RingCentral Press Releases

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Articles archive: 2020

November 19, 2020

RingCentral Adds Key Security and Privacy ISO Certifications to Cloud Communications Platform

London, U.K. — November 19, 2020 - RingCentral UK Ltd., a leading provider of global enterprise cloud communications, collaboration, and contact centre solutions and a wholly-owned subsidiary of RingCentral, Inc. (NYSE: RNG) today announced that RingCentral Office®, the company’s flagship unified communications solution that includes team messaging, video and a cloud phone system, has achieved three internationally recognised ISO certifications including ISO 27001, ISO 27017, and ISO 27018 for information security best practices. 

With these third-party certifications in place, RingCentral meets a stringent set of requirements around security and privacy. These certifications test the maturity of RingCentral’s processes and programmes against the highest international standards and demonstrate RingCentral’s ongoing commitment to ensure customers’ security and privacy.

“When your people are working from anywhere, providing secure and private cloud-based business communications are essential,” said Michael Machado, Chief Security Officer at RingCentral. “We are focused on ensuring our customers can run their business on a reliable, trusted, and secure communications platform. Adding internationally recognised ISO certifications for information security and privacy best practices demonstrates our ongoing commitment to protecting our customers.” 

The three ISO certifications include:

• ISO 27001: This certification recognises that RingCentral has designed and implemented a set of controls and measures to effectively manage risk and achieve compliance on a continual basis to protect customer information and data. The certification also demonstrates that RingCentral has a robust security programme with rigorous management activity and technical controls to address leading Confidentiality, Integrity, and Availability (CIA) principles of Information Security.

• ISO 27017: Provides guidelines for information security controls applicable to and specific to the provisioning and use of cloud services. RingCentral’s ISO/IEC 27017 certification demonstrates that the company extends its disciplined Information Security Management System (ISMS) to the operation of its cloud services.

• ISO 27018: Establishes commonly accepted controls and guidelines for implementing measures to protect Personally Identifiable Information (PII) for the public cloud computing environment. The ISO/IEC 27018 certification demonstrates RingCentral’s commitment to the privacy of its customers’ data. It further demonstrates that RingCentral, acting as a processor of its customers’ PII data, has implemented controls for protecting PII.

“Security and compliance are crucial parts of business communications as companies deploy solutions that enable their employees to work from anywhere and on any device," said Wayne Kurtzman, Research Director of Communities and Collaboration at IDC. "ISO certifications are frequently demanded by the enterprise and underscore a company's commitment to meeting those demands.” 

For more information about RingCentral’s ISO certifications, click here

About RingCentral 

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP™), customer engagement, and contact centre solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customise business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©  2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Office, Message Video Phone, MVP, and the RingCentral logo are trademarks of RingCentral, Inc.

 

November 17, 2020

RingCentral Named a Leader in the 2020 Gartner Magic Quadrant for Unified Communications as a Service, Worldwide Report

London, U.K. — November 17, 2020RingCentral UK Ltd. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that Gartner has recognized RingCentral as a Leader in the 2020 Magic Quadrant for Unified Communications as a Service, Worldwide report.* In the Magic Quadrant report, published on November 11, 2020, RingCentral was positioned furthest for completeness of vision in the Leaders quadrant. This is RingCentral’s sixth year in a row being named to the Leaders quadrant.

“Communications is the lifeblood of every company, now, more than ever,” said Anand Eswaran, president and chief operating officer, RingCentral. “The past few months have underlined the value of cloud-based communications in empowering employees to get work done, enhancing productivity, and delighting customers wherever they are. We think being recognized as a Leader in the Gartner Magic Quadrant for Unified Communications as a Service, Worldwide for the sixth year in a row is a testament to our innovation in cloud communications and the reliability and robust functionality of our platform, our global delivery capabilities, and most importantly, our commitment to helping customers bring their communications to the cloud.”

Over the last 12 months, RingCentral has focused on combining rapid product innovation with multiple strategic partnerships -- including Avaya, Atos and Alcatel-Lucent Enterprise -- to bring the benefits of RingCentral’s Unified Communications platform to more customers around the world. In particular, the launch of RingCentral Video, which enables customers with a fast, unified, open, and trusted video meetings experience for today’s work from anywhere environment. This completes RingCentral’s differentiated Message Video Phone (MVP) solution. Additionally, RingCentral released a new collaboration-centric desktop app that includes MVP capabilities in a single solution for a streamlined experience.

Download a complimentary copy of the 2020 Gartner Magic Quadrant for Unified Communications as a Service, Worldwide report.

Disclaimer

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

*Source: Gartner, Inc., “Magic Quadrant for Unified Communications as a Service, Worldwide,” Rafael Benitez, Megan Fernandez, Daniel O’Connell, Christopher Trueman, Pankil Sheth, November 11, 2020. 

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, Message Video Phone, and the RingCentral logo are trademarks of RingCentral, Inc. Other third-party marks and logos displayed in this document are the trademarks of their respective owners.

 

November 11, 2020

New Study Reveals Boost in Employee Productivity and Well-Being Among Companies That Foster a ‘Connected Culture’ in Work from Anywhere Environment

London, U.K.– November 11, 2020 –   RingCentral UK Ltd., a leading provider of global enterprise cloud communications, collaboration, and contact centre solutions and a wholly-owned subsidiary of RingCentral, Inc. (NYSE: RNG), today released the findings of its Connected Culture Report revealing that employees working for companies that foster a “connected culture” are twice as likely (34% vs. 15%)  to be productive when working from anywhere, than those that don’t. The study defines companies that foster a “connected culture” as those that blend effective technology that helps teams stay connected with a commitment to supporting work/life balance, and frequent opportunities for people to interact with one another. As positive news about a vaccine emerges, the survey findings reiterate the important role employers play in building a culture that encourages employee productivity and well-being -- key factors for an engaged remote and hybrid workforce working from anywhere.

The study, conducted by CITE Research in partnership with Kaleido Insights, surveyed 4,000 knowledge workers across four countries, including 1,000 from across the UK, about how they have adapted and adjusted to this extended period of remote working with the onset of the pandemic.

“Since the pandemic hit the UK last March, forcing the nation into their homes, we have seen the debate over productivity while working remotely rage on. While some leaders have branded it ‘bad for business’, the results of this study show that an employee’s level of productivity is highly dependent on how far a company has gone to build a culture of connection - despite being separated physically,” said Steve Rafferty, country manager - UK & Ireland, RingCentral. “Sadly, this also means that for companies that were not ready for remote working before March, and have done very little to adapt subsequently, employee productivity and wellbeing will almost certainly have suffered as a result. As remote working looks to continue, businesses must stop resisting change and make the move to digital - bringing what made the company great offline, online through technology and social behaviour.”

The shift to WFH has not leveled the playing field

The Connected Culture Report also revealed a number of other impacts stemming from the sudden shift to remote working that need to be addressed by businesses.

   ●      According to the survey, men in the UK are handling remote work better than women during the pandemic. British women are reporting lower levels of happiness (36% vs. 43%) and motivation (32% vs. 44%) in comparison to their male counterparts. 

The reason for this disparity is rooted in the differences in working space at home.

   ●      Almost half of all UK male respondents stated that they have a dedicated office space with a closed-door; while just over a third of women noted having the same professional set-up at home. Unsurprisingly, only 34% of women are keen to continue working from home post-pandemic.

Those under the age of 25 are also being unfairly disadvantaged.

   ●      Despite the majority having a dedicated workspace at home, almost half of those under 25 would prefer to work from the company office post-pandemic. A stark contrast to Generation Xers: less than a third want to go back to the office post-pandemic, with 40% wanting to work from home going forward.

Yet, according to the study, fear and loneliness are pushing Gen Z back to the office.

   ●      60% cited a lack of human connection being the biggest downside to working remotely, and just over a third (32%) believe long-term home working will lead to a lack of progression or career advancement.

In a bid to level the playing field during the pandemic, many UK companies have been taking a hybrid approach - allowing workers to split their time between home and office during the working week. Yet, according to the study, only 23% of all office workers surveyed showed any interest in working this way post-pandemic.

"The results of this study are so meaningful in the way they show concrete steps any business can take towards adopting a connected culture. It is what employees want,” said Anand Eswaran, president and chief operating officer, RingCentral. "Our company is founded on the power of connecting people. The study validates our belief that harnessing that power leads to a productive and engaged remote workforce, as well as the hybrid workforce we anticipate in the future.”

For more details, read the Connected Culture Report.

Methodology

   ●      CITE Research working with Kaleido Insights conducted an online survey among Knowledge Workers in the US, UK, Canada, and Australia.

   ●      Total of 4,000 surveys were completed among Knowledge Workers (N=1000 per country).

   ●      Research was conducted between July 15-July 23, 2020.

   ●      Screening criteria:

          ○      Workers on a laptop or computer always

          ○      Collaborates with others constantly or sometimes

          ○      Works at a company with at least 2 employees

          ○      Ages 18+ although 35-44 was most common response group

          ○      53% are in a detached, single family home

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, Message Video Phone, and the RingCentral logo are trademarks of RingCentral, Inc.

 

November 9, 2020

RingCentral Appoints Mignon Clyburn to its Board of Directors

BELMONT, Calif. — November 9, 2020 RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that Mignon Clyburn has been appointed to the company’s board of directors. Clyburn served as a Commissioner of the U.S. Federal Communications Commission from 2009 to 2018, including as acting chair. 

“Mignon is an accomplished leader with a successful track record in many different fields. She has been a tireless advocate for addressing the digital divide and promoting diversity and inclusion. We’re delighted she is bringing all those incredible experiences and insights to RingCentral,” said Vlad Shmunis, founder, chairman, and CEO, RingCentral. “I am looking forward to her contributions as we continue to grow RingCentral and scale around the world.”

“It’s great to be joining the RingCentral board at such an important time for cloud-based communications,” said Clyburn. “Cloud business communications solutions are more critical than ever to help people work productively from anywhere, while enabling organizations to be successful and contributing to our economic recovery. RingCentral is at the heart of leading this technology trend, and I’m looking forward to working with my fellow board members.”

Previously, Ms. Clyburn served as a Commissioner of the U.S. Federal Communications Commission (the “FCC”) from 2009 to 2018, including as acting chair. While at the FCC, she was committed to closing the digital divide and championed the modernization of the agency’s Lifeline Program, which assists low-income consumers with voice and broadband service. In addition, Ms. Clyburn promoted diversity in media ownership, initiated Inmate Calling Services reforms, supported inclusion in STEM opportunities and fought for an Open Internet. Prior to her federal appointment, Ms. Clyburn served 11 years on the Public Service Commission of South Carolina and worked for nearly 15 years as publisher of the Coastal Times, a Charleston weekly newspaper focused on the African American community.

Ms. Clyburn is President of MLC Strategies, LLC, a Washington, D.C.-based consulting firm, a position she has held since January 2019. Ms. Clyburn is also a board director and member of the Compensation Committee and Nominating and Corporate Governance Committee of Charah Solutions, Inc. (NYSE: CHRA) since March 2019. In addition, she has served on the board of directors and as a member of the Nominating and Corporate Governance Committee of Lions Gate Entertainment Corporation (NYSE: LGF.A) since September 2020.
 

About RingCentral
RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©  2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Global Office, RingCentral Global Connect Network, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc.

 

November 9, 2020

BT and RingCentral Extend Partnership to Accelerate Adoption of Cloud-Based Business Communications

London, U.K., & Belmont, Calif. November 9, 2020 – BT, the UK’s leading telecommunications and network provider, and RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced an expanded partnership to accelerate the adoption of cloud-based communications and support the digital transformation of businesses across the UK. Cloud Work provided by RingCentral will be a lead Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) offering for BT with small, medium and large sized UK enterprises, as well as public sector customers.  

Combining the best of BT’s network leadership and resources with RingCentral’s industry-leading technology, Cloud Work provided by RingCentral, brings reliable, trusted and secure cloud-based communications to organizations across the UK. With integrated voice, video, and team messaging capabilities, the solution provides a seamless communications experience for distributed workforces to collaborate effectively and be productive from anywhere, anytime.

“As businesses continue to navigate through the complexities of Covid-19, our extended partnership with RingCentral reinforces a commitment and shared vision of bringing innovative communications solutions to our customers so they can thrive now, and put the right building blocks in place for a successful post-pandemic workplace,” said Ashish Gupta, Chief Operating Officer, BT’s Enterprise Unit. “Every organization is adopting new remote and digital ways of working, with varying degrees of complexity. By collaborating with partners like RingCentral, we’re focused on removing this complexity for our customers to enable a successful digital transformation journey.”

 Key benefits of Cloud Work provided by RingCentral include:

·         Improved flexibility and productivity as workers can connect anytime and from anywhere with a single, integrated team messaging, video and phone solution

·         Single business identity enabling enterprises to manage multiple office locations, create an auto receptionist, route calls, and manage directory listings

·         Seamless integration with all critical business applications and cloud services empowering the workforce to use the cloud and collaborate like never before

·         Access to a professional services support team of industry experts to assist with initial planning, strategic consultations, comprehensive implementation or integration designs, and provide ongoing support and system training.

“Today people need to work and collaborate productively from everywhere, and that’s what we focus on enabling at RingCentral,” said Anand Eswaran, President and Chief Operating Officer, RingCentral. “We’re delighted to extend our partnership with BT to make our solution available to a broader set of BT’s customers and deliver additional productivity, quality, and cloud economies of scale through tighter integration with BT’s leading fixed and wireless network.”

Cloud Work provided by RingCentral will be available through BT’s Account managers (Corporate and Major Corporate), BT Local Businesses, and through dedicated telesales and call centers. Cloud Work service is provided by RingCentral UK, Ltd., a wholly owned subsidiary of RingCentral, Inc.

To learn more about Cloud Work provided by RingCentral, visit https://business.bt.com/products/cloud-work/. To learn more about RingCentral, visit ringcentral.com.

About BT
BT Group is the UK’s leading telecommunications and network provider and a leading provider of global communications services and solutions, serving customers in 180 countries. Its principal activities in the UK include the provision of fixed voice, mobile, broadband and TV (including Sport) and a range of products and services over converged fixed and mobile networks to consumer, business and public sector customers. For its global customers, BT provides managed services, security and network and IT infrastructure services to support their operations all over the world. BT consists of four customer-facing units: Consumer, Enterprise, Global and its wholly-owned subsidiary, Openreach, which provides access network services to over 650 communications provider customers who sell phone, broadband and Ethernet services to homes and businesses across the UK.

For the year ended 31 March 2020, BT Group’s reported revenue was £22,905m with reported profit before taxation of £2,353m.

British Telecommunications plc is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on the London Stock Exchange.

For more information, visit www.bt.com/about.

About RingCentral
RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact centre solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customise business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©  2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Global Office, RingCentral Global Connect Network, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc.

 

November 9, 2020

RingCentral Announces Third Quarter 2020 Results

RingCentral Office® ARR up 36% to $1.1 billion

Subscriptions Revenue up 33%
 

Belmont, Calif. – November 9, 2020RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced financial results for the third quarter ended September 30, 2020.

Third Quarter Financial Highlights

•          Total revenue increased 30% year over year to $304 million.

•          Subscriptions revenue increased 33% year over year to $280 million.

•          Annualized Exit Monthly Recurring Subscriptions (ARR) increased 34% year over year to $1.2 billion.

•          RingCentral Office® ARR increased 36% year over year to $1.1 billion.

•          Mid-market and Enterprise ARR increased 49% year over year to $633 million.

•          Enterprise ARR increased 55% year over year to $401 million.

•          Channel ARR increased 59% year over year to $419 million.

“We delivered a solid third quarter driven by strong new logo momentum across SMB, mid-market, and enterprise sized businesses and continued contributions from channel partners,” said Vlad Shmunis, RingCentral’s founder, chairman and CEO. “We are excited to add Alcatel-Lucent Enterprise and expand our relationship with BT as we further expand and deepen our unique global distribution network. We believe our customers and partners are embracing RingCentral’s differentiated Message Video Phone (MVP) cloud platform as a go forward staple of their digital transformation journeys.”

Financial Results for the Third Quarter 2020

•          Revenue: Subscriptions revenue of $280 million increased 33% year over year and accounted for 92% of total revenue. Other revenue of $24 million increased 7% year over year, reflecting higher adoption of RingCentral apps in the current work from anywhere environment. Total revenue was $304 million for the third quarter of 2020, up from $233 million in the third quarter of 2019, representing 30% growth.

•          Operating Income (Loss): GAAP operating loss was ($30) million, compared to a GAAP operating loss of ($11) million in the same period last year, primarily driven by higher share-based compensation and amortization of acquisition intangibles. Non-GAAP operating income was $31 million, compared to a non-GAAP operating income of $22 million in the same period last year.

•          Net Income (Loss) Per Share: GAAP net loss per diluted share was ($0.24), compared to ($0.15) in the same period last year, primarily driven by higher share-based compensation, amortization of acquisition intangibles, and amortization of debt discount and issuance costs, offset by gains associated with investments and strategic partnerships. Non-GAAP net income per diluted share was $0.26, compared to $0.22 per diluted share in the same period last year. The third quarters of 2020 and 2019 reflected a 22.5% non-GAAP tax rate. There were no material cash taxes given our net operating loss carryforwards.

•          Cash and Cash Equivalents: Total cash and cash equivalents at the end of the third quarter of 2020 was $746 million, which reflects a one-time payment related to our recent strategic partnership for exclusive access, a minimum seat commitment, and future commissions. This compares to $774 million at the end of the second quarter of 2020.

Additional Highlights

RingCentral Video

•          Announced that RingCentral has released more than 70 new features to RingCentral Video  since it launched in April 2020. Key innovations include security enhancements, waiting rooms, flexible video layouts, participant view pagination, and network quality indicators. We believe this rapid innovation makes business video meetings fast, smart, open, and secure while delivering a great user experience within a browser, with no downloads required, or via mobile or desktop apps, as per user preference. Also announced that RingCentral Video is now available as part of the RingCentral Office® solution in Europe.

•          Based on these innovations, RingCentral Video has been recognized by the Academy of Interactive and Visual Arts with a W3 Gold award in the General Website Applications-Services category. RingCentral Video also received two W3 Silver awards for Best Visual Appeal - Experience and Best Visual Appeal - Utility.

•          Announced RingCentral Rooms for Poly, bringing the power and ease-of-use of RingCentral Video to every work space. Designed for a flexible and hybrid workforce, the powerful and intuitive RingCentral Rooms service will be built into the simple Poly Studio X all-in-one video bars.

MVP Platform

•          Announced a new high-volume SMS service that enables businesses to send SMS messages and updates to their customers rapidly and reliably. Using this service, developers can build customized apps using RingCentral’s business communications platform for use cases such as mass marketing, automated messages, notifications, customer polls/surveys, chatbots, Two-Factor Authentication (2FA), and One Time Passwords (OTP).

•          Announced that RingCentral is now featured in the new Amazon Web Services (AWS) Activate Console Exclusive Offers program. This means startups building on AWS can now access customized, discounted offers on RingCentral Office® directly through the AWS Activate Console.

•          Announced that RingCentral Global Office will be available in six continents including Africa, Asia, Australia, Europe, North America, and South America, with expansion into several countries including Estonia, Greece, Lithuania, Slovenia, and South Africa. Also announced RingCentral’s unified communications platform will now be available in Germany with a new datacenter in Frankfurt, and a new office in Hamburg, Germany.

Strategic Partnerships

•          Announced a strategic partnership with Alcatel-Lucent Enterprise to introduce a new co-branded cloud solution - Rainbow Office powered by RingCentral - making it unique and exclusive for Alcatel-Lucent Enterprise. RingCentral and Alcatel-Lucent Enterprise will jointly develop programs enabling both companies to lead the cloud communications services for the enterprise market.

•          In partnership with Atos SE, launched Unify Office by RingCentral in Germany and its strong partner community of 800 partners, as well as in France, Austria, Belgium, Ireland, Italy, Spain and the Netherlands.

•          Announced expansion of Avaya Cloud Office by RingCentral® across Europe, with general availability in France, Ireland, and the Netherlands. In addition, announced several new ACO capabilities including additional network performance and quality controls, admin and security controls, and adoption and usage analytics.

Financial

•          Issued $650 million aggregate principal amount of 0% Convertible Senior Notes due 2026 priced with a 52.5% conversion premium to the last reported sale price per share of RingCentral’s Class A common stock on September 10, 2020 (‘last reported price’). We also purchased a capped call in conjunction with these Notes with a cap price of approximately $556 per share, representing a premium of 100% over the last reported price.

Financial Outlook

Full Year 2020 Guidance:

•          Raising subscriptions revenue range to $1.070 to $1.072 billion, representing annual growth of 31%. This is up from our prior range of $1.043 to $1.048 billion and annual growth of 28%.

•          Raising total revenue range to $1.164 to $1.167 billion, representing annual growth of 29%. This is up from our prior range of $1.135 to $1.143 billion and annual growth of 26% to 27%.

•          GAAP operating margin range of (9.9%) to (9.8%), up from our prior range of (10.8%) to (10.1%).

•          Non-GAAP operating margin of 9.7%, up from our prior range of 9.6% to 9.7%.

•          Non-GAAP tax rate for 2020 assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.

•          Raising non-GAAP EPS to $0.96 based on 93 million fully diluted shares. This is up from our prior range of $0.92 to $0.94.

•          Share-based compensation range of $190 to $191 million, amortization of debt discount and issuance costs of $49 million, amortization of acquisition intangibles of $34 million, and acquisition related matters of approximately $2.6 million.

Fourth Quarter 2020 Guidance:

•          Subscriptions revenue range of $290.5 to $292.5 million, representing annual growth of 27% to 28%.

•          Total revenue range of $315 to $318 million, representing annual growth of 25% to 26%.

•          GAAP operating margin range of (9.8%) to (9.2%).

•          Non-GAAP operating margin range of 10.0% to 10.1%.

•          Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.

•          Non-GAAP EPS range of $0.26 to $0.27 based on 93 million fully diluted shares.

•          Share-based compensation range of $53 to $54 million, amortization of debt discount and issuance costs of $16 million, and amortization of acquisition intangibles of $8.5 million.

For a reconciliation of our forecasted non-GAAP operating margin, see “Reconciliation of Forecasted Operating Margin GAAP Measures to Non-GAAP Measures.” We have not reconciled our forecasted non-GAAP EPS to its respective forecasted GAAP measure because we do not provide guidance on it. We do not provide guidance on forecasted GAAP EPS because of the inherent uncertainty and complexity involved in forecasting the intercompany remeasurement gain (loss), gain (loss) associated with investments and strategic partnerships, and provision (benefit) from income taxes, which could be significant reconciling items between the non-GAAP and respective GAAP measures. The intercompany remeasurement gain (loss) is affected by the movement in various exchange rates relative to the U.S. Dollar, which is difficult to predict and subject to constant change. We do not provide guidance on gain (loss) associated with investments and strategic partnerships as it is based on future share prices, which are difficult to predict and subject to inherent uncertainties. We do not provide guidance on gain (loss) on debt early conversions as it is based on future conversion requests, future share prices, and interest rates, which are difficult to predict and are subject to inherent uncertainties. We do not provide guidance on forecasted GAAP tax rates as we do not forecast discrete tax items as they are difficult to predict. The provision (benefit) from income taxes, excluding discrete items, is expected to have an immaterial impact to our GAAP EPS. We utilized a projected long-term tax rate in our computation of the non-GAAP income tax provision. For fiscal 2020, we have determined the projected non-GAAP tax rate to be 22.5%.  Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.

