Slide 1: Corporate Overview and Q4'24 Financial Results
Corporate Overview and Q4ʼ24 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: Executive presenters
Vlad Shmunis Kira Makagon Abhey Lamba Founder, Chairman & CEO President & COO Chief Financial Officer ©2025 RingCentral
Slide 4: Your Business Voice Matters
Your Business Voice Matters™ ©2025 RingCentral
Slide 5: Voice continues to be a dominant and preferred mode
Voice continues to be a dominant and preferred mode for customer communications Voice is an untapped opportunity for AI to automate and create unique customer experiences ©2025 RingCentral
Slide 6: Our Vision: AI-powered platform
Our Vision An AI-powered platform that drives meaningful customer and employee conversations Intelligent Connected Effortless ©2025 RingCentral
Slide 7: Consistent #1 Market Share in UCaaS
25% RingCentral is a Business 20% Communications Leader Consistent #1 15% Zoom Microsoft Market Share 10% 8x8 in UCaaS Cisco 5% ~40% Other* ~36% 0% Source: Synergy Research Group, Worldwide Subscribers + Seats for 1Q 2022 to 3Q 2024 7UC Market Tracker, January 8, 2025 ©2024 ©2025 RingCentral * Not t
Slide 8: Leader in Gartner 2024 Magic Quadrant
10 Years in Row Leader in Gartner 2024 Magic Quadrant for UCaaS 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 RingCentral, Inc. Gartner doe
Slide 9: Operating at Scale
Operating at Scale #1 in UCaaS 46 ~7K Market Share¹ Countries where Full time employees² RingEX is available $2.49B $250M+ $500M+ Q4ʼ24 Annualized Committed to Annual Free Cash Flow4 Recurring Revenue Innovation3 Unless otherwise noted, company metrics as of Q4ʼ24 1. Synergy Research Group, Worldwid
Slide 10: 4Q'24 Financial Highlights
4Qʼ24 Financial Highlights Profitable Growth Increasing Efficiency Growing Free Cash Flow $615M 21.3% $112M Total Revenue Operating Margin Free Cash Flow Above guidance ↑ Above guidance ↑ Quarterly record ★ Operating margin is non-GAAP. ©2025 RingCentral Non-GAAP operating margin and free cash flow
Slide 11: 2024 Financial Highlights
2024 Financial Highlights Total Revenue Operating Margin Free Cash Flow Stock-Based Compensation $2.4B 21.0% $403M 14.4% Up 9% y/y Up 2 points y/y Up 24% y/y Down 5 pts y/y Operating margin is non-GAAP. ©2025 RingCentral Non-GAAP operating margin and free cash flow are non-GAAP financial measures, s
Slide 12: Multi-Product Portfolio
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 | Connected | Ef
Slide 13: RingSense: Infusing AI Across our Portfolio
RingSense: Infusing AI Across our Portfolio Conversational Inputs AI-Powered Outputs Voice Video RingSense AI Augment Messaging Trusted Fit-to-purpose Accelerate Digital Automate Social Multimodal Open Assist Across Marketing, Sales, Customer & Employee Communications Conversation Data ©2025 RingCen
Slide 14: Our Multi-Product Portfolio Opportunity
Our Multi-Product Portfolio Opportunity EX + CX + AI Cross Sell Example With Free and Monetizable AI Options Across Each Solution “We chose RingCentral as our UCaaS/CCaaS provider after a thorough evaluation of multiple solutions. A key factor in our decision was the straightforward management of AI
Slide 15: 2028 Market Opportunity
~$150B TAM market opportunity Multi Product Focus $80B to Unlock TAM RingEX RingCX $65B $65B 2028 Market Opportunity RingSense Events UCaaS $40B Conv. Intelligence Revenue Intelligence AI for CX & $29B Conv Intelligence CCaaS AI Emerging $22B $21B CX Growth Driven by AI AI in Voice is emerging oppor
Slide 16: Our Strategic Priorities
2025 Update Our Strategic Priorities 01 Build upon our leadership in UCaaS and infuse AI across our entire portfolio 02 Expand TAM through our multi-product portfolio, led by RingCX and AI 03 Drive profitable growth and improve customer engagement across our entire business ©2025 RingCentral
Slide 17: AI Solutions for RingEX
AI Solutions for RingEX Infusing AI across our portfolio Before During After Beta GA GA AI Receptionist AI Assistant RingSense for EX AI Phone Agent AI for Personal Productivity AI for Business Productivity Paid add-on Included free Paid add-on 17 ©2024 ©2025 RingCentral
Slide 18: 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 19: Early AIR Customers are Finding Success
Early AIR Customers are Finding Success Home Security Company Legal Firm Media Firm Repair Company Triaged over 1600 calls a Matched clients to Used AIR as an AI Connected customers month via AIR as their designated lawyers SDR by connecting it to the right repair main business line. instantly via t
