactions Monitor trending topics and common objections Analyze agent soft skill performance Deliver targeted training plans to agents 20 ©2025 ©2025 RingCentral RingCentral
Slide 21: Attach rate of AI Quality Management with RingCX
50%+ Attach rate of What it does ✓ Gauges agent performance ✓ Measures customer sentiment AI Quality Management ✓ Includes powerful conversation analytics with RingCX ✓ Provides single view for supervisors ✓ Ensures positive customer experience 21
Slide 22: RingCentral Events Traction
RingCentral Events Traction Recent customer wins: • Awarded by Frost & Sullivan for Best Practices in the Global Events Industry • Disruptive pricing and rich, AI-powered capabilities • Supporting virtual, hybrid, and in-person formats 22 ©2025 RingCentral
Slide 23: Internal Transformation with AI
Internal Transformation with AI Customer Support Sales & Marketing Innovation Modernizing technology More qualified leads for less Accelerating and workforce efficiency by improving targeting, development cycles pipeline quality, and sales productivity 10-20% 10x 20% Average handle Increase in conte
Slide 24: Financials
Financials 24 ©2025 RingCentral
Slide 25: Strong Financial Profile
Strong Financial Profile Total Revenue Operating Profit ($M) ($M and % of total rev) se bps increa 22.5% 2,400 2,520 1000 21.0% 2,202 568 1,988 19.1% 504 420 12.4% 246 FY’22 FY’23 FY’24 FY’25E FY’22 FY’23 FY’24 FY’25E (1) 2025E represents midpoint of guidance for total revenue, operating profit and
Slide 26: Reducing SBC & Share Count
Reducing SBC & Share Count Net Shares Granted Stock-Based Compensation (% of total revenue) (in millions of shares) 23.6% 19.9% 19.7% 14.4% 12.1% 10.8M 2021 2022 2023 2024 2025E Fully Diluted Share Count (in millions of shares) 96.6 4.5M 96.2 ~4.4M 94.5 94.0 93.4 2023 2024 2025E 2021 2022 2023 2024
Slide 27: Expanded EPS & FCF per Share
Expanded EPS & FCF per Share FCF vs. Shares Granted ($)1 FCF ($) FCF/share ($ in million) 5E Shares Granted ($) 1A-202 R 202 $5.37 CAG 59% $4.26 $3.35 $836 $0.85 $1.09 2021 2022 2023 2024 2025E $438 $439 $403 $505 Non-GAAP EPS 025E R 2021A-2 AG 33% C $4.20 $3.70 $105 $324 $3.23 $80 $252 ~$150 $1.99
Slide 28: Strong Balance Sheet
Strong Balance Sheet Improving leverage ratio allows flexibility around capital allocation Net Debt to Adj. EBITDA 3.7x 3.2x 3.0x 2.6x 2.5x 2.4x 2.3x 2.2x 2.0x Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 28 See Appendix for calculation. ©2025 RingCentral
Slide 29: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights $ Metric Y/Y Growth Revenue Subscriptions Revenue $590.1M 6% Total Revenue $612.1M 5% ARR Total $2,532M 7% Customer ARR by Size1 Mid-Market and Enterprise $1,577M 6% Enterprise $1,084M 6% 1) Our reported results also include our annualized exit monthly recurring subscrip
Slide 30: FY 2025 Guidance
FY 2025 Guidance FY 2025 Subscriptions Revenue Growth Y/Y Up 5% to 7% Total Revenue Growth Y/Y Up 4% to 6% GAAP Operating Margin 4.5% to 5.2% Stock-based compensation $300 to $310 million Non-GAAP Operating Margin(1) ~22.5% Non-GAAP EPS $4.13 to $4.27 Fully Diluted Share Count 93.5 to 94.5 mil. Net
Slide 31: Q2 2025 Guidance
Q2 2025 Guidance Q2 2025 Subscriptions Revenue $594 to $600 mil. Subscriptions Revenue Growth Y/Y 5% to 6% Total Revenue $614 to $620 mil. Total Revenue Growth Y/Y 4% to 5% GAAP Operating Margin 4.4% to 5.5% Stock-based Compensation $70 to $73 mil. Non-GAAP Operating Margin(1) 22.0% to 22.5% Non-GAA
Slide 32: Appendix
Appendix 32 ©2025 RingCentral
Slide 33: Net debt to adjusted EBITDA
