Our CEO and Founder, Vlad Shmunis, was thrilled to announce another set of fantastic quarterly results for RingCentral this month at the quarter earnings conference call.
The results for the third quarter of 2018 were excellent, with non-GAAP operating margins, revenue growth, and EPS emerging either at the high end or above guidance ranges. Total revenues for the third quarter accelerated to $174 million—a 33% increase year-over-year and a massive step above the guidance range.
The core subscription business for RingCentral also continued to perform phenomenally, with a revenue increase of 38% year-over-year—up from 34% in Q3 of 2018.
RingCentral earns accolades around the world
Much of RingCentral’s growth this quarter came from the mid-market and enterprise spaces, with mid-market customers growing at a rate of 75% year-over-year, leading to a business size of $270 million per year. Enterprise customers with over $100,000 in ARR grew at a rate of over 100% year-over-year, leading to a business size of over $145 million.
As businesses continue to shift their communication strategy to the cloud, RingCentral intends to stay ahead of the competition with increased technology innovation, boosted enterprise sales and stronger channel relationships. Click To Tweet
As well as significant growth in revenue, sales, and channel partners, RingCentral has also achieved a great deal of recognition from industry leaders and publications around the world over the last quarter. In the UK, RingCentral achieved a “marquee win” with one of the most distinguished publications in the world, the Financial Times. The Financial Times is currently entering a period of digital transformation by providing their staff with collaborative and mobile technologies. The company chose to partner with RingCentral to offer enterprise-grade cloud communications and collaboration to more than 2,000 employees around the world.
RingCentral also saw significant growth in Australia this year after announcing the first sales office in the region during Q1 of 2018. Today, RingCentral has signed its first million-dollar TCV contract with one of the largest enterprise software vendors in Australia, Technology One.
Additional growth on the horizon
RingCentral has also invested in some significant acquisitions this quarter. For instance, we recently announced the purchase of a leading cloud-based platform for customer engagement, Dimelo. The Dimelo platform supports external customer communications through non-voice channels, which helps to serve the increasing demand for companies to communicate with customers through in-app messaging, live chat, social media and more. Dimelo is already deployed by countless leading companies such as AXA, Allianz, Orange, and more. RingCentral is excited to take their own solution to the next level with the Dimelo acquisition.
As Vlad noted during the quarterly announcement conference, the successes achieved by RingCentral this quarter are just the beginning for what the company plans to do in the months to come. As businesses continue to shift their communications strategy to the cloud, RingCentral intends to stay ahead of the competition with increased technology innovation, boosted enterprise sales, and stronger channel relationships. We believe that we’re on track to reach our goal of more than $1 billion in revenue by 2020.
Originally published Nov 26, 2018, updated Apr 16, 2020