Conference Call Details:

•          What:  RingCentral financial results for the third quarter of 2020 and outlook for the fourth quarter and full year of 2020.

•          When:  Monday, November 9, 2020 at 2:00PM PT (5:00PM 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 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:  Following the completion of the call through 11:59 PM ET on November 16, 2020, a telephone replay will be available by dialing (844) 512-2921 from the United States or (412) 317-6671 internationally with recording access code 13711153.

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at http://ir.ringcentral.com/.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Office, RingCentral Video, Message Video Phone, and the RingCentral logo are trademarks of RingCentral, Inc.

Forward-Looking Statements

This press release contains “forward-looking statements,” including but not limited to, statements regarding our future financial results, our GAAP and non-GAAP guidance, our momentum in SMB, mid-market and enterprise, contributions from channel partners, the success of our RCV solution, the success of our strategic relationships, such as our relationships with Avaya, Atos, Alcatel-Lucent Enterprise, and BT, our ability to expand and deepen our global distribution network, our market opportunity, and the effects of the COVID-19 pandemic. Forward-looking statements are subject to known and unknown risks and uncertainties, and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those in any forward-looking statements are: the future effects of the COVID-19 pandemic, our ability to realize the anticipated benefits of our strategic relationships, such as our relationships with Avaya, Atos, Alcatel-Lucent Enterprise, and BT; our ability to grow at our expected rate of growth; our ability to add and retain larger and enterprise customers and enter new geographies and markets; our ability to continue to release, and gain customer acceptance of, new and improved versions of our services, including RCV; our ability to compete successfully against existing and new competitors; our ability to enter into and maintain relationships with resellers, carriers, channel partners and strategic partners; our ability to successfully and timely integrate, and realize the benefits of any significant acquisition we may make; our ability to manage our expenses and growth; and general market, political, economic, and business conditions, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Form 10-Q for the quarter ended June 30, 2020, filed with the Securities and Exchange Commission, and in other filings we make with the Securities and Exchange Commission from time to time.

All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.

Non-GAAP Financial Measures

Our reported financial results and financial outlook include certain Non-GAAP financial measures, including Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP net cash provided by (used in) operating activities, and non-GAAP free cash flow. Non-GAAP subscriptions gross margin is defined as Non-GAAP subscriptions gross profit divided by GAAP subscriptions revenue. Non-GAAP other gross margin is defined as Non-GAAP other gross profit divided by GAAP other revenue. Non-GAAP income (loss) from operations is defined as GAAP income (loss) from operations excluding share-based compensation, amortization of acquisition intangibles, and acquisition related matters including transaction costs, integration costs, restructuring costs, and acquisition-related retention payments, as well as changes in the fair value of contingent consideration obligations. Non-GAAP operating margin is defined as Non-GAAP income (loss) from operations divided by total GAAP revenue. Non-GAAP net income (loss) is defined as GAAP net income (loss) excluding share-based compensation, intercompany remeasurement gains or losses, acquisition related matters, amortization of acquisition intangibles, non-cash interest expense associated with amortization of debt discount and issuance costs related to our convertible senior notes, gain (loss) associated with investments and strategic partnerships, tax benefit from release of valuation allowance, and the related income tax effect of these adjustments.

Non-GAAP diluted shares outstanding include the impact on shares used in per share calculations of our outstanding capped call transactions. Our outstanding capped call transactions are anti-dilutive in GAAP earnings per share but are expected to mitigate the dilutive effect of our convertible notes and therefore are included in the calculations of non-GAAP diluted shares outstanding.

Non-GAAP net cash provided by (used in) operating activities is defined as net cash provided by (used in) operating activities plus cash paid for repayments of convertible senior notes attributable to debt discount and cash paid for strategic partnerships. Non-GAAP free cash flow is defined as Non-GAAP net cash provided by (used in) operating activities reduced by purchases of property and equipment and capitalized internal-use software. We believe information regarding free cash flow provides useful information to investors in understanding and evaluating the strength of liquidity and available cash.

We have included Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP net cash provided by (used in) operating activities, and Non-GAAP free cash flow in this press release because they are key measures used by us to understand and evaluate our operating performance and trends, to prepare and approve our annual budget, and to develop short and long-term operational plans. In particular, the exclusion of certain expenses and cash flow items in calculating Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP net cash provided by (used in) operating activities, and Non-GAAP free cash flow provide useful measure for period-to-period comparisons of our business.

Although Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP net cash provided by (used in) operating activities, and Non-GAAP free cash flow are frequently used by investors in their evaluations of companies, these non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered alongside other financial performance measures.

Reconciliations of the Company’s non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release.

Other Measures

Our reported results also include our annualized exit monthly recurring subscriptions, RingCentral Office® annualized exit monthly recurring subscriptions, mid-market and enterprise annualized exit monthly recurring subscriptions, enterprise annualized exit monthly recurring subscriptions, channel partner annualized exit monthly recurring subscriptions, and net monthly subscriptions dollar retention. We define our annualized exit monthly recurring subscriptions as our monthly recurring subscriptions multiplied by 12. Our monthly recurring subscriptions equal the monthly value of all customer recurring charges contracted at the end of a given month. We believe this metric is a leading indicator of our anticipated subscriptions revenue. We calculate our RingCentral Office® annualized exit monthly recurring subscriptions in the same manner as we calculate our annualized exit monthly recurring subscriptions, except that only customer subscriptions from RingCentral Office® and RingCentral customer engagement solutions customers are included when determining monthly recurring subscriptions for the purposes of calculating this key business metric. We calculate mid-market and enterprise annualized exit monthly recurring subscriptions in the same manner as we calculate our RingCentral Office® annualized exit monthly recurring subscriptions, except that only customer subscriptions from customers generating $25,000 or more in annual recurring revenue are included. We calculate enterprise annualized exit monthly recurring subscriptions in the same manner as we calculate our RingCentral Office® annualized exit monthly recurring subscriptions, except that only customer subscriptions from customers generating $100,000 or more in annual recurring revenue are included. We calculate channel partner annualized exit monthly recurring subscriptions in the same manner as we calculate our annualized exit monthly revenue subscriptions, except that only customer subscriptions generated from channel partners are included. We define Dollar Net Change as the quotient of (i) the difference of our Monthly Recurring Subscriptions at the end of a period minus our Monthly Recurring Subscriptions at the beginning of a period minus our Monthly Recurring Subscriptions at the end of the period from new customers we added during the period, (ii) all divided by the number of months in the period. We define our Average Monthly Recurring Subscriptions as the average of the Monthly Recurring Subscriptions at the beginning and end of the measurement period.

 

TABLE 1
RINGCENTRAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
       

 

September 30, 2020

 

December 31, 2019

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$745,558

 

 

 

$343,606

 

 

Accounts receivable, net

153,583

 

 

129,990

 

Deferred and prepaid sales commission costs

53,212

 

 

36,589

 

Prepaid expenses and other current assets

40,251

 

 

25,354

 

Total current assets

992,604

 

 

535,539

 

Property and equipment, net

132,967

 

 

89,230

 

Operating lease right-of-use assets

50,414

 

 

39,269

 

Long-term investments

173,641

 

 

132,188

 

Deferred and prepaid sales commission
costs, non-current

599,759

 

 

462,344

 

Goodwill

56,223

 

 

55,278

 

Acquired intangibles, net

101,894

 

 

127,338

 

Other assets

8,812

 

 

9,561

 

Total assets

$2,116,314

 

 

 

$1,450,747

 

 

Liabilities, Temporary Equity, and Stockholders’ Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$38,002

 

 

 

$34,612

 

 

Accrued liabilities

189,555

 

 

138,729

 

Current portion of convertible senior notes, net

14,156

 

 

 

Deferred revenue

127,500

 

 

107,372

 

Total current liabilities

369,213

 

 

280,713

 

Convertible senior notes, net

1,394,898

 

 

386,889

 

Operating lease liabilities

37,973

 

 

28,516

 

Other long-term liabilities

14,555

 

 

8,929

 

Total liabilities

1,816,639

 

 

705,047

 

 

 

 

 

Temporary equity

1,934

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

Common stock

9

 

 

9

 

Additional paid-in capital

664,689

 

 

1,033,053

 

Accumulated other comprehensive income

3,522

 

 

1,948

 

Accumulated deficit

(370,479)

 

 

(289,310)

 

Total stockholders’ equity

$297,741

 

 

 

$745,700

 

 

Total liabilities, temporary equity and stockholders’ equity

$2,116,314

 

 

 

$1,450,747

 

 

 

TABLE 2
RINGCENTRAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)

 

       

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2020

 

2019

 

2020

 

2019

Revenues

 

 

 

 

 

 

 

Subscriptions

$

279,639

 

 

$

210,906

 

 

$

779,781

 

 

$

588,406

 

Other

23,985

 

 

22,446

 

 

69,340

 

 

61,587

 

Total revenues

303,624

 

 

233,352

 

 

849,121

 

 

649,993

 

Cost of revenues

 

 

 

 

 

 

 

Subscriptions

60,531

 

 

40,930

 

 

169,685

 

 

114,343

 

Other

21,783

 

 

18,775

 

 

62,710

 

 

49,827

 

Total cost of revenues

82,314

 

 

59,705

 

 

232,395

 

 

164,170

 

Gross profit

221,310

 

 

173,647

 

 

616,726

 

 

485,823

 

Operating expenses

 

 

 

 

 

 

 

Research and development

48,481

 

 

35,286

 

 

132,910

 

 

97,705

 

Sales and marketing

152,986

 

 

109,882

 

 

421,931

 

 

313,023

 

General and administrative

49,513

 

 

39,142

 

 

146,381

 

 

100,401

 

Total operating expenses

250,980

 

 

184,310

 

 

701,222

 

 

511,129

 

Loss from operations

(29,670)

 

 

(10,663)

 

 

(84,496)

 

 

(25,306)

 

Other income (expense), net

 

 

 

 

 

 

 

Interest expense

(12,680)

 

 

(5,160)

 

 

(32,780)

 

 

(15,280)

 

Other income, net

21,824

 

 

2,926

 

 

36,910

 

 

9,118

 

Other income (expense), net

9,144

 

 

(2,234)

 

 

4,130

 

 

(6,162)

 

Loss before income taxes

(20,526)

 

 

(12,897)

 

 

(80,366)

 

 

(31,468)

 

Provision for (benefit from) income taxes

431

 

 

(148)

 

 

803

 

 

(3,118)

 

Net loss

$

(20,957)

 

 

$

(12,749)

 

 

$

(81,169)

 

 

$

(28,350)

 

Net loss per common share

 

 

 

 

 

 

 

Basic and diluted

$

(0.24)

 

 

$

(0.15)

 

 

$

(0.92)

 

 

$

(0.34)

 

Weighted-average number of shares used in computing net loss per share

 

 

 

 

 

 

 

Basic and diluted

89,173

 

 

83,283

 

 

88,259

 

 

82,348

 

 

TABLE 3
RINGCENTRAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

   

 

Nine Months Ended
September 30,

 

2020

 

2019

Cash flows from operating activities

 

 

 

Net loss

$(81,169)

 

 

 

$(28,350)

 

 

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization

53,563

 

 

26,060

 

Share-based compensation

137,410

 

 

71,690

 

Amortization of deferred and prepaid sales commission costs

33,060

 

 

21,189

 

Amortization of debt discount and issuance costs

32,613

 

 

15,149

 

Loss on early extinguishment of debt

12,323

 

 

 

Repayment of convertible senior notes attributable to debt discount

(32,640)

 

 

 

Reduction of operating lease right-of-use assets

11,478

 

 

10,166

 

Unrealized gain and other related costs on investments

(41,453)

 

 

 

Foreign currency remeasurement (gain) loss

63

 

 

61

 

Provision for bad debt

3,909

 

 

2,339

 

Deferred income taxes

(267)

 

 

(632)

 

Tax benefit from release of valuation allowance

 

 

(3,210)

 

Other

203

 

 

1,925

 

Changes in assets and liabilities:

 

 

 

Accounts receivable

(27,502)

 

 

(24,845)

 

Deferred and prepaid sales commission costs

(183,745)

 

 

(51,467)

 

Prepaid expenses and other current assets

(14,613)

 

 

(8,125)

 

Other assets

322

 

 

400

 

Accounts payable

5,180

 

 

10,626

 

Accrued liabilities

41,530

 

 

22,432

 

Deferred revenue

20,128

 

 

16,632

 

Operating lease liabilities

(11,019)

 

 

(10,507)

 

Other liabilities

7,919

 

 

(525)

 

Net cash (used in) provided by operating activities

(32,707)

 

 

71,008

 

Cash flows from investing activities

 

 

 

Purchases of property and equipment

(33,992)

 

 

(21,355)

 

Capitalized internal-use software

(28,049)

 

 

(11,472)

 

Cash paid for business combination, net of cash acquired

 

 

(27,870)

 

Net cash used in investing activities

(62,041)

 

 

(60,697)

 

Cash flows from financing activities

 

 

 

Proceeds from issuance of convertible senior notes, net of issuance costs

1,627,209

 

 

 

Payments for 2023 convertible senior notes partial repurchase

(1,019,813)

 

 

 

Payments for capped calls and transaction costs

(102,695)

 

 

 

Proceeds from issuance of stock in connection with stock plans

24,123

 

 

17,590

 

Payments for taxes related to net share settlement of equity awards

(27,698)

 

 

(10,244)

 

Payment for contingent consideration for business acquisition

(3,548)

 

 

 

Repayment of financing obligations

(1,215)

 

 

(943)

 

Net cash provided by financing activities

496,363

 

 

6,403

 

Effect of exchange rate changes

337

 

 

(380)

 

Net increase (decrease) in cash, cash equivalents and restricted cash

401,952

 

 

16,334

 

Cash, cash equivalents and restricted cash

 

 

 

Beginning of period

343,606

 

 

566,329

 

End of period

$745,558

 

 

 

$582,663

 

 

 

TABLE 4
RINGCENTRAL, INC.
RECONCILIATION OF OPERATING INCOME (LOSS)
GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited, in thousands)

       

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2020

 

2019

 

2020

 

2019

Revenues

 

 

 

 

 

 

 

Subscriptions

$279,639

 

 

 

$210,906

 

 

 

$779,781

 

 

 

$588,406

 

 

Other

23,985

 

 

22,446

 

 

69,340

 

 

61,587

 

Total revenues

303,624

 

 

233,352

 

 

849,121

 

 

649,993

 

Cost of revenues reconciliation

 

 

 

 

 

 

 

GAAP Subscriptions cost of revenues

60,531

 

 

40,930

 

 

169,685

 

 

114,343

 

Share-based compensation

(2,871)

 

 

(1,759)

 

 

(7,623)

 

 

(4,796)

 

Amortization of acquisition intangibles

(7,577)

 

 

(1,338)

 

 

(22,950)

 

 

(3,688)

 

Acquisition related matters

 

 

 

 

 

 

(64)

 

Non-GAAP Subscriptions cost of revenues

50,083

 

 

37,833

 

 

139,112

 

 

105,795

 

 

 

 

 

 

 

 

 

GAAP Other cost of revenues

21,783

 

 

18,775

 

 

62,710

 

 

49,827

 

Share-based compensation

(976)

 

 

(592)

 

 

(2,796)

 

 

(1,316)

 

Non-GAAP Other cost of revenues

20,807

 

 

18,183

 

 

59,914

 

 

48,511

 

Gross profit and gross margin reconciliation

 

 

 

 

 

 

 

Non-GAAP Subscriptions

82.1%

 

 

82.1%

 

 

82.2%

 

 

82.0%

 

Non-GAAP Other

13.2%

 

 

19.0%

 

 

13.6%

 

 

21.2%

 

Non-GAAP Gross profit

76.7%

 

 

76.0%

 

 

76.6%

 

 

76.3%

 

Operating expenses reconciliation

 

 

 

 

 

 

 

GAAP Research and development

48,481

 

 

35,286

 

 

132,910

 

 

97,705

 

Share-based compensation

(10,679)

 

 

(6,230)

 

 

(27,918)

 

 

(16,000)

 

Acquisition related matters

 

 

 

 

 

 

(352)

 

Non-GAAP Research and development

37,802

 

 

29,056

 

 

104,992

 

 

81,353

 

As a % of total revenues non-GAAP

12.5%

 

 

12.5%

 

 

12.4%

 

 

12.5%

 

 

 

 

 

 

 

 

 

GAAP Sales and marketing

152,986

 

 

109,882

 

 

421,931

 

 

313,023

 

Share-based compensation

(17,552)

 

 

(10,182)

 

 

(45,165)

 

 

(27,589)

 

Amortization of acquisition intangibles

(959)

 

 

(931)

 

 

(2,819)

 

 

(2,791)

 

Acquisition related matters

 

 

(499)

 

 

4

 

 

(2,109)

 

Non-GAAP Sales and marketing

134,475

 

 

98,270

 

 

373,951

 

 

280,534

 

As a % of total revenues non-GAAP

44.3%

 

 

42.1%

 

 

44.0%

 

 

43.2%

 

 

 

 

 

 

 

 

 

GAAP General and administrative

49,513

 

 

39,142

 

 

146,381

 

 

100,401

 

Share-based compensation

(19,488)

 

 

(8,613)

 

 

(53,908)

 

 

(21,989)

 

Acquisition related matters

(420)

 

 

(2,183)

 

 

(2,576)

 

 

(3,008)

 

Non-GAAP General and administrative

29,605

 

 

28,346

 

 

89,897

 

 

75,404

 

As a % of total revenues non-GAAP

9.8%

 

 

12.1%

 

 

10.6%

 

 

11.6%

 

Income (loss) from operations reconciliation

 

 

 

 

 

 

 

GAAP loss from operations

(29,670)

 

 

(10,663)

 

 

(84,496)

 

 

(25,306)

 

Share-based compensation

51,566

 

 

27,376

 

 

137,410

 

 

71,690

 

Amortization of acquisition intangibles

8,536

 

 

2,269

 

 

25,769

 

 

6,479

 

Acquisition related matters

420

 

 

2,682

 

 

2,572

 

 

5,533

 

Non-GAAP Income from operations

30,852

 

 

21,664

 

 

81,255

 

 

58,396

 

Non-GAAP Operating margin

10.2%

 

 

9.3%

 

 

9.6%

 

 

9.0%

 

 

TABLE 5
RINGCENTRAL, INC.
RECONCILIATION OF NET INCOME (LOSS)
GAAP MEASURES TO NON-GAAP MEASURES
(In thousands, except per share data) (Unaudited)

       

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2020

 

2019

 

2020

 

2019

Net income (loss) reconciliation

 

 

 

 

 

 

 

GAAP net loss

$(20,957)

 

 

 

$(12,749)

 

 

 

$(81,169)

 

 

 

$(28,350)

 

 

Share-based compensation

51,566

 

 

27,376

 

 

137,410

 

 

71,690

 

Amortization of acquisition intangibles

8,536

 

 

2,269

 

 

25,769

 

 

6,479

 

Acquisition related matters

420

 

 

2,682

 

 

2,572

 

 

5,533

 

Amortization of debt discount and issuance costs

12,595

 

 

5,118

 

 

32,613

 

 

15,149

 

Gain associated with investments and strategic partnerships

(26,447)

 

 

 

 

(47,805)

 

 

 

Loss on early extinguishment of debt

5,116

 

 

 

 

12,323

 

 

 

Intercompany remeasurement (gain) loss

(121)

 

 

340

 

 

416

 

 

264

 

Income tax expense effects (1)

(6,575)

 

 

(5,751)

 

 

(17,857)

 

 

(18,341)

 

Non-GAAP net income

$24,133

 

 

 

$19,285

 

 

 

$64,272

 

 

 

$52,424

 

 

Reconciliation between GAAP and non-GAAP weighted average shares used in computing basic and diluted net income (loss) per common share:

 

 

 

 

 

 

 

Weighted average number of shares used
in computing basic net (loss) income per share

89,173

 

 

83,283

 

 

88,259

 

 

82,348

 

Effect of dilutive securities

3,751

 

 

5,127

 

 

4,577

 

 

5,263

 

Non-GAAP weighted average shares used
in computing non-GAAP diluted net income per share

92,924

 

 

88,410

 

 

92,836

 

 

87,611

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share

 

 

 

 

 

 

 

GAAP net loss per share

$(0.24)

 

 

 

$(0.15)

 

 

 

$(0.92)

 

 

 

$(0.34)

 

 

Non-GAAP net income per share

$0.26

 

 

 

$0.22

 

 

 

$0.69

 

 

 

$0.60

 

 

(1) Income tax expense effects for the nine months ended September 30, 2019 include the tax benefit from release of valuation allowance.

 

TABLE 6
RINGCENTRAL, INC.
RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
GAAP MEASURES TO NON-GAAP FREE CASH FLOW MEASURES
(Unaudited, in thousands)

   

 

Nine Months Ended
September 30,

 

2020

 

2019

Net cash (used in) provided by operating activities

$(32,707)

 

 

 

$71,008

 

 

Strategic partnerships

100,000

 

 

 

Repayment of convertible senior notes attributable
to debt discount

32,640

 

 

 

Non-GAAP net cash provided by operating activities

99,933

 

 

71,008

 

Purchases of property and equipment

(33,992)

 

 

(21,355)

 

Capitalized internal-use software

(28,049)

 

 

(11,472)

 

Non-GAAP free cash flow

$37,892

 

 

 

$38,181

 

 

 

TABLE 7
RINGCENTRAL, INC.
RECONCILIATION OF FORECASTED OPERATING MARGIN
GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited, in millions)

       

 

Q4 2020

 

FY 2020

 

Low Range

 

High Range

 

Low Range

 

High Range

GAAP revenues

315.0

 

 

318.0

 

 

1,164.1

 

 

1,167.1

 

 

 

 

 

 

 

 

 

GAAP loss from operations

(31.0)

 

 

(29.4)

 

 

(115.5)

 

 

(113.9)

 

GAAP operating margin

(9.8%)

 

 

(9.2%)

 

 

(9.9%)

 

 

(9.8%)

 

Share-based compensation

54.0

 

 

53.0

 

 

191.4

 

 

190.4

 

Amortization of acquisition
intangibles

8.5

 

 

8.5

 

 

34.3

 

 

34.3

 

Acquisition related matters

 

 

 

 

2.6

 

 

2.6

 

Non-GAAP income from operations

31.5

 

 

32.1

 

 

112.8

 

 

113.4

 

Non-GAAP operating margin

10.0%

 

 

10.1%

 

 

9.7%

 

 

9.7%

 

 

View source version on businesswire.com

https://www.businesswire.com/news/home/20201109006086/en/

 

October 13, 2020

RingCentral Announces Expansion of RingCentral Global Office Across Six Continents with Unified Team Messaging, Video Meetings, and Cloud Phone System

London, United Kingdom – October 13, 2020RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact centre solutions, today announced that RingCentral Global Office™ a unified solution that includes team messaging, video meetings, and a cloud phone system will be available in six continents including Africa, Asia, Australia, Europe, North America, and South America. RingCentral is also announcing expansion into several countries -- Estonia, Greece, Lithuania, Slovenia, and South Africa. 