Net debt to adjusted EBITDA ($millions) Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Adj. EBITDA $65.5 $72.7 $87.0 $92.7 $112.3 $125.0 $127.8 $138.0 $142.8 $145.8 $149.0 $152.8 $155.1 LTM Adj. EBITDA 317.9 364.7 416.9 457.8 503.1 533.6 554.4 575.7 590.4 602.7 Total D
Slide 34: Debt Profile as of March 31, 2025
Debt Profile as of March 31, 2025 (1) The Company has $350.0 million available for drawdown under the Term Loan as of March 31, 2025. (2) The Company has $225.0 million available for borrowing under the Revolving Credit Facility as of March 31, 2025. (3) The Company settled the remaining $161.3 mill
Slide 35: Reconciliation of Operating Income (Loss)
35 RINGCENTRAL, INC. ‘RECONCILIATION OF OPERATING INCOME (LOSS) ‘GAAP MEASURES TO NON-GAAP MEASURES Us Gross profit and gross margin reconciliatior ‘Non-GAAP Subscriptions ‘naudited, in thousands) ‘Taree Months Ended ‘March aE Ta S$ sm2 $557,487 21,944 26,724 3612056 § S842 S$ 153,095 $143,650 4,929
Slide 36: Reconciliation of Operating Income (Loss)
RINGCENTRAL, INC. RECONCILIATION OF OPERATING INCOME (LOSS) GAAP MEASURES TO NON-GAAP MEASURES (Unaudited, in thousands) Three Months Ended March 31, 2025 2024 Income (loss) from operations reconciliation GAAP income (loss) from operations $ 10,340 $ (10,899) Share-based compensation 80,316 91,016 A
Slide 37: Reconciliation of Operating Income (Loss)
RINGCENTRAL, INC. RECONCILIATION OF OPERATING INCOME (LOSS) GAAP MEASURES TO NON-GAAP MEASURES (Unaudited, in thousands) Year Ended December 31, 2024 2023 Income (loss) from operations reconciliation GAAP income (loss) from operations 2,670 (198,811) Share-based compensation 346,648 434,086 Amortiza
Slide 38: Reconciliation of Net Income (Loss)
RINGCENTRAL, INC. RECONCILIATION OF NET INCOME (LOSS) GAAP MEASURES TO NON-GAAP MEASURES i thousands, except per share data) (Unaudited) Net income (loss) reconciliation GAAP net loss Share-based compensation Amortization of acquired intangibles Third-party relocation and other costs, net Restructur
Slide 39: Reconciliation of Net Income (Loss)
39 RINGCENTRAL, INC. RECONCILIATION OF NET INCOME (LOSS) GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except per share data) (Unaudited) Year Ended December 31, 2024 2023, Net income (loss) income reconciliation GAAP net loss S (58,288) $ (165,240) Share-based compensation 346,648 434,086 Amort
Slide 40: Reconciliation of Cash Flows from Operating Activities
RINGCENTRAL, INC. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES GAAP MEASURES TO NON-GAAP FREE CASH FLOW MEASURES (Unaudited, in thousands) Three Months Ended March 31, 2025 2024 Net cash provided by operating activities $ 149662 $ 96,094 Capitalized expenditures (19.486) (19.409) Non-GAAP
Slide 41: Reconciliation of Cash Flows from Operating Activities
RINGCENTRAL, INC. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES GAAP MEASURES TO NON-GAAP FREE CASH FLOW MEASURES (Unaudited, in thousands) Year Ended December 31, 2024 2023 Net cash provided by operating activities $ 483,276 $ 399,662 Capitalized expenditures (80,528) (75,740) Non-GAAP fre
Slide 42: Reconciliation of Forecasted Operating Margin and Free Cash Flow
TABLE 7 RINGCENTRAL, INC. RECONCILIATION OF FORECASTED OPERATING MARGIN AND FREE CASH FLOW GAAP MEASURES TO NON-GAAP MEASURES (Unaudited, in millions) Q2 2025 Fy 2025 LowRange _HighRange _ LowRange _ High Range GAAP income from operations 27 34 112 133 GAAP operating margin 44% 5.5% 4.5% 5.2% Share-
Slide 43: Thank You.
Thank You. 43 ©2025 RingCentral