RingCentral is continuing to accelerate in growth in the second quarter of 2018, as revealed in the Q2 financial results.
On the 6th of August, we revealed a total revenue of $161 million – up 34% from $120 million in the second quarter of 2017. With this strong result, we believe that we’re well on track to achieve our goal of exceeding $1 billion in revenue by the end of 2020!
Additional growth for the enterprise business
As our CEO, Founder, and Chairman Vlad Shmunis stated on our earnings conference call: “We had an outstanding quarter. This was led by continuing strength in our mid-market and enterprise business, and momentum with our channel partners.”
Once again, the enterprise business grew by triple digits in the second quarter, thanks to significant wins with both new and existing enterprise accounts. Going forward, we plan on using our relentless drive for innovation to continue differentiating ourselves in the modern marketplace and take advantage of ever more exciting opportunities.
RingCentral achieved total revenue of $161 million for Q2 of 2018, an increase from $120 million in the second quarter of the previous year (2017). Click To Tweet
We were thrilled to once again earn the attention of various industry experts this quarter. Once again, IHS Markit gave us a reason to celebrate by ranking us as the number one provider in their North American Unified Communications as a Service Scorecard.
Earning the UCaaS leader position with IHS Markit for the second year in a row is a fantastic accomplishment, and we’re keen to keep demonstrating the growth, capabilities, and continued innovation that kept us at the top.
RingCentral also won the 2018 API award for the best communications API delivered by API World. Our service was recognised both for its popularity among the developer community, and its intuitive technology.
The Mobile Collaboration report also drew attention to the growing impact of our compelling enterprise workflow product RingCentral Glip™. The service was recognised as an industry leader by the Aragon report, thanks to its mobile-first design, exceptional user experience and ability to enhance workforce productivity.
Joining the Russell 1000 Index
RingCentral also joined the Russell 1000 Index this quarter, after the equity markets closed on 22 June 2018. The index is made up of the largest 1,000 companies across various Russell lists, and it’s generally used by institutional investors and investment managers. We’re excited to be a part of this new index going forward as we continue to work on our plans for growth.
In Q3, we hope to achieve an even greater software subscription revenue of between $152 and $154 million, giving our company more room to expand. We also hope to see our revenue range increase to between $165 and $168 million, which would represent an annual growth rate of 27% to 29%, a highly achievable number considering a quarter-on-quarter growth of 34%.
Other financial highlights
Revenue and gross margin
RingCentral achieved total revenue of $161 million for Q2 of 2018, an increase from $120 million in the second quarter of the previous year (2017). This represents a growth of 34%. Our GAAP gross margin was 76.3% for Q2, representing a 1.0-point increase compared to 75.3% in the second quarter of 2017.
Net income (loss) per share
Our GAAP net loss per share was ($0.10) for Q2 of 2018, compared to ($0.03) for Q2 of 2017. Non-GAAP net income per diluted share measured at $0.19 for Q2 of 2018, compared to $0.10 per diluted share in Q2 of 2017.
The total cash and cash equivalents listed at the end of Q2 for 2018 was $567 million, compared to $555 million at the close of the first quarter in 2018.