First Quarter Highlights:
- Revenue increased 35% year-over-year to $65.3 million; subscription revenue increased 37% year-over-year to $60.0 million.
- Total annualized exit monthly recurring subscriptions grew 35% year-over-year to $253.7 million.
- RingCentral Office® annualized exit monthly recurring subscriptions grew 47% year-over-year to $185.4 million.
- Net monthly subscription dollar retention: overall over 99% and RingCentral Office over 100%.
- Non-GAAP subscriptions gross margins improved 4.8 points to 74.2% in Q1 2015 from 69.4% in the same period a year ago.
“The first quarter marked a strong start to the year for RingCentral as we made progress across a number of our strategic initiatives,” said Vlad Shmunis, RingCentral’s Chairman and CEO. “We gained additional traction in the enterprise market, highlighted by a 1,000 user win and multiple hundred plus user wins. We also extended our track record of innovation and expanded our differentiation in the market with several key product enhancements, as well as the launch of the RingCentral Connect Platform™ and the announcement of RingCentral Contact Center. In addition, we delivered significant gross and operating margin leverage as we continue the march toward profitability.”
The company also announced today that David Berman, President, has resigned and will be leaving the company as of May 15, 2015. “I’d like to thank Dave for his contributions to the Company over the past two years and wish him well in his future endeavors. As we look ahead, I’m confident that the company will continue to execute at a high level as we have strong leaders in place in sales, marketing, and support, each of whom will report directly to me going forward,” said Shmunis.
Financial Results of the First Quarter 2015
- Revenue: Total revenue was $65.3 million for the first quarter of 2015, up 35% from the first quarter of 2014.
- Net Income (Loss): GAAP net income (loss) per diluted share was ($0.15) for the first quarter of 2015 compared with ($0.20) for the first quarter of 2014. Non-GAAP net income (loss) per diluted share was ($0.09) for the first quarter of 2015, compared with ($0.15) per diluted share for the first quarter of 2014.
- Balance Sheet: Total cash and short-term investments at the end of the first quarter of 2015 was $135.7 million, compared with $141.7 million at the end of the fourth quarter of 2014.
First Quarter 2015 and Recent Business Highlights:
- Announced that BT Cloud Phone, in association with RingCentral, is now widely available to BT Business customers in the UK.
- TELUS announced the commercial launch of TELUS Business Connect™, powered by RingCentral, providing a single cloud-based communications solution for businesses in the Canadian market.
- Unveiled the RingCentral Connect Platform™, a set of tools and services to build, deploy, and manage custom integrations using RingCentral APIs.
- Introduced RingCentral Contact Center, providing unmatched value and a robust customer experience for integrated business communications.
- Launched the latest update to RingCentral Office® providing an enhanced feature set, enterprise grade security, and more control for IT administrators.
- Signed a new distribution partnership with Jenne, Inc., a leading value-added distributor of technology products and services.
- Welcomed Al Campa to RingCentral as the Chief Marketing Officer of the company.
- Added Michelle McKenna-Doyle, the SVP and Chief Information Officer of the NFL, and Mike Kourey, board member of Aruba Networks and various private growth companies, to the Board of Directors.
Conference Call Details:
- What:RingCentral financial results for the first quarter of 2015 and outlook for the second quarter and full year of 2015.
- When:Tuesday, April 28, 2015 at 2PM PT (5PM ET).
- Dial in: To access the call in the United States, please dial (877) 705-6003, and for international callers dial (201) 493-6725. Callers may provide confirmation number 13605511 to access the call more quickly, and are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining.
- Webcast:http://ir.ringcentral.com/ (live and replay).
- Replay: A replay of the call will be available via telephone for seven days, beginning two hours after the call. To listen to the telephone replay in the U.S., please dial (877) 870-5176 from the United States or (858) 384-5517 internationally with recording access code 13605511.