Buy: Ringcentral Inc. (NYSE: RNG)

BLNGHAMTON INVESTMENT FUND | Ring Central Inc. JuniorAnalyst Analysts Senior Heads Sector CommunicationsTechnology and Sectors Buy: RingCentral Inc. (NYSE: RNG) Buy $317 : Zachary Halperin, Jacob Zachary Hochheiser: : : Olu : : Adrian Adrian : Alamutu Erazo , Kathryn Kathryn , , Jamie, Geen Bamman , VincentRivera Huang, Alex , Alyssa , Target: $410 Chillemi , Nicholas, Mucci Upside: 29% Executive Summary

Recommendation Key Statistics

BUY: RNG Market Cap: $28.71 Bn EV: $29.53 Bn CEO: David Gandler

ECTOR Current Price: Target Price: Upside: Revenue: 1.18 Bn S $317.30 $410 29% 52 Wk Range: 202.59 – 449.00 Short Interest Ratio: 5.86% Beta: 0.80

OMMUNICATIONS OMMUNICATIONS Historical Performance Investment Thesis |C

RNG vs. S&P Indexed Performance UND

F 350 COVID-19 and Work-From-Home are catalysts for UCaaS adoption 300 250

200 Launch of GLIP will help RingCentral reach a larger base of users NVESTMENT I 150 100 50 Aggressive partnership strategy will stimulate growth 0

