RingCentral Sees AI as Key Driver for Growth, Upsell Opportunities
RingCentral (NYSE: RNG) sees artificial intelligence as a significant growth driver and upsell opportunity. Paid AI customers are generating higher net retention rates and average revenue per user compared to non-AI users. Currently, only about 13% of its customer base has adopted at least one paid AI product, indicating substantial room for expansion. The company is investing over $250 million in R&D with a focus on AI development while expanding partnerships like the broader collaboration with NiCE and enhancing its RingCX platform to reach more enterprise clients. CFO Vaibhav Agarwal noted that IT spending remains strong as customers shift from experimenting with AI toward seeking measurable returns through integrated solutions. RingCentral's UCaaS business, which accounts for 80% of revenue, continues to grow in line with the market, while its AI product portfolio is growing faster. The company expects durable growth and improved operating margins amid easing post-pandemic renewal pressures.
Tickers: $RNG
Topics: AI Customer Retention R&D Investment Upsell Opportunities