RingCentral, a market leader in communication and collaboration solutions for the modern marketplace, recently announced the financial results for their fourth quarter, ending the 31st of December 2019. The company achieved some fantastic outcomes, including over $1 billion in revenue run-rate and a total revenue increase of 34%.
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Vlad Shmunis[/caption]
According to Vlad Shmunis, the CEO, chairman, and founder of RingCentral, the fourth-quarter results were “outstanding” and driven by the continued momentum of sales in both enterprise and mid-market regions. The company is thrilled to have surpassed its goal of $1 billion annual revenue run rate ahead of schedule.
According to Vlad, the success of the business is rooted in RingCentral’s commitment to not only delivering excellent products, but also building a culture of strategic partnerships, evidenced by crucial relationships with Avaya, AT&T, Atos, and others. These partnerships are a strong validation of the company’s leadership in the industry, and Avaya’s commitment to discovering new opportunities for long-term growth.
The Highlights of RingCentral’s Fourth Quarter
As well as a total revenue increase of 34% in the last year, to a value of $253 million, RingCentral has also achieved a selection of other amazing financial achievements. Subscriptions revenue increased by 33% YoY to $229 million, and the company also revealed that RingCentral Office ARR increased by 36% to $877 million. Other highlights include:
- AAR subscriptions increasing 32% YoY to $960 million
- Enterprise and mid-market ARR rising by 59% YoY to $479 million
- Channel ARR increasing by 63% YoY to $300 million
- Enterprise ARR rising by 71% YoY to $293 million
GAAP operating loss for the fourth quarter was $20 million, compared to $3 million from the same period last year, RingCentral notes that this number is driven by higher share-based compensation payments, and acquisition-related matters. Net income loss per share was also $0.30 this year, compared to $0.07 during the fourth quarter of the previous year.
Total cash and cash equivalents listed on the RingCentral balance sheet by the end of the fourth quarter of 2019 equated to $344 million. This compares to $583 million by the third quarter of 2019.
A Fantastic Year for RingCentral
For the full year of 2019, total revenue was $903 million, up from a total of $674 million in 2018. This represents a growth of 34%. Additionally, operating income loss was $46 million, compared to $16 million in 2018, driven by acquisitions, share-based compensations, and other components.
