RingCentral, Inc.

Good day, and welcome to the RingCentral First Quarter 2026 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. A question and answer session will follow the formal presentation. To ask a question, you may press star then one on your telephone keypad, and to withdraw your question, please press star then two. Please note, today's event is being recorded. I'd now like to turn the conference over to Al Petrie, Investor Relations for Ring Energy. Please go ahead.

Good afternoon, and welcome to RingCentral's first quarter 2026 conference call. Joining me today are Vlad Shmunis, Founder, Chairman, and CEO, Kira Macagon, President and COO, and Vaibhav Agarwal, CFO. Our remarks today include forward-looking statements regarding the company's business operations, financial performance, and outlook. These statements are subject to risks and uncertainties, some of which are beyond our control and are not guaranteed in future performance. Actual results may differ materially from our forward-looking statements, and we undertake no obligation to update these statements after this call. If the call is replayed after today, the information presented may not contain current or accurate information. For a complete discussion of the risks and uncertainties related to our business, please refer to the information contained in our filings with the Securities and Exchange Commission, as well as today's earnings release. Unless otherwise indicated, all measures that follow are non-GAAP with year-over-year comparisons. A reconciliation of all GAAP to non-GAAP results is provided with our earnings release and in the slide presentation, which you can find under the financial results section at ir.ringcentral.com. With that, I'll turn the call over to Vlad.

Good afternoon, and thank you for joining us. We are off to a strong start to the year as we delivered another solid quarter. with total revenue at the high end of our guidance. Importantly, we're also making meaningful progress in the quality of our operating model. We delivered record GAAP and non-GAAP operating margins, reduced stock-based compensation, paid down debt, and returned capital to shareholders, including our first-ever dividend. These are important milestones and reflect the business that is becoming more efficient, more profitable, and more durable over time. As to free cash flows, we now expect approximately $600 million of free cash flow this year, which is approaching $7 per share that we believe is among the best in our peer group. Moving forward, we plan to continue to reduce SBC with a path toward our medium-term target of 3-4% of revenue. And we are steadily building toward our goal of 20% GAAP operating margin in the next 3-4 years. Our strong financial performance is rooted in operational discipline that is underpinned by our unwavering commitment to innovation and a strong competitive position. As one of the original cloud native SaaS providers, we revolutionized customer communications by taking it from on-prem legacy infrastructure to the multi-tenant cloud. On the strength of that innovation, we've built a $2.7 billion ARR business that is growing, generating a healthy amount of cash, and is returning value to shareholders in a meaningful way. RingCentral's original success was rooted in the convergence of broadband, mobility, and cloud computing. We leveraged these megatrends to transform how hundreds of thousands of businesses and millions of users worldwide communicate with their customers. Today, we're at the start of an even bigger innovation, namely AI, and specifically the rise of agentic voice AI. AI builds on top of all the world-class assets that RingCentral has created over the years. It plays directly to our strengths. With our robust platform, massive amounts of rich data, omni-channel communication capabilities, and global GTM and innovation at scale, We are well positioned to leverage AI as a key driver of our long-term growth and profitability. While agentic AI is very powerful and will be transformational to how businesses interact with consumers, our core belief is that it won't replace all humans. AI can and will do a lot, and it will make remaining humans in the loop more effective. RingCentral's secret sauce is to deliver authentic voice AI experiences at every stage of consumer to business interactions, while enabling businesses to get human agents involved at the right time. RingCentral's differentiated approach is to make both AI agents and human agents smarter by working together seamlessly, resulting in better customer outcomes and greater cost efficiencies. This hybrid human-in-the-loop model is where RingCentral excels. More specifically, our ability to orchestrate AI and human interactions at scale on a single platform across voice, text, and video, and do this at a global scale with industry-leading reliability, security, and quality of service, this is our structural advantage and a defensible competitive mode. RingCentral processes tens of billions of minutes and billions of calls and messages each year. As the front door to consumer to business interactions at scale, we are uniquely positioned to deploy AI across every stage of the journey, before, during, and after human involvement. We offer a modern end-to-end customer engagement platform spanning all consumer to business interactions. Our portfolio includes Ring EX for Cloud PBX, Ring CX and Ring Central Workforce Engagement Management or Ring WEM for full features contact centers, and our recently introduced Customer Engagement Bundle or CEB for informal contact center capabilities. We embed agentic voice AI across our entire platform. Our agentic voice AI portfolio, or RCAI, is currently comprised of AI receptionist, or AIR and AIR Pro, which automate customer interactions from the get-go, AI virtual assistant, or AVA, which assists the human agent in real time, and AI conversation expert, or ACE, for deep conversational analysis and coaching. Overall, we are good at helping businesses connect with more customers, resolve issues faster and more cost-effectively, capture more leads, and make remaining human agents more effective. Adoption of our AI product portfolio is strong. Customers using our AI adopt more products, spend more with us, and stay longer, drawing higher ARPU and net retention well above 100%. ARR from customers who utilize at least one of our paid AI products, which we refer to as our CAI utilizing customers, has more than doubled year-over-year and is growing in double digits sequentially with favorable ARR pool and retention metrics. Kira and Vaibhav will provide more details. In summary, I'd like to leave you with these four takeaways. First, RingCentral has a deep and defensible mode in an expanding market. We have built a carrier-grade communications platform with the scale, reliability, and trust required for mission-critical customer interactions. As AI expands the scope of customer engagement, we believe that our market opportunity is only getting larger, and we are uniquely positioned to capture it. We are currently investing over quarter billion dollars per year in innovation with a meaningful and increasing portion dedicated to RCAI. This is another sustainable competitive advantage and we're confident in our ability to keep investing in innovation while continuing to further improve our operating metrics moving forward. Second, we are at the front door and top of the funnel for consumer to business communications. We sit where interactions begin, where customer intent is first expressed, and where routing and resolution decisions are made. This gives us access to the real-time context and workflow intelligence that are increasingly valuable in the AI era. Third, we have a complete customer engagement platform powered by RCAI. This allows us to bring together AI agents and human agents on a single platform across voice, messaging and video. This is delivering real value for customers and we're already seeing solid early adoption, growing monetization, higher ARPU and strong retention across our RCAI utilizing customer base. Important to note is that all of our RCAI and customer engagement products are fully owned by RingCentral with attendant benefits to control over the roadmap, time to market, and honor economics. We believe this to be another important competitive mode. And fourth, we're delivering strong financial performance. We're improving non-GAAP and GAAP profitability, reducing SBC, generating meaningful free cash flow and free cash flow per share, that is among the best in class, and returning capital to shareholders via buybacks and dividends. Our results speak for themselves, and we could not be more excited about the road ahead. With this, let me turn it over to Kara.