LNGHAMTON March 12, 2018 January 12, 2019 November 12, 2019 September 12, 2020 B RNG S&P 2 BLNGHAMTON INVESTMENT FUND | Ring Central Inc. Company Overview Leading Leading Description The The communications,video meetings, collaborationsand contact RingCentral is a leading provider of global enterprise cloud global enterprise RingCentralleadingis aprovider of Uses differentiated open platform API to API enableseamless differentiatedUses open platform UCaaS 2017 allowscommunicationson allMVP one device UCaaS integration with third party applications with third party integration business model operates as a unified platform that a unifiedmodel operatesplatform as business Provider 22% centerSaaS Zoom Microsoft Vonage 8x8 Mitel RingCentral 2020 28% Geographical Revenue Breakdown Revenue Geographical Products 8% broader collaborationbroader market for free and videomeetings that enablessmart Meeting solutionwith messaging team the worldlocations around UCaaS videomeetings, cloudphone and system UCaaS made for larger businesses with businesses for larger made allowing team messaging, for 92% International North America BLNGHAMTON INVESTMENT FUND | Ring Central Inc. UCaaS Gartner Industry Rankings Industry Gartner Competitors Cisco Zoom diversity worksgeographic and with Teams. Microsoft 8x8 with Officeservices.365 integrations Microsoft - focus on enterprise telephony,focus onenterprise meetings, personalmeetings, team and andcontacthas messaging, 8x8center services. - - has a has Industry offers Zoom Chat and Phone,Chat and offers Zoom andfocusesonmeetings, telephony messaging.and enterprise - Microsoft TeamsMicrosoft wellon telephony focusesas meetings personalteam and messaging. and as Teams Microsoft has Webex suite focused on services for for meetings, telephony, services on focused suite centers. contract workstreamand collaboration messaging, Non Frequent RNG partnerships between Frequentpartnerships RNG UCaaS - zero - and otherand Comms companies Comms sum industry sum UCaaS , Tech,, and • • Trends • communicationsystems tocloudbased systems Shift on from to smartphones, plug Mobilitybetween (desktop devices applications communicationand business capabilities UC with Integrate - premise telephony - ins as well) as ins BLNGHAMTON INVESTMENT FUND | Ring Central Inc. Investment Thesis Adoption of Work of Adoption companies to shift from from shiftto companies systems to cloudsystemsto on Anywhere hasled Anywhere - premise telephony premise UCaaS UCaaS Cloud - - based From adoption - based - acting as a direct feeder direct as a acting for the company’sthe core for offering, while lowerwhile offering, wider base of users, users, baseof wider a reach RingCentral acquisition costs acquisition Glip will helpGlip Launch of Glip Pro Pro Glip of Launch communication systems communication of customers migrating migrating customers of exclusive40%accessto RingCentral’sstrategic partnerships give it partnerships to cloudto - based Partnerships Strategic BLNGHAMTON INVESTMENT FUND | Ring Central Inc. Cloud $160 $100 $120 $140 Adoption of Work of Adoption Global from an estimated ~445 million business telephony telephony an estimated ~445customers millionbusiness from $20 $40 $60 $80 As the As that will migrate toward that willmigrate cloud $0 communicationproviders to cloud organizations to awayshift organizations on from legacy The emergence of Work of emergence The UCaaS UCaaS 2020 - based industry leader, RingCentralpoised to industry is benefit Market Size ($ in billions) in ($ Size Market 2021 - From - Anywhere Model Anywhere 2022 UCaaS - - based communicationbased systems. From - 2023 Anywhere has ledhas Anywhere - based solutions.based 2024 - adoption premise 2025 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0 $5.0 Unified Communications Installed Users Worldwide Users Installed Communications Unified Cloud 50.0 $- 0.0 Total Installed Users - Cloud - Users Installed Total 2019 - 2019 Based Revenues vs On vs Revenues Based Cloud-Based Revenues Cloud-Based 2020 2020 2021 2021 Total Installed Users - On-Prem - Users Installed Total On-Premise On-Premise Revenues 2022 2022 - Premise Premise 2023 2023 2024 2024 UCaaS Cloud Cloud On On Revenues Revenues CAGR CAGR CAGR CAGR - - Premise Premise 15% - - 11% 7% 7% - - Based Based BLNGHAMTON INVESTMENT FUND | Ring Central Inc. Launch of Glip Launch of Growth Strategy Growth Feature messaging messaging solution providinglevelpremium for free,features Glip has seamless transitions betweentransitions seamless has Glip integrated and devices RingCentralrecently launched Glip, a feature productivity.haveusers Glip Pro+ tools,accessto business including unlimitedmeeting durationand unlimitedusers. RingCentral RingCentral to ie aeo wider base of reach mucha Glip enables Glip enables team to messaging increasecollaboration and boast - users users rich Freemium offering Freemium rich analytics, additions and integrations Glip is a free video and messaging solution with a robust set of collaboration tools of set a robust with solution messaging and video free a isGlip offering offering with attract new new attract features features to Freemium Pro Pro level users users offering offering builds a loyal customer - Differentiated Differentiated base base feed that richvideo and into into to core product • • Top Lowers cost of customer acquisition customer Lowerscost of to the company’sfrom freemium business product flagship Pro providesGlip a directon - of - Funnel Feeder for RingCentral Office Suite Office RingCentral for Feeder Funnel - ramp to seamlessly upgrade a upgrade seamlesslyramp to BLNGHAMTON INVESTMENT FUND | Ring Central Inc. Strategic Partnerships • • • • Partnerships Notable RingCentral’smarket. enterprise presencethe in large offering for AT&T’s making RingCentral the lead existingExpanded partnership accessto Alcatel’s million40 on “Rainbow Office”Giving Q1 in2021. RingCentral exclusive new coIntroduced a 40 millionusers. whichtotal a has installedof base solution, the exclusive Partneredto create “Unify Office”, aco still on millionusers exclusive Partnershipintroduced RingCentral’sas the platform UCaaS providerto Avaya’s +100 installed baseof - - premisecommunication systems. UCaaS branded branded solution calledcloud UCaaS enterprise solution, acceleratingsolution, enterprise offering products,Atos for - premise customer base.premisecustomer - branded branded UCaaS On Opportunity International 12.05% 9.64% North America America North derived outside - Premise Unified Communications Market Communications Unified Premise Atos Mitel Cisco of revenue of ~8% 9.64% 16.87% Only 3.61% Alcatel Lucent Alcatel NEC Avaya 24.10% 24.10% 110mn give to access International International Partnerships customers Ring Central’sstrategic partnerships givepartnerships them total, 42% of available total, 42%of estimated 445 millionestimated 445 PBX seats out of the of seatsout PBX accessto 180 million seats worldwide. growth growth driver International International expected expected to expansion expansion be keybe a BLNGHAMTON INVESTMENT FUND | Ring Central Inc. Valuation EV/ EV/ FWD Revenue Football Field Football EV/ RevenueEV/ TTM AnalystConsensus Gordon Growth Gordon 52Week Range Exit Exit Multiples Comps DCF 150 200 Current Price: Current 250 $317 300 350 TargetPrice: 400 $410 450 500 550 Bull vs. Bear vs. Bull Assumptions $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00 $450.00 $500.00 $50.00 TerminalMultiple: $- April11, 2018 WACC: 5.44% 10x April11, 2020 TerminalGrowth EV/NTM Rev: EV/NTM 25.4x Rate: 4% April11, 2022 BLNGHAMTON INVESTMENT FUND | Ring Central Inc. Investment Risks Limited international sensitivityexposurecreates Limitedto international US RNG Competes Against Competitors RNG Competes with Greater Against Partnersdevelopcould cloud capabilities Resources market R&D and Ring is expanding footprint byinternationally creating Firms and Analysts agree that there that is room in the agree and Analysts Firms CapEx industry for multiplewinners industry requirements are not are not requirementsfeasibleterm near multiplepartnerships BLNGHAMTON INVESTMENT FUND | Ring Central Inc. Buy $317 : Questions? You!Thank Target: $410 Upside: 29% BLNGHAMTON INVESTMENT FUND | Ring Central Inc. Revenue Build

