Tarek Robbiati is the new CEO of RingCentral, with Vlad Shumnis stepping down after an impressive 24 years in the role.
The move marks the first CEO transition in the vendor’s history, as Shumnis seized the position when he founded the business in 1999.
In that time, Shumnis turned the business from a small startup into a global enterprise communications juggernaut.
Reflecting on that journey, he said: "When I founded RingCentral two decades ago, we were a tiny, unfunded startup with an ambitious mission to improve how businesses around the world communicate internally and with their customers.
"From those humble beginnings, we have become a recognized leader in our space and one of the largest pure-play SaaS companies in the world.
My plan is to stay engaged in the company while dedicating most of my time to innovation, product development, and long-term strategy. I am excited for the road ahead.
As Shumnis shifts to Chairman, in steps Robbiati, who has served as a board member since December. He previously held the CFO position at Hewlett Packard Enterprise.
That role alone highlights his robust financial background and may signal the beginning of another period of restructuring.
Some may consider this a necessary step, as the business endured a 75 percent drop in its stock value over the past two years.
Yet, unfortunately, that is not unusual in the post-pandemic CX industry, with RingCentral still reporting double-digit growth each quarter.
Moreover, Robbiati has played a big part in paving RingCentral’s path to profitability.
Indeed, it seems to be getting there, having just reported a second-quarter net loss of $21.5MN, down from $159.5MN year-over-year.
Now, as CEO, Robbiati aims to drag RingCentral into a fruitful future.
"We are at the forefront of our industry, developing differentiated, cutting-edge solutions to meet the emerging needs of our customers," he said.
My focus will be on our customers and delivering operational excellence and sustainable, profitable growth. I am honored to take on the CEO role and deliver value to all our stakeholders.
In other big RingCentral transition news, President and Chief Operating Officer Mo Katibeth will leave his role. However, he will remain a special advisor.
While such c-suite changes have become relatively normal at RingCentral in recent years, these are by far the most eye-catching – and perhaps yet another signal of how quickly the market is moving.
Recognizing this, RingCentral last week announced the acquisition of Hopin, recently expanded into India, and launched a new CCaaS platform yesterday (as discussed below).
As the vendor continues to innovate, Shumnis seemingly wants an experienced financial mind to manage the sea of change – making Robbiati a prime candidate to replace him.
So far, the market has not offered him a warm reaction, with RingCentral’s stock plummeting by approximately ten percent on the news.
Yet, this is only the start, and Robbiati has plenty of time to turn the tide and make RingCentral a profitable business.
RingCentral Unveils Its New CCaaS Platform: RingCX
In addition to its CEO transition, RingCentral announced RingCX, its new CCaaS platform that will become generally available in late 2023.
While RingCentral promises additional modules in early 2024, RingCX will have over 1,000 features at launch.