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: Kash Rangan - Goldman Sachs Group Inc - Analyst
: Hi, thank you. Sorry about that. Vlad, I'm just wondering if you could talk about what's driving new product traction at RingCentral?
One for you, Vaibhav. Congrats on becoming CFO. Free cash flow generation has been already quite robust. How do you see the sustainability of
this going forward?
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AUGUST 05, 2025 / 9:00PM, RNG.N - Q2 2025 RingCentral Inc Earnings Call
Question: Kash Rangan - Goldman Sachs Group Inc - Analyst
: Thank you so much, Vlad and Vaibhav.
Question: William Fitzsimmons - Jefferies Group LLC - Analyst
: Hi, guys. This is Bill Fitzsimmons on for Samad. Maybe expanding on that free cash flow question, when I look at the guide, the thing that stands
out to me is the reduction in SBC expenses that you just mentioned. And over the last couple of years, SBC as a percent of revenue has declined
and is kind of continued to expect -- is continuing to decline.
Can you just walk through some of the internal changes you've made to drive that reduction? And what's changed on that line specifically since
you provided SBC guidance at the start of the year?
Question: William Fitzsimmons - Jefferies Group LLC - Analyst
: Thank you. And if I could sneak in one more. There was upside on second quarter revenue, but the full year revenue guide was kept flat. The guide
implies kind of similar expectations for like similar expectations around kind of the subscription revenue dollars add in both 3Q and 4Q.
So can you just level set for us what assumptions went into the back half guide? And what are you thinking around macro deal activity in renewals
in the back half?
Question: William Fitzsimmons - Jefferies Group LLC - Analyst
: Perfect. Thank you.
Question: Michael Funk - Bofa Merrill Lynch Asset Holdings Inc - Analyst
: Yeah. Thank you for taking the questions. I want to go back to the NiCE and AT&T extensions, and whether or not you've signaled a strategic shift
Question: Michael Funk - Bofa Merrill Lynch Asset Holdings Inc - Analyst
: And just more specifically, when I met with John Stankey recently, he highlighted they want actually lean in a little bit harder to SMB. They felt
they've given up market there too much in the last few years.
So as part of the agreement, will this be more of a [push] by AT&T and their sales force incorporating your functionality? Or will it be an add-on
where a customer can elect it, but won't necessarily be part of the core offering?
And then the final question, if I could, please, can you call out any FX benefit or maybe to isolate the constant currency growth during the quarter?
And then what you have in your expectations for the remainder of the year for FX, just given the movements in the rates recently?
Question: Michael Funk - Bofa Merrill Lynch Asset Holdings Inc - Analyst
: Right. Thank you, guys, very much.
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