USD USD ($) Thousands in

Subscriptions % % growth % % of reveneue Other % % growth % % of reveneue Revenue

673,624

612,888

2018

60,736

91%

902,858

817,811

2019

85,047

33.4%

40.0%

91%

25%

1,086,276

1,183,657

2020

97,381

32.8%

14.5%

92%

24%

1,562,427

1,433,884

128,543

2021

32.0%

92%

24%

2,005,049

1,835,372

169,677

2022

28.0%

32.0%

92%

22%

2,294,215

2,518,188

223,973

2023

25.0%

32.0%

91%

20%

3,044,223

2,753,058

291,165

2024

20.0%

30.0%

90%

10%

17%

3,544,531

3,166,017

378,515

2025

15.0%

30.0%

89%

11%

14%

3,482,618

3,967,117

484,499

2026

10.0%

28.0%

88%

12%

11%

4,366,851

3,761,228

605,623

2027

25.0%

8.0%

86%

14%

4,751,262

4,024,514

2028

726,748

20.0%

7.0%

85%

15%

4,265,984

5,101,745

2029

835,760

15.0%

6.0%

84%

16%

5,398,620

4,479,284

2030

919,336

10.0%

5.0%

83%

17%

5% BLNGHAMTON INVESTMENT FUND | Ring Central Inc.

REVENUE BUILD USD ($) sharesUSD ($) in Thousands, in $ Thousands

Revenue

Total Revenues

Cost ofCost revenues Total cost of revenues % percent of sales of % percent Gross profit

Total operating expenses % percent of sales of % percent

Operating Income Income Statement

Subscriptions Other

Research and development % percent of sales of % percent Sales and marketing % percent of sales of % percent General and administrative % percent of sales of % percent

Interest expense

$ $

673,624

2018

612,888

157,129

516,495

101,042

329,116

102,773

532,931

(16,436)

(16,102)

60,736

23.3%

15.0%

48.9%

15.3%

79.1%

$ $

902,858

2019

817,811

231,043

671,815

136,363

439,100

142,027

717,490

(45,675)

(20,512)

85,047

25.6%

15.1%

48.6%

15.7%

79.5%

$ $

1,086,276

1,183,657

2020

(113,239)

323,607

860,050

189,484

583,773

200,032

973,289

(49,281)

