RingCentral has met analyst expectations in its Q1 earnings call amid growth in its RingCX and AI Receptionist.
“We are seeing strong growth of RingCX, including large deals, which underscores that our multi-product strategy is working across all cohorts,”
Kira Makagon, President and Chief Operating Officer at RingCentral, said during the quarterly earnings call.
Last quarter, RingCX had only 700 customers, and its AI Receptionist was only released in March to select U.S. clients.
This caused RingCentral’s stock to jump to two-month highs following the news.
Such growth speaks to RingCentral’s solution’s ability to both retain and win new clients in a market that is increasingly dominated by big UC players.
RingCentral’s Path to Increased Revenue
The solid performance can be attributed to a number of reasons.
RingCentral’s CEO suggests that an early mover’s advantage, combined with a push in AI, are solid factors, however.
“Our continued leadership in UCaaS, combined with strong early momentum in CCaaS and accelerated adoption of our AI-powered solutions, drove solid Q1 results, with ARR surpassing $2.5 billion,”
Vlad Shmunis, RingCentral’s Founder, Chairman, and CEO, said.
Equally, RingCentral’s multi-product strategy of bundling RingCX, RingEX, and RingSense aligns with prevailing trends of customers wanting an all-in-one solution for their inbound and outbound needs.
Such an offering has seen them win big clients, with Makagon citing its use by NHS Hertfordshire in her LinkedIn post celebrating the result.
“You can see how long it took some of the other newer entrants to get to 1,000 accounts, compared to where we are and how long it took us,” Shmunis said.
“Many have not even reached 1,000… and we did it in basically a year.”
The RingCX CCaaS solution was released in November 2023.
Equally, Makagon cited the AI Receptionist solution as key to the performance.
RingCentral was one of the first major UC players to release an AI Receptionist solution.
Within six weeks of launch, more than 400 AI Receptionist customers were onboarded.
Speaking in the LinkedIn post, Makagon praised the business utility the AI Receptionist is already seeing.
“Owen Security Solutions Inc uses RingCentral AI Receptionist to resolve routine inbound inquiries, leading to a 50% drop in average call handling time, saving each agent 2-4 hours daily,” she said.
Following Enterprise Connect, where RingCentral demonstrated its new solution, the company’s share price saw a notable uptick, breaking its downward trend and climbing away from the 52-week low of $26.22.
RingCentral announced earnings of $612 million last quarter, up five percent year-over-year, and is on track to achieve over $100 million in ARR from new products by the end of 2025.