RingCentral Global Office enables businesses to connect their mobile and distributed workforces across multiple countries with local phone numbers, PSTN access, and other capabilities. The unique capabilities available to customers include: 

  1. Licensing and Regulatory: Manages regulatory challenges on behalf of customers, enabling them to operate in compliance with local laws and regulations 

  2. Emergency Services: Automatically provides the caller's location to emergency dispatchers

  3. Security and Compliance: Provides robust security measures at every level of the architecture and processes, and support for regional certifications and frameworks such as ISO 27001, UK Cyber Essentials and complies with the German requirements of Cloud Computing Compliance Controls Catalog (C5)

  4. Quality of Service and Service Level Agreement (SLA): Enables access to key operational Quality of Service metrics in near real-time to monitor the phone system's global health and proactively diagnose and troubleshoot issues, backed by an industry-leading 99.999 percent SLA 

  5. Language localization: Enables users to seamlessly change language settings, setup multilingual IVRs, receive localised voice prompts, and more in over 10 languages

"When you expand a unified communications platform globally, it’s critical you meet all the local regulatory compliance, security, and Service Level Agreement (SLA) needs of those countries,” said Anand Eswaran, president and chief operating officer, RingCentral. “With RingCentral, customers can rest assured that they will get all the key capabilities to keep their global teams and customers connected. We are helping our customers move from legacy on-premise communications systems to the cloud with all the inherent benefits of reduced costs, higher flexibility, and increased capabilities.”

RingCentral offers its services via its cloud-based RingCentral Global Connect Network™, a redundant service delivery architecture built from the ground up and interconnects directly with service providers enabling RingCentral to provide carrier-grade reliability and quality of service globally. The RingCentral Global Connect Network is a purpose-built framework with the carrier peering relationships necessary to provide local service in various countries. By handling the interconnects directly, RingCentral removes the burden on enterprise customers of setting up and managing on-premise systems in other countries. Unlike other cloud competitors, RingCentral does not lease lines or outsource service delivery to third parties.

For customers who have a presence in multiple countries, they have traditionally had the complex problem of managing multiple legacy phone systems and multiple carrier relationships. RingCentral eliminates the need for businesses having to manage this complexity with its single global platform. Customers can also leverage Bring Your Own Carrier (BYOC)  in most of the world, which offers the customer flexibility to use another PSTN provider to power their RingCentral solutions. This brings the added benefit of extending RingCentral services to additional countries, flexible migration to the cloud at the customer’s pace, and the ability to leverage existing carrier contracts.

About RingCentral
RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact centre solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customise business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©  2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Global Office, RingCentral Global Connect Network, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc.

 

September 30, 2020

Atos and RingCentral Launch Unify Office by RingCentral in Germany

Paris, France and Belmont, Calif.– September 30, 2020 – Atos SE (CAC40: ATO), a global leader in digital transformation and RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced the launch of Unify Office by RingCentral in Germany.

Unify Office by RingCentral combines the very latest Unified Communications as a Service (UCaaS) technology with the knowledge and insights of the German communications market from Atos and its strong partner community of 800 partners. The result is a unique set of capabilities that will enable German organizations to communicate and collaborate effectively from anywhere, on any device, using any mode.

Ursula Morgenstern, Atos Germany CEO, commented, “Atos has been at the forefront of Communications and Collaboration technology in Germany for many years. To be able to bring the world leader in UCaaS to Germany and tailor Unify Office to this market is an honor. RingCentral’s RCause signature Corporate Social Responsibility Program aligns perfectly with our own vision of a decarbonized digital future.”

Unify Office by RingCentral enables employees to leverage Message, Video, and Phone system capabilities and several out-of-the-box integrations with business applications they love so businesses can remain connected and productive from anywhere, as they continue to adapt to the new ways of working.

“We’re excited to see Atos bring the very latest business communications technology to Germany with Unify Office by RingCentral. With Atos, we have a market leading partner who knows the German unified communications and collaboration market,” said Sahil Rekhi, vice president, Global Strategic Partnerships, RingCentral. “Together with Atos, we are offering users a custom-built solution that will give them access to leading cloud communications technology, enabling them to stay connected and remain productive from anywhere and on any device.”

Unify Office by RingCentral offers customers several benefits including:

  • Data Residency: All customer data will reside in RingCentral’s Frankfurt datacenter ensuring the highest data protection, residency, and back up standards. The datacenter is supplied by 100 percent renewable energy.
  • Language support: 24/7 365 day German language support by Atos to meet local customer needs.
  • Seamless migration: Atos unified cloud communications and collaboration offers customers a dedicated product management team to ensure seamless migration from existing Atos Unify products to Unify Office by RingCentral and feature parity.
  • Security and Reliability: Unify Office by RingCentral offers a safe, stable, and secure solution with more than 20 years of product development behind it, 24/7 platform monitoring and 99.999 percent uptime SLA guaranteed.
  • Global footprint: Unify Office enables customers to deploy a single global solution across more than 40 countries without the need to deploy multiple on-premise systems. Solution is localized in more than 10 languages.

Unify Office by RingCentral will be available directly from Atos at www.unifyoffice.com as well as leading local Atos Unify partners including KOMSA, Herweck and ALSO.

Purchasing association Gemeinschaft Fernmelde-Technik eG  (GFT) will support their partners with test access to Unify Office by RingCentral to familiarize them with the solution and aid onboarding. “We’re proud to be a launch partner for Unify Office by RingCentral in Germany. Its transformational capabilities will offer our partners and customers new ways of creating integrated digital workplaces,” said Rudolf Saken, Sprecher des Vorstands der GFT.

About Atos
Atos is a global leader in digital transformation with 110,000 employees in 73 countries and annual revenue of € 12 billion. European number one in Cloud, Cybersecurity and High-Performance Computing, the Group provides end-to-end Orchestrated Hybrid Cloud, Big Data, Business Applications and Digital Workplace solutions. The Group is the Worldwide Information Technology Partner for the Olympic & Paralympic Games and operates under the brands Atos, Atos|Syntel, and Unify. Atos is a SE (Societas Europaea), listed on the CAC40 Paris stock index.

The purpose of Atos is to help design the future of the information space. Its expertise and services support the development of knowledge, education and research in a multicultural approach and contribute to the development of scientific and technological excellence. Across the world, the Group enables its customers and employees, and members of societies at large to live, work and develop sustainably, in a safe and secure information space.

About RingCentral
RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©  2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

 

September 29, 2020

Avaya and RingCentral Announce Expansion of Unified Cloud Communications Offering – Avaya Cloud Office™ – Across Europe to Keep Businesses Productive

London, United Kingdom, –September 29, 2020 –  Avaya Holdings Corp. (NYSE: AVYA) and RingCentral Inc. (NYSE: RNG) today announced the expansion of Avaya Cloud OfficeTM by RingCentral® across Europe, with the solution now generally available in France, Ireland, and the Netherlands. In addition, the companies also announced that they have signed their first seven-figure deal with a large United Kingdom-based Government customer.

This geographic expansion of Avaya Cloud Office follows the launch of the solution in Canada, the United Kingdom, and Australia in June and the United States in March. Since then, the solution has seen uptake continue to accelerate, with a growing number of new customers being signed across every country in which Avaya Cloud Office is available.

“It is now more important than ever before that vendors in UC&C are able to provide UCaaS for clients both new and potential,” said Oru Mohiuddin, Research Manager Enterprise Communications & Collaboration, IDC. “According to the IDC Europe forecast1, UCaaS will grow at a compounded annual growth rate of 23.3 percent between 2019 and 2023, higher than 17.1 percent as anticipated during the pre-COVID-19 period. Avaya Cloud Office is now available in France, Ireland, and the Netherlands and follows the success that Avaya has seen in North America, Australia, and other European countries. This is to facilitate remote collaboration as working from home becomes the new norm in the post-crisis period. It is, however, not just enough to provide UCaaS – it needs to be customizable, flexible, modular, agile, frictionless, scalable, omnichannel, and secure to cater to the varying needs of enterprises.”

Following today’s announcement, organizations in France, Ireland and the Netherlands will benefit from the same recently announced features that are available to all Avaya Cloud Office customers, including additional migration tools, enhanced devices support, along with advanced telephony management and other capabilities.

“Avaya Cloud Office is generating tremendous return on investment for our customers, who  appreciate the flexibility and reliability the solution provides,” said Dennis Kozak, SVP, Business Transformation, Avaya. “Over the last quarter, we have activated an eager base of customers and partners with this compelling UCaaS offer. As we expand availability of Avaya Cloud Office across Europe, we look forward to enabling more customers to achieve positive business outcomes as they transition to new ways of work and engagement.”

In addition to the recently announced features, Avaya Cloud Office customers will enjoy new capabilities, such as:

  • Avaya branded unified desktop app: Entirely reimagines the user experience for enterprise communications. The clean and refreshed redesign of the desktop application enables users to be more productive with an integrated experience between messaging, video, and phone services in one place. It will also let users switch from different devices while participating in video meetings. 
  • Avaya branded video: Offers a full meeting experience from a web browser so users do not have to download any application and can get their meetings started faster than before.
  • Network performance and video quality controls: Admins can set up custom alerts that proactively notify them of call quality and device status issues that could impact teams.
  • Admin & security controls: Provides hosts with multiple security options when scheduling, starting, or managing on-going meetings to prevent unwanted participation.
  • Adoption and usage analytics: Provides insight into usage data to identify areas of improvement and discover ways to help customers get the most out of Avaya Cloud Office. 

“The need for modern cloud communications has only become more pronounced since we jointly launched Avaya Cloud Office in March 2020, with many organizations realizing the benefits of a powerful UCaaS solution,” said Phil Sorgen, Chief Revenue Officer, RingCentral. “Avaya Cloud Office helps meet the communications needs of these organizations, and we continue to see adoption as we roll it more broadly worldwide. We look forward to expanding the ability of our joint European customers to take advantage of these capabilities.”

Avaya has initiated a comprehensive go-to-market strategy in Europe, having announced new master agent partnerships to meet the growing regional demand for Avaya Cloud Office. Avaya has signed a new master agent agreement with Itancia and ScanSource to rapidly enable adoption of the solution in France. The Netherlands will see Avaya Cloud Office offered by ScanSource. Finally, Avaya has expanded its master agent agreement with Westcon so that it now covers Ireland, France and the Netherlands.

1Source: The Impact of COVID-19 on European Unified Communications and Collaboration doc # EUR146381420.

About Avaya
Businesses are built by the experiences they provide, and everyday millions of those experiences are delivered by Avaya Holdings Corp. (NYSE: AVYA). Avaya is shaping what's next for the future of work, with innovation and partnerships that deliver game-changing business benefits. Our cloud communications solutions and multi-cloud application ecosystem power personalized, intelligent, and effortless customer and employee experiences to help achieve strategic ambitions and desired outcomes. Together, we are committed to help grow your business by delivering Experiences that Matter. Learn more at https://www.avaya.com

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect from any location, on any device, and via any mode. RingCentral provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world. © 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

Cautionary Note Regarding Forward-Looking Statements
This document contains certain “forward-looking statements”, including but not limited to, statements regarding the anticipated impact and benefits of Avaya Cloud Office. All statements other than statements of historical fact are “forward-looking” statements for purposes of the U.S. federal and state securities laws. These statements may be identified by the use of forward looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," “our vision,” "plan," "potential," "preliminary," "predict," "should," "will," or “would” or the negative thereof or other variations thereof or comparable terminology. RingCentral and Avaya have based these forward-looking statements on their current expectations, assumptions, estimates and projections. While RingCentral and Avaya believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond their control. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including risks related to the parties’ ability to successfully perform their obligations under the commercial arrangement, the parties ability to successfully market, sell and transition customers to Avaya Cloud Office, as well as those risks and uncertainties discussed in RingCentral’s and Avaya’s respective Annual Reports on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”) available at www.sec.gov. RingCentral and Avaya caution you that the list of important factors included in their respective filings may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this press release may not in fact occur. Neither RingCentral nor Avaya undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Source: Avaya Newsroom

 

September 28, 2020

RingCentral Launches Video Meetings in Europe

London, United Kingdom, -- 28, September 2020 -- RingCentral UK Ltd., a leading provider of global enterprise cloud communications, collaboration, and contact centre solutions and a wholly-owned subsidiary of RingCentral, Inc. (NYSE: RNG), today announced that RingCentral Video™ (RCV), a reimagined video meetings experience for businesses, will now be available as part of the RingCentral Office® solution in Europe. In addition, the company has also announced that customers can now extend their RingCentral Video experience into their conference rooms with RingCentral Rooms™ and with RingCentral Rooms for Poly.  

“Businesses are enabling their people to work from anywhere and stay connected. It’s becoming increasingly important that the communications platform and tools businesses are using are secure and trusted,” said Will Moxley, chief product officer, RingCentral. “RingCentral Video, offered as part of RingCentral Office, is designed to provide the best security option for business video meetings, whether you are remote, or returning to the office. Additionally, we are focused on building solutions and technologies that are not only designed for today, but also the post-pandemic world. We want to ensure that the RingCentral Video experience is extended into modern collaboration spaces - be that at home, in the office, or anywhere else. The launch of RingCentral Rooms and RingCentral Rooms for Poly across Europe is the next step in our strategy as we continue to transform the meetings experience for the fast emerging hybrid workforce regardless of where they are working, so they can be productive and effective from anywhere.” 

RingCentral Video 

RingCentral Video offers several key capabilities, including: 
•  Unified: RingCentral Video is integrated with team messaging and global cloud phone system capabilities, including business voice and fax, all tightly integrated enabling people and teams to collaborate across all modes of communication without losing context.

•  Fast: RingCentral Video offers a complete browser-based experience, leveraging and extending Google Chrome's WebRTC, so users do not have to download an application to join, host, or schedule a meeting. 

•  Secure: RingCentral offers rich admin, host and user settings such as host and moderator controls for audio, video, chat and screen share, meeting passwords, waiting room, and user authentication for meeting join, make the overall meetings experience ideal for enterprises who are seeking secure business communications solutions.  

•  Trusted: RingCentral is committed to customers’ privacy. Per the company’s privacy policy, RingCentral does not rent or sell any of its customers’ personal information. In addition, RingCentral Video and RingCentral Office meet GDPR, CCPA, and HIPAA privacy and security requirements. 

•  Reliable: RingCentral Video is built on a new, state-of-the-art, high-availability infrastructure that leverages years of RingCentral’s experience as a global Unified Communications as a Service (UCaaS) leader for secure and reliable business communications..

•  Open: Leveraging RingCentral’s open platform, RingCentral Video is tightly integrated with popular business productivity applications such as Google (G Suite and Gmail), HubSpot, Microsoft (Teams and O365), Slack, Theta Lake, and Zoho. RingCentral for Salesforce is available on Salesforce AppExchange. Coming later, RingCentral will add numerous integrations including those with Canvas, Epic, Gong.io, and Zendesk.

•  Smart: RingCentral Video includes a robust analytics platform that gives IT system administrators access to Key Performance Indicators (KPIs) such as adoption, usage, and Quality of Service (QoS) metrics. Easy to read dashboards help administrators deliver a seamless communications experience across their companies globally.

“As employees switched from their desks in the office to the kitchen table at home, eliminating in-person meetings almost entirely during the pandemic, organisations have had to rethink the meetings experience," said Oru Mohiuddin, Research Manager Enterprise Communications & Collaboration, IDC. “Video meetings have been designed to facilitate seamless remote collaboration through an intuitive interface and necessary features such as content sharing for a hybrid workforce to drive business efficiency and long-term goals.”

RingCentral Rooms and RingCentral Rooms for Poly

RingCentral Rooms transforms meeting rooms of any size into cloud-based video collaborative spaces, where both in-office and remote teams can work together face-to-face. RingCentral Rooms leverages the hardware that many meeting rooms are already equipped with (cameras, TVs, speakers, and computers) in order to help minimize the need for complicated initial IT deployment and set-up.

In addition, RingCentral Rooms built in partnership with Poly consolidates meeting rooms’ hardware needs while enabling a new wave of room intelligence, analytics, and manageability. Specifically designed to simplify large-scale RingCentral Room deployments, these turnkey solutions from Poly enable frictionless procurement, faster installs, and an easy management experience.

RingCentral Rooms for Poly is generally available to all customers in the US and Europe and is fully integrated with Poly Studio X30 and Poly Studio X50 plug-and-play USB video bars which bring simplicity, convenience, and a seamless modern meeting experience to physical workspaces.

RingCentral Rooms for Poly offers one-touch robust video, audio, and web conferencing capabilities, allowing teams to enjoy the following benefits:
•  Collaboration with anyone, anywhere: RingCentral Rooms allows users to instantly connect and collaborate with other participants joining from anywhere on any device with a one-tap interface.

•  Modern workspace for rooms of all sizes: Teams can utilise advanced conferencing services, from digital whiteboards to wireless file and screen sharing through Wi-Fi or AirPlay Mirror, all wrapped into a touch-based, high-quality collaboration experience.

•  Easy to deploy, monitor, and manage: IT teams can set up a cloud-based telepresence room with off-the-shelf equipment, avoiding costly proprietary endpoints and complicated configuration. With a single iPad controller, the host can manage camera functions, speakers, and participants during online meetings.

•  Consistent and unified experience: Built on the RingCentral platform, users enjoy a simple, interactive experience that is seamless across RingCentral Video and RingCentral Team Messaging™.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact centre solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customise business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Rooms, RingCentral Video, RingCentral Office, RingCentral Team Messaging, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc. Poly and Poly Studio are trademarks of Plantronics, Inc.

 

September 23, 2020

RingCentral Launches in Germany with New Datacentre and Data Residency

London, United Kingdom — September 23, 2020 — RingCentral UK Ltd (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact centre solutions, today announced its unified communications platform that includes team messaging, video meetings, and cloud phone system will now be available in Germany with a new datacentre in Frankfurt, and a new office in Hamburg, Germany.

As RingCentral continues its global expansion efforts, Germany remains a key strategic location for the company. The new datacentre in Germany will enable compliance with local regulatory guidelines and laws. RingCentral will offer customers local data storage, the ability to register endpoints in-country, and keep voice and video call media local. The new datacentre will also give users access to local phone numbers and emergency services in compliance with local laws and regulation. All team messaging, voicemails, audio and video recordings, call logs, faxes and analytics data will also be stored locally.

In addition, as a cloud communications and collaboration provider, RingCentral complies with the European Union’s requirements of Cloud Computing Compliance Criteria Catalogue (C5), which is a baseline of security controls that was developed by the Federal Office for Information Security in Germany. 

“We’ve always been focused on helping businesses modernise communications with the cloud solutions that enable their workforce to be productive regardless of their location. The current environment has accelerated the need for a solution that is easy to use, scalable, trusted and secure,” said Ashu Varshney, senior vice president, Service Operations and Security, RingCentral. “We are excited to begin offering our customers in Germany a unified communications solution enabling them to communicate and collaborate seamlessly regardless of their industry or location.”  

RingCentral offers its customers a cloud-based unified communications platform that combines team messaging, video conferencing, and cloud telephony in a single application. RingCentral’s open API platform already integrates more than 4,000 services and applications, including leading business applications from Google, Microsoft, and Salesforce. RingCentral enables organisations to increase productivity and accelerate business processes by unifying their communications services.

About RingCentral
RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact centre solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customise business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©  2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

 

September 21, 2020

Atos and RingCentral launch Unify Office in France

Paris, France and Belmont, Calif.– September 21, 2020 – Atos SE (CAC40: ATO), a global leader in digital transformation and RingCentral, Inc. (NYSE: RNG), ), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced the first release of Unify Office (UO) by RingCentral in France. It will also be available in Austria, Belgium, Ireland, Italy, Spain and The Netherlands.

Pierrick Belledent, Head of the Business Information Department at the Ecole Normale Supérieure (ENS), which uses Unify Office by RingCentral, explains: “The pandemic has made it necessary to virtualize our exam grading process, which is a key strategic activity for the school.  Our partnership with RingCentral and Atos enabled us to carry out remote sessions by allowing teachers to collaborate together, freeing them from technical challenges. Atos helped us to implement the RingCentral solution very quickly, which was appreciated by all our users.”

With Unify Office by RingCentral businesses of all sizes can communicate and collaborate with ease using industry leading voice, video, team messaging and fax capabilities from anywhere using any device via a single enterprise solution.

Unify Office offers several benefits to customers, including:

  • Seamless Migration: Customers can migrate at their own pace from traditional on-premise telephony solutions to Unify Office by RingCentral. They can also continue to use their existing Atos Unify OpenScape desk phones with Unify Office.

  • Simplicity: One Vendor, One Offer, One Solution. Whether a customer’s need is big or small we can support them with a simplified landscape to cover all their communication and collaboration needs, wherever their teams are working in the new normal.

  • Open Platform and Integrations: Easily integrate Unify Office with existing business applications, when using applications such as Salesforce, Microsoft and Google productivity suites through 200+ pre-built integrations or with help of Atos to develop integrations for specific custom workflows.

“Unify Office leverages an industry-leading cloud communication platform to enable flexible technology consumption and address the constantly evolving needs of the increasingly mobile and highly distributed workforce,” said Elka Popova, Vice President of Research, Frost & Sullivan “Atos, with its Unify communications and collaboration business, stands out among other solution providers as it combines the skills of an independent systems integrator (SI) with the technology expertise of a communications solutions developer. Drawing on its deep vertical knowledge and vertical industry transformation program, Atos tailors its solutions and services to effectively address the unique challenges and objectives businesses face in their different industries.”

Available directly from Atos, at www.unifyoffice.com. Unify Office by RingCentral will also be available from partners of leading regional distributors including Itancia and BusinessCom.

For more information on Unify Office by RingCentral please go to: www.unifyoffice.com

About Atos
Atos is a global leader in digital transformation with 110,000 employees in 73 countries and annual revenue of € 12 billion. European number one in Cloud, Cybersecurity and High-Performance Computing, the Group provides end-to-end Orchestrated Hybrid Cloud, Big Data, Business Applications and Digital Workplace solutions. The Group is the Worldwide Information Technology Partner for the Olympic & Paralympic Games and operates under the brands Atos, Atos|Syntel, and Unify. Atos is a SE (Societas Europaea), listed on the CAC40 Paris stock index.

The purpose of Atos is to help design the future of the information space. Its expertise and services support the development of knowledge, education and research in a multicultural approach and contribute to the development of scientific and technological excellence. Across the world, the Group enables its customers and employees, and members of societies at large to live, work and develop sustainably, in a safe and secure information space.

Atos UCC (Unified Communications and Collaboration) refers to the former Unify Division
Atos Unify refers to the product family of former Unify products and partner program.

About RingCentral
RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©  2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

 

September 3, 2020

Fulham Football Club Deploys RingCentral Cloud Communications to Keep Team Connected

London, UK - September 3, 2020 - RingCentral UK Ltd., a leading provider of global enterprise cloud communications, collaboration, and contact centre solutions and a wholly-owned subsidiary of RingCentral, Inc. (NYSE: RNG), has partnered with Fulham Football Club (FFC) as their official communications provider.