97,381

27.3%

16.0%

49.3%

16.9%

82.2%

$ $

1,562,427

1,433,884

1,165,281

1,146,361

2021

128,543

397,147

240,153

687,468

218,740

18,919

25.4%

15.4%

44.0%

14.0%

73.4%

$ $

2,005,049

1,835,372

1,495,394

1,443,635

2022

169,677

509,655

300,757

882,221

260,656

51,759

25.4%

15.0%

44.0%

13.0%

72.0%

$ $

2,294,215

1,878,101

1,108,003

1,762,732

2,518,188

2023

223,973

640,087

327,364

115,369

25.4%

13.0%

44.0%

13.0%

70.0%

$ $

3,044,223

2,753,058

2,270,425

1,339,458

2,039,629

2024

230,796

291,165

773,798

304,422

395,749

25.4%

10.0%

44.0%

13.0%

67.0%

$ $

3,544,531

3,166,017

2,643,562

1,559,594

2,303,945

2025

378,515

900,969

283,563

460,789

339,617

25.4%

44.0%

13.0%

65.0%

8.0%

3,482,618

1,008,384

2,958,733

1,745,531

2,578,626

3,967,117

2026

484,499

317,369

515,725

380,107

25.4%

44.0%

13.0%

65.0%

8.0%

4,366,851

3,761,228

1,109,991

3,256,860

1,921,415

2,838,453

2027

605,623

349,348

567,691

418,407

25.4%

44.0%

13.0%

65.0%

8.0%

$ $

4,751,262

4,024,514

1,207,703

3,543,559

2,090,555

3,088,320

2028

455,239

726,748

380,101

617,664

25.4%

44.0%

13.0%

65.0%

8.0%

$ $

4,265,984

1,296,790

3,804,955

2,244,768

3,316,134

5,101,745

2029

488,820

835,760

408,140

663,227

25.4%

44.0%

13.0%

65.0%

8.0%

$ $

5,398,620

4,479,284

1,372,252

4,026,368

2,375,393

3,509,103

2030

919,336

431,890

701,821

517,265

25.4%

44.0%

13.0%

65.0%

8.0% BLNGHAMTON INVESTMENT FUND | Ring Central Inc. Balance Sheet

CONSOLIDATED SHEETS BALANCE USD ($) $ in $ ThousandsUSD ($) ASSETS Current assets

Total current assets

Total assets

LIABILITIES Current liabilities

Total current liabilities

Total liabilities

Commitments and contingencies (Note 8) Temporary (Note equity 6)

EQUITY Stockholders' equity

Total stockholders' equity Total liabilities, temporary and equity stockholders' equity

Common ClassA Stockholders' equity Common stock Class Bcommon stock Stockholders' equity Common stock

Cash and cash equivalents Accounts receivable, net Deferred and prepaid sales commission costs Prepaid expenses and other current assets

Property and equipment, net Operating lease right-of-use assets Long-term investments Deferred and prepaid sales commission costs, non-current Goodwill Acquired intangibles,Acquired net Other assets

Accounts payable Accrued liabilities Current portionCurrent of convertible senior notes, net Deferred revenue

Convertible senior notes, net Operating lease liabilities Other long-term liabilities

Additional paid-in capital Accumulated otherAccumulated comprehensive income Accumulated deficitAccumulated

$ 566,329 $

2018

(235,703)

707,514

894,326

100,687

199,359

366,552

576,717

551,078

317,609 894,326

94,375 23,038 23,772

70,205

55,735 31,238 19,480 10,154

10,145

88,527

10,806

2,226

$ 1 $

$ 343,606 $

1,450,747

1,033,053

1,450,747

(289,310)

2019

129,990

535,539

132,188 462,344

127,338

138,729

107,372 280,713

386,889

705,047

745,700

36,589 25,354

89,230 39,269

55,278

34,612

28,516

9,561

8,929

1,948

$ 1 $

$ 639,853 $

2,184,597

1,375,320

1,872,351

2,184,597

(372,306)

