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RingCentral Announces 35% Revenue Growth for Third Quarter 2015

BELMONT, Calif.–(BUSINESS WIRE)– RingCentral, Inc. (NYSE: RNG), a leading provider of cloud business communications and collaboration solutions, today announced financial results for the third quarter ended September 30, 2015.

Third Quarter Financial Highlights:

  • Revenue grew 35% year-over-year to $ 76.8 million; subscription revenue also grew 35% year-over-year to $ 70.3 million.
  • Total annualized exit monthly recurring subscriptions increased 35% year-over-year to $ 297.5 million.
  • RingCentral Office® annualized exit monthly recurring subscriptions grew 48% year-over-year to $ 227.7 million.
  • Net monthly subscription dollar retention: RingCentral Office over 100% and overall over 99%.
  • Non-GAAP subscriptions gross margins improved 4.4 points to 76.5% in the third quarter of 2015 from 72.1% in the same period a year ago. GAAP subscriptions gross margin improved 4.2 points to 75.7% in the third quarter of 2015 from 71.5% in the same period a year ago.
  • Non-GAAP operating margin improved to 1% up from (5%) in the second quarter of 2015 and (12%) in the same period a year ago. GAAP operating margin of (8%) improved from (13%) in the second quarter of 2015 and (19%) in the same period a year ago.
  • Non-GAAP net income (loss) per diluted share was $ 0.00 for the third quarter of 2015, compared with ($ 0.11) per diluted share for the third quarter of 2014. GAAP net income (loss) per diluted share was ($ 0.09) for the third quarter of 2015 compared with ($ 0.18) for the third quarter of 2014.
  • Total cash and short-term investments at the end of the third quarter of 2015 was $ 132.3 million, compared with $ 132.7 million at the end of the second quarter of 2015.

 

“We are pleased to have achieved the Company’s first non-GAAP operating profit one quarter earlier than our forecast, while growing revenues 35% year-over-year in Q3,” said Vlad Shmunis, RingCentral’s Chairman and CEO. “We also continued to demonstrate our expansion up-market with key customer wins including Columbia University and MindBody, each of which were deployments of more than 1,000 seats. In addition, Gartner recognized our efforts this year adding RingCentral to the Leaders Quadrant and placing us furthest on Vision within their 2015 Magic Quadrant for UCaaS.”

Third Quarter 2015 and Recent Business Highlights:

  • Announced that Columbia University has selected RingCentral as their unified cloud provider for 1,700 faculty and students to communicate and collaborate easily across devices.
  • Announced that MINDBODY has selected RingCentral to provide a complete cloud business communications solution to help over 1,000 MINDBODY mobile and globally dispersed employees stay connected to customers and colleagues.
  • Placed by Gartner in the Leaders Quadrant for Unified Communications as a Service (UCaaS) Magic Quadrant. Gartner cited key strengths such as UCaaS user experience, support for accounts over 1,000 employees, API connectivity with leading cloud applications, and mobile-first user deployments as reasons for placing RingCentral in the Leader Quadrant.
  • Announced the integration and general availability of Glip team messaging and collaboration for all RingCentral Office customers. RingCentral’s integration marks a new chapter in its mission to transform business communications and deliver the first integrated cloud communications and collaboration platform that helps people work more productively than ever before.
  • Expanded RingCentral Connect Platform to empower developers with integrated cloud communications innovation. Since the end of the first quarter of 2015, RingCentral has more than tripled the number of registered developers. RingCentral Connect Platform, with its open APIs, is becoming one of the key drivers for our continued success up market.
  • Announced integration with Microsoft Office 365 that creates a feature-rich business communications hub enabling users to communicate and collaborate in real-time with an easy-to-use interface that is simple to deploy and manage.

Conference Call Details:

  • What: RingCentral financial results for the third quarter of 2015 and outlook for the fourth quarter and full year of 2015.
  • When: Monday, November 2, 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 13622310 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 13622310.

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