In March, RingCentral partnered with FFC to support the team’s communication efforts across their front office, ticket sales, back office, and executive staff. The team opted for the RingCentral Office® messaging, video and phone platform for its versatile and agile capabilities. Due to the global pandemic, Fulham’s coaches and players also adopted RingCentral’s messaging, video and phone platform to host digital training sessions successfully for the first time in the Club’s history. 

RingCentral Office enables FFC to communicate across multiple channels, from any location, on any device. In addition, RingCentral equips the club’s staff to communicate via phone, video and team messaging—all in one seamless solution

Darren Preston, chief operating officer of Fulham Football Club explains: “The RingCentral Office solution has quickly increased operational efficiency thanks to cutting-edge call and video conferencing quality and the ability to communicate using new digital channels.

“Our migration to RingCentral was just underway when the Covid-19 crisis struck… We quickly had to become very action-orientated. The platform has supported our business beyond my expectations. With zero training, I’m having virtual meetings, sharing live presentations and connecting with my internal & external colleagues on a daily basis whilst I try to over-communicate in these challenging and uncertain times.”

Established in 1879, FFC is based in London and plays in the English Premier League. The Club was looking for a high-quality, reliable solution that would enable its departments to work together seamlessly, as well as improve communications and collaboration with external parties.  

The way Fulham has adopted the technology has further proven the capabilities of RingCentral Office. “The right communications tools have been essential throughout the past few months, and are quickly becoming a business priority,” said Steve Rafferty, MD RingCentral UK.“The great thing about the RingCentral Office solution is that it’s incredibly agile, meaning we’ve been able to work reactively with FFC as their teams shifted to home working.”

RingCentral worked with channel partner CDW as part of the deal. “There are many UC solutions on the market today, and for businesses, it is often hard to understand which best fits their needs. By continually evaluating the market, CDW has a solid understanding of the solutions and can act as a trusted advisor to businesses,” said Ross Pedder, Head of Cloud Services at CDW. “For FFC, we knew that RingCentral would be the perfect fit—as a robust and resilient communications platform.”

About Fulham Football Club

Fulham Football Club was formed in 1879 as a local boys’ church side, Fulham St Andrew’s. The oldest of London’s first-class clubs, Fulham FC has a long and colourful history, spanning over 140 years, and is rightly positioned as London’s Original Football Club with its home, Craven Cottage, having hosted matches since 1896.

Promotion to the Premier League was first achieved in 2001 and the team remained in England’s top division until 2013. The Club reached the final of the inaugural Europa League in 2010, losing to Atletico Madrid 2-1 in extra-time.

Fulham FC Chairman Shahid Khan, owner of the Jacksonville Jaguars of the National Football League, purchased the Club in 2013.

The Club promoted to the Premier League this summer (2020) by winning the Championship Play-Off Final against Brentford at Wembley Stadium.

Under the guidance of Head Coach Scott Parker, the team’s first match of the 2020-21 Premier League campaign is against Arsenal at Craven Cottage.

About RingCentral

RingCentral, Inc. (NYSE:RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, the RingCentral platform empowers employees to work better together, from any location, on any device, and via any mode to serve customers, improving business efficiency and customer satisfaction. The company provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, USA and has offices around the world.

©  2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Office and the RingCentral logo are trademarks of RingCentral, Inc.

 

August 20, 2020

RingCentral Appoints Homayoun Razavi to Lead Global Service Provider Business Unit

LONDON, UK. -- Aug 20, 2020 -- RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration and contact centre solutions, today announced the appointment of Homayoun Razavi to lead its service provider business, globally. Razavi will oversee the continued expansion of partnerships with mobile operators, Internet Service Providers (ISPs), and managed service providers. Razavi brings over 30 years of telecom experience to RingCentral including senior leadership roles at BroadSoft, Coriant, Ditech Networks, Laurel Networks, Lucent, and MCI/Verizon.   

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200820005197/en/

Homayoun Razavi (Photo: Business Wire)

Homayoun Razavi (Photo: Business Wire)

RingCentral partners with leading service providers such as AT&T in the U.S., BT in the U.K., and TELUS in Canada. These relationships enable service providers to quickly and easily offer their customers world class cloud-based unified communications across mobile devices, tablets, and desktop computers.

“Service providers are playing a critical role in enabling businesses to transform,” said Anand Eswaran, president and chief operating officer for RingCentral. “Central to that transformation is powerful, reliable, and secure cloud-based communications services that bring together messaging, video, and phone capabilities enabling people to work from anywhere.  We’re excited to have Homayoun join our team to champion that opportunity to partner with service providers, globally.”

“Service providers are focused on driving value for their business customers,” said Homayoun Razavi, senior vice president of Global Service Providers for RingCentral. “Recent events have accelerated the need for delivering advanced Unified Communications as a Service that include messaging, video, and phone capabilities to today’s remote workforce. I’m excited to join RingCentral to partner with global service providers as they continue to innovate in 5G, Mobile Edge Computing (MEC), and Internet of Things (IoT).”

Fazil Balkaya, industry analyst, Synergy Research commented, “RingCentral’s strategy of working closely with carriers and service providers enables them to capitalise on the global market opportunity to scale growth and demand for cloud based communications services, while giving carriers and service providers an avenue to partner with the #1 UCaaS provider.”

Partnering with RingCentral gives service providers a turnkey cloud-based solution that is fully managed, significantly reducing the operating expenses (OPEX) and capital expenditures (CAPEX) burden. This allows service provider partners to dedicate resources toward other key strategic areas such as 5G and IoT, while expanding revenue to capture demand in the growing Unified Communications as a Service (UCaaS) market. RingCentral also offers service providers the ability to integrate their networks via IMS and SD-WAN to deliver differentiated next generation services with better quality and faster deployment.

To learn more about RingCentral's service provider program, join our upcoming webinar, hosted in partnership with Cavell Consulting Group. 

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact centre solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customise business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc.

 

August 12, 2020

Frost & Sullivan Ranks RingCentral Highest for the European Hosted IP Telephony and UCaaS Market in 2020 UCaaS Radar Report

London, UK - Aug. 12, 2020 - RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact centre solutions, today announced it has been ranked highest for both the European Hosted IP Telephony and Unified Cloud Communications as a Service (UCaaS) Market in the new 2020 Frost & Sullivan UCaaS Radar Report. The Frost & Sullivan Radar Report provides results from an in-depth analysis built on a 360-degree research methodology evaluating more than 120 companies. The team of industry analysts identified 20 industry leaders excelling at innovation, most poised for growth and ripe for investment. RingCentral received the highest combined growth and innovation score of all the providers.

“RingCentral stands out among providers offering hosted IP telephony and UCaaS in the European market with its keen ability to identify key mega trends and promptly align its solutions portfolio roadmap with rapidly evolving business technology requirements,” explained Elka Popova, Vice President of Research at Frost & Sullivan. “Unique partnerships with leading industry participants and a growth-focused company culture, combined with the provider’s relentless pursuit of technology innovation, are likely to boost RingCentral’s future growth prospects in Europe, as well as the rest of the world.”

The 2020 Frost & Sullivan UCaaS Radar report highlights a number of key strengths for RingCentral, including:

● RingCentral ranks high on both the innovation and growth axes on Frost Radar due to the company’s robust and constantly evolving UCaaS portfolio and market-leading growth rates

● Being cited for constantly enhancing customer value by adding new features and capabilities to its flagship RingCentral Office® solution

● RingCentral’s growth in European markets, which may accelerate the company’s creative partnerships with Atos, Avaya and BT, among other partners, and highly effective direct sales

● Using flexible cloud technology and a proprietary platform that enable cost-effective scalability

“Our platform was built for the mobile and distributed workforce, so that enterprises can keep their customers, partners, and employees connected,” said Anand Eswaran, president and chief operating officer, RingCentral. “We’re honored to be ranked highest in this new report by Frost & Sullivan, a validation of our continued commitment to providing the secure messaging, video, and phone communications and collaboration solutions for the ‘work from anywhere’ reality of today’s unique circumstances and the years to come.”

Results are based on the 2020 Frost & Sullivan UCaaS Radar report. For more information, please view a complimentary copy of the report. Results are not an endorsement of RingCentral. Visit ww2.frost.com for more details.

About Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact centre solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customise business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©  2020 RingCentral, Inc. All rights reserved. RingCentral,  RingCentral Office,  Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc.

 

August 11, 2020

Alcatel-Lucent Enterprise and RingCentral Enter into a Strategic Partnership

PARIS, France & LONDON, UK - [11 August 2020]

Alcatel-Lucent Enterprise, a leading provider of communications, networking and cloud solutions and RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration and contact centre solutions, today announced that they have entered into a strategic partnership to introduce a new co-branded cloud solution – Rainbow Office powered by RingCentral –  making it unique and exclusive for Alcatel-Lucent Enterprise. RingCentral and Alcatel-Lucent Enterprise will jointly develop programs enabling both companies to lead the cloud communications services for the enterprise market. 

“We are excited to partner with Alcatel-Lucent Enterprise and to bring our industry-leading cloud communications solutions to their customers and partners,” said Vlad Shmunis, founder, chairman and CEO. “Alcatel-Lucent Enterprise’s strong presence in Europe and beyond will enhance our ability to jointly enable customers and partners accelerate their migration to cloud communication solutions in these markets.” 

Alcatel-Lucent Enterprise’s mission is to deliver customised technology experiences to enterprises with a verticalised business approach in networking, communications, and cloud. Rainbow Office powered by RingCentral will enrich the company’s cloud portfolio enabling customers to accelerate their digital transformation with public Unified Communications as a Service (UCaaS). 

“Customers demand agile, robust and secured cloud communication and collaboration solutions in today’s high-speed technology world,” said Jack Chen, CEO of Alcatel-Lucent Enterprise. “For our customers and partners, this strategic partnership enables us to offer them a wider choice of technology-leading cloud solutions, to comprehensively cover their business needs. This partnership will also enable Alcatel-Lucent Enterprise to accelerate the development and transformation of our cloud business to become the number one player in cloud solutions in Europe and beyond focusing on vertical solutions and services to make everything connect. It will bring significant opportunities for our well-established business partner ecosystem and strong values for our customers.”

Rainbow Office powered by RingCentral will be available in the first quarter of 2021.

Financial Terms:

Under the commercial agreement, both companies will contribute resources towards development and sales & marketing of Rainbow Office powered by RingCentral. RingCentral will pay Alcatel-Lucent Enterprise $100 million in cash for exclusive access, a minimum seat commitment, and future commissions.

Conference Call Details:

The companies also announced that they will hold a conference call today August 11, 2020 at 5:15 AM Pacific Time (8:15 AM Eastern Time) to discuss this partnership.

  • When: Tuesday, August 11, 2020 at 5:15AM PT (8:15AM ET).

  • Dial-in: To access the call in the United States, please call 1-877-705-6003, and for international callers, dial 1-201-493-6725. Callers 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: Following the completion of the call through 11:59 PM ET on August 18, 2020, a telephone replay will be available by dialing 1-844-512-2921 from the United States or 1-412-317-6671 internationally with recording access code 13708193.

Investor Presentation Details:

An investor presentation providing additional information and analysis can be found at http://ir.ringcentral.com/.

About Alcatel-Lucent Enterprise

Alcatel-Lucent Enterprise delivers the customised technology experiences enterprises need to make everything connect. Their digital-age networking, communications and cloud solutions tailored to ensure customers’ success, are offered with flexible business models; in the cloud, on premises, and hybrid. These solutions have built-in security and are designed to limit their environmental impact. Over 100 years of innovation have made Alcatel-Lucent Enterprise a trusted advisor to more than 830,000 customers in 100 countries around the world. The privately-owned company with headquarters in France has over 2900 direct business partners worldwide, achieving an effective global reach with a local focus.

For more information, visit our web site at: https://www.al-enterprise.com/.

For ongoing news, visit our LinkedIn, Facebook and Twitter.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact centre solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customise business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

Forward-Looking Statements

This press release contains “forward-looking statements,” including but not limited to, statements regarding RingCentral’s future financial and operating performance, RingCentral’s future financial and operating performance, RingCentral’s plans to partner with Alcatel-Lucent Enterprise to offer Rainbow Office powered by RingCentral, the anticipated benefits of and activity under RingCentral’s strategic partnership with Alcatel-Lucent Enterprise, including the ability to create a long-term growth opportunities for RingCentral, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in RingCentral’s Form 10-Q for the quarter ended June 30, 2020, filed with the Securities and Exchange Commission; and in other filings RingCentral makes with the Securities and Exchange Commission from time to time.

All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates.

 

August 3, 2020

RingCentral Announces Second Quarter 2020 Results

RingCentral Office® ARR surpassed $1 billion, up 36%

Subscriptions Revenue up 32%

Belmont, Calif. – August 3, 2020RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced financial results for the second quarter ended June 30, 2020.

Second Quarter Financial Highlights

  • Total revenue increased 29% year over year to $278 million.
  • Subscriptions revenue increased 32% year over year to $257 million.
  • Total Annualized Exit Monthly Recurring Subscriptions (ARR) increased 33% year over year to $1.1 billion.
  • RingCentral Office® ARR increased 36% year over year to $1.0 billion.
  • Mid-market and Enterprise ARR increased 50% year over year to $581 million.
  • Enterprise ARR increased 58% year over year to $363 million.
  • Channel ARR increased 60% year over year to $375 million.

“We delivered solid Q2 results driven again by strong contributions from mid-market and enterprise customers, as well as our channel partners,” said Vlad Shmunis, RingCentral's founder, chairman and CEO. “We are seeing a high level of adoption and engagement with our Message Video Phone (MVP) solution as businesses adapt to a work from anywhere environment. The ongoing global pandemic has elevated digital transformation of enterprise communications platforms to a top IT priority. Our strategic partnerships are broadening our global market reach, and we remain committed to delivering cloud solutions that enable our customers’ workforces to productively communicate and collaborate from anywhere, on any device, in any mode.”

Financial Results for the Second Quarter 2020

  • Revenue: Subscriptions revenue of $257 million increased 32% year over year and accounted for 92% of total revenue. Other revenue of $21 million increased 3% year over year, reflecting higher adoption of RingCentral apps in the current work from anywhere environment. Total revenue was $278 million for the second quarter of 2020, up from $215 million in the second quarter of 2019, representing 29% growth.
  • Operating Income (Loss): GAAP operating loss was ($29) million, compared to a GAAP operating loss of ($7) million in the same period last year, primarily driven by higher share-based compensation and amortization of intangibles. Non-GAAP operating income was $29 million, compared to a non-GAAP operating income of $20 million in the same period last year.
  • Net Income (Loss) Per Share: GAAP net profit per diluted share was $0.01, compared to ($0.11) in the same period last year, primarily driven by mark-to-market gains associated with investments and strategic partnerships, partially offset by higher share-based compensation, amortization of intangibles, and amortization of debt discount and issuance costs. Non-GAAP net income per diluted share was $0.24, compared to $0.21 per diluted share in the same period last year. The second quarter of 2020 reflected a 22.5% non-GAAP tax rate. There were no material cashtaxes given our net operating loss carryforwards.
  • Cash and Cash Equivalents: Total cash and cash equivalents at the end of the second quarter of 2020 was $774 million. This compares with $762 million at the end of the first quarter of 2020.

Additional Highlights

  • Announced that RingCentral has been named to the Forbes “Global 2000: The World's Largest Public Companies” list, released in May, 2020.
  • Announced RingCentral Video™ (RCV), a reimagined video meetings experience. Leveraging RingCentral’s years of experience as a global UCaaS leader, RingCentral Video joins RingCentral messaging and RingCentral phone to complete our differentiated Message Video Phone™ (MVP) solution.
  • Announced expansion of strategic partnership with Atos SE with new Unify Office as the exclusive UCaaS solution for 40 million users of the Atos Unify family of products.
  • Announced global expansion and general availability of Avaya Cloud Office™ by RingCentral® in Australia, Canada, and the UK along with the availability of several key new features and capabilities including tools to help migrate customers more efficiently and effectively.
  • Launched IGNITE™ Partner Program, which enables partners to own the entire sales cycle with organizations of up to 400 employees. The program reinforces RingCentral's commitment to the channel, and gives partners greater flexibility to choose the sales process that best suits the needs of each individual prospect.
  • Announced RingCentral PBX for Microsoft Teams with Direct Routing integration, enabling Microsoft Teams users to have access to more robust cloud PBX capabilities without ever having to leave the Teams interface on mobile, web, and desktop.
  • Launched initial release of RingCentral Rooms, extending the power of RingCentral Video to conference rooms and meeting spaces that have dedicated video conferencing equipment, such as monitors, speakers, microphones, and cameras.

Financial Outlook

Full Year 2020 Guidance:

  • Raising subscriptions revenue range to $1.043 to $1.048 billion, representing annual growth of 28%. This is up from our prior range of $1.024 to $1.030 billion and annual growth of 25% to 26%.
  • Raising total revenue range to $1.135 to $1.143 billion, representing annual growth of 26% to 27%. This is up from our prior range of $1.116 to $1.125 billion and annual growth of 24% to 25%.
  • GAAP operating margin between (10.8%) and (10.1%).
  • Non-GAAP operating margin between 9.6% and 9.7%.
  • Non-GAAP tax rate for 2020 assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
  • Raising non-GAAP EPS range to $0.92 to $0.94 based on 93.5 million fully diluted shares. This is up from our prior range of $0.91 to $0.94, and reflects a $0.01 impact from lower other income assumptions.
  • Share-based compensation range of $190 to $195 million, amortization of debt discount of $44 million, amortization of acquired intangibles of $35 million, and acquisition related matters of approximately $2.2 million.

Third Quarter 2020 Guidance:

  • Subscriptions revenue range of $263 to $265 million, representing annual growth of 25% to 26%.
  • Total revenue range of $283.5 to $289.5 million, representing annual growth of 21% to 24%.
  • GAAP operating margin range of (12.0%) to (11.0%).
  • Non-GAAP operating margin of 10.0% to 10.2%.
  • Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
  • Non-GAAP EPS of $0.24 based on 94 million fully diluted shares.
  • Share-based compensation range of $53 to $54 million, amortization of debt discount of $12 million, and amortization of acquired intangibles of $8.5 million.

For a reconciliation of our forecasted non-GAAP operating margin, see “Reconciliation of Forecasted Operating Margin GAAP Measures to Non-GAAP Measures.” We have not reconciled our forecasted non-GAAP EPS to its respective forecasted GAAP measure because we do not provide guidance on it. We do not provide guidance on forecasted GAAP EPS because of the inherent uncertainty and complexity involved in forecasting the intercompany remeasurement gain (loss), gain (loss) associated with investments and strategic partnerships, and provision (benefit) from income taxes, which could be significant reconciling items between the non-GAAP and respective GAAP measures. The intercompany remeasurement gain (loss) is affected by the movement in various exchange rates relative to the U.S. Dollar, which is difficult to predict and subject to constant change. We do not provide guidance on gain (loss) associated with investments and strategic partnerships as it is based on future share prices, which are difficult to predict and subject to inherent uncertainties. We do not provide guidance on forecasted GAAP tax rates as we do not forecast discrete tax items as they are difficult to predict. The provision (benefit) from income taxes, excluding discrete items, is expected to have an immaterial impact to our GAAP EPS. We utilized a projected long-term tax rate in our computation of the non-GAAP income tax provision. For fiscal 2020, we have determined the projected non-GAAP tax rate to be 22.5%. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.

Conference Call Details:

  • What: RingCentral financial results for the second quarter of 2020 and outlook for the third quarter and full year of 2020.
  • When: Monday, August 3, 2020 at 2:00PM PT (5:00PM 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 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: Following the completion of the call through 11:59 PM ET on August 10, 2020, a telephone replay will be available by dialing (844) 512-2921 from the United States or (412) 317-6671 internationally with recording access code 13706835.

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at http://ir.ringcentral.com/.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Office, RingCentral Video, Message Video Phone, and the RingCentral logo are trademarks of RingCentral, Inc.

Forward-Looking Statements

This press release contains “forward-looking statements,” including but not limited to, statements regarding our future financial results, our GAAP and non-GAAP guidance, our momentum in mid-market and enterprise, the success of our RCV solution, the success of our strategic relationships, such as our relationships with Avaya and Atos, our market opportunity, and the effects of the COVID-19 pandemic. Forward-looking statements are subject to known and unknown risks and uncertainties, and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those in any forward-looking statements are: the future effects of the COVID-19 pandemic, our ability to realize the anticipated benefits of our strategic relationships, such as our relationships with Avaya and Atos; our ability to grow at our expected rate of growth; our ability to add and retain larger and enterprise customers and enter new geographies and markets; our ability to continue to release, and gain customer acceptance of, new and improved versions of our services, including RCV; our ability to compete successfully against existing and new competitors; our ability to enter into and maintain relationships with resellers, carriers and strategic partners; our ability to successfully and timely integrate, and realize the benefits of any significant acquisition we may make; our ability to manage our expenses and growth; and general market, political, economic, and business conditions, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Form 10-Q for the quarter ended March 31, 2020, filed with the Securities and Exchange Commission, and in other filings we make with the Securities and Exchange Commission from time to time.

All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.

Non-GAAP Financial Measures

Our reported financial results and financial outlook include certain Non-GAAP financial measures, including Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP net cash provided by (used in) operating activities, and non-GAAP free cash flow. Non-GAAP subscriptions gross margin is defined as Non-GAAP subscriptions gross profit divided by GAAP subscriptions revenue. Non-GAAP other gross margin is defined as Non-GAAP other gross profit divided by GAAP other revenue. Non-GAAP income (loss) from operations is defined as GAAP income (loss) from operations excluding share-based compensation, amortization of acquisition intangibles, and acquisition related matters including transaction costs, integration costs, restructuring costs, and acquisition-related retention payments, as well as changes in the fair value of contingent consideration obligations. Non-GAAP operating margin is defined as Non-GAAP income (loss) from operations divided by total GAAP revenue. Non-GAAP net income (loss) is defined as GAAP net income (loss) excluding share-based compensation, intercompany remeasurement gains or losses, acquisition related matters, amortization of acquisition intangibles, non-cash interest expense associated with amortization of debt discount and issuance costs related to our convertible senior notes, gain (loss) associated with investments and strategic partnerships, tax benefit from release of valuation allowance, and the related income tax effect of these adjustments.

Non-GAAP diluted shares outstanding include the impact on shares used in per share calculations of our outstanding capped call transactions. Our outstanding capped call transactions are anti-dilutive in GAAP earnings per share but are expected to mitigate the dilutive effect of our convertible notes and therefore are included in the calculations of non-GAAP diluted shares outstanding.

Non-GAAP net cash provided by (used in) operating activities is defined as net cash provided by (used in) operating activities plus cash paid for repayments of convertible senior notes attributable to debt discount. Non-GAAP free cash flow is defined as Non-GAAP net cash provided by (used in) operating activities reduced by purchases of property and equipment and capitalized internal-use software. We believe information regarding free cash flow provides useful information to investors in understanding and evaluating the strength of liquidity and available cash.

We have included Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP net cash provided by (used in) operating activities, and Non-GAAP free cash flow in this press release because they are key measures used by us to understand and evaluate our operating performance and trends, to prepare and approve our annual budget, and to develop short and long-term operational plans. In particular, the exclusion of certain expenses and cash flow items in calculating Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP net cash provided by (used in) operating activities, and Non-GAAP free cash flow provide useful measure for period-to-period comparisons of our business.