2020

176,034

926,129

142,208

213,176 667,779

118,313

210,654

142,223 438,068

673,950

308,459

63,726 46,516

51,115

57,313

54,043

31,148

38,722 20,241

8,564

3,787

6,806

$ 1 $

8 BLNGHAMTON INVESTMENT FUND | Ring Central Inc. Cash Flow Statement Cash, cash equivalents, and restrictedcash Cash flows from financing activities Cash flows from investing activities Changes in assets and liabilities: Adjustments loss net reconcile to cash net to (used in) provided byoperating activities: Cash flows from operating activities in $ ThousandsUSD ($) CONSOLIDATED STATEMENTS CASH OF FLOWS Cash and cash end equivalentsat of year Beginning of period Net increase (decrease) in cash, cash and equivalents, restricted cash Effect of exchange changes rate Net cash provided by financing activities Repayment of financing obligations Payment for contingent consideration for business acquisition Payments for taxes related to net share settlement of awards equity Proceeds from issuance of stock in connection with stock plans Repurchase of common stock Payments for capped calls and transaction costs convertiblePayments for 2023 senior notes partialrepurchase Proceeds from issuance of convertible senior notes, net of issuance costs Net cash usedin investing activities Cash paid for acquisition of intangible assets Purchases of long-term investments Cash paid for business combination, net of cash acquired Capitalized internal-use software Purchases of property and equipment Net cash in) (used provided by operating activities Other liabilities Operating lease liabilities Deferred revenue Accrued liabilities Accounts payable Other assets Prepaid expenses and other current assets Deferred and prepaid sales commission costs Accounts receivable Other Tax benefit from release of valuation allowance Deferred income taxes Provision for bad debt Foreign currency remeasurement (gain)loss Unrealized gain and other related costs on investments Reduction of operating lease right-of-use assets Repayment of convertible senior notes attributable to debt discount Loss on early extinguishment of debt Amortization of debt discount and issuance costs Amortization of deferred and prepaid sales commission costs Share-based compensation Depreciation and amortization Net loss 2018 $ (26,203) $ 566,329 181,192 385,137 397,255 449,457 (15,000) (49,910) (83,448) (18,470) (26,434) (11,421) (27,123) (45,232) (47,877) 20,621 72,130 24,780 33,695 15,918 19,754 68,088 23,273 (7,172) (1,139) 2,783 3,091 (800) (741) (342) (303) 279 614 951 0 0 0 0 0 0 0 $ (53,607) $ 2019 (222,723) (296,780) (135,557) (102,303) 343,606 566,329 101,354 (14,666) (89,060) (27,870) (16,526) (27,767) (13,830) (37,163) 29,827 64,846 18,845 27,095 21,753 13,256 20,337 30,134 37,870 (5,176) (1,575) (3,210) 9,042 2,949 3,369 (943) (590) (737) (105) 169 764 240 0 0 0 0 0 0 (1,086,268) 1,627,177 $ (82,996) $ 2020 (102,695) (107,686) (274,908) 639,853 343,606 296,247 437,590 189,600 (36,717) (25,955) (38,113) (43,618) (35,191) (15,362) (20,878) (51,980) (80,988) (35,020) 41,230 14,016 34,851 62,451 21,916 15,712 13,284 49,031 47,207 75,612 (1,489) (3,648) (2,954) 1,534 5,936 (499) 266 512 0 0 0 0 BLNGHAMTON INVESTMENT FUND | Ring Central Inc. NWC Calculations

Net Working Net Capital Projections USD ($) $ in $ Thousands USD($) ASSETS Currentassets: AccountsReceivables Receivables turnover Receivables DSO Deferredand prepaid sales commission costs % of sales of % Prepaidexpenses and other current assets % of sales of % Totalcurrent assets

Currentliabilities: Accountspayable Accounts Payable Turnover Payable Accounts DPO Accruedliabilities % of sales of % Deferredrevenue % of sales of % Totalcurrent liabilities

NetWorking Capital Changein Net Working Capital

CapEx % of sales of % D&A % of CapEx

$ $

$ 141,185 $

$ (58,174) $

2018

100,687

199,359

(27,123)

14.95%

13.14%

85.81%

94,375

23,038

23,772

10,145

88,527

23,273

3.4%

3.5%

4.0%

7.14 51.1

66.4

5.5

$ $

$ 191,933 $

$ (88,780) $ $ (30,606) $

2019

136.38%

129,990

138,729

107,372

280,713

(27,767)

15.37%

11.89%

36,589

25,354

34,612

37,870

4.1%

2.8%

3.1%

6.95 52.6

26.1 14.0

$ $

$ (120,644) $

$ 286,276 $

$ (31,864) $

2020

173.35%

406,920

176,034

210,654

142,223

(43,618)

17.80%

12.02%

63,726

46,516

54,043

75,612

5.4%

3.9%

3.7%

6.72 54.3

21.9 16.7

$ $

$ (167,563) $

$ 345,699 $

2021

$ (46,919) $

69,744.6

160.00%

225,270

250,559

192,959

513,262

(56,179)

16.04%

12.35%

66,957

53,472

89,887

52.63

22.40 16.29

4.3%

3.4%

3.6%

6.94

$ $

$ (219,730) $

$ 421,885 $

100,252.4

$ (52,167) $

2022

150.00%

267,340

300,757

240,606

108,141

641,616

(72,094)

