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.
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?
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MAY 08, 2025 / 9:00PM, RNG.N - Q1 2025 RingCentral Inc Earnings Call
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 advantage, if you're taking advantage of the
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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