Although Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP net cash provided by (used in) operating activities, and Non-GAAP free cash flow are frequently used by investors in their evaluations of companies, these non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered alongside other financial performance measures.

Reconciliations of the Company’s non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release.

Other Measures

Our reported results also include our annualized exit monthly recurring subscriptions, RingCentral Office® annualized exit monthly recurring subscriptions, mid-market and enterprise annualized exit monthly recurring subscriptions, enterprise annualized exit monthly recurring subscriptions, channel partner annualized exit monthly recurring subscriptions, and net monthly subscriptions dollar retention. We define our annualized exit monthly recurring subscriptions as our monthly recurring subscriptions multiplied by 12. Our monthly recurring subscriptions equal the monthly value of all customer recurring charges contracted at the end of a given month. We believe this metric is a leading indicator of our anticipated subscriptions revenue. We calculate our RingCentral Office® annualized exit monthly recurring subscriptions in the same manner as we calculate our annualized exit monthly recurring subscriptions, except that only customer subscriptions from RingCentral Office® and RingCentral customer engagement solutions customers are included when determining monthly recurring subscriptions for the purposes of calculating this key business metric. We calculate mid-market and enterprise annualized exit monthly recurring subscriptions in the same manner as we calculate our RingCentral Office® annualized exit monthly recurring subscriptions, except that only customer subscriptions from customers generating $25,000 or more in annual recurring revenue are included. We calculate enterprise annualized exit monthly recurring subscriptions in the same manner as we calculate our RingCentral Office® annualized exit monthly recurring subscriptions, except that only customer subscriptions from customers generating $100,000 or more in annual recurring revenue are included. We calculate channel partner annualized exit monthly recurring subscriptions in the same manner as we calculate our annualized exit monthly revenue subscriptions, except that only customer subscriptions generated from channel partners are included. We define Dollar Net Change as the quotient of (i) the difference of our Monthly Recurring Subscriptions at the end of a period minus our Monthly Recurring Subscriptions at the beginning of a period minus our Monthly Recurring Subscriptions at the end of the period from new customers we added during the period, (ii) all divided by the number of months in the period. We define our Average Monthly Recurring Subscriptions as the average of the Monthly Recurring Subscriptions at the beginning and end of the measurement period.

TABLE 1

RINGCENTRAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)

       

 

June 30, 2020

 

  December 31, 2019

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

773,756

 

 

$

343,606

 

Accounts receivable, net

142,317

 

 

129,990

 

Deferred and prepaid sales commission costs

46,577

 

 

36,589

 

Prepaid expenses and other current assets

39,366

 

 

25,354

 

Total current assets

1,002,016

 

 

535,539

 

Property and equipment, net

114,423

 

 

89,230

 

Operating lease right-of-use-assets

38,107

 

 

39,269

 

Long-term investments

149,337

 

 

132,188

 

Deferred and prepaid sales commission costs,
non-current

486,500

 

 

462,344

 

Goodwill

55,287

 

 

55,278

 

Acquired intangibles, net

110,090

 

 

127,338

 

Other assets

8,883

 

 

9,561

 

Total assets

$

1,964,643

 

 

$

1,450,747

 

Liabilities, Temporary Equity, and Stockholders’ Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

36,476

 

 

$

34,612

 

Accrued liabilities

167,721

 

 

138,729

 

Current portion of convertible senior notes, net

44,417

 

 

 

Deferred revenue

122,514

 

 

107,372

 

Total current liabilities

371,128

 

 

280,713

 

Convertible senior notes, net

1,008,477

 

 

386,889

 

Operating lease liabilities

25,392

 

 

28,516

 

Other long-term liabilities

11,314

 

 

8,929

 

Total liabilities

1,416,311

 

 

705,047

 

 

 

 

 

Temporary equity

6,756

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

Common stock

9

 

 

9

 

Additional paid-in capital

889,987

 

 

1,033,053

 

Accumulated other comprehensive income

1,102

 

 

1,948

 

Accumulated deficit

(349,522)

 

 

(289,310)

 

Total stockholders’ equity

$

541,576

 

 

$

745,700

 

Total liabilities, temporary equity and stockholders’
equity

$

1,964,643

 

 

$

1,450,747

 

 

TABLE 2

RINGCENTRAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)

       

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

2020

 

2019

Revenues

 

 

 

 

 

 

 

Subscriptions

$

257,038

 

 

$

194,792

 

 

$

500,142

 

 

$

377,500

 

Other

20,947

 

 

20,360

 

 

45,355

 

 

39,141

 

Total revenues

277,985

 

 

215,152

 

 

545,497

 

 

416,641

 

Cost of revenues

 

 

 

 

 

 

 

Subscriptions

56,721

 

 

38,079

 

 

109,154

 

 

73,413

 

Other

19,916

 

 

15,551

 

 

40,927

 

 

31,052

 

Total cost of revenues

76,637

 

 

53,630

 

 

150,081

 

 

104,465

 

Gross profit

201,348

 

 

161,522

 

 

395,416

 

 

312,176

 

Operating expenses

 

 

 

 

 

 

 

Research and development

43,519

 

 

32,632

 

 

84,429

 

 

62,419

 

Sales and marketing

137,633

 

 

103,590

 

 

268,945

 

 

203,141

 

General and administrative

49,532

 

 

32,480

 

 

96,868

 

 

61,259

 

Total operating expenses

230,684

 

 

168,702

 

 

450,242

 

 

326,819

 

Loss from operations

(29,336)

 

 

(7,180)

 

 

(54,826)

 

 

(14,643)

 

Other income (expense), net

 

 

 

 

 

 

 

Interest expense

(12,598)

 

 

(5,088)

 

 

(20,100)

 

 

(10,120)

 

Other income, net

42,603

 

 

3,141

 

 

15,086

 

 

6,192

 

Other income (expense), net

30,005

 

 

(1,947)

 

 

(5,014)

 

 

(3,928)

 

Income (loss) before income taxes

669

 

 

(9,127)

 

 

(59,840)

 

 

(18,571)

 

Provision for (benefit from) income taxes

160

 

 

116

 

 

372

 

 

(2,970)

 

Net income (loss)

$

509

 

 

$

(9,243)

 

 

$

(60,212)

 

 

$

(15,601)

 

Net income (loss) per common share

 

 

 

 

 

 

 

Basic

$

0.01

 

 

$

(0.11)

 

 

$

(0.69)

 

 

$

(0.19)

 

Diluted

0.01

 

 

(0.11)

 

 

(0.69)

 

 

(0.19)

 

Weighted-average number of shares used in computing net income (loss) per share

 

 

 

 

 

 

 

Basic

88,254

 

 

82,339

 

 

87,797

 

 

81,872

 

Diluted

94,145

 

 

82,339

 

 

87,797

 

 

81,872

 

 

TABLE 3

RINGCENTRAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

   

 

Six Months Ended June 30,

 

2020

 

2019

Cash flows from operating activities

 

 

 

Net loss

$

(60,212)

 

 

$

(15,601)

 

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization

34,500

 

 

16,486

 

Share-based compensation

85,844

 

 

44,314

 

Amortization of deferred and prepaid sales commission costs

20,659

 

 

13,196

 

Amortization of debt discount and issuance costs

20,018

 

 

10,031

 

Loss on early extinguishment of debt

7,207

 

 

 

Repayment of convertible senior notes attributable to debt discount

(14,230)

 

 

 

Reduction of operating lease right-of-use assets

7,754

 

 

6,708

 

Unrealized gain and other related costs on investments

(17,149)

 

 

 

Foreign currency remeasurement (gain) loss

305

 

 

(323)

 

Provision for bad debt

3,071

 

 

995

 

Deferred income taxes

(162)

 

 

(347)

 

Tax benefit from release of valuation allowance

 

 

(3,210)

 

Other

116

 

 

1,427

 

Changes in assets and liabilities:

 

 

 

Accounts receivable

(15,398)

 

 

(10,804)

 

Deferred and prepaid sales commission costs

(53,316)

 

 

(33,032)

 

Prepaid expenses and other current assets

(13,728)

 

 

(9,253)

 

Other assets

(106)

 

 

181

 

Accounts payable

(973)

 

 

11,146

 

Accrued liabilities

23,792

 

 

4,730

 

Deferred revenue

15,142

 

 

14,835

 

Operating lease liabilities

(7,322)

 

 

(6,903)

 

Other liabilities

4,297

 

 

(328)

 

Net cash provided by operating activities

40,109

 

 

44,248

 

Cash flows from investing activities

 

 

 

Purchases of property and equipment

(15,581)

 

 

(14,994)

 

Capitalized internal-use software

(17,021)

 

 

(7,602)

 

Cash paid for business combination, net of cash acquired

 

 

(27,870)

 

Net cash used in investing activities

(32,602)

 

 

(50,466)

 

Cash flows from financing activities

 

 

 

Proceeds from issuance of convertible senior notes, net of issuance costs

986,508

 

 

 

Payments for 2023 convertible senior notes partial repurchase

(501,039)

 

 

 

Payments for capped calls and transaction costs

(60,900)

 

 

 

Proceeds from issuance of stock in connection with stock plans

21,604

 

 

13,509

 

Payments for taxes related to net share settlement of equity awards

(18,603)

 

 

(5,047)

 

Payment for contingent consideration for business acquisition

(3,548)

 

 

 

Repayment of financing obligations

(943)

 

 

(943)

 

Net cash provided by financing activities

423,079

 

 

7,519

 

Effect of exchange rate changes

(436)

 

 

38

 

Net increase (decrease) in cash, cash equivalents and restricted cash

430,150

 

 

1,339

 

Cash, cash equivalents and restricted cash

 

 

 

Beginning of period

343,606

 

 

566,329

 

End of period

$

773,756

 

 

$

567,668

 

 

TABLE 4

RINGCENTRAL, INC.
RECONCILIATION OF OPERATING INCOME (LOSS)
GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited, in thousands)

       

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

2020

 

2019

Revenues

 

 

 

 

 

 

 

Subscriptions

$

257,038

 

 

$

194,792

 

 

$

500,142

 

 

$

377,500

 

Other

20,947

 

 

20,360

 

 

45,355

 

 

39,141

 

Total revenues

277,985

 

 

215,152

 

 

545,497

 

 

416,641

 

Cost of revenues reconciliation

 

 

 

 

 

 

 

GAAP Subscriptions cost of revenues

56,721

 

 

38,079

 

 

109,154

 

 

73,413

 

Share-based compensation

(2,676)

 

 

(1,691)

 

 

(4,752)

 

 

(3,037)

 

Amortization of acquisition intangibles

(7,672)

 

 

(1,340)

 

 

(15,373)

 

 

(2,350)

 

Acquisition related matters

 

 

(14)

 

 

 

 

(64)

 

Non-GAAP Subscriptions cost of revenues

46,373

 

 

35,034

 

 

89,029

 

 

67,962

 

 

 

 

 

 

 

 

 

GAAP Other cost of revenues

19,916

 

 

15,551

 

 

40,927

 

 

31,052

 

Share-based compensation

(1,170)

 

 

(429)

 

 

(1,820)

 

 

(724)

 

Non-GAAP Other cost of revenues

18,746

 

 

15,122

 

 

39,107

 

 

30,328

 

Gross profit and gross margin reconciliation

 

 

 

 

 

 

 

Non-GAAP Subscriptions

82.0%

 

 

82.0%

 

 

82.2%

 

 

82.0%

 

Non-GAAP Other

10.5%

 

 

25.7%

 

 

13.8%

 

 

22.5%

 

Non-GAAP Gross profit

76.6%

 

 

76.7%

 

 

76.5%

 

 

76.4%

 

Operating expenses reconciliation

 

 

 

 

 

 

 

GAAP Research and development

43,519

 

 

32,632

 

 

84,429

 

 

62,419

 

Share-based compensation

(9,772)

 

 

(5,508)

 

 

(17,239)

 

 

(9,770)

 

Acquisition related matters

 

 

(5)

 

 

 

 

(352)

 

Non-GAAP Research and development

33,747

 

 

27,119

 

 

67,190

 

 

52,297

 

As a % of total revenues non-GAAP

12.1%

 

 

12.6%

 

 

12.3%

 

 

12.6%

 

 

 

 

 

 

 

 

 

GAAP Sales and marketing

137,633

 

 

103,590

 

 

268,945

 

 

203,141

 

Share-based compensation

(16,322)

 

 

(9,799%

 

 

(27,613)

 

 

(17,407)

 

Amortization of acquisition intangibles

(929)

 

 

(938)

 

 

(1,860)

 

 

(1,860)

 

Acquisition related matters

 

 

32

 

 

4

 

 

(1,610)

 

Non-GAAP Sales and marketing

120,382

 

 

92,885

 

 

239,476

 

 

182,264

 

As a % of total revenues non-GAAP

43.3%

 

 

43.2%

 

 

43.9%

 

 

43.7%

 

 

 

 

 

 

 

 

 

GAAP General and administrative

49,532

 

 

32,480

 

 

96,868

 

 

61,259

 

Share-based compensation

(19,315)

 

 

(7,489)

 

 

(34,420)

 

 

(13,376)

 

Acquisition related matters

(293)

 

 

(402)

 

 

(2,156)

 

 

(825)

 

Non-GAAP General and administrative

29,924

 

 

24,589

 

 

60,292

 

 

47,058

 

As a % of total revenues non-GAAP

10.8%

 

 

11.4%

 

 

11.1%

 

 

11.3%

 

Income (loss) from operations reconciliation

 

 

 

 

 

 

 

GAAP loss from operations

(29,336)

 

 

(7,180)

 

 

(54,826)

 

 

(14,643)

 

Share-based compensation

49,255

 

 

24,916

 

 

85,844

 

 

44,314

 

Amortization of acquisition intangibles

8,601

 

 

2,278

 

 

17,233

 

 

4,210

 

Acquisition related matters

293

 

 

389

 

 

2,152

 

 

2,851

 

Non-GAAP Income from operations

28,813

 

 

20,403

 

 

50,403

 

 

36,732

 

Non-GAAP Operating margin

10.4%

 

 

9.5%

 

 

9.2%

 

 

8.8%

 

TABLE 5

RINGCENTRAL, INC.
RECONCILIATION OF NET INCOME (LOSS)
GAAP MEASURES TO NON-GAAP MEASURES
(In thousands, except per share data) (Unaudited)

       

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

2020

 

2019

Net income (loss) reconciliation

 

 

 

 

 

 

 

GAAP net income (loss)

$

509

 

 

$

(9,243)

 

 

$

(60,212)

 

 

$

(15,601)

 

Share-based compensation

49,255

 

 

24,916

 

 

85,844

 

 

44,314

 

Amortization of acquisition intangibles

8,601

 

 

2,278

 

 

17,233

 

 

4,210

 

Acquisition related matters

293

 

 

389

 

 

2,152

 

 

2,851

 

Amortization of debt discount and issuance costs

12,566

 

 

5,049

 

 

20,018

 

 

10,031

 

Gain associated with investments and strategic
partnerships

(41,506)

 

 

 

 

(21,358)

 

 

 

Loss (gain) on early extinguishment of debt

(43)

 

 

 

 

7,207

 

 

 

Intercompany remeasurement loss (gain)

(360)

 

 

(202)

 

 

538

 

 

(76)

 

Income tax expense effects (1)

(6,473)

 

 

(5,127)

 

 

(11,282)

 

 

(12,590)

 

Non-GAAP net income

$

22,842

 

 

$

18,060

 

 

$

40,140

 

 

$

33,139

 

Reconciliation between GAAP and non-GAAP weighted average shares used in computing basic and diluted net income (loss) per common share:

 

 

 

 

 

 

 

Weighted average number of shares used in computing basic net income (loss) per share

88,254

 

 

82,339

 

 

87,797

 

 

81,872

 

Effect of dilutive securities

5,891

 

 

 

 

 

 

 

GAAP weighted average shares used in computing GAAP diluted net income (loss) per share

94,145

 

 

82,339

 

 

87,797

 

 

81,872

 

Effect of dilutive securities

(839)

 

 

5,137

 

 

4,990

 

 

5,331

 

Non-GAAP weighted average shares used in computing non-GAAP diluted net income per share

93,306

 

 

87,476

 

 

92,787

 

 

87,203

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share

 

 

 

 

 

 

 

GAAP net income (loss) per share

$

0.01

 

 

$

(0.11)

 

 

$

(0.69)

 

 

$

(0.19)

 

Non-GAAP net income per share

$

0.24

 

 

$

0.21

 

 

$

0.43

 

 

$

0.38

 

(1) Income tax expense effects for the three and six months ended June 30, 2019 include the tax benefit from release of valuation allowance.

 

TABLE 6

RINGCENTRAL, INC.
RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
GAAP MEASURES TO NON-GAAP FREE CASH FLOW MEASURES
(Unaudited, in thousands)

   

 

Six Months Ended June 30,

 

2020

 

2019

Net cash provided by operating activities

$

40,109

 

 

$

44,248

 

Repayment of convertible senior notes attributable to debt
discount

14,230

 

 

 

Non-GAAP net cash provided by operating activities

54,339

 

 

44,248

 

Purchases of property and equipment

(15,581)

 

 

(14,994)

 

Capitalized internal-use software

(17,021)

 

 

(7,602)

 

Non-GAAP free cash flow

$

21,737

 

 

$

21,652

 

 

TABLE 7

RINGCENTRAL, INC.
RECONCILIATION OF FORECASTED OPERATING MARGIN
GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited, in millions)

       

 

Q3 2020

 

FY 2020

 

 Low
Range

 

 High
Range

 

 Low
Range

 

 High
Range

GAAP revenues

283.5

 

 

289.5

 

 

1,135.0

 

 

1,143.0

 

 

 

 

 

 

 

 

 

GAAP loss from operations

(34.2)

 

 

(32.0)

 

 

(122.7)

 

 

(115.8)

 

GAAP operating margin

(12.0%)

 

 

(11.0%)

 

 

(10.8%)

 

 

(10.1%)

 

Share-based compensation

54.0

 

 

53.0

 

 

195.0

 

 

190.0

 

Amortization of acquisition
intangibles

8.5

 

 

8.5

 

 

34.5

 

 

34.5

 

Acquisition related matters

 

 

 

 

2.2

 

 

2.2

 

Non-GAAP income from operations

28.4

 

 

29.5

 

 

109.0

 

 

110.9

 

Non-GAAP operating margin

10.0%

 

 

10.2%

 

 

9.6%

 

 

9.7%

 

 

 

July 28, 2020

RingCentral and Telarus Partner to Meet Growing Demand for Cloud Communications Solutions in the UK

London, UK – July 28, 2020 -- RingCentral, UK Ltd., a leading provider of global enterprise cloud communications, collaboration, and contact centre solutions, and a wholly-owned subsidiary of RingCentral, Inc. (NYSE: RNG), today announced its master agent partnership with Telarus, a market leader for the distribution of network, unified communications, and cloud services in the UK.

RingCentral empowers organisations of all types and sizes to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral and Telarus are partnering to help UK companies support their employees working from anywhere. 

“Telarus understands the growing demand and market shift from on-premises legacy systems to cloud communications solutions, and we’re proud that they have chosen RingCentral as a strategic UCaaS partner,” said Zane Long, senior vice president of global partner sales at RingCentral. “Master agents such as Telarus are instrumental in enabling us to deliver industry-leading cloud communications solutions to customers, and this partnership will strengthen and accelerate our channel presence in the UK.”

RingCentral works with world-class distributors, master agents, channel partners, and carrier partners to deliver cloud communications solutions to businesses around the world. RingCentral is ranked in the CRN 5-Star Partner Program Guide for five years in a row and recognised as a leader in the Gartner 2019 Magic Quadrant for Unified Communications as a Service Worldwide. RingCentral provides a mobile-first, unified message video phone solution, as well as digital customer engagement and integrated contact centre solutions to enable a completely seamless experience. Easier to manage, more flexible and cost-efficient than legacy, on-premise communications systems, RingCentral’s cloud solutions meet the needs of today’s mobile and distributed workforce. With a proven track-record in the UCaaS space, Telarus will enable speedy partner onboarding, leading to a faster return on investment (ROI).

“We are excited to be working with RingCentral and proud that our relationship has been recognised with the Platinum Partner status,” commented Shane Speakman, vice president of business development – Unified Communications as a Service, Telarus. “RingCentral is the industry leader in the growing UCaaS market. This partnership will allow us to bring the benefits of RingCentral’s cloud communications and collaboration services to companies across the UK.”

About RingCentral 

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact centre solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customise business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc. 

About Telarus 

Built for You, Telarus is the largest privately-held technology services distributor (master agent) in the United States. We are a global master agent with offices in Australia, Canada and the United Kingdom. Our dynamic agent-partner community sources data, voice, cloud, and managed services through our robust portfolio of 250 leading service providers. We are best known for our home-grown software pricing tools and mobile apps that are unique in the industry. To help our partners grow their businesses, we’ve assembled the best support organisation in the industry. It includes SD-WAN, Cloud, mobility, contact centre, and ILEC speciality practices whose primary goal is to help our partners identify and design the right technology solutions for their customers. To learn more about the Telarus opportunity, please visit www.telarus.com, or follow us on Twitter @Telarus.

 

July 27, 2020

Gunjan Aggarwal Joins RingCentral as Chief People Officer to Accelerate Purpose-Driven Culture

LONDON, UK -- July 27, 2020 -- RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact centre solutions, today announced the appointment of Gunjan Aggarwal as Chief People Officer, reporting to Anand Eswaran, president and COO at the company. Aggarwal will be responsible for continuing to ensure that  RingCentral is a great place to work for our people, from talent acquisition and development, to organisation effectiveness, rewards and recognition, and global inclusion and diversity.

Aggarwal is a 20-year industry veteran who joins RingCentral from RELX Group, a world-leading provider of information solutions based on big data analytics for professional and business customers with revenues of $10 billion. At RELX, she was responsible for all aspects of the people function across the 30,000 employee population. She also led executive and board engagements in planning, culture, inclusion, and risk mitigation in the people domain and oversaw a team of over 400 HR professionals. 

“Successful companies create an inclusive environment that enables people to bring their best and authentic self to work,” according to Anand Eswaran, president and chief operating officer RingCentral. “RingCentral is a purpose-led company, and we are on a journey to constantly reimagine a people-centred, inclusive workplace.  We’re excited Gunjan is joining us to accelerate our progress, attract, retain, empower and coach great talent; and evolve a culture that delivers the best outcomes for our people, our customers, partners, shareholders and communities. In Gunjan we have a leader who combines clarity of purpose with creative intent and we’re looking forward to seeing her impact.” 

“RingCentral’s success is a testament to the company’s strong values and culture,” said Aggarwal. “I have always been focused on fostering strong cultures that are diverse and all inclusive. I see tremendous opportunities at RingCentral to continue to develop the company as both a destination for top talent and a great place to work. Great outcomes for our customers depend on ensuring our people have the best environment to learn, develop, and deliver. It’s an exciting journey.”

Prior to joining RELX, Aggarwal held a variety of leadership positions at Ericsson, where she spent five years, including vice president of people and culture. In her role, she supported the Media business growth via mergers and acquisitions, attracting software and cloud media talent to build Ericson’s TV-as-a-service (TVaaS) offerings in a dynamic industry domain. Aggarwal also served as global head of talent acquisition for Diversity & Inclusion (D&I) and Mergers & Acquisition (M&A) where she worked closely with executive staff and the talent board to recruit top executive talent.

