RingCentral (RNG) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 8, 2026 astatine 12:18 PM CDT 37 min read

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DATE

Thursday, May 7, 2026 astatine 5 p.m. ET

CALL PARTICIPANTS

• Founder, Chairman, and CEO — Vladimir Shmunis

• President and Chief Innovation Officer — Kira Makagon

• Chief Financial Officer — Vaibhav Agarwal

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Full Conference Call Transcript

Vladimir Shmunis: Good afternoon, and convey you for joining us. We are disconnected to a beardown commencement to the twelvemonth arsenic we delivered different coagulated 4th with full gross astatine the precocious extremity of our guidance. Importantly, we are besides making meaningful advancement successful the prime of our operating model. We delivered grounds GAAP and non-GAAP operating margins, reduced stock-based compensation, paid down indebtedness and returned superior to shareholders, including our archetypal ever dividend. These are important milestones and bespeak the concern that is becoming much efficient, much profitable and much durable implicit time.

As to escaped currency flows, we present expect astir $600 cardinal of escaped currency travel this year, which is approaching $7 per stock that we judge is among the champion successful our adjacent group. Moving forward, we program to proceed to trim SBC with a way towards our medium-term people of 3% to 4% of revenue. And we are steadily gathering toward our extremity of 20% GAAP operating borderline successful the adjacent 3 to 4 years. Our beardown fiscal show is rooted successful operational subject that is underpinned by our unwavering committedness to innovation and a beardown competitory position.

As 1 of the archetypal cloud-native SaaS providers, we revolutionized lawsuit communications by taking it from on-prem bequest infrastructure to the multi-tenant cloud. On the spot of that innovation, we've built a $2.7 cardinal ARR concern that is growing, generating a steadfast magnitude of currency and is returning worth to shareholders successful a meaningful way. RingCentral's archetypal occurrence was rooted successful the convergence of broadband, mobility and unreality computing. We leveraged these megatrends to alteration however hundreds of thousands of businesses and millions of users worldwide pass with their customers. Today, we're astatine the commencement of an adjacent bigger innovation namely AI, and specifically the emergence of agentic dependable AI.

AI builds connected apical of each the world-class assets that RingCentral has created implicit the years. It plays straight to our strengths. With our robust platform, monolithic amounts of affluent data, omnichannel connection capabilities and planetary GTM and innovation astatine scale, we are good positioned to leverage AI arsenic a cardinal operator of our semipermanent maturation and profitability. While agentic AI is precise almighty and volition beryllium transformational to however businesses interact with consumers, our halfway content is that it won't regenerate each humans. AI tin and volition bash a batch and it volition marque remaining humans successful the loop much effective.