Announcing the RingCentral Second Quarter Results for 2017

Cloud is at the top - RingCentral wins the cloud

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RingCentral Q2
Unified Communications

Published: August 15, 2017

Rebekah Carter - Writer

Rebekah Carter

The results are in for the second quarter of RingCentral’s financial year, and things are looking positive for the cloud communications giant. Software subscriptions, for instance, grew by about 28% year-over-year to about $110.4 million. On top of that, the total revenue for the company group by 30% year-on-year to $119.4 million.

According to the chairman and CEO of RingCentral, Vlad Shmunis, the company delivered yet another great quarter of exceptional results, driven by their strength in the enterprise and mid-market segments. As cloud-based solutions become more popular for companies around the world, RingCentral is certainly taking advantage of the trend.

The Highlights for the Second Quarter

RingCentral has seen numerous opportunities for growth recently. They were recognised as a leader in the market by HIS Markit and announced as the number 1 market share leader for subscriber seats and revenue by Synergy Research Group for UCaaS. On top of that, RingCentral signed seven customer accounts which each have their own individual value of about seven digits, including options with ExtraSpace Storage and ChenMed.

Some of the biggest financial highlights include:

  • RingCentral Office achieved a recurring software subscription growth of 37% year over year – up to a point of $398.9 million.
  • The total software subscriptions (annualised exit recurring) grew to $478.0, a percentage of 31% year-over-year.
  • GAAP subscriptions gross margin was 80.3%, which is a 1.4 point improvement from the year before, while the non-GAAP software subscriptions had a gross margin of 81.3%, an improvement of 1.3 points from the year before.
  • Monthly net subscriptions in terms of dollar retention saw Ring Central Office over 100%, and overall subscriptions at over 99%.

The Closing Results for RingCentral

RingCentral recently expanded their TELUS cloud communication solution for Canadian businesses with the use of TELUS Business Connect Mobile, which makes PBX phone system features available to tablets and smartphones. Additionally, they released RingCentral Live reports, which allows RingCentral Office customers to monitor the service they deliver their customers. RingCentral even introduced Business Multimedia Messaging service solutions and expanded the RingCentral Connect open platform with integrations that included G-Suite options and Microsoft Dynamics.

At the end of the second quarter, RingCentral’s total revenue was $119.4 million, which was up from $91.8 million in 2016. Additionally, the net income loss per share was about $0.09 for GAAP in 2017, compared to $0.11 for 2016, and non-GAAP net income loss per diluted share was $0.04 in 2017, compared to $0.02 in 2016.

At the end of the second quarter, the total cash and cash equivalents on the balance sheet was $167 million, compared to a healthy $149.7 million at the end of 2017’s first quarter.

 

 

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