Aggarwal also served as vice president and head of HR for North America at Ericsson, leading HR strategy for 20,000 employees with a team of 250 HR associates. Before joining Ericsson, Aggarwal held various positions at leading companies including Novartis and Unilever. 

Aggarwal holds a Bachelor of Science degree in Electronics and Communication and a Masters in Business Administration from XLRI in Jamshedpur, India. 

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact centre solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customise business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

 

July 21, 2020

Atos and RingCentral Announce Expansion of Strategic Partnership with New “Unify Office” as Exclusive UCaaS Solution for 40 Million Users of the Atos Unify Family of Products

Paris, France and London, UK – July 21, 2020 – Atos SE (CAC40: ATO), a global leader in digital transformation, and RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact centre solutions, today announced the expansion of their strategic partnership with the launch of a co-branded UCaaS solution called Unify Office (UO) by RingCentral. In addition to the system integrator relationship announced previously, the expanded partnership will now include Unify Office as the exclusive UCaaS offering for the 40 million user installed base of the Atos Unify product family. Unify Office is expected to be available starting August 31, 2020.

This will allow Atos to maximise the global market opportunity in digital transformation by adding a strong cloud communications solution to its portfolio. Unify Office, combined with the Atos Unify OpenScape product family and market leading Atos Unify Cloud Contact Centre offering, gives Atos’ customers unique access to leading solutions across all the major Unified Communications categories. 

Atos will also become a customer of Unify Office and start to deploy Unify Office for Atos UCC (former Unify Division) with a view to expand this across the 110,000 employees. Unify, formerly Siemens Enterprise Communications, was acquired by Atos in 2016.

During the ongoing Covid-19 pandemic, Atos accelerated its relationship with RingCentral and engaged within the strong Atos Unify reseller landscape to certify more than 90 channel partners with an Early Adopter Program to sell the new Unify Office.  

“At RingCentral we’ve always been focused on enabling employees to be productive and collaborate from anywhere, using any device and through the modality of their choice to drive effective business outcomes,” said Vlad Shmunis, Founder, Chairman and CEO, RingCentral. “By bringing Unify Office to the 40 million users of Atos Unify’s family of products, we will provide organisations with the ability to accelerate digital transformation across their entire enterprise.” 

Atos will bring added value to RingCentral’s leading UCaaS offering through the exclusive compatibility of the Atos Unify family of devices and market leading services capabilities. In addition, Atos will provide fully integrated Digital Workplace offers with some of Atos’ biggest technology and alliance partners. Unify Office will be the exclusive UCaaS solution offered through the Atos Unify Channel Program, allowing its reseller community of more than 1,700 partners worldwide to add their own value. 

“This is a critical moment for workplace communications. Organisations are returning to their offices in a new normal and require accelerated digital transformation of their workplace environment,” said Elie Girard, CEO, Atos. “With our unique heritage in Unified Communications, we’re excited about combining our knowledge with the market leader in UCaaS to start a new chapter for business communication solutions worldwide.”

About Atos 

Atos is a global leader in digital transformation with 110,000 employees in 73 countries and annual revenue of € 12 billion. European number one in Cloud, Cybersecurity and High-Performance Computing, the Group provides end-to-end Orchestrated Hybrid Cloud, Big Data, Business Applications and Digital Workplace solutions. The Group is the Worldwide Information Technology Partner for the Olympic & Paralympic Games and operates under the brands Atos, Atos|Syntel, and Unify. Atos is a SE (Societas Europaea), listed on the CAC40 Paris stock index.
 

The purpose of Atos is to help design the future of the information space. Its expertise and services support the development of knowledge, education and research in a multicultural approach and contribute to the development of scientific and technological excellence. Across the world, the Group enables its customers and employees, and members of societies at large to live, work and develop sustainably, in a safe and secure information space.

Atos UCC refers to the former Unify Division.

Atos Unify refers to the product family of former Unify products and partner program. 

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact centre solutions for businesses worldwide. More flexible and cost effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

Forward-Looking Statements

This press release contains “forward-looking statements,” including but not limited to, statements regarding RingCentral’s plans to partner with Atos to offer a co-branded UCaaS solution and the anticipated benefits of and activity under RingCentral’s strategic partnership with Atos, including the ability to create long-term growth opportunities for RingCentral. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including risks related to the parties’ ability to perform their obligations under the commercial arrangement, the parties ability to successfully develop and execute the envisioned jointly developed programs, technology and automation, the ability to successfully transition customers to RingCentral’s UCaaS solution, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in RingCentral’s Form 10-Q for the quarter ended March 31, 2020, filed with the Securities and Exchange Commission; and in other filings RingCentral makes with the Securities and Exchange Commission from time to time.  All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates.

 

June 30, 2020

Avaya Cloud Office™ UCaaS Solution Now Available in Australia, Canada, and the UK

London, UK, – June 30, 2020 –  Avaya Holdings Corp. (NYSE: AVYA and RingCentral Inc. (NYSE: RNG) today announced the global expansion and general availability of Avaya Cloud Office™ by RingCentral® in Australia, Canada, and the UK along with the availability of several key new features and capabilities including tools to help migrate customers more efficiently and effectively.

Avaya Cloud Office is experiencing rapid global customer adoption, enhancing the way organizations communicate with customers, partners and with colleagues through an all-in-one solution that delivers seamless collaboration across multiple channels. Communication delivered via a single platform is increasingly important as 85 percent of companies use two or more disparate collaboration applications to meet customer and end-user requirements.1 By enabling voice calls, team messaging, meetings, conferencing and file sharing in a single solution, Avaya Cloud Office reduces cost and complexity while empowering workforces to call, meet and message across any device from wherever they are. 

Today’s announcement highlights the continued expansion of Avaya Cloud Office to more countries and customers around the globe. For example, the CIUSSS Est-de-l’Ile-de-Montreal (or CEMTL), a Canadian healthcare and social services provider with 15,000 employees across two hospitals, one university institute, eight clinics and fifteen long term care facilities turned to Avaya to power their communication needs. “Avaya Cloud Office demonstrates the true value of UCaaS and enables us to act quickly and stay engaged across our locations, in particular during the COVID-19 crisis when effective and efficient communications and collaboration are critical and not an option. Avaya Cloud Office enables our team to collaborate seamlessly across locations and devices to better focus on the needs of our customers.  Additionally, the deployment was fast and effortless, literally within hours we were up and running.”

“The way we work continues to change as we see real examples of digital transformation accelerating rapidly across businesses of all sizes,” said Dennis Kozak, SVP, Business Transformation, Avaya. “Nothing is more critical to a business than communications and we have seen unprecedented uptake of our collaboration solutions as a result of the new working environment we are all experiencing. Organizations of all kinds are quickly adopting solutions that provide a single integrated platform to seamlessly manage communications with customers and employees, across multiple devices.”

Since its introduction in March, new features, including additional migration tools, enhanced devices support, along with advanced telephony management and other capabilities have been added to Avaya Cloud Office including:

  • Expanded support for Avaya endpoint devices to ensure users have the solution that suits their needs. The additional device support also extends the rich meeting capabilities of Avaya Cloud Office into conference rooms, providing high fidelity sound quality. 
  • Migration tools and features to facilitate the transition of customers on previous Avaya UC premise-based platforms to Avaya Cloud Office, enabling them to seamlessly enjoy the feature rich UCaaS capabilities of calling, meetings, messaging and more – all based in the cloud.
  • Additional features like Call Park and Page that allow customers to transition from existing Avaya platforms without changing the current processes they use every day.
  • Over 130 integrations on the Avaya Cloud Office App Gallery leveraging desktop software tools, like Google Docs or O365, that people use every day, creating a seamless experience that eliminates the need to switch between applications.

“It is now more important than ever before that vendors in UC&C are able to provide UCaaS for clients both new and potential,” said Oru Mohiuddin, Research Manager Enterprise Communications & Collaboration, IDC. “According to IDC Europe forecast, UCaaS will grow at a compounded annual growth rate of 23.3% between 2019 and 2022, which is higher than the 17.1% anticipated during the pre-covid-19 period. IDC is seeing similar trends in places like Canada and Australia as well. This is to facilitate remote collaboration as working from home becomes the new norm in the post crisis period. It is, however, not just enough to provide UCaaS – it needs to be customisable, flexible, modular, agile, frictionless, scalable, omnichannel and secure to cater to the varying needs of enterprises.  

Avaya Cloud Office recently won CUSTOMER Magazine’s 2020 Unified Communications Product of the Year Award honoring the most innovative unified communications products and solutions available over the past year.

“Organisations need modern cloud communications solutions to remain connected and accelerate business outcomes,” said Anand Eswaran, president and chief operating officer, RingCentral. “Avaya Cloud Office enables businesses to keep moving forward and helps ensure that customers have the necessary solutions at their fingertips to connect, communicate, and collaborate effectively. Ever since we launched in the US market, we have seen tremendous uptick for Avaya Cloud Office by the extensive and trusted ecosystem that Avaya has nurtured for many years.”

Also announced today is an Avaya Cloud Office promotional offer, providing customers who sign up now with a full free month of service and 20 percent discount. Customers will get free Basic Avaya Cloud Office Implementation, discounts on Avaya Cloud Office Professional Migration Services, and discounts on select desk phones. The promotion details and further conditions can be found here.

Avaya also recently announced master agent partnerships to meet the growing global demand for Avaya Cloud Office including:

Australia

Canada

UK

Additional Resources

1TalkingPointz Research Note, "The Firstline/deskless Opportunity 2019", by Dave Michels, July 2019

About Avaya
Businesses are built on the experiences they provide, and every day millions of those experiences are built by Avaya (NYSE: AVYA). For over one hundred years, we’ve enabled organizations around the globe to win - by creating intelligent communications experiences for customers and employees. Avaya builds open, converged and innovative solutions to enhance and simplify communications and collaboration - in the cloud, on-premise or a hybrid of both. To grow your business, we’re committed to innovation, partnership, and a relentless focus on what’s next. We’re the technology company you trust to help you deliver Experiences that Matter. Visit us at https://www.avaya.com © 2020 Avaya Holdings Corp. All rights reserved. Avaya, Avaya Cloud Office and the Avaya logo are trademarks of Avaya Holdings Corp.

About RingCentral
RingCentral, Inc. (NYSE: RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact centre solutions. More flexible and cost-effective than legacy on-premises systems, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect from any location, on any device, and via any mode. RingCentral provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact centre solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customise business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world. © 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.


Cautionary Note Regarding Forward-Looking Statements
This document contains certain “forward-looking statements”, including but not limited to, statements regarding the anticipated impact and benefits of Avaya Cloud Office. All statements other than statements of historical fact are “forward-looking” statements for purposes of the U.S. federal and state securities laws. These statements may be identified by the use of forward looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," “our vision,” "plan," "potential," "preliminary," "predict," "should," "will," or “would” or the negative thereof or other variations thereof or comparable terminology. RingCentral and Avaya have based these forward-looking statements on their current expectations, assumptions, estimates and projections. While RingCentral and Avaya believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond their control. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including risks related to the parties’ ability to successfully perform their obligations under the commercial arrangement, the parties ability to successfully market, sell and transition customers to Avaya Cloud Office, as well as those risks and uncertainties discussed in RingCentral’s and Avaya’s respective Annual Reports on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”) available at www.sec.gov. RingCentral and Avaya caution you that the list of important factors included in their respective filings may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this press release may not in fact occur. Neither RingCentral nor Avaya undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Source: Avaya Newsroom

 

June 29, 2020

RingCentral Announces RingCentral Cloud PBX for Microsoft Teams with Direct Routing Integration

London, UK, – June 29, 2020 – RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact centre solutions, today announced RingCentral Cloud PBX™ for Microsoft Teams enabling Direct Routing integration. With the RingCentral Cloud PBX for Microsoft Teams users will have access to more robust cloud PBX capabilities without ever having to leave the Teams interface on mobile, web, and desktop. RingCentral also provides broader integrations with Microsoft Teams that enhance user productivity across the platform.  

“Today’s modern workforce wants the flexibility to communicate using their preferred channels, both within and outside their organisation,” said Will Moxley, chief product officer, RingCentral. “For organisations using Microsoft Teams for team messaging, RingCentral Cloud PBX for Microsoft Teams provides exceptional enterprise PBX capabilities, enabling users to remain productive from within their Teams environment. Our integrations with Teams aligns with our vision of delivering an open platform, where our rich integration ecosystem empowers users to effortlessly and intuitively access RingCentral communications capabilities from their applications of choice to drive productivity across their enterprise.”

RingCentral Cloud PBX for Microsoft Teams with Direct Routing integration includes: 

  • Call controls: Enables users to mute/unmute, hold, resume, and transfer calls
  • Interactive Voice Response (IVR): Businesses can create sophisticated and global call-flow configurations 
  • Call handling: Route incoming calls to any or all of the users’ devices eliminating the need to be tethered to a desktop computer
  • Call queues: Route and distribute calls to several extensions and set up overflow capabilities for when it gets busy
  • Open Platform: Organisations can take advantage of RingCentral’s robust library of native integrations or build their own with RingCentral APIs. The RingCentral open platform ecosystem continues to expand with more than 40,000 developers and 4,000 out-of-the-box and custom app integrations
  • Global Coverage: Enterprises can leverage RingCentral’s global phone system capabilities in 40+ countries and local and toll-free numbers in 100+ countries 
  • Service Level Agreements (SLA): RingCentral Cloud PBX for Microsoft Teams offers native PSTN with industry-leading available 99.999% SLA. RingCentral Cloud PBX features and functionality remain at RingCentral's SLA. End users accessing the integration via Teams are subject to the Teams SLA 
  • Security Certifications and Compliance: RingCentral provides audit reports demonstrating applicable safeguards for requirements such as HIPAA and FINRA, and offers leading audits and security certifications such as SOC2, SOC3, HITRUST, and others
  • Native call recording: The solution enables users to seamlessly record inbound and outbound calls from any device as needed
  • Analytics and Call Reports: Provides users complete visibility into all their calls, identify key trends, set up automated alerts, and more to drive real-time decisions

Paul Weiss, chief knowledge officer at Helm Partners, a leading telecom and technology advisory services firm and valued RingCentral Channel partner, said, “Our clients are demanding secure and reliable technology solutions that enable work from anywhere flexibility, allowing them to communicate through the channels they want, and on the devices of their choice. RingCentral’s integrations create even greater business agility by extending this flexibility to our clients’ workplace applications of choice.  Whether it is Teams, G-Suite, a CRM, or the RingCentral application, RingCentral’s platform is taking user enablement and workflow efficiency to the next level. They have created an ecosystem that works for all businesses, making RingCentral an integral strategic element as we assist our clients in accelerating their digital transformation journey.” 

Jim Lundy, founder, CEO, and lead analyst, Aragon Research, said, “The drastic shift to a fully remote working world has shed a spotlight on the limitations of legacy on-premise systems, which cause disruption and loss of productivity. With RingCentral Cloud PBX for Microsoft Teams, users can easily leverage the global enterprise phone system capabilities along with top-notch security and reliability that comes with RingCentral.”

Additional RingCentral App Integrations for Microsoft Teams and Office 365

RingCentral’s app integrations for Microsoft Teams, which are native to Teams and accessible via the Office 365 chrome extension are both available on the RingCentral app gallery.

  • Office 365 Chrome extension integration: Drives productivity from Microsoft Teams by quickly accessing RingCentral to schedule a video meeting, search their directory, or make a call within Teams, without requiring a separate desktop app.
  • Microsoft Teams RingCentral native integrations: Users can click an embedded message button or “@” mention RingCentral to directly schedule meetings, start a video call, or phone conversation from within Teams. The integration enables users to access a contact (both with web + desktop) without leaving Teams, eliminates the problem of siloed apps. 

RingCentral also supports integrations across different Microsoft products such as Outlook, Office 365, Skype for Business, and Dynamics 365, which streamline workflows with RingCentral as a communications hub. You can find these integrations and more ISV integrations such as Canvas, NetSuite, Salesforce, and Zendesk in the RingCentral app gallery.

Availability
RingCentral is announcing limited availability of RingCentral Cloud PBX for Microsoft for customers globally with general availability to follow. Additional integrations of RingCentral with Microsoft Teams mentioned above are available immediately to all global users.

Resources
Click here to learn more about RingCentral Cloud PBX for Microsoft. To read the blog click here.

About RingCentral
RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact centre solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customise business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

 

June 3, 2020

RingCentral Ranked Amongst Largest Publicly Traded Companies in Forbes Annual Global 2000 Listing

London, UK —June 3, 2020 —RingCentral (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact centre solutions, today announced that the company has been named in the Forbes “Global 2000: The World’s Largest Public Companies” list, released in May 2020. The annual list, which has been released for the past 18 years, features a ranking of the biggest, most powerful, and most valuable companies in the world. 

“RingCentral has always been focused on delivering next-generation communications solutions for the ever-expanding global, mobile, and distributed workforce,” said Vlad Shmunis, founder, chairman, and CEO, RingCentral. “Our inclusion in the Forbes 2020 list is an honor and validates our continued commitment to providing enterprises with modern cloud communications solutions that keep them connected and thriving.” 

The Forbes Global 2000 list is a highly regarded authority on corporate rankings globally. The Global 2000 list is based on four metrics: sales, profits, assets, and market value. Forbes uses an equal weighting of all four metrics to rank companies according to size. Each company receives a separate score for each metric. Forbes adds up all the scores to compile a composite score. The highest composite score gets the highest rank. RingCentral was ranked #1818 on the May 2020 annual list.

For more information and to view the full Global 2000 list, please visit https://www.forbes.com/global2000.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact centre solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customise business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

 

June 2, 2020

RingCentral Launches IGNITE! Partner Programme

London, June 2, 2020 -- RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact centre solutions, today announced the launch of its IGNITE!™ Partner Programme, which enables partners to own the entire sales cycle with organisations of up to 400 employees. IGNITE! builds on RingCentral’s existing industry-leading Channel Harmony® programme. The programme reinforces RingCentral’s commitment to the channel, and gives partners greater flexibility to choose the sales process that best suits the needs of each individual prospect.

“Now more than ever, organisations need technology that allows them to work from anywhere,” said Zane Long, senior vice president, global partner sales. “With the new IGNITE! programme, we remain committed to our partners by providing them with even more flexibility and choice. Partners can continue to look to RingCentral as the complete cloud solution for today's modern digital workforce across businesses of any size.”

The RingCentral IGNITE! Partner Programme enables qualifying partners to manage the sales process end-to-end for opportunities for organisations of up to 400 employees when selling RingCentral’s cloud communications solutions. Certified partners will be able to provide quotes, access a dedicated remote team for sales support, and have the ability to close deals with higher sales incentives. For larger, more complex deals, partners will continue to leverage RingCentral’s Channel Harmony programme for complete RingCentral sales resources.

RingCentral works with world-class distributors, master agents, channel partners, and carrier partners to deliver cloud communications solutions to businesses around the world. Ranked in the CRN 5-Star Partner Programme Guide for five years in a row and recognized as a leader in the Gartner 2019 Magic Quadrant for Unified Communications as a Service Worldwide, RingCentral provides a mobile-first, unified message video phone solution, as well as digital customer engagement and integrated contact centre solutions to enable a completely seamless experience. Easier to manage, more flexible and cost-efficient than legacy, on-premise communications systems, RingCentral’s cloud solutions meet the needs of today’s mobile and distributed workforce.

To learn more about RingCentral’s partner programmes, visit
https://www.ringcentral.co.uk/partner/overview.html.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact centre solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customise business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, IGNITE!, Channel Harmony and the RingCentral logo are trademarks of RingCentral, Inc.

May 6, 2020

RingCentral Announces First Quarter 2020 Results

Total Revenue up 33%

Total ARR surpassed $1 billion

Enterprise ARR and Channel ARR each surpassed $300 million

Belmont, Calif. – May 6, 2020RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced financial results for the first quarter ended March 31, 2020.

First Quarter Financial Highlights

• Total revenue increased 33% year over year to $268 million.

• Subscriptions revenue increased 33% year over year to $243 million.

• Annualized Exit Monthly Recurring Subscriptions (ARR) increased 33% year over year to over $1 billion.

• RingCentral Office® ARR increased 36% year over year to $943 million.

• Mid-market and Enterprise ARR increased 52% year over year to $524 million.

• Enterprise ARR increased 59% year over year to $318 million.

• Channel ARR increased 62% year over year to $329 million.

“We delivered another solid quarter, driven by continued strength in mid-market and enterprise markets,” said Vlad Shmunis, RingCentral’s founder, chairman and CEO. “During this difficult time, it has become even more apparent that legacy on-premise communication systems cannot meet flexible business needs in a work from anywhere environment. Since inception, RingCentral's cloud platform was designed to enable employees to communicate and collaborate from anywhere, on any device, in any mode. This quarter we introduced RingCentral Video (RCV), a reimagined video meetings experience. RCV now completes our differentiated Message Video Phone (MVP) solution that enables workers to stay productive as they work from anywhere.”

Financial Results for the First Quarter 2020

Revenue: Total revenue was $268 million for the first quarter of 2020, up from $201 million in the first quarter of 2019, representing 33% growth.

Operating Income (Loss): GAAP operating loss was ($25) million, compared to a GAAP operating loss of ($7) million in the same period last year, primarily driven by higher share-based compensation and amortization of intangibles. Non-GAAP operating income was $22 million, compared to a non-GAAP operating income of $16 million in the same period last year.

Net Income (Loss) Per Share: GAAP net loss per diluted share was ($0.70), compared to ($0.08) in the same period last year, primarily driven by higher share-based compensation, amortization of intangibles, and losses associated with investments and strategic partnerships. Non-GAAP net income per diluted share was $0.19, compared to $0.17 per diluted share in the same period last year. The first quarter of 2020 reflected a 22.5% non-GAAP tax rate. There were no material cash taxes given our net operating loss carryforwards.

• Cash and Cash Equivalents: Total cash and cash equivalents at the end of the first quarter of 2020 was $762 million. This compares with $344 million at the end of the fourth quarter of 2019.

Additional Highlights

• Announced RingCentral Video™ (RCV), a reimagined video meetings experience. Leveraging RingCentral's years of experience as a global UCaaS leader, RingCentral  Video joins RingCentral messaging and RingCentral phone to complete our differentiated Message Video Phone™ (MVP) solution.

• Announced general availability of the highly anticipated Avaya Cloud Office™ by RingCentral® solution. Avaya Cloud Office enhances the way organizations communicate with customers, partners, and with colleagues through an all-in-one solution that delivers seamless collaboration across multiple channels.

• Announced AT&T Office@Hand powered by RingCentral now provides enhanced HD video capabilities through new RingCentral Video™ technology.

• Issued $1.0 billion aggregate principal amount of 0% Convertible Senior Notes due 2025 priced with a 50% premium to the volume weighted average price per share on February 27, 2020.

• Announced a new unified desktop app, an entirely reimagined user experience for enterprise communications available both on Windows PCs and Macs. This new app makes it much more efficient for users to communicate, share documents, make calls and schedule, join and host video meetings.