Slide 20: Customer reduces costs with AI Receptionist
Customer reduces costs with AI Receptionist “ Handling call transfers across 67 locations used to slow us down. IVRs weren't flexible. Live agents were costly and hard to scale while maintaining quality. RingCentral AI Receptionist changed that. It now answers calls, understands caller intent, and t
Slide 21: AI assistant for personal productivity
RingEX AI assistant for personal productivity AI assistant supercharges productivity for RingEX users and include at no additional charge Key Capabilities Over halfway ✓ Real time call note taking towards goal ✓ Messaging recaps ✓ Polished and edit texts ✓ Summarized action items ©2025 RingCentral
Slide 22: AI Assistant Customer Examples
AI Assistant Customer Examples “BDRs are saving time because “Our agents are able to be 100% they no longer have to worry present during those calls.” about writing a summary of what was discussed.” 22 ©2024 ©2025 RingCentral
Slide 23: RingSense for RingEX customer momentum
RingSense RingSense for RingEX customer momentum Key Capabilities ✓ AI powered coaching ✓ Keep CRMs up to date ✓ Summarize conversations Over halfway 2000+ towards Customers goal 1200+ Customers 700+ 800+ Cust Customers 600+ omer Customers s Q1ʼ24 Q2ʼ24 Q3ʼ24 Q4ʼ24 ©2025 ©2025 RingCentral RingCentra
Slide 24: RingSense Customer Examples
RingSense Customer Examples “Implementing AI-powered note-taking for our “The peace of mind that RingSense provides in team meetings and strategy sessions has such a critical situation is truly invaluable. been a game-changer for the Pistons When integrating a newly acquired company, operations. Pre
Slide 25: Fast growth of RingCX adoption in its first year
RingCX Fast growth of RingCX adoption in its first year Key Capabilities ✓ AI-first omnichannel contact center ✓ Natively integrated with RingEX ✓ Easy to use and deploy Over halfway towards goal 700+ Customers 700+ 500+ Customers Cust 350+ 200+ Customers omer Customers s Q1ʼ24 Q2ʼ24 Q3ʼ24 Q4ʼ24 ©20
Slide 26: RingCX Customer Examples
RingCX Customer Examples “Genpact selected RingEX and RingCX to foster “Thanks to RingCX, we're able to deliver new greater collaboration amongst both employees services that benefit both our healthcare and clients, who are spread across many time provider partners and the individuals under our zone
Slide 27: Attach rate of AI Quality Management sold with RingCX
50%+ Attach rate of AI Quality Management sold with RingCX Why? ✓ Gauges agent performance ✓ Measures customer sentiment ✓ Includes powerful conversation analytics ✓ Provides single view for supervisors ✓ Ensure positive customer experience ©2025 RingCentral
Slide 28: RingCentral Events customer momentum
RingCentral Events RingCentral Events customer momentum Key Capabilities ✓ Virtual, hybrid, in-person events ✓ Highly personalized ✓ Disruptively priced 700+ Customers 600+ 700+ Customers 500+ Cust Customers 350+ omer Customers s Q1ʼ24 Q2ʼ24 Q3ʼ24 Q4ʼ24 ©2025 ©2025 RingCentral RingCentral
Slide 29: RingCentral Events Examples
RingCentral Events Examples “Weʼre getting so much value from Recent Customer Wins RingCentral Events– the ability to host bigger and more complex online events than ever, higher engagement from attendees than ever, and more qualified leads from virtual events than ever. We couldnʼt be happier with
Slide 30: On track to achieve $100M+ ARR
$100M+ RingCX On track to achieve RingSense RingCentral Events $100M+ ARR from new products >$50M ARR by end of 2025 Over halfway towards goal 2024-end 2025-end ©2025 ©2025 RingCentral RingCentral
Slide 31: Powerful Routes to Market
Powerful Routes VAR Channel 16,000+ to Market Strategic Partners Global Service Providers Resold by Many Top Service Providers Selected RingEX & RingCX to Power UCaaS and CCaaS ©2025 RingCentral
Slide 32: Executing on Our Strategic Priorities Drives a Strong Financial Profile
Executing on Our Strategic Priorities Drives a Strong Financial Profile ©2025 RingCentral
Slide 33: Strong Financial Profile
Strong Financial Profile… Total Revenue Revenue & Profit Operating Profit ($M) ($M and % of total rev) GR 32% CA 22.5% 21.0% 2,520 19.1% 568 2,400 504 2,202 1,988 12.4% 420 246 FYʼ22 FYʼ23 FYʼ24 FYʼ25E FYʼ22 FYʼ23 FYʼ24 FYʼ25E Free Cash Flow Continued operating income improvement driven by: ($M and
