RingCentral at Bank of America Conference: AI and Growth Strategies

On Tuesday, 03 June 2025, RingCentral (NYSE:RNG) presented at the Bank of America Global Technology Conference 2025, offering insights into its strategic evolution and market positioning. The company, led by Founder Vlad Shmunis, emphasized its transformation into a voice-first, multi-product AI company, while also addressing challenges like competition and debt reduction.

Key Takeaways

• RingCentral is transitioning into a multi-product AI company, leveraging its voice leadership.
• The company is expanding its product portfolio with AI-driven solutions like RingCentral Air and Ring CX.
• Strategic partnerships with global service providers are key to RingCentral’s market strategy.
• The company is committed to reducing gross debt and exploring potential dividends and share buybacks.
• RingCentral is optimistic about growth opportunities in the UCaaS and CCaaS markets.

Financial Results

• Revenue: RingCentral generates half a billion dollars in revenue, with mid-single-digit growth.
• Free Cash Flow: The company reports an excess of half a billion dollars in free cash flow annually.
• Market Share: Holds 20% of the cloud telephony market.
• Debt: Aims to reduce gross debt to under $1 billion by the end of next year.
• R&D Investment: Allocating a quarter billion dollars annually to research and development.

Operational Updates

• Product Expansion: New offerings include Ring CX for SMBs and AI products such as RingCentral Air.
• AI Integration: Focus on AI-led innovations to enhance productivity and customer engagement.
• Partnership Strategy: Over 16,000 channel partners with strategic alliances with AT&T, British Telecom, Vodafone, and Telus.
• NICE Partnership: Strengthened collaboration with NICE, offering integrated UCaaS and CCaaS solutions.

Future Outlook

• TAM Expansion: Targeting the contact center market and AI-driven opportunities.
• Growth Strategy: Aims to increase market share in UCaaS and CCaaS, focusing on the SMB sector.
• Competitive Advantage: Differentiates through a comprehensive product portfolio and strategic partnerships.
• Capital Allocation: Plans to reduce debt, continue R&D investment, and consider dividends and share buybacks.

Q&A Highlights

• AI Impact: AI is expected to boost call volume and customer interaction, enhancing rather than replacing human agents.
• Competitive Landscape: RingCentral maintains its UCaaS market share, with Zoom holding about half and Microsoft slightly below.
• M&A Strategy: Evaluating tech acquisitions and aqua-hire opportunities.
• Going Private: The option remains under consideration.

In conclusion, RingCentral’s presentation highlighted its strategic focus on AI and partnerships to drive growth. For more detailed insights, refer to the full transcript below.

Full transcript - Bank of America Global Technology Conference 2025:

Mike Funk, SMEDCAP Software Analyst, Bank of America: Okay.

First time for that. Anyway, guys, thank you all for coming to the RingCentral presentation. If you don’t know me, I’m Mike Funk, one of the SMEDCAP software analysts here at Bank of America. We’re really pleased to have our speakers here today. I’m sure most of you all know Vlad, one of the early pioneers, really visionaries, you know, in in the space.

So, you know, real pleasure to have you here. I’m also Wybob, the deputy CFO at at RingCentral. So once again, you both for coming.

Vlad Shmunis, Founder, RingCentral: Thank you. Thank you for having us.

Mike Funk, SMEDCAP Software Analyst, Bank of America: Yeah. Of course. If you don’t mind, I would I kick right off with the questions. So, you know, RingCentral is marketing itself today as a, you know, voice first multi product AI company. And I wanna better understand what that means exactly and how it affects your go to market strategy.

Yeah.

Vlad Shmunis, Founder, RingCentral: Yeah. So for those of you new to the story, we are one of the original players and a leader to this day in business communications via the cloud. We’re born as a cloud company. I’m the original founder. We started with a nice round number of zero.

We are now doing a half billion dollar revenue business, growing in mid mid single digits with an excess of half a billion dollars of free cash flow annually. So that just summarizes the last twenty five years of that. So how did we get there is we’re leading in business voice. Business voice also happens to include business text, a bit of business facts to this day, some video meetings, etcetera. But it is voice led in our case.

So we’ve been defining and leading in this market for literally quarter century. And then this thing happened called AI. We were early with AI. We started acquiring in that space either pre or early into COVID. So this gives us good, you know, five years or so at this point.

And we have recently changed into a multiproduct portfolio company. So we have added a contact center product for the SMB market. It’s called Ring CX. And we have added a number of products in the AI space, all of them monetizable and currently being monetized. And they cover all aspects of a customer provider interaction pre, during, and after a call.

K? So, we have, in the pre call space, we have our brand new product called RingCentral Air, stands for AI receptionist. Strictly speaking, it’s in controlled availability still to this day, but, it’s soon going to go general availability. And it, actually, it replaces a human receptionist, which is, you know, actually unique, for anyone in the space to have this capability deeply integrated with the base product. Okay?

With the core product. For we have something called AI assistant for during call. Okay? So think of it as a Copilot and RingCentral for after call. And we have it available for both Ring EX, which is our employee interaction platform, which is also our original product, just renamed, and Ring CX, which is our new contact center product.

So we’ve been busy. We had numerous new product introductions last year, first time in our quarter century history. And all of our products are easy are either AI led, AI first, or just pure AI like air. Mhmm.

Mike Funk, SMEDCAP Software Analyst, Bank of America: Now it’s a great segue then as well. You you mentioned earlier, I think, you know, you know, twenty five years and, you know, being being one of the first really in in the in the UCaaS space. And, you know, I’ve been covering communications for for a similar amount of time. And so I wanted to touch on on on TAM and how you think about expanding your TAM through whether it’s adding Ring CX or AI products like you mentioned mentioned earlier and start to frame it. I’ve always thought about the enterprise communications market of being roughly kind of a hundred billion dollar plus or minus market.

Right? And the products that may have shifted over time within that TAM, but the size of the market remain relatively the same. So, you know, if that framework is correct, how do you think about expanding your own addressable market? Or is it more of that, you know, you’re trying to add more products to, you know, to maintain more stable spending with customers over time where the market remains relatively the same, but you’re just trying to maintain market position. So it’ll maybe help, you know, address that view the market may have.

Vlad Shmunis, Founder, RingCentral: Yeah. Look. I mean, we started out by moving PBX seats to the cloud. And that’s your hundred billion dollar opportunity Mhmm. Which is still, you know, underpenetrated even under all this time.

We are we have a 20% share, which is a leading share in holdings in holding our position in cloud telephony, cloud business telephony. Okay? But we’re at 2 and a half billion dollars. You know? This is as far as paying seats are concerned, this is independent research Yep.

From Synergy. Okay? Then you have, you know, well known place. You know, you have Microsoft. You have Zoom.

They actually have smaller bases as far as number of seats are concerned, which are specifically of any seats. But you add all of us together, we are, you know, about 20,000,000 seats. Yeah. Maybe altogether, that was a long tail. Okay?

So there still is a lot of them even even the original market. But, you know, it is a slow relatively slow process. Still moving from on prem to the cloud, but slower than, you know, one one would like. So having said that now, so now we are expanding into other TAMs. So there is a contact center TAM.

It’s generally sort of being somewhat smaller than UCaaS or than UC, I should say. Sure. But it is faster moving currently. It’s also slowing market, especially because of AI with AI coming in and replacing or having or threatening to replace human agents with AI agents. Okay?

So that’s kind of this middle category for us. It’s still a strong, tailwind for us because we are gaining share. We’re holding our share in UCaaS. We’re gaining share in CCaaS. And, you know, the great new opportunities with AI and agentic flows.

And when consumers contact their providers, they mostly do it via voice, and this shows no signs of abating. You know, you still tend to, you know, call or maybe text your doctor’s office or, you know, your financial adviser or what have you.

Mike Funk, SMEDCAP Software Analyst, Bank of America: It’s still the primary means of communication.

Vlad Shmunis, Founder, RingCentral: It’s still the primary means of communication by far, which is a bit different from enterprise where obviously video and meetings are taken, you know, So there’s still a very, very large opportunities there. Okay? And when people place this call or text, who is who is answering the phone? Well, we are answering the phone. So this puts us in a very unique position to deliver agentic workflows into this, you know, giant TAM.

And this TAM is measured in, you know, tens of billions according, you know, according to Gartner and others.

Mike Funk, SMEDCAP Software Analyst, Bank of America: Of course.

Vlad Shmunis, Founder, RingCentral: But it’s very, early. Alright? So, you know, we we said that our new products, which include all of our AI portfolio plus our Ring CX, we said that it’s going to be at a hundred million dollars run rate ARR by end of this year. We’re well on our way to do that. I guess Salesforce just announced that they’re at a hundred.