• Announced the addition of Chief Revenue Officer, Phil Sorgen. Phil is a 24-year Microsoft veteran, and most recently was the Corporate Vice President for the US Enterprise Commercial business. Prior to that, Phil was the Global Channel Chief, harnessing the power of all partners to drive growth for Microsoft.

Financial Outlook

COVID-19 highlights the resiliency of RingCentral's subscription business model. We have incorporated incremental assumptions to our outlook to reflect the current macroeconomic backdrop.

We are raising our 2020 subscriptions revenue outlook to reflect Q1 strength and positive new logo trends in early Q2, along with a prudent outlook for the remainder of the year. We have also assumed $5 to $10 million FX headwinds from weakness of international currencies versus the US dollar. We are adjusting our implied desktop phone revenue outlook to reflect reduced desktop phone demand in the current work from home environment.

Full Year 2020 Guidance:

• Raising subscriptions revenue range to $1.024 to $1.030 billion, representing annual growth of 25% to 26%. This is up from our prior range of $1.019 to $1.027 billion and annual growth of 25% to 26%.

• Total revenue range to $1.116 to $1.125 billion, representing annual growth of 24% to 25%, vs the prior range of $1.125 to $1.135 billion.

• GAAP operating margin between (11.3%) and (9.9%).

• Non-GAAP operating margin between 9.6% and 9.7%.

• Non-GAAP tax rate for 2020 assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.

• Non-GAAP EPS range of $0.91 to $0.94 based on 93.5 million fully diluted shares, vs the prior range of $0.93 to $0.94. This reflects a $0.02 impact from lower interest rate assumptions.

• Share-based compensation range of $185 to $195 million, amortization of debt discount of $46 million, amortization of acquired intangibles range of $34 to $36 million, and acquisition related matters of approximately $1.9 million.

Second Quarter 2020 Guidance:

• Subscriptions revenue range of $244.5 to $246.5 million, representing annual growth of 26% to 27%.

• Total revenue range of $260 to $266 million, representing annual growth of 21% to 24%.

• GAAP operating margin range of (13.8%) to (12.6%).

• Non-GAAP operating margin of 8.9% to 9.0%.

• Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.

• Non-GAAP EPS of $0.20 to $0.21 based on 93 million fully diluted shares.

• Share-based compensation range of $49 to $50 million, amortization of debt discount of $13 million, and amortization of acquired intangibles of $8.5 to $9.0 million.

For a reconciliation of our forecasted non-GAAP operating margin, see “Reconciliation of Forecasted Operating Margin GAAP Measures to Non-GAAP Measures.” We have not reconciled our forecasted non-GAAP EPS to its respective forecasted GAAP measure because we do not provide guidance on it. We do not provide guidance on forecasted GAAP EPS because of the inherent uncertainty and complexity involved in forecasting the intercompany remeasurement gain (loss), gain (loss) associated with investments and strategic partnerships, and provision (benefit) from income taxes, which could be significant reconciling items between the non-GAAP and respective GAAP measures. The intercompany remeasurement gain (loss) is affected by the movement in various exchange rates relative to the U.S. Dollar, which is difficult to predict and subject to constant change. We do not provide guidance on gain (loss) associated with investments and strategic partnerships as it is based on future share prices, which are difficult to predict and subject to inherent uncertainties. We do not provide guidance on forecasted GAAP tax rates as we do not forecast discrete tax items as they are difficult to predict. The provision (benefit) from income taxes, excluding discrete items, is expected to have an immaterial impact to our GAAP EPS. We utilized a projected long-term tax rate in our computation of the non-GAAP income tax provision. For fiscal 2020, we have determined the projected non-GAAP tax rate to be 22.5%.  Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.

Conference Call Details:

What:  RingCentral financial results for the first quarter of 2020 and outlook for the second quarter and full year of 2020.

When:  Wednesday, May 6, 2020 at 2:00PM PT (5:00PM 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 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:  Following the completion of the call through 11:59 PM ET on May 13, 2020, a telephone replay will be available by dialing (844) 512-2921 from the United States or (412) 317-6671 internationally with recording access code 13701796.

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at http://ir.ringcentral.com/.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Office, RingCentral Video, Message Video Phone, and the RingCentral logo are trademarks of RingCentral, Inc.

Forward-Looking Statements

This press release contains “forward-looking statements,” including but not limited to, statements regarding our future financial results, our GAAP and non-GAAP guidance, our momentum in mid-market and enterprise, the success of our RCV solution, the success of our relationships with Avaya and AT&T, our market opportunity, and the effects of the COVID-19 pandemic. Forward-looking statements are subject to known and unknown risks and uncertainties, and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those in any forward-looking statements are: the future effects of the COVID-19 pandemic, our ability to realize the anticipated benefits of our relationships with Avaya and AT&T; our ability to grow at our expected rate of growth; our ability to add and retain larger and enterprise customers and enter new geographies and markets; our ability to continue to release, and gain customer acceptance of, new and improved versions of our services, including RCV; our ability to compete successfully against existing and new competitors; our ability to enter into and maintain relationships with resellers, carriers and strategic partners; our ability to successfully and timely integrate, and realize the benefits of any significant acquisition we may make; our ability to manage our expenses and growth; and general market, political, economic, and business conditions, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission, and in other filings we make with the Securities and Exchange Commission from time to time.

All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.

Non-GAAP Financial Measures

Our reported financial results and financial outlook include certain Non-GAAP financial measures, including Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, and non-GAAP free cash flow. Non-GAAP subscriptions gross margin is defined as Non-GAAP subscriptions gross profit divided by GAAP subscriptions revenue. Non-GAAP other gross margin is defined as Non-GAAP other gross profit divided by GAAP other revenue. Non-GAAP income (loss) from operations is defined as GAAP income (loss) from operations excluding share-based compensation, amortization of acquisition intangibles, and acquisition related matters including transaction costs, integration costs, restructuring costs, and acquisition-related retention payments, as well as changes in the fair value of contingent consideration obligations. Non-GAAP operating margin is defined as Non-GAAP income (loss) from operations divided by total GAAP revenue. Non-GAAP net income (loss) is defined as GAAP net income (loss) excluding share-based compensation, intercompany remeasurement gains or losses, acquisition related matters, amortization of acquisition intangibles, non-cash interest expense associated with amortization of debt discount and issuance costs related to our convertible senior notes, gain (loss) associated with investments and strategic partnerships, tax benefit from release of valuation allowance, and the related income tax effect of these adjustments.

Non-GAAP diluted shares outstanding include the impact on shares used in per share calculations of our outstanding capped call transactions. Our outstanding capped call transactions are anti-dilutive in GAAP earnings per share but are expected to mitigate the dilutive effect of our convertible notes and therefore are included in the calculations of non-GAAP diluted shares outstanding.

Non-GAAP free cash flow is defined as net cash provided by (used in) operating activities plus cash paid for repayments of convertible senior notes attributable to debt discount, reduced by purchases of property and equipment and capitalized internal-use software. We believe information regarding free cash flow provides useful information to investors in understanding and evaluating the strength of liquidity and available cash.

We have included Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, and Non-GAAP free cash flow in this press release because they are key measures used by us to understand and evaluate our operating performance and trends, to prepare and approve our annual budget, and to develop short and long-term operational plans. In particular, the exclusion of certain expenses and cash flow items in calculating Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, and non-GAAP free cash flow provide useful measure for period-to-period comparisons of our business.

Although Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, and non-GAAP free cash flow are frequently used by investors in their evaluations of companies, these non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered alongside other financial performance measures.

Reconciliations of the Company’s non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release.

Other Measures

Our reported results also include our annualized exit monthly recurring subscriptions, RingCentral Office® annualized exit monthly recurring subscriptions, mid-market and enterprise annualized exit monthly recurring subscriptions, enterprise annualized exit monthly recurring subscriptions, channel partner annualized exit monthly recurring subscriptions, and net monthly subscriptions dollar retention. We define our annualized exit monthly recurring subscriptions as our monthly recurring subscriptions multiplied by 12. Our monthly recurring subscriptions equal the monthly value of all customer recurring charges contracted at the end of a given month. We believe this metric is a leading indicator of our anticipated subscriptions revenue. We calculate our RingCentral Office® annualized exit monthly recurring subscriptions in the same manner as we calculate our annualized exit monthly recurring subscriptions, except that only customer subscriptions from RingCentral Office® and RingCentral customer engagement solutions customers are included when determining monthly recurring subscriptions for the purposes of calculating this key business metric. We calculate mid-market and enterprise annualized exit monthly recurring subscriptions in the same manner as we calculate our RingCentral Office® annualized exit monthly recurring subscriptions, except that only customer subscriptions from customers generating $25,000 or more in annual recurring revenue are included. We calculate enterprise annualized exit monthly recurring subscriptions in the same manner as we calculate our RingCentral Office® annualized exit monthly recurring subscriptions, except that only customer subscriptions from customers generating $100,000 or more in annual recurring revenue are included. We calculate channel partner annualized exit monthly recurring subscriptions in the same manner as we calculate our annualized exit monthly revenue subscriptions, except that only customer subscriptions generated from channel partners are included. We define Dollar Net Change as the quotient of (i) the difference of our Monthly Recurring Subscriptions at the end of a period minus our Monthly Recurring Subscriptions at the beginning of a period minus our Monthly Recurring Subscriptions at the end of the period from new customers we added during the period, (ii) all divided by the number of months in the period. We define our Average Monthly Recurring Subscriptions as the average of the Monthly Recurring Subscriptions at the beginning and end of the measurement period.

TABLE 1

RINGCENTRAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)

 

March 31, 2020

 

December 31, 2019

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$762,064

 

 

 

$343,606

 

 

Accounts receivable, net

135,433

 

 

129,990

 

Deferred and prepaid sales commission costs

39,775

 

 

36,589

 

Prepaid expenses and other current assets

34,312

 

 

25,354

 

Total current assets

971,584

 

 

535,539

 

Property and equipment, net

97,924

 

 

89,230

 

Operating lease right-of-use-assets

38,820

 

 

39,269

 

Long-term investments

109,942

 

 

132,188

 

Deferred and prepaid sales commission costs, non-current

471,120

 

 

462,344

 

Goodwill

54,830

 

 

55,278

 

Acquired intangibles, net

118,524

 

 

127,338

 

Other assets

9,176

 

 

9,561

 

Total assets

$1,871,920

 

 

 

$1,450,747

 

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$35,306

 

 

 

$34,612

 

 

Accrued liabilities

162,286

 

 

138,729

 

Deferred revenue

110,178

 

 

107,372

 

Total current liabilities

307,770

 

 

280,713

 

Convertible senior notes, net

1,041,991

 

 

386,889

 

Operating lease liabilities

27,027

 

 

28,516

 

Other long-term liabilities

4,708

 

 

8,929

 

Total liabilities

1,381,496

 

 

705,047

 

 

 

 

 

Stockholders' equity

 

 

 

Common stock

9

 

 

9

 

Additional paid-in capital

840,115

 

 

1,033,053

 

Accumulated other comprehensive income

331

 

 

1,948

 

Accumulated deficit

(350,031)

 

 

(289,310)

 

Total stockholders' equity

$490,424

 

 

 

$745,700

 

 

Total liabilities and stockholders' equity

$1,871,920

 

 

 

$1,450,747

 

 

 

TABLE 2

RINGCENTRAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)

 

Three Months Ended March 31,

 

2020

 

2019

Revenues

 

 

 

Subscriptions

$243,104

 

 

 

$182,708

 

 

Other

24,408

 

 

18,781

 

Total revenues

267,512

 

 

201,489

 

Cost of revenues

 

 

 

Subscriptions

52,433

 

 

35,334

 

Other

21,011

 

 

15,501

 

Total cost of revenues

73,444

 

 

50,835

 

Gross profit

194,068

 

 

150,654

 

Operating expenses

 

 

 

Research and development

40,910

 

 

29,787

 

Sales and marketing

131,312

 

 

99,551

 

General and administrative

47,336

 

 

28,779

 

Total operating expenses

219,558

 

 

158,117

 

Loss from operations

(25,490)

 

 

(7,463)

 

Other income (expense), net

 

 

 

Interest expense

(7,502)

 

 

(5,032)

 

Other (expense) income, net

(27,517)

 

 

3,051

 

Other expense, net

(35,019)

 

 

(1,981)

 

Loss before income taxes

(60,509)

 

 

(9,444)

 

Provision for (benefit from) income taxes

212

 

 

(3,086)

 

Net loss

$(60,721)

 

 

 

$(6,358)

 

 

Net loss per common share

 

 

 

Basic and diluted

$(0.70)

 

 

 

$(0.08)

 

 

Weighted-average number of shares used in computing net loss per share

 

 

 

Basic and diluted

87,339

 

 

81,400

 

 

TABLE 3

RINGCENTRAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

 

Three Months Ended March 31,

 

2020

 

2019

Cash flows from operating activities

 

 

 

Net loss

$(60,721)

 

 

 

$(6,358)

 

 

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization

16,548

 

 

7,696

 

Share-based compensation

36,589

 

 

19,398

 

Amortization of deferred and prepaid sales commission costs

9,809

 

 

6,228

 

Amortization of debt discount and issuance costs

7,452

 

 

4,982

 

Loss on early extinguishment of debt

7,250

 

 

 

Repayment of convertible senior notes attributable to debt discount

(13,894)

 

 

 

Reduction of operating lease right-of-use assets

3,843

 

 

3,131

 

Loss (gain) and other related costs on investments

22,246

 

 

 

Foreign currency remeasurement (gain) loss

964

 

 

(11)

 

Provision for bad debt

1,492

 

 

337

 

Deferred income taxes

(33)

 

 

(235)

 

Tax benefit from release of valuation allowance

 

 

(3,245)

 

Other

45

 

 

1,433

 

Changes in assets and liabilities:

 

 

 

Accounts receivable

(6,935)

 

 

(5,267)

 

Deferred and prepaid sales commission costs

(22,544)

 

 

(11,477)

 

Prepaid expenses and other current assets

(8,958)

 

 

(5,834)

 

Other assets

131

 

 

(83)

 

Accounts payable

888

 

 

7,757

 

Accrued liabilities

19,948

 

 

(103)

 

Deferred revenue

2,806

 

 

5,301

 

Operating lease liabilities

(3,783)

 

 

(3,217)

 

Other liabilities

(74)

 

 

(236)

 

Net cash provided by operating activities

13,069

 

 

20,197

 

Cash flows from investing activities

 

 

 

Purchases of property and equipment

(6,861)

 

 

(6,862)

 

Capitalized internal-use software

(7,389)

 

 

(3,543)

 

Cash paid for business combination, net of cash acquired

 

 

(27,870)

 

Net cash used in investing activities

(14,250)

 

 

(38,275)

 

Cash flows from financing activities

 

 

 

Proceeds from issuance of convertible senior notes, net of issuance costs

986,508

 

 

 

Payments for 2023 convertible senior notes partial repurchase

(495,704)

 

 

 

Payments for capped calls and transaction costs

(60,900)

 

 

 

Proceeds from issuance of stock in connection with stock plans

4,802

 

 

2,666

 

Payments for taxes related to net share settlement of equity awards

(10,351)

 

 

(1,934)

 

Payment for contingent consideration for business acquisition

(3,548)

 

 

 

Repayment of financing obligations

(511)

 

 

 

Net cash provided by financing activities

420,296

 

 

732

 

Effect of exchange rate changes

(657)

 

 

47

 

Net increase (decrease) in cash, cash equivalents and restricted cash

418,458

 

 

(17,299)

 

Cash, cash equivalents and restricted cash

 

 

 

Beginning of period

343,606

 

 

566,329

 

End of period

$762,064

 

 

 

$549,030

 

 

 

TABLE 4

RINGCENTRAL, INC.
RECONCILIATION OF OPERATING INCOME (LOSS)
GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited, in thousands)

 

Three Months Ended March 31,

 

2020

 

2019

Revenues

 

 

 

Subscriptions

$243,104

 

 

 

$182,708

 

 

Other

24,408

 

 

18,781

 

Total revenues

267,512

 

 

201,489

 

Cost of revenues reconciliation

 

 

 

GAAP Subscriptions cost of revenues

52,433

 

 

35,334

 

Share-based compensation

(2,076)

 

 

(1,346)

 

Amortization of acquisition intangibles

(7,701)

 

 

(1,010)

 

Acquisition related matters

 

 

(50)

 

Non-GAAP Subscriptions cost of revenues

42,656

 

 

32,928

 

 

 

 

 

GAAP Other cost of revenues

21,011

 

 

15,501

 

Share-based compensation

(650)

 

 

(295)

 

Non-GAAP Other cost of revenues

20,361

 

 

15,206

 

Gross profit and gross margin reconciliation

 

 

 

     Non-GAAP Subscriptions

82.5%

 

 

82.0%

 

     Non-GAAP Other

16.6%

 

 

19.0%

 

     Non-GAAP Gross profit

76.4%

 

 

76.1%

 

Operating expenses reconciliation

 

 

 

     GAAP Research and development

40,910

 

 

29,787

 

     Share-based compensation

(7,467)

 

 

(4,262)

 

     Acquisition related matters

 

 

(347)

 

Non-GAAP Research and development

33,443

 

 

25,178

 

     As a % of total revenues non-GAAP

12.5%

 

 

12.5%

 

 

 

 

 

     GAAP Sales and marketing

131,312

 

 

99,551

 

     Share-based compensation

(11,291)

 

 

(7,608)

 

     Amortization of acquisition intangibles

(931)

 

 

(922)

 

     Acquisition related matters

4

 

 

(1,642)

 

Non-GAAP Sales and marketing

119,094

 

 

89,379

 

     As a % of total revenues non-GAAP

44.5%

 

 

44.4%

 

 

 

 

 

     GAAP General and administrative

47,336

 

 

28,779

 

     Share-based compensation

(15,105)

 

 

(5,887)

 

     Acquisition related matters

(1,863)

 

 

(423)

 

Non-GAAP General and administrative

30,368

 

 

22,469

 

     As a % of total revenues non-GAAP

11.4%

 

 

11.2%

 

Income (loss) from operations reconciliation

 

 

 

     GAAP loss from operations

(25,490)

 

 

(7,463)

 

     Share-based compensation

36,589

 

 

19,398

 

     Amortization of acquisition intangibles

8,632

 

 

1,932

 

     Acquisition related matters

1,859

 

 

2,462

 

Non-GAAP Income from operations

21,590

 

 

16,329

 

Non-GAAP Operating margin

8.1%

 

 

8.1%

 

 

TABLE 5

RINGCENTRAL, INC.
RECONCILIATION OF NET INCOME (LOSS)
GAAP MEASURES TO NON-GAAP MEASURES
(In thousands, except per share data) (Unaudited)

 

 

Three Months Ended March 31,

 

 

2020

 

2019

Net (loss) income reconciliation

 

 

 

 

     GAAP net loss

 

$(60,721)

 

 

 

$(6,358)

 

 

     Share-based compensation

 

36,589

 

 

19,398

 

     Amortization of acquisition intangibles

 

8,632

 

 

1,932

 

     Acquisition related matters

 

1,859

 

 

2,462

 

     Amortization of debt discount and issuance costs

 

7,452

 

 

4,982

 

Loss associated with investments and strategic partnerships

 

20,148

 

 

 

     Loss on early extinguishment of debt

 

7,250

 

 

 

     Intercompany remeasurement loss

 

898

 

 

126

 

     Income tax expense effects (1)

 

(4,809)

 

 

(7,463)

 

     Non-GAAP net income

 

$17,298

 

 

 

$15,079

 

 

Reconciliation between GAAP and non-GAAP weighted average shares used in computing basic and diluted net (loss) income per common share:

 

 

 

 

     Weighted average number of shares used in
     computing basic net (loss) income per share

 

87,339

 

 

81,400

 

     Effect of dilutive securities

 

4,927

 

 

5,525

 

     Non-GAAP weighted average shares used in
     computing non-GAAP diluted net income per share

 

92,266

 

 

86,925

 

 

 

 

 

 

Diluted net (loss) income per share

 

 

 

 

     GAAP net loss per share

 

$(0.70)

 

 

 

$(0.08)

 

 

     Non-GAAP net income per share

 

$0.19

 

 

 

$0.17

 

 

(1) Income tax expense effects for the three months ended March 31, 2019 include the tax benefit from release of valuation allowance.

 

TABLE 6

RINGCENTRAL, INC.
RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
GAAP MEASURES TO NON-GAAP FREE CASH FLOW MEASURES
(Unaudited, in thousands)

 

Three Months Ended March 31,

 

2020

 

2019

Net cash provided by operating activities

$13,069

 

 

 

$20,197

 

 

Purchases of property and equipment

(6,861)

 

 

(6,862)

 

Capitalized internal-use software

(7,389)

 

 

(3,543)

 

Repayment of convertible senior notes attributable to debt discount

13,894

 

 

 

Non-GAAP free cash flow

$12,713

 

 

 

$9,792

 

 

 

TABLE 7

RINGCENTRAL, INC.
RECONCILIATION OF FORECASTED OPERATING MARGIN
GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited, in millions)

 

Q2 2020

 

FY 2020

 

 Low Range

 

 High Range

 

 Low Range

 

 High Range

GAAP revenues

260.0

 

 

266.0

 

 

1,116.0

 

 

1,125.0

 

 

 

 

 

 

 

 

 

GAAP loss from operations

(35.9)

 

 

(33.6)

 

 

(125.7)

 

 

(111.7)

 

GAAP operating margin

(13.8%)

 

 

(12.6%)

 

 

(11.3%)

 

 

(9.9%)

 

Share-based compensation

50.0

 

 

49.0

 

 

195.0

 

 

185.0

 

Amortization of acquisition
intangibles

9.0

 

 

8.5

 

 

36.0

 

 

34.0

 

Acquisition related matters

 

 

 

 

1.9

 

 

1.9

 

Non-GAAP income from operations

23.1

 

 

23.9

 

 

107.1

 

 

109.1

 

Non-GAAP operating margin

8.9%

 

 

9.0%

 

 

9.6%

 

 

9.7%

 

May 6, 2020

Phil Sorgen, Former Microsoft Corporate Vice President for US Enterprise Commercial Group, Joins RingCentral as Chief Revenue Officer

BELMONT, Calif.--May 6, 2020--RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that Phil Sorgen, former Corporate Vice President for Microsoft’s Enterprise Commercial Group, has joined the company as its Chief Revenue Officer. Reporting to Anand Eswaran, President and Chief Operating Officer at RingCentral, Sorgen will be responsible for global sales including all direct, service providers, channel and strategic partners. Earlier Sorgen served as the Corporate Vice President of the Worldwide Partner Group at Microsoft. Sorgen is a 30-year industry veteran and has spent the last 20+ years at Microsoft in a variety of leadership roles. 

“We are excited to have Phil on board and extend him a very warm welcome. Phil brings 30 years of experience of leading sales and partner organizations at global scale,” said Anand Eswaran, president and chief operating officer, RingCentral. “Phil’s leadership is defined by his deep customer and partner relationships, a customer-first mindset and a track record of building sustainable growth businesses at scale. As we continue to enable our customers to thrive during these unprecedented times, Phil will lead the way in driving a powerful partner and customer ecosystem and take us through our next growth phase.” 