15.00%

12.00%

85,926

68,620

48.67

20.00 18.25

4.3%

3.4%

3.6%

7.50

$ $

$ (226,800) $

$ 508,871 $

143,896.5

2023

140.00%

$ (7,070) $

314,774

107,916

314,774

277,001

735,671

126,763

(90,545)

12.50%

11.00%

86,181

45.63

17.50 20.86

4.3%

3.4%

3.6%

8.00

$ $

$ (345,451) $ $ (118,651) $

$ 572,890 $

202,948.2

2024

(109,459)

130.00%

338,247

130,459

104,184

380,528

334,865

142,297

918,341

12.50%

11.00%

40.56

15.00 24.33

4.3%

3.4%

3.6%

9.00

$ $

$ (449,756) $ $ (104,306) $

$ 627,659 $

244,450.4

1,077,415

2025

(127,448)

120.00%

354,453

151,900

121,306

443,066

389,898

152,938

12.50%

11.00%

10.00

36.50

14.50 25.17

4.3%

3.4%

3.6%

$ $

$ (521,791) $

$ 666,425 $

255,943.0

1,188,216

$ (72,034) $

2026

(142,643)

115.00%

360,647

170,010

135,768

495,890

436,383

164,040

12.50%

11.00%

11.00

33.18

15.50 23.55

4.3%

3.4%

3.6%

$ $

$ (590,375) $

$ 700,493 $

1,290,868

264,657.6

$ (68,584) $

2027

(157,016)

110.00%

363,904

187,140

149,448

545,856

480,354

172,718

12.50%

11.00%

12.00

30.42

16.50 22.12

4.3%

3.4%

3.6%

$ $

$ (656,347) $

$ 731,700 $

1,388,047

271,500.7

$ (65,972) $

2028

(170,838)

105.00%

365,482

203,614

162,604

593,908

522,639

179,380

12.50%

11.00%

13.00

28.08

17.50 20.86

4.3%

3.4%

3.6%

$ $

$ (717,037) $

$ 757,643 $

1,474,680

275,770.0

$ (60,690) $

2029

(183,440)

100.00%

364,410

218,634

174,599

637,718

561,192

183,440

12.50%

11.00%

14.00

26.07

18.50 19.73

4.3%

3.4%

3.6%

$ $

$ (769,505) $

$ 776,023 $

1,545,528

276,852.3

$ (52,468) $

2030

(194,115)

359,908

231,356

184,759

674,828

593,848

190,232

12.50%

11.00%

98.00%

15.00

24.33

19.50 18.72

4.3%

3.4%

3.6% BLNGHAMTON INVESTMENT FUND | Ring Central Inc. Capex &D&ACalculations

CapEx % of sales % of D&A % of CapEx

(27,123)

85.81%

23,273

4.0%

136.38%

(27,767)

37,870

3.1%

173.35%

(43,618)

75,612

3.7%

160.00%

(56,179)

89,887

3.6%

150.00%

108,141

(72,094)

3.6%

140.00%

126,763

(90,545)

3.6%

(109,459)

130.00%

142,297

3.6%

(127,448)

120.00%

152,938

3.6%

(142,643)

115.00%

164,040

3.6%

(157,016)

110.00%

172,718

3.6%

(170,838)

105.00%

179,380

3.6%

(183,440)

100.00%

183,440

3.6%

(194,115)

190,232

98.00%

3.6% BLNGHAMTON INVESTMENT FUND | Ring Central Inc. WACC

WACC Calculation WACC Risk Free Rate Risk ExpectedPremium Market Market Risk Premium Risk Market Beta Cost of Cost Equity

Costof Debt Tax Rate Tax After Tax After of Cost Debt

Market Equity Market Market Debt Market Weightof Equity Weightof Debt WACC

29,670,119

1,375,320

5.44%

95.6%

5.5%

4.6%

1.7% 6.4% 4.7%

5.8%

4.4%

21%

0.80

Costof Debt Calculation

InterestCoverage Ratio EBIT InterestExpense Coverage

Spread Risk-free rate Risk-free Cost of Cost Debt

2.29782269

(113,239)

(49,281)