Well, they’re a few turns largest than we are. So it just shows just how early it is for everyone. But, again, our position is differentiated. We’re the ones answering the phone. We’re the ones fielding this text.

We’re the ones with this global network behind us and understanding what actually happens on our network, on this network, you know, when customers actually utilize it. Any of

Mike Funk, SMEDCAP Software Analyst, Bank of America: the disruptor as well in the industry?

Vlad Shmunis, Founder, RingCentral: Well, we’re an absolute disruptor. We will be absolutely disrupting the contact center industry. Us and, you know, many others and it is disrupting itself. I mean, all of the providers, you know, Genesys in contact, you know, are nice. They’re all talking the same thing.

But where we’re differentiated is we have the PBX angle that they do not. Okay? And that’s a giant market. And in the CC space, we are, yeah, we’re actually the number four provider by revenue if you include our NICE and CONTACT relationship. And our new product is filling this very important niche of smaller contact centers.

And by the way, as AI takes more hold, one would think that more and more contact centers will be deploying less humans Yeah. Which again plays into our strengths.

Mike Funk, SMEDCAP Software Analyst, Bank of America: And and I wanna get your thoughts on on that in a minute. But sticking with context around AI in general, I mean, the thesis that technology catalyzes change, meaning that AI could actually be making context and operators think more about switching providers, right, as they think about AI and the potential. We’ve heard from some of the larger CCaaS companies. Mentioned that AI has impacted their own sales cycle, indicating it’s causing some pause in decision making about re signing or renewing contracts. So are you seeing that in your own business?

Would it be where you’re seeing churn increase or, you know, more funneling opportunities for your own business or people looking to switch to a Ring CX because of AI? Yeah.

Vlad Shmunis, Founder, RingCentral: Look, we don’t have that many contact center seats to protect. So you can absolutely see how a pure play contact center, especially, you know, in upper segments will be feeling this uncertainty, you know, do I need to sign up for more seats when I can as well, you know, replace with AI? I can tell there’s a sizable company in our own right, and we, you know, we have well over a thousand agents, humans. Sure. You know, supporting our platform.

We’re not growing that workforce anymore. You know? We’re not shrinking it yet, but we’re not growing. So we’re kinda in the same camp. You know?

You can see the other side of it. But vast majority of our business is person to personal communications. And what AI does, it actually gets more calls to be connected, not less calls, more calls. K? Because rather than just leaving voice mail, you know, which many people don’t even wanna leave voice mail anymore, You know?

So just hang up. Instead, it will engage you and either answer your question. I’m describing our Air product now. And, you know, it will engage you, either answer your question directly or in the end direct you to the right person without, you know, having to go to voice mail because the receptionist wasn’t there to pick it up. So we’re actually seeing exactly the opposite.

We’re seeing stronger traffic patterns. We’re seeing better retention, better share of wallet. I think that was part of your question. Yeah. It was.

So as we’re going from a pure play telephony into multiproduct, which absolutely includes and now is being led by AI, we see both new opportunities, so larger larger TAM or TAMs, plural, as well as better share of wallet from from the base.

Mike Funk, SMEDCAP Software Analyst, Bank of America: And you mentioned earlier AI disrupting the human contact center agent, and, you know, you primarily serve the mid the mid market with Ring CX, not targeting large enterprises. Right? So are are the SMBs more willing to go, you know, all in on AI and replace the human agents and the larger enterprises? And I guess, you know, how does it impact your revenue opportunity, you know, longer term if they are willing to just completely, you know, disrupt or displace the human

Vlad Shmunis, Founder, RingCentral: are fast. We don’t see that. We’ve heard this rhetoric. Yeah. We currently don’t see that.

I mean, we’ll see what the future brings. I can tell you that many small businesses I talked to, like, personally, they’re saying that, it’s actually that it’s opposite because this is how the differentiator is the human angle. They’re actually saying, no. No. No.

We want people to talk to people Yeah. But can it be AI assisted? Sure. So we’re not getting much pushback, actually, great amount of take for our new Air product Because we’re not positioning it, we’ll replace your agents. We’re positioning it, hey, your receptionist, the human person, you know, that’s like one off.

And, you know, if he or she is busy on the phone with someone else, what are gonna do? You know? So we’ll we’ll we’ll we’ll pick up the phone, but then AI will figure out the connectivity part, you know? So with larger enterprises, again, which we’re an example of, actually, there is more savings to be had and, you know, the agents are a bit more impersonal too. Mhmm.

But look, it’s not just support agents, it’s sales agents as well. So everyone can be augmented and made more productive with AI. And the AI is redefining itself every quarter or so.

Mike Funk, SMEDCAP Software Analyst, Bank of America: Of course.

Vlad Shmunis, Founder, RingCentral: So what makes us, we believe, in a very interesting position is the fact that we have this, you know, very sizable, very differentiated network. We have our brand. And, you know, Google and Amazon and OpenAI, you know, they keep, you know, iterating on the base engine on, you know, on the foundational model, which is getting exponentially better. You know? But as far as deployment in actual use cases and actually putting it in front of the end consumer, you know, we’re not absolutely unique.

There are other large networks out there, but we’re one of them.

Mike Funk, SMEDCAP Software Analyst, Bank of America: But you’re a trusted partner as well, and they already know

Vlad Shmunis, Founder, RingCentral: We know. Yeah. I mean, we’re known as a voice leader, you know, over the last quarter’s age.

Mike Funk, SMEDCAP Software Analyst, Bank of America: So I wanted to shift gears a bit because I’ve always viewed your partnerships as a differentiator. You know, obviously, large global partners that you’ve established over time. And I was sitting down with AT and T two weeks ago with with John Stankey, actually. And he told me one thing. Thought it really interesting that they were leaning back into SMB.

After years of deprioritizing that market, maybe not paying attention to it, they’ve decided that, you know, leaning in and growing that part of the market is is really important to them. And it made me think about RingCentral when he said it

Vlad Shmunis, Founder, RingCentral: because you have

Mike Funk, SMEDCAP Software Analyst, Bank of America: a partnership with AT and T. And so I guess specifically, you know, are are you seeing any impact in your business through that partnership and AT and T’s decision to lean back in? And then maybe more broadly, you know, how important are your partners today in your, you know, customer acquisition, gross additions? Where is the opportunity?

Vlad Shmunis, Founder, RingCentral: Yeah. We we we we speak of TIP or trust innovation partnerships, peaceful partnerships. Absolutely uniquely important. We have over 16,000 of channel partners as individual organizations. So that’s, like, hundred thousands plus, you know, feet on the street.

But where we have an absolutely differentiated presence is with global service providers Yep. Of which AT and T is one off and happens to be our longest running relationship. And it is completely symbiotic because what John is saying is exactly right. They they happen to be AT and T, but many, if not most service providers, they’re tending to, you know, to smaller businesses. They all would love to get their share of the enterprise.

There are just fewer accounts to be had.

Mike Funk, SMEDCAP Software Analyst, Bank of America: Of

Vlad Shmunis, Founder, RingCentral: course. You know? Small business is a backbone is a backbone of this economy, 40% plus, you know, according to, you know, census. It is certainly backbone of, every western economy I can think of. I strongly suspect that if you can get outside the western economies, it’s even more pronounced.

You know? So and they need all of this technology and all of this innovation that service providers themselves are not delivering. You know, they’re delivering networks, delivering connectivity, they have their brand names, you know, but not core tech, not high-tech. That’s where we come in and we have, you know, about what a dozen or so. Mhmm.

You know, would urge people to go to our investor site and, you know, we actually list them. But it’s AT and T and British Telecom and Vodafone and Telus from Canada. And we used to have two out of the large of of MSPs in The US, which is charter and parks. I say used to because now they’re emerging. So which is good for us, you know, because now there will be a yet larger footprint and, you know, more uniform motion for us.

And, that’s millions and millions and millions of seats that they already have, like each of them already has, that, you know, many of those were running on BroadSoft of old. Cisco acquired BroadSoft. That product, firstly, was not cloud, was not really was not and is not being innovated on.

Mike Funk, SMEDCAP Software Analyst, Bank of America: Very legacy end of life technology. Right?

Vlad Shmunis, Founder, RingCentral: Well, that’s what we see. That’s what they’re seeing. And, you know, I don’t know Cisco, whatever. Don’t want to speak for them. But we find that, you know, we we find that we get our fair share or maybe more in that market.

And we’re the only other provider, you know, with like a repeatable motion there. We keep signing up new providers and delivering new technologies. And what is very, very interesting and it wasn’t worth this to us initially is that all of them are either signed up or signing up for basically our entire new product portfolio. Okay? So I think that that’s going to be like it’s early.

I don’t want to sort of overheat expectations here.

Mike Funk, SMEDCAP Software Analyst, Bank of America: Of course.

Vlad Shmunis, Founder, RingCentral: But we’re pretty enthusiastic about it.

Mike Funk, SMEDCAP Software Analyst, Bank of America: Okay. Now you sound you sound very positive about it. Yeah. I want to talk the competitive environment for for for a moment. When I first started covering you, one thing I highlighted was I felt that your more complete product portfolio was also was also a strength.

I think it still is. But since that time, you’ve seen, you know, Zoom launch their own contact center offering and as as well. You know, NICE is now offering, you know, voice, maybe a slim down, scaled down version of that. You know? So real real convergence, I think, of offerings and, you know, maybe not completely similar products, but competing for the same customers in a way.

So, you know, what are you seeing with competitive intensity? And how how does RingCentral continue to differentiate itself versus those competitors over time? Is it gonna be the the market focus, the size of customer? Is it gonna be, you know, is it gonna be price, product portfolio, partnerships? You know, how do you think strategically about that within that construct?

Vlad Shmunis, Founder, RingCentral: Yeah. I’ll give you a multifaceted answer, I guess. One is, even I’m sure this speak over years, and I believe this. Look, numbers don’t lie. Again, go to our investor side, look at our market share.

Right? And you can see that, everyone is holdings well, is holdings their market share about steady with the long tail being the net loser. Okay? And we’re holding our 20% and, you know, Zoom’s about half of that. And Microsoft for paying seats is super hard to get.

So, you know, I guess there’s a guess. But there are somewhat below them. There is Cisco. Cisco actually has been picking up a bit lately, but we don’t expect this to continue because they’re just converting their own on prem base into their own Webex calling. We very rarely see them in head to head, you know, compete you know, competition.

Sure. So so in the UCaaS space, I think, you know, it’s pretty well settled what it is. A net loser, like I say, are smaller companies. I think it’s they’ll find it harder and harder to compete. Unfortunately, we’re not one of those.

In CCaaS, you say Zoom launched their own. Zoom actually launched theirs before we did ours. Yep. And from what we can tell, we’re growing a bit faster. Since they’ve announced a thousand accounts a couple of years into, you know, into their life cycle.

We did that within a year. Okay? We think we we’re extremely well positioned in a smaller contact center space with our native product, just more natural to us. I mean, Zoom is still coming in more from the video side of things, at least historically. You know?

And is upper end of the market, you mentioned NICE. We we happen to have a long term relationship with them as well. We’ve built a very successful joint product, which we sell in our paper, called RingCentral Contact Center, but it’s powered by NICE. But it’s closely integrated with Ring EX, And, it’s a unique proposition in the market. Best in class UCaaS plus, best in class or one of the two best in class CCaaS closely tied together.

You mentioned they have their own, UCaaS. They don’t. They’ve partnered with a very small company. I don’t know. You’ll have to you know, we never see them.

I can tell you that with the change of management on nicer sides, with the change of CEOs. Relationship has been substantially improved, and we’re optimistic that this product will continue staying in the market because it’s it’s unique. You know, people who want an enterprise grade PBX in the cloud combined with enterprise grade contact center also in the cloud. Just like they used to buy from Avaya and Cisco now through the cloud. There’s only one end one thing like that in the universe, and that’s this product group central contact center.

So it’s a 300 business. We had the hiccup in the relationship. It’s being pitched up now.

Mike Funk, SMEDCAP Software Analyst, Bank of America: Okay. I I wanted to stay on NICE for one minute. May I one or two more after that? You mentioned you mentioned the change in management. We’ve also had a change in in growth, at least in the cloud piece of their business, you know, and have them projected more, you know, more high teens.

And now it’s been maybe falling a little short of that in the in the interim for very for various reasons. Has that impacted your revenue growth as well just given that partnership and then the voice component that you were that you were contributing? And are there maybe ways to offset that headwind if it has in fact been been weighing on growth?

Vlad Shmunis, Founder, RingCentral: It absolutely has been weighing on our growth and on their growth. And and, you know, our way was to, you know, do more CX. And, you know, we we were successful. Again, you’re saying double digits. I mean, CX is double digits too, but it’s quarter over quarter, you know.

So it will continue that motion, but it was also very clear to us from day one that this is more of an SMB product. We never set to fully replicate what NICE has or what Genesys has because they’re already. They have a head start and super hard. And we just saw this opportunity in the down market while keeping the NICE relationship in intact. And I think that, you know, I mean, there is a CEO change and kind of philosophy change maybe a bit, but also they’re seeing the numbers.

Like, we’re seeing numbers. They’re seeing these numbers. And these seats that we used to get, they’re they’re not going to NICE. They’re not going anywhere. You know?

They’re just sitting on prem because there is nowhere to go. So I I strongly believe it’s mutually beneficial to continue the relationship because they know where I stand on this. Mhmm. And it feels like there is reciprocity at this point. And to your point,

Mike Funk, SMEDCAP Software Analyst, Bank of America: you felt the management change maybe renewed or improved that relationship. So greater opportunity in the future.

Vlad Shmunis, Founder, RingCentral: I mean, we didn’t know. I mean, you guys and you guy, but, yep, he seems to be much more business oriented, I would

Mike Funk, SMEDCAP Software Analyst, Bank of America: say, less emotion. Sure. That’s good. That’s good to hear. Yeah.

You know, I I I wanna state some idea about, you know, product portfolio and strategy and competitiveness and, you know, your thoughts and if you can meet all of your goals organically or maybe if there’s opportunity or even necessity to do something inorganic. Right? You mentioned certain smaller long tail companies and portfolios and technologies out there. So what what is your thought on that?

Vlad Shmunis, Founder, RingCentral: There is no necessity. We’re a large healthy company. We are able to meet all of our obligations. We’re on record as saying that we’ll be bringing our gross debt down to under a billion dollars in by end of next year. See how things play out, but we will at least meet that.

Let’s let’s say that. And, you know, we’re spending quarter billion dollars in r and d. That’s a lot of money. And, with that, we’re able to innovate rapidly. So having said that, always opportunistically looking, always opportunistically open.

Some assets are priced more reasonably than others, you know, when we’re not trying to bottom, you know, scrape, but we also don’t wanna buy something that got, you know, 40 times revenues, which is what some of these other assets are trading at. So I think we’re in kind of okay, you know, goldilocks spot maybe. You know? We have done acquisitions since they’ve been largely successful. All of them have been tech and aqua hire type acquisitions.

Mike Funk, SMEDCAP Software Analyst, Bank of America: So so likely not buying a subscriber base, which can be messy and seen from others that can be Yeah.

Vlad Shmunis, Founder, RingCentral: I mean, it can

Mike Funk, SMEDCAP Software Analyst, Bank of America: be challenging with the with the churn. I I think I have time for for one more question and, you know, really important to investors, think, Patrick yourself as well-being the founder large shareholder. You mentioned that you’re delevering, you’ve addressed a lot of the expense in the base. You’re already investing pretty strongly in R and D. So you know, how how do you think about kind of prioritizing and returning capital to shareholders or, making the value in your stock more evident maybe for investors that don’t see it today at the very attractive free cash flow yield?

Vlad Shmunis, Founder, RingCentral: We just I I don’t know what else to do, but to keep on executing. You know? Mhmm.

Mike Funk, SMEDCAP Software Analyst, Bank of America: Maybe we can institute a material dividend or, you know, large share participate anything to kind of return capital to shareholders, maybe to refocus investors on the value?

Vlad Shmunis, Founder, RingCentral: Yeah. Look, all of this is under consideration, you know. Your bank and every other bank is suggesting things. Everyone has ideas. Everyone has ideas, but I I I can’t say to the all the difference, I’ll say yes.

Look. We got this debt we need to pay down. You know? Do we pay it down to zero? We’re already two turns, two x.

Mhmm. You know? Like to bring it to down to one x. We’ll see what happens. Two x is investment grade.

One x is, you know, a plus plus whatever. Let us let let us get there. We are buying back shares. We were able to bring our share count down last year. I forget if year as well.

Yep. Okay? So that’s we think it’s very positive. That is a form of returning capital. Mhmm.

Dividends is an absolutely very interesting, you know, question. I would absolutely not rule it out, you know. And but which is, you know, I I I would like I know that I we and I have made the commitment to bring gross debt down to below a billion. Mhmm. And I’d like to do that.

Mike Funk, SMEDCAP Software Analyst, Bank of America: Quick yes, no question. So pretty stable business model, growing top line, strong margin, strong free cash flow, could probably handle more leverage as a private company. Would being private ever makes sense given what the valuation is or even if it’s cheaper, is that something you would consider through an MBO or an LBO? Sure. K.

Great. Yeah. That was it. Thank you, guys. My my name

Vlad Shmunis, Founder, RingCentral: looks like.

Mike Funk, SMEDCAP Software Analyst, Bank of America: That was all the time. Thank you. Glad to thank you.

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