Most recently, Sorgen was responsible for Microsoft’s U.S. Enterprise Commercial Group, an organization responsible for helping the company’s largest commercial customers in the U.S. navigate digital transformation. In this role, Sorgen led U.S. enterprise sales and customer success teams including national, industry and technical teams.

Prior to this, Phil was Corporate Vice President of the Worldwide Partner Group at Microsoft where he was responsible for setting the channel strategy for a broad network of diverse partner companies worldwide. In addition, his team was responsible for activating partners on Microsoft cloud offerings at scale. He also had oversight of partner capacity management, sales and technical readiness, partner incentives, and digital engagement.

Earlier, Sorgen led the Small and Mid-market Solutions and Partners business in the U.S. In this role he was responsible for sales, marketing and partner management serving Microsoft's business customers and partner community in the U.S. Sorgen also had responsibility for the Dynamics and Service Provider businesses across all customer segments. And prior to that Sorgen served as President of Microsoft Canada, where he had responsibility for all elements of Microsoft’s Canadian business and for deepening Microsoft’s commitment to the Canadian market.   

"I am excited to join a rapidly growing organization like RingCentral that is at the forefront of transforming enterprise communications,” said Sorgen. “Throughout my career, I have worked with customers and helped them find ways to grow their business, solve their problems and recognize the value of joint solutions. I also believe deeply in the power of partnerships, which aligns closely with the strategy at RingCentral. I look forward to bringing that same spirit of collaboration to RingCentral and continuing the company's commitment to providing world-class cloud communications to its partners and customers at a time when this company is experiencing an incredible period of growth and innovation.” 

About RingCentral 

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

 

May 5, 2020

RingCentral Reimagines User Experience for Communications and Collaboration with New Unified Desktop App

London – May 5, 2020 -- RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact centre solutions, is today announcing the launch of the new RingCentral unified desktop app, an entirely reimagined user experience for enterprise communications available both on Windows PCs and Macs. The new unified RingCentral desktop app provides a modern contextual and collaboration-centric app that includes RingCentral’s Message Video Phone™ (MVP) capabilities in a single solution for a streamlined experience.

“Organisations face the new reality of their entire workforce working from home. Providing employees with communications solutions that enable them to be productive from any device, anywhere and on any mode of communication has become an absolute necessity for business continuity and success,” said Will Moxley, chief product officer, RingCentral. “With the new desktop app, we’ve modernised and reimagined the user experience and taken productivity to the next level for the digital enterprise.” 

Key new differentiators in the RingCentral desktop application include: 

  • Real-time switching between modes of communication: The tight integration between Message, Video and Phone all in a single unified application enables users to seamlessly switch between these modes of communication. 

  • Seamless switching of meetings between devices: The new RingCentral desktop app enables users to seamlessly switch from one device to another while participating in a video meeting.

  • Advanced search functionality: The new RingCentral desktop application offers advanced search functionality that enables users to search for messages directed to an individual user. Users can also filter their search results by an email address or team name, which makes the search functionality approximately 4X1 faster.

  • Third-party integrations: The application offers key calendar integrations with several business productivity applications such as Microsoft Office 365 and Google.  

The clean and refreshed redesign of the RingCentral desktop application enables users to be more productive with a simplified experience.  

“For enterprise communications, users, easy to navigate solutions with a modern interface is a must have. But these users are on the go now more than ever which means they also require a multi-modal application that works the way people truly work. RingCentral’s new desktop application addresses this with fast and seamless call switching between desktop and mobile as well as including all the essential capabilities needed to communicate and collaborate in today’s digital enterprises,” said Fazil Balkaya, Principal Analyst at Synergy Research. 

Availability 

The new desktop version will be available from the 7th May. For more information, please click here.

Source

1Based on internal QA testing results

About RingCentral 

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact centre solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customise business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc.

 

April 2, 2020

RingCentral Releases RingCentral Video to Address Work from Anywhere Demands; Completes Message Video Phone Solution

Belmont, Calif., -- RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced RingCentral Video™ (RCV), a reimagined video meetings experience. Leveraging RingCentral’s open platform, RingCentral Video will be another component offered as part of RingCentral Office®, completing RingCentral’s differentiated Message Video Phone™ (MVP) solution. RingCentral Video addresses the demand in work from anywhere by leveraging next-generation technologies to enable a fast, unified, open, and trusted video meetings experience.

“The world is experiencing the largest work from home demand ever. At RingCentral, we've always been focused on addressing the needs of modern, mobile, and distributed workforces by delivering trusted, reliable, global, and easy to buy, manage, and use solutions,” said Vlad Shmunis, RingCentral’s founder, chairman and CEO. “Today, we’re taking the next step in delivering a world-class seamlessly integrated MVP experience to further enhance employee productivity as they work from anywhere.”

RingCentral is redefining and raising the bar for online collaboration and meetings. RingCentral, now with RingCentral Video, is:

  • UNIFIED: With Message Video Phone capabilities, including business voice, SMS and fax, tightly integrated, people and teams can collaborate across all modes of communication without losing context.
  • FAST: RingCentral Video offers a complete browser-based experience so users do not have to download an application to join, host, or schedule a meeting.
  • TRUSTED: RingCentral is committed to customers’ privacy and security. Per the company’s privacy policy, RingCentral does not rent or sell any of its customers’ personal information. In addition, RingCentral Video and RingCentral Office meet GDPR, CCPA and HIPAA privacy and security requirements.
  • RELIABLE: RingCentral Video is built on a new, state-of-the-art, high-availability infrastructure that leverages years of RingCentral’s experience as a global Unified Communications as a Service (UCaaS) leader for secure and reliable business communications.
  • GLOBAL: RingCentral offers full PBX capabilities in over 40 countries, and virtual presence in additional 80+ countries.
  • OPEN: Leveraging RingCentral’s open platform, RingCentral Video is tightly integrated with popular business productivity applications such as Google (G Suite and Gmail), HubSpot, Microsoft (Teams and O365), Slack, Theta Lake, and Zoho. RingCentral for Salesforce is available on Salesforce AppExchange. Coming later, RingCentral will add numerous integrations including those with Canvas, Epic, Gong.io, and Zendesk.
  • SMART: RingCentral Video includes a robust analytics platform that gives IT system administrators access to Key Performance Indicators (KPIs) such as adoption, usage, and Quality of Service (QoS) metrics. Easy to read dashboards help administrators deliver a seamless communication experience across their companies globally.

RingCentral worked closely with Google on RingCentral Video to ensure the highest quality browser-based video experience. Leveraging and extending Google Chrome’s WebRTC, RingCentral Video enables superior meetings experience using a browser while eliminating the need for additional downloads. Further, RingCentral Video went through rigorous beta testing with key customers and partners including the Detroit Pistons, Goosehead Insurance, Pro Football Hall of Fame, and World Vision, among others.

“RingCentral optimizing Google Chrome’s WebRTC to power RingCentral Video showcases the mutual value our companies have to bring hassle free communications to our customers,” said Gregg Fiddes, Head of Enterprise Ecosystems, Google. “We are excited to collaborate with RingCentral on their needs and see RingCentral choose Chrome as their inaugural launch platform for RingCentral Video, providing the greatest security and speed for their users.”

RingCentral Rooms

RingCentral Video will also power the new RingCentral Rooms™ product, which is currently in beta and is expected to be generally available later in Q2, 2020. RingCentral Rooms transforms any room into an easy-to-use video conference space for enhanced employee productivity. RingCentral Rooms’ easy installation, central management, and analytics dashboard also enable IT system administrators to modernize conference spaces quickly and efficiently. 

Availability 

RingCentral Video, seamlessly integrated into RingCentral Office, is generally available to new customers in North America for global use starting April 2, 2020. RingCentral Video is scheduled to be available to new RingCentral Office customers in EMEA later in Q2 and globally to new RingCentral Office customers in Q3. RingCentral Rooms, currently in beta, will be generally available to all customers in North America in Q2, 2020. Additional details about a full-scale release will be announced in the coming months. For more information, please visit https://www.ringcentral.com/video

Serving our Community

RingCentral is committed to helping people and teams connect anytime, anywhere, and on any device. Working from home is no longer a matter of choice but that of necessity and safety. RingCentral previously announced a free offering of the RingCentral Office solution to healthcare organizations, educators and NGOs. RingCentral is now extending this offer to news organizations and the public sector to accommodate the evolving needs and challenges of these important front-line communities. 

About RingCentral 

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Office, RingCentral Video, Message Video Phone, RingCentral Rooms and the RingCentral logo are trademarks of RingCentral, Inc.

Salesforce, AppExchange and others are among the trademarks of Salesforce.com, inc.

QUOTE SHEET

Customers

Paul Rapier, Director of IT, Detroit Pistons

“We started the deployment of RingCentral Video with our IT team, then data and analytics. Following this, we rolled it out to the sponsorship team, and finally everyone else. We have had zero issues. The crystal-clear audio and impeccable HD video make our employees feel like they’re right there. In addition, meetings are now instant because people no longer have to download any software. RingCentral Video has by far the simplest and easiest user interface of any meetings application in the market, which makes it a clear winner.”

Michael P. Moxley, Vice President of Service Delivery, Goosehead

“RingCentral Video is a testament to the company’s continuous focus on innovation. With its simple and elegant user interface, RingCentral Video takes us one step closer to enhancing employee productivity for our teams. By removing all the complexities related to joining, hosting, and scheduling meetings RingCentral Video is hands down the easiest way for our teams to collaborate.”

Chad Reese, Senior Director, Senior Director of Technology, The Pro Football Hall of Fame

“Communications and collaboration is critical to our success at The Pro Football Hall of Fame. Offered as part of RingCentral’s unified application and integrated with a broad set of industry solutions, RingCentral Video enables us to share experiences, both internally and externally, as we work together on shaping a better future.”

ISV Partners

Brad Armstrong, Vice President, Business and Corporate Development, Slack Technologies

“Slack’s integration with RingCentral Video brings the context of Slack conversations into meeting experiences, seamlessly connecting team collaboration to communication. Not only does this enhance productivity, but it drives alignment across the organization. We look forward to continuing to work with RingCentral on this impactful partnership, and help our shared customers unlock productivity in their organizations.”

Anthony Cresci, Vice President, Business Development, Theta Lake

“RingCentral Video makes joining, hosting, and scheduling a meeting very easy with a seamless user experience. Theta Lake’s compliance artificial intelligence paired with RingCentral can effectively and efficiently identify regulatory and conduct risks in what is said, shown, and shared in each recording along with automating the archiving, eDiscovery, and supervision of recordings.”

Channel Partners

Craig Chumley EVP Cloud, Managed Services and Marketing ConvergeOne

“As a platinum partner ConvergeOne is very excited about the continual innovation of RingCentral. Video is now at the forefront of enabling companies to achieve a much more connected workforce experience.”

Adam Edwards, Co-Founder & CEO, Telarus

“Our independent sales partners know that customers seek an effortless experience, a quality meeting, and ample integrations to tie their most used applications. RingCentral Video delivers all of these and we’re proud to recommend RingCentral Video to our selling partners for their most demanding customers.”

Analysts/Influencers

Jon Arnold, Principal, J Arnold and Associates

“RCV is a solution RingCentral has been working towards for some time, and they have carefully listened to how collaboration needs are evolving. The main focus is on end users, who now get an effortless experience across voice, video and text with no downloads required across a full set of third-party applications. They have also listened to the needs of IT by providing rich usage analytics and supporting RCV with always-up network reliability.”

Jeremiah Owyang, Founding Partner, Kaleido Insights

“Home-based workers are busier than ever, managing personal affairs, the health of their household, and a frantic work schedule in a new environment – from their homes. The most important thing they will need is simplicity, to quickly connect, engage, and collaborate with their colleagues, customers and partners to drive business outcomes.”

Irwin Lazar, Vice President and Service Director, Nemertes Research

“Our research shows that video buyers demand ease of use, low cost, integration, and quick start times. With its WebRTC-based client, team collaboration integration, and its ability to leverage the RingCentral platform for high availability, RingCentral Video will enable customers to realize identified benefits of video including better support for remote work, reduced travel, cost savings, faster hiring, higher sales close rates, improved customer engagement, and more engaged meetings.”

Dave Michels, Principal Analyst, TalkingPointz

“Modern UCaaS increasingly includes voice, chat, and meetings. It's great to see RingCentral embrace WebRTC as an open, browser-based technology for its Meetings capability. The integration between the RingCentral services simplifies communications as conversations transition across different modalities. RingCentral Video leverages proven, scalable, and secure technologies for meetings while still allowing RingCentral to create its own, differentiated experience.”

 

April 2, 2020

RingCentral Enhances AT&T Office@Hand with New Video Solution

BELMONT, Calif. & DALLAS--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions and AT&T (NYSE:T) today announced that AT&T Office@Hand powered by RingCentral now provides enhanced HD video capabilities through new RingCentral Video™ technology.

At a time where remote work solutions are more critical than ever, AT&T Office@Hand enables businesses to instantly activate and easily manage a remote workforce using voice, video meetings and messaging. By adding RingCentral’s Video technology, AT&T Office@Hand Meetings provides HIPAA and FINRA-compliant capabilities to businesses with stringent security and accessibility requirements.

“The nature of work changed overnight, and video is now an absolute necessity to keep businesses moving,” said Roman Pacewicz, Chief Product Officer, AT&T Business. “We’re all in this together, and we know that tools like AT&T Office@Hand are about more than just productivity. It can help minimize the isolation users can feel while being at home. It can help better balance work and everything that is hectic in their personal lives.”

AT&T will offer the AT&T Office@Hand Premium solution at no cost to eligible customers for 60 days to help schools (K-12), healthcare providers, and nonprofits stay connected in response to COVID-19.

AT&T Office@Hand users benefit from RingCentral’s industry-leading technology paired with AT&T’s intelligent network and trusted business solutions. All users also get AT&T Office@Hand Meetings alongside mobile-first phone, fax, and SMS capabilities.

“We are excited to work with AT&T to provide business solutions that fit rapidly changing and evolving customer needs,” said Anand Eswaran, President and COO of RingCentral. “The AT&T Office@Hand solution with the new RingCentral Video technology delivers a highly secure, modern voice and video collaboration experience to AT&T’s business customers to enable their employees to work productively from anywhere.”

AT&T Office@Hand is powered by RingCentral’s superior carrier-grade cloud communications platform for HD voice and video featuring built-in quality-of-service reporting and robust encryption. It also features pre-integration with AT&T SD-WAN and AT&T SD-WAN NOW that optimize voice and video quality to enable cost-effective enterprise deployments for distributed locations.

Learn more about AT&T Office@Hand here.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Video and the RingCentral logo are trademarks of RingCentral, Inc.

About AT&T Communications

We help family, friends and neighbors connect in meaningful ways every day. From the first phone call 140+ years ago to mobile video streaming, we innovate to improve lives. We have the nation’s fastest wireless network.** And according to America’s biggest test, we have the nation’s best wireless network.*** We’re building FirstNet just for first responders and creating next-generation mobile 5G. With a range of TV and video products, we deliver entertainment people love to talk about. Our smart, highly secure solutions serve nearly 3 million global businesses – nearly all of the Fortune 1000. And worldwide, our spirit of service drives employees to give back to their communities.

AT&T Communications is part of AT&T Inc. (NYSE:T). Learn more at att.com/CommunicationsNews.

AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc. Additional information about AT&T products and services is available at about.att.com. Follow our news on Twitter at @ATT, on Facebook at facebook.com/att and on YouTube at youtube.com/att.

© 2020 AT&T Intellectual Property. All rights reserved. AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

**Based on analysis by Ookla® of Speedtest Intelligence® data average download speeds for Q4 2019. Ookla trademarks used under license and reprinted with permission.

***GWS OneScore, September 2019.

View source version on businesswire.comhttps://www.businesswire.com/news/home/20200402005248/en/

 

March 31, 2020

Avaya and RingCentral Announce Avaya Cloud Office is Now Generally Available, to Meet Growing Global Need to Work, Meet and Collaborate From Anywhere on Any Device

Santa Clara & Belmont, Calif.  –  Avaya Holdings Corp. (NYSE: AVYA), a global leader in solutions to enhance and simplify communications and collaboration, and RingCentral Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration and contact center solutions, today announced general availability of the highly anticipated Avaya Cloud Office™ by RingCentral® solution.

Avaya Cloud Office enhances the way organizations communicate with customers, partners and with colleagues through an all-in-one solution that delivers seamless collaboration across multiple channels. By enabling voice calls, team messaging, meetings, conferencing, file sharing and more, Avaya Cloud Office empowers workforces to meet, share and collaborate productively no matter where they are. 

“Organizations of all kinds are adapting to new ways for their employees to communicate, collaborate and be productive, regardless of their location or the device they’re using, with the help of easy-to-use cloud solutions that empower a mobile, remote workforce,” said Jim Chirico, Avaya President and CEO. “Avaya Cloud Office provides a comprehensive yet simple communications app for a world where communications and collaboration tools are more critical than ever before. As we engage our extensive customer base to help them address the rapidly evolving future of work, new offerings like Avaya Cloud Office are an ideal solution to meet their needs.”

“In the current environment where working from anywhere, including home, is not just a matter of preference but a matter of necessity and safety, the challenge is real for businesses as they work to maintain productivity through these difficult times,” said Vlad Shmunis, RingCentral Founder, Chairman and CEO. “Cloud solutions enable people to work from anywhere, and we believe that with Avaya Cloud Office by RingCentral, businesses can keep moving forward. Our goal is to make remote work feel as in-person as possible, so people can feel connected and engaged with one another during these unprecedented times and beyond.”

With Avaya Cloud Office, customers can:

  • Communicate and collaborate using voice, video, team messaging, SMS and fax capabilities

  • Transform their business communications at a pace that’s right for them

  • Simplify communications through one app available on a wide range of devices and locations

  • Easily scale any time

  • Receive industry-leading security and support from a global leader in communications and collaboration solutions

  • Take advantage of RingCentral’s open platform APIs and over 200 pre-built business solution integrations combined with Avaya enterprise-grade features and services 

  • Have the ease of compatibility with Avaya phones and devices, including: J139, J169 and J179 Series phones, and additional devices to be added

“The launch of Avaya Cloud Office is a real game-changer in the UCaaS market,” said Elka Popova, Vice President, Information and Communications Technologies, Frost & Sullivan. “Avaya’s innovation, partner community and global services reach combined with the market-leading RingCentral platform provides an unprecedented opportunity for customers migrating to cloud communications. We are all seeing the importance of collaboration solutions that enable remote work increasing globally, and Avaya Cloud Office is a tremendous example of the kind of solution that will enable the future of work.”

“We have a very successful relationship with Avaya and RingCentral and are excited about this powerful new collaboration solution,” said Mike Baur, Chairman and CEO, ScanSource, Inc. “Our channel partners are ready for Avaya Cloud Office, as it’s adaptable, flexible and easy to use. ScanSource is uniquely positioned to support our community of Value-Added Resellers and Sales Agents in deploying the Avaya Cloud Office solution. With our design, pre-sale and technical support teams, coupled with our training, education and consulting services, we can enable partners to quickly ramp up their sales in what is becoming a critical moment in time for the remote workforce.”

Avaya has signed five master agents to launch Avaya Cloud Office, including Jenne, Inc., ScanSource, Inc., AVANT Communications, Synnex Corporation and Telarus LLC. Additionally, nearly 800 channel partner agents have been onboarded to sell Avaya Cloud Office, with scores of these being new to sell Avaya solutions. Sales and partner training has been underway since February, with well over a thousand sellers trained across Enterprise, MidMarket, SMB and SLED customer segments.

About Avaya

Businesses are built on the experiences they provide, and every day millions of those experiences are built by Avaya (NYSE: AVYA). For over one hundred years, we’ve enabled organizations around the globe to win - by creating intelligent communications experiences for customers and employees. Avaya builds open, converged and innovative solutions to enhance and simplify communications and collaboration - in the cloud, on-premise or a hybrid of both. To grow your business, we’re committed to innovation, partnership, and a relentless focus on what’s next. We’re the technology company you trust to help you deliver Experiences that Matter. Visit us at https://www.avaya.com  © 2020 Avaya Holdings Corp. All rights reserved. Avaya, Avaya Cloud Office and the Avaya logo are trademarks of Avaya Holdings Corp.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect from any location, on any device, and via any mode. RingCentral provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world. © 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

Cautionary Note Regarding Forward-Looking Statements

This document contains certain “forward-looking statements”, including but not limited to, statements regarding the anticipated impact and benefits of Avaya Cloud Office. All statements other than statements of historical fact are “forward-looking” statements for purposes of the U.S. federal and state securities laws. These statements may be identified by the use of forward looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," “our vision,” "plan," "potential," "preliminary," "predict," "should," "will," or “would” or the negative thereof or other variations thereof or comparable terminology. RingCentral and Avaya have based these forward-looking statements on their current expectations, assumptions, estimates and projections. While RingCentral and Avaya believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond their control. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including risks related to the parties’ ability to successfully perform their obligations under the commercial arrangement, the parties ability to successfully market, sell and transition customers to Avaya Cloud Office, as well as those risks and uncertainties discussed in RingCentral’s and Avaya’s respective Annual Reports on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”) available at www.sec.gov. RingCentral and Avaya caution you that the list of important factors included in their respective filings may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this press release may not in fact occur. Neither RingCentral nor Avaya undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

 

March 23, 2020

SKC Communications Joins RingCentral’s Partner Program to Bring Cloud Communications Solutions to US Enterprises

BELMONT, Calif. — SKC Communications, a nationwide leader in cloud-based solutions, will join RingCentral’s award-winning channel partner program to bring industry-leading cloud communications and contact center solutions to enterprise customers across the US.

“An increasing number of organizations across industry verticals are transitioning from legacy on-premise systems to cloud communications solutions for effective customer communication and collaboration,” said Jeff Holton, CTO at SKC Communications. “By adding RingCentral’s market-leading unified communications as a service (UCaaS) and contact center offerings to our portfolio, we will be able to bring our customers the leading solutions they need to achieve greater business outcomes.”

RingCentral works with world-class distributors, master agents, channel partners, and carrier partners to deliver cloud communications solutions to businesses around the world. Ranked in the CRN 5-Star Partner Program Guide for five years in a row and recognized as a leader in the Gartner 2019 Magic Quadrant for Unified Communications as a Service Worldwide, RingCentral provides mobile-first voice, video meetings, team messaging, digital customer engagement and integrated contact center solutions as a complete, seamless experience. Easier to manage and more flexible and cost-efficient than legacy, on-premise communications systems, RingCentral’s cloud solutions meet the needs of today’s mobile and distributed workforce.

“SKC Communications has a strong network of business customers thanks in part to its industry expertise in unified communications and ability to exceed customer expectations,” said Zane Long, SVP of Global Channel Sales, RingCentral. “We look forward to working with them to help their customers modernize their communications infrastructure by transitioning to cloud solutions.”

March 23, 2020

Westcon-Comstor and RingCentral expand partnership into France

LONDON, United Kingdom – 23.03.2020 – Westcon-Comstor, the global technology distributor, has today announced the expansion of its partnership with RingCentral, Inc. (NYSE: RNG) into France.

RingCentral is the leading provider of global enterprise cloud communications, collaboration, and contact center solutions. RingCentral gives teams, partners, and customers the ability to communicate, collaborate, and connect the way they want, from anywