RingCentral recently released impressive 2019 Q1 results, announcing a total revenue of $201 million for the first quarter of 2019, which is an increase of 34% year over year. 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.
“We are pleased with the first quarter. Enterprise delivered solid growth, with continued contributions from channel and international, including a 45,000 seat win with a major UK retailer,” said Vlad Shmunis, RingCentral’s founder, chairman and CEO. “We continue to expand our industry-leading cloud communications suite, broaden our open platform developer network, and extend our global delivery footprint. We believe we are well-positioned to satisfy the demands of our enterprise customers to replace their ageing on-premises PBX infrastructure with a fully-featured cloud-based unified communications solution.”
During this latest earnings call, we announced our company’s largest seat count win to date, Waitrose & Partners, here in the UK. Click To Tweet
Global growth and opportunities
As businesses continue to shift their communications strategy to the cloud, RingCentral intends to stay ahead of the competition with increased technological innovation and strong global enterprise relationships, particularly in the retail sector. Following the previous announcement of our seven-figure win with Ladbrokes Coral, this quarter’s deals have been equally impressive.
During this latest earnings call, we announced our company’s largest seat count win to date, Waitrose & Partners, here in the UK. In addition, we announced a 3,000 seat France based win with Euralis, replacing multiple legacy on-premise vendors. These large wins are a testament to our expanding global enterprise presence and overall growth of the RingCentral brand.
2019 Q1 results, announced total revenue of $201 million for Q1 of 2019, an increase of 34% YoY. With this strong result, we believe that we’re on track to achieve our goal of exceeding $1 billion by the end of 2020. Click To Tweet
Innovation and portfolio expansion
As we look to service the broadening demands of our customers, we continue to drive product innovation and portfolio expansion. In Q1, we introduced RingCentral Persist, a new solution that enables enterprise customers to maintain communications services in case of an internet failure at a customer’s location. RingCentral Persist adds additional resiliency to RingCentral’s existing high availability delivery infrastructure for the most demanding customer environments.
In addition, we announced the expansion of RingCentral’s open platform with RingCentral Embeddable. Developers now can easily integrate RingCentral’s communications capabilities into any web application with just a few lines of code to enhance custom workflows.
Q1 also brought the integration of RingCentral Engage, our new digital customer engagement platform, with Google Dialogflow. With this integration, RingCentral Engage digital customers can now leverage the machine learning and AI capabilities of Google Dialogflow. This enables them to deploy chatbot virtual agents to manage automated digital customer interactions.
Some key highlights of our Q1 results include:
- Total revenue increased 34% year over year to $201 million.
- Software subscriptions revenue increased 33% year over year to $183 million.
- Annualised Exit Monthly Recurring Subscriptions (ARR) increased 32% year over year to $777 million.
- RingCentral Office® ARR increased 36% year over year to $694 million.
- Mid-market and Enterprise ARR increased 70% year over year to $346 million.
- Enterprise ARR increased 95% year over year to $200 million.
- Channel ARR increased 75% year over year to $203 million.
We look forward to yet another remarkable quarter full of innovations and opportunities for the RingCentral brand.