RingCentral Inc at Goldman Sachs Communacopia & Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : Why don't we start with this, Vlad? What does the company look like five years from now? Now, granted that five years ago you didn't see the things that happened, but what are your objectives for the company five years ago? If you could share that perspective.

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : Absolutely. We're going to get into the new product stuff. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 9:25PM, RNG.N - RingCentral Inc at Goldman Sachs Communacopia & Technology Conference So let's revisit the TAM, which has always been very compelling, 400 million legacy PBX opportunity that has always been out there, and you're only at 7 million paid seats. What is the realistic addressable market? How many of these seats ultimately do you think more to the cloud?

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : Got it. Before I ask Matt to jump in here. Curious to get your take on the market structure, you said you have 20%, 25% share roughly of the revenues. How do you see this playing out? So you were the pioneer. I mean, you started this company in 1998, 1999. I think you finished up at San Francisco State University many, many years ago, and we met many years ago and you had this thing that was so unique. And now you got at least two other companies that are caught on to this. So how do you think the market structure takes out? Do you still, at the end of the day, have this, we're the best functionality. We're not going to discount. We're not going to be a mass market. We're going to be the specialty I had to say that -- say niche, but specialty high end versus the mass market or do you envision yourself becoming the volume leader at some point? What are your thoughts? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 9:25PM, RNG.N - RingCentral Inc at Goldman Sachs Communacopia & Technology Conference

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : The Ferrari breaks down a lot, by the way. It breaks down a lot, I'm told. Yeah. It's not 99% reliable. It's --

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : You got five 9s. (laughter)

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : Keeping updated.

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : A good one. We like the -- by the way, I had to give away by BMW of 23 years old, not because it was not -- it was working just fine. It was just -- I don't know. It's so old. We should not be using, but it was just absolutely fine. So it's got the longest life --

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : On that note -- Unidentified Participant It feels like RingCentral's product velocity has picked up a lot in the last 12 months. So if you could, could you stack rank for us kind of the most important drivers future growth? Where is RingCentral focusing from an investment perspective? How should investors gauge the success of RingCentral's emerging products that have come out over the last couple of months?

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : I like the way you framed it. It's a lot of forward-looking, if this happens, these compounds. And just as the last three years have been such a tough cycle for everybody that any hour started going down, new customer started to go down. Everything was just compounding in a very negative spiral, right? Hopefully, the cycle out of this in the opposite direction, but it also means that you've got to have good products to benefit from the next economic cycle. Talk about AI, what are your visions, for example, AI? We had Eric from Zoom talk about his vision for how he's going to redo a lot of the core platforming of Zoom whether it's the companion AI, document, and et cetera. So he envisions the grounds up rebuilding of that architecture. How do you look at AI? Is it different, augmenting, or redoing the whole stack? How are you approaching this?

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : Employee Experience, or EX, what you said, we had? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 9:25PM, RNG.N - RingCentral Inc at Goldman Sachs Communacopia & Technology Conference

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : So you're a believer, generative AI then?

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : I don't know any CEO that's not a believer of generative AI, but --

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : So generative AI conference, flat.

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : Yes. So are you able to -- not that I plan this thing, but are you prepared to discuss what kind of model you're building at RingCentral? Are you leveraging the frontier models? Are you doing things on your own? How are you going about this? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 9:25PM, RNG.N - RingCentral Inc at Goldman Sachs Communacopia & Technology Conference

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : Matt wants to know how you're going to cross train your engineers to be salespeople and vice versa?

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : That was my imagination (multiple speakers).

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : We don't say shifting gears, segueway, double pick -- Unidentified Participant No, double pick, drilling down.

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : Vlad, I had a question for you. Have you deployed generative AI within your company? And if yes, what benefits are you seeing? Disruptions, if you could share that, too?

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : Who are using code generation?

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : That's great. And what kind of impact is it having on the company? Are you getting return?

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : CoPilot can never be as good as the pilot. I mean, it's just a --

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : So you feel like you can -- when you turn it around and productize it for your customers, do you think you can charge more for AI?

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : Got it. Yeah. Fair enough. Any questions? Yes. Feel free to -- Danny, go ahead. Just -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 9:25PM, RNG.N - RingCentral Inc at Goldman Sachs Communacopia & Technology Conference Unidentified Participant It seems like for at least the last several years, we've just heard more and more anecdotes of kind of lower-end phone coming into the market. That feels like it's not getting louder. But what is changing is that RingCentral is focusing on newer products, like RingCX, you guys are increasingly having more proof points. So I guess, when do those two kind of opposing forces offset? And when do we kind of see that in the numbers? Because for a long time, the business has been in this plus or minus $50 million of net new ARR per quarter, but you haven't had the multiproduct motion before. When do you kind of see those two overlap?

Question: Kasthuri Ranga - Goldman Sachs Group Inc - Analyst : So the good news is, Vlad, to end on a positive note, every CEO that I've interviewed, I think we've had five before you once reacceleration in the top line and which is what we want. We want reacceleration. So on that note, thank you, once again, for giving us your time and your perspective. Thank you to our clients as well for chiming in with your questions and perspectives. And we hope you have an amazing conference. You are better informed at the end of the 3.5 days, and you're ready to go at it, and make some killer investment returns.