Slide 34: While Reducing SBC & Share Count
…While 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 ~3.5M 94.5 94.0 93.4 2023 2024 2025E 2021 2022 20
Slide 35: Results in Expanding Profitability
… Results in Expanding Profitability FCF vs. Shares Granted ($)1 Levered FCF ($) FCF/share ($ in million) E Shares Granted ($) -2025 2 021A $5.37 AGR 59% C $4.26 $3.35 $836 $0.85 $1.09 2021 2022 2023 2024 2025E $438 $439 $403 $505 Non-GAAP EPS 025E R 20 21A-2 AG 33% C $4.20 $3.70 $105 $324 $3.23 $80
Slide 36: 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 Q1ʼ23 Q2ʼ23 Q3ʼ23 Q4ʼ23 Q1ʼ24 Q2ʼ24 Q3ʼ24 Q4ʼ24 See Appendix for calculation. ©2025 RingCentral
Slide 37: Near-term Maturities Addressed with Cash + Existing Liquidity
Near-term Maturities Addressed with Cash + Existing Liquidity(1) $243M Cash and Cash Equivalents at 12/31/24 We are targeting to reduce Available ■ ■ $350M Term Loan A commitment at 12/31/24 our gross debt from $1.5 Liquidity of ■ $225M Revolving Credit Facility at 12/31/24 billion today to $1 billi
Slide 38: FY 2025 Guidance
FY 2025 Guidance FY 2025 Subscriptions Revenue Growth Y/Y Up 5% to 7% Subscriptions Revenue Growth Y/Y (CC) Up 6% to 8% Total Revenue Growth Y/Y Up 4% to 6% Total Revenue Growth Y/Y (CC) Up 5% to 7% GAAP Operating Margin 4.5% to 5.2% Stock-based compensation $300 to $310 million Non-GAAP Operating M
Slide 39: Q1 2025 Guidance
Q1 2025 Guidance Q1 2025 Subscriptions Revenue $587 to $592 mil. Subscriptions Revenue Growth Y/Y 5% to 6% Subscriptions Revenue Growth Y/Y (CC) 6% to 7% Total Revenue $607 to $612 mil. Total Revenue Growth Y/Y 4% to 5% Total Revenue Growth Y/Y (CC) 4% to 5% GAAP Operating Margin 0.6% to 1.7% Stock-
Slide 40: Appendix
Appendix ©2025 RingCentral
Slide 41: Q4 2024 Financial Highlights
Q4 2024 Financial Highlights $ Metric Y/Y Growth Revenue Subscriptions Revenue $589.7M 8% Other Revenue $24.8M 4% Total Revenue $614.5M 8% ARR Total $2,489M 7% Customer ARR by Size1 Mid-Market and Enterprise $1,557M 7% Enterprise $1,073M 7% 1) Our reported results also include our annualized exit mo
Slide 42: Net debt to adjusted EBITDA
Net debt to adjusted EBITDA ($millions) Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4ʼ23 Q1ʼ24 Q2ʼ24 Q3ʼ24 Q4ʼ24 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 LTM Adj. EBITDA 317.9 364.7 416.9 457.8 503.1 533.6 554.4 575.7 590.4 Total Debt 1,638.4 1,639.5
Slide 43: Debt Profile as of December 31, 2024
Debt Profile as of December 31, 2024 (1) The Company has $350.0 million available for drawdown under the Term Loan as of December 31, 2024. 43 ©2025 RingCentral (2) The Company has $225.0 million available for borrowing under the Revolving Credit Facility as of December 31, 2024. (3) The current por
Slide 44: Reconciliation of Operating Income (Loss)
RINGCENTRAL, INC. RECONCILIATION OF OPERATING INCOME (LOSS) GAAP MEASURES TO NON-GAAP MEASURES (Unaudited, in thousands) Three Months Ended Year Ended ‘December 31, December 31, 2024 2023 224 2028 Revenues Subscriptions $ 589,677 $ 547,373 $2,297,192 _ $2,100,329 Omer 24,835, 23,598 103,203 102,100
Slide 45: Reconciliation of Operating Income and Adjusted EBITDA
45 RINGCENTRAL, INC. RECONCILIATION OF OPERATING INCOME (LOSS) GAAP MEASURES TO NON-GAAP MEASURES Income (loss) from operations reconciliation GAAP income (loss) from operations Share-based compensation Amortization of acquired intangibles Third-party relocation and other costs Restructuring costs N
Slide 46: Reconciliation of Net Income (Loss)
46 RINGCENTRAL, INC. RECONCILIATION OF NET INCOME (LOSS) GAAP MEASURES TO NON-GAAP MEASURES (n thousands, except per share data) (Unaudited) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 ‘Net income (loss) income reconciliation GAAP net loss S (7,188) $ (47,243) $ (58,2
Slide 47: 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 Year Ended December 31, December 31, 2024 2023 2024 2023 Net cash provided by operating activities $ 132,882 $ 113,844 $ 483,276 $ 3
Slide 48: Reconciliation of Forecasted Operating Margin and Free Cash Flow
RINGCENTRAL, INC. RECONCILIATION OF FORECASTED OPERATING MARGIN AND FREE CASH FLOW GAAP MEASURES TO NON-GAAP MEASURES (Unaudited, in millions) Q1 2025 FY 2025 LowRange _ HighRange__ LowRange __High Range GAAP income from operations 3 10 112 133 GAAP operating margin 0.6% 1.7% 4.5% 5.2% Share-based c