The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Meta Marshall - Morgan Stanley - Analyst
: Great. Thanks, and appreciate all of the detail up front. Just wanted to get a sense, that was very helpful in terms of kind of what the
current makeup of the business is, as you look forward, is there kind of a target split that you think of that should be the makeup of
the business just from the various customer types.
And then second question, just on kind of where -- or what part of the customer types or verticals or customer sizes are you seeing
kind of the greatest success with RingSense, that would be helpful.
Question: Meta Marshall - Morgan Stanley - Analyst
: Great, thanks.
Question: Kash Rangan - Goldman Sachs - Analyst
: Hi, thank you so much, Vlad and team. So Vlad, just watching the AI trajectory, the innovation that the company has put in place
how much pricing power does the company have? Because after all, as Kira talked about, there's a lot of cost savings that your
customers are getting today with AI that just was not possible with the RingCentral 1.0 pre-AI. So how much of a ceiling do you have
to be able to raise prices and get paid for the value that you're delivering to the plan.
And one for Abhey, ARR growth rate looks like it outpaced subscription revenue and revenue growth rate. Could this be a leading
indicator, or should we not be misled by this turn? Thanks so much.
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MAY 08, 2025 / 9:00PM, RNG.N - Q1 2025 RingCentral Inc Earnings Call
Question: Kash Rangan - Goldman Sachs - Analyst
: Thank you so much.
Question: Billy Fitzsimmons - Jefferies - Analyst
: Hi. This is Bill Fitzsimmons on for Samad. I want to dig a little deeper on macro and the potential impacts early in the second quarter.
Some other companies this earnings cycle has called out lengthening sales cycles or deals pushing in April post tariff announcements.
And so how have deals and customer spending tracked in April and quarter to date? Have they lengthened have sales cycles and
deals lengthened, any differences in deal activity in early April versus early May. What are some of your third-party hardware partners
saying about the tariff impacts? And does some of the macro uncertainty potentially make it easier to sell some of your AI tools given
the productivity gains involved?
Question: Peter Levine - Evercore ISI - Analyst
: Great. Thank you for taking my question here. Maybe just one on the guidance. You kept the full year flat from the guide you gave
us in Q4. So maybe just talk about what are your expectations then into the second half? It sounds like you're being a little bit more
prudent here in 2Q. So maybe talk about how you stress tested the second half and your kind of expectations going forward?
Question: Peter Levine - Evercore ISI - Analyst
: And maybe to that point, are you at all maybe perhaps changing your go-to-market in this environment, meaning the consolidated
approach given that you guys now have the full suite of UC assets. Is it more prudent for you all to kind of sell that platform? Obviously,
there's cost savings, there's one vendor. Maybe walk us through, are there any tweaks to your go-to-market that you're taking
Question: Catharine Trebnick - Rosenblatt Securities - Analyst
: Thank you for taking my questions. Mine has to do with some of your partnerships NICE was a really nice partnership for upmarket.
And then how are you looking at that partnership going forward?
Question: Catharine Trebnick - Rosenblatt Securities - Analyst
:
Question: Ronit Shah - Wells Fargo Securities, LLC - Analyst
: Hi. This is Ronit Shah on for Michael. Just a question on the RingCentral AIR product. Just wanted to know how initial customer
feedback has been since the launch? And how much is embedded into your $100 million new product ARR target for the end of the
year?
Question: Ronit Shah - Wells Fargo Securities, LLC - Analyst
: Got it. Helpful. And just a follow-up here. Are you seeing any increased discounting from competitors in the current macroenvironment?
And if so, what's your pricing strategy been?
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