Risk Factors Update Summary

• Relocated significant personnel from Russia to Georgia, Spain, and Bulgaria due to ongoing conflict.
• New EU regulations like the DSA and e-Privacy Regulation could result in fines up to 6% of annual turnover.
• Increased investment in AI technologies like generative AI, ASR, TTS, and NLP will require significant additional expenses.
• Potential risks from the use of AI by the workforce, including data protection, cybersecurity, and intellectual property violations.
• Transitioned from offering RingCentral Meetings to RingCentral Video, impacting customer renewals.
• The AI Act in Europe may impose fines up to €30 million or 6% of global income.
• The US is considering AI regulation, impacting the development and adoption of AI solutions.
• Increased costs associated with managing or assisting in the relocation of personnel.
• Changes in laws and regulations related to AI could significantly impact operations, leading to increased compliance costs.
• New share repurchase programs totaling $375 million could affect stock price and cash reserves.
• Transitioned from long-term to month-to-month contracts with some customers, impacting revenue predictability.
• Added complexity due to international expansion and transitioning to a multi-product company.
• The proposed 15% global minimum tax could impact tax obligations and effective tax rates.
• Increased and may continue to increase operating costs due to rising inflation and interest rates.
• Failure to comply with restrictive covenants could result in default and accelerate repayment.
• Reliance on third-party contractors in various countries poses risks to business operations.
• Various geopolitical tensions and catastrophic events could adversely affect business operations.