5.84%

4.21% 1.63% BLNGHAMTON INVESTMENT FUND | Ring Central Inc. DCF

REVENUEBUILD

USD ($) shares USDin ($) Thousands, in $ Thousands

EBIT NOPAT (+)D&A (-) CapEx (-) (-) Change (-) in NWC FCFF

Exitmultiples method TerminalValue FCFF PV

Perpetuitygrowth method TerminalValue FCFF PV

Discountfactor

(16,524)

(16,436)

(27,123)

23,273

2018

(43,001)

(45,675)

(27,767) (30,606)

37,870

53,242

2019

2020

(113,239)

(114,528)

(43,618) (31,864)

75,612

36,566

207,931

207,931 202,496

2021

(56,179) (46,919)

18,919 14,946 89,887

0.5

108,141

273,292

273,292 252,418

2022

(72,094) (52,167)

40,890

51,759

1.5

115,369

126,763

315,519

315,519 276,383

2023

(90,545)

91,142

(7,070)

2.5

(109,459) (118,651)

230,796 182,329 142,297

552,735

552,735 459,196

2024

3.5

(127,448) (104,306)

2025

268,297

339,617

152,938

652,990

652,990 514,496

4.5

(142,643)

300,284

380,107

164,040

679,001

679,001 507,389

(72,034)

2026

5.5

(157,016)

330,542

2027

418,407

172,718

728,859

728,859 516,546

(68,584)

6.5

(170,838)

359,639

2028

455,239

179,380

775,829

775,829 521,466

(65,972)

7.5

aim for 400 - 500 on share 500 - price for aim 400

(183,440)

2029

488,820 386,168 183,440

813,738

813,738 518,727

(60,690)

8.5

53,986,201

33,149,737

37,426,727

61,060,599

2030

(194,115)

408,640

517,265

190,232

845,454

(52,468)

9.5

Exitmultiples method Enterprisevalue (-) Debt (-) (+)Cash Equity value Equity Shareprice

Perpetuitygrowth method Enterprisevalue (-) Debt (-) (+)Cash Equity value Equity Shareprice

WACC ExitMultiple EV/REV GrowthRate BLNGHAMTON INVESTMENT FUND | Ring Central Inc. Sensitivity Analysis Growth Rate Exit Multiple EV/REV WACC Share price value Equity (+) Cash Debt(-) Enterprise value Perpetuity growth method Share price value Equity (+) Cash Debt(-) Enterprise value Exit multiples method $ $ 40,460,376 41,195,843 36,183,387 36,918,854 1,375,320 1,375,320 639,853

408.00 639853 456.23 4.00% 5.44% 10

Mult

Perp

$ $

408.00

456.23

3.50% 3.75%

4.25%

10.5

9.5

405.2973 425.4425 445.5878

485.8782

474.6953 567.0112 708.4313 952.3297 1473.385

465.733

4.44%

4.94%

387.8307 407.0824

445.5856 464.8372

401.6583 465.3603 555.8278 694.4163 933.4313

426.334

4.94%

5.19%

371.2003 389.6019 408.0035 426.4052 444.8068

347.4619 393.8013 456.2308 544.8912 680.7114

5.44%

355.3619 372.9549 390.5478 408.1407 425.7336

305.6537 340.7007 386.1166

534.1955

447.302

5.94%

5.69%

340.2742 357.0975 373.9208 390.7441 407.5674

272.4256 299.7368

438.5689

334.087

6.44%

5.94%

378.6 BLNGHAMTON INVESTMENT FUND | Ring Central Inc. Comparable CompaniesAnalysis

COMPARABLE COMPANIESCOMPARABLE ANALYSIS

RingCentral, Inc. Workday, Inc.Workday, Zoom Video Communications, Inc. Medallia Inc. Calix, Inc.Calix, Okta, Inc. Okta, DocuSign, Inc. Zscaler, Inc. Verisign, Inc.Verisign, Cloudflare, Inc.Cloudflare, Crowdstrike Holdings, Inc.

Multiples RingCentral, Inc. Workday, Inc.Workday, Zoom Video Communications, Inc. Medallia Inc. Calix, Inc Calix, Okta, Inc. Okta, DocuSign, Inc. Zscaler, Inc. Verisign, Inc.Verisign, Cloudflare, Inc.Cloudflare, Crowdstrike Holdings, Inc.

Multiples 1st Quartile 1st Med 3rd Quartile 3rd

RNG Multiple RNG 1st Quartile 1st Med 3rd Quartile 3rd

Share Price 1st Quartile 1st Med 3rd Quartile 3rd

Share Price

299.24

250.00 322.56

244.26 212.97 185.04

202.68

29.66 41.45

205.3 70.88

Shares Outstanding

EV/TTM Rev EV/TTM

EV/Revenue

25,081,765 34,477,823 41,382,069

182,640 293,796 155,462

131,213 193,088 135,938 113,093 308,832 223,875

88,684

62,847

274.18 380.13 457.98

25.4x

10.3x 34.9x

40.2x 28.5x 48.4x 19.5x 51.5x 50.6x

23.1x 31.7x 38.1x

25.1x

9.8x 4.7x

EV/FWD Rev EV/FWD

EV/NTM Rev EV/NTM

Equity Value Equity

26,537,800

45,660,000 94,766,838

32,050,000 41,121,951 25,153,968 23,217,993 21,890,012 45,374,985

28,159,991 32,493,359 40,485,148

4,611,003 2,605,008

308.89 357.75 447.87

24.3x

30.8x 21.0x 40.7x 18.7x 37.6x 33.5x

19.6x 22.7x 28.2x

19.0x

8.9x

8.3x 4.2x

EV/EBIT

3,540,000 2,240,303

1,918,608

4,907,186 5,526,843 6,335,817

639,853

428,328

434,607 566,055 141,851 401,194 108,895

Cash

80,807

832.9x

215.0x 140.4x

173.5x 206.4x 163.7x

222.1x 512.5x

149.7x 168.6x 193.3x

46.69 53.68 62.80

34.0x 70.9x

29.4x

EV/EBITDA

11,883,409

1,406,468

2,240,000

1,968,992

1,795,242

6,880,305 8,870,550

Debt

106,016 511,672

915,753 905,238

428,301 778,992

18,865

125.35

637.5x

508.0x 134.5x

214.4x 319.5x 199.8x

438.7x 958.2x

160.6x 207.1x 277.4x

68.94 91.38

43.1x 51.3x

27.9x

27,304,415

44,360,000 92,632,551

33,584,385 41,471,649 25,917,355 24,612,041 22,209,418 44,235,369

4,694,347 2,543,066

P/E

161.7x 141.0x

120.3x 169.0x 131.4x

183.4x 489.9x

124.8x 136.2x 153.4x

319.7x

31.0x 77.8x

28.5x

1,433,884

4,992,000 3,809,800

1,088,700 1,974,100

1,314,300

1,320,000

FWD

564,600 599,000

637,500

591,000

1,086,276

4,317,996 2,651,358

1,453,047

1,265,052

477,221 541,239 835,424

536,033

431,059 874,438

TTM

(206,328)

(138,028)

(193,531) (200,891) (158,358)

(100,009)

659,848

837,037

(32,781)

(86,310)

EBIT

35,869

293,657

D&A

75,612

28,857 29,047 13,718 36,865 71,090 28,669 46,622 49,387 40,143

EBITDA

(108,981)

(156,666) (129,801) (129,689)

688,705

883,659

(50,622) (46,167)

42,831 87,329

49,587

Net Income

(282,431)

(148,656)

(266,332) (243,267) (191,433)

(119,370)

672,316

814,888

(82,996)

(92,629)

33,484 BLNGHAMTON INVESTMENT FUND | Ring Central Inc. Environmental, Governance Social, & Corporate Environmental • • • makesconnecting shown easier below As the past renewable becan thing resources a of and RingCentral believes printing that documents whileminimizing their carbon footprint efficiencybusinessRingCentral maximizeto aims a clouda driving to meetings and therefore - based product, based RingCentral inherently using non - • • Corporate Governance Corporate Social • • underrepresented groups underrepresented workplacefor historically and equity RingCentral strivesin the for equality gender and Equity which for stands Diversity,Values,Inclusion, RingCentral followsacronym the "DIVE" individualsare recognized wheregovernance the rights and valuesof Includedin thisapproach is responsible approach to responsibility corporate RingCentral holistictakesa three - pronged pronged