RingCentral recently published a set of impressive 2018 Q4 results, bringing the financial year to a successful close. Quarter 4 represents another positive period of development for the company, marked by a total revenue increase of 34% Year over Year. Our channel partners also saw significant growth during Q4, with an average ARR of more than 80%.
On top of that, we also closed a record number of seven-figure TCV deals during the fourth quarter, including the very first eight-figure TCV in our books. We have followed our Q3 win with the Financial Times in the UK with a seven-figure plus TCV win with another major news and media organisation. We also recently announced our largest deal ever, Columbia University. It’s been an incredible, and historical few months for the RingCentral brand.
Exploring the RingCentral 2018 Q4 Results
During Quarter 4, RingCentral has consistently out-performed every prediction we had from the last quarter. Our total revenue guidance was for between $179 and $182 million, and we passed that with flying colours, with $189 million in revenue.
Cloud now surpasses legacy solutions across a broad range of parameters. It is clear that the cloud is winning, and RingCentral is winning in the cloud. Click To Tweet
Our core subscriptions continue to grow at a rapid rate, up from 36% in Quarter 4 from the previous year to 38% this year. What’s more, our total software subscriptions are increasing too, at 33% year over year. Even RingCentral Office subscriptions have seen a significant boost. This year, RingCentral Office was responsible for $644 million in ARR, an increase of 38% from last year.
The results that we’ve achieved for Q4 are an insight into the continued popularity of the RingCentral portfolio, and the hard work of our team. We’re progressing in our strategy to deliver the full collaborative communications experience to our customers.
Cloud now surpasses legacy solutions across a broad range of parameters. It is clear that the cloud is winning, and RingCentral is winning in the cloud.
Innovation and portfolio expansion
As we look to service the broadening demands of the mid-market and enterprise customers, we continue to drive product innovation and portfolio expansion. At our user conference in November, we made three key announcements. One, we launched our new unified mobile app, with integrated team messaging, voice, and video seamlessly combined into a single application. This is well-differentiated in the industry. Two, we launched RingCentral Engage, our digital customer engagement platform based on our acquisition of Dimelo. And three, we announced new artificial intelligence partnerships leveraging our open platform to enable real-time and post-call voice analytics.
We're progressing in our strategy to deliver the full collaborative communications experience to our customers. Click To Tweet
To build on that momentum, last month we announced the acquisition of Connect First, adding an important product to our customer engagement portfolio. We believe our strong customer engagement portfolio provides customers with transformative and differentiated experiences and will accelerate customer transition to the cloud.
Additional growth on the horizon
As we look ahead to 2019, our commitment to customer success is steadfast. We will continue to rapidly innovate and out-innovate our competition. Our industry-leading cloud communications and collaboration solutions, combined with our world-class customer support, create a widening gap and deepening moat between us and our competitors. We believe that we are well-positioned to achieve our goal of exceeding $1 billion in revenue in 2020.
We look forward to another amazing quarter full of innovations and opportunities for the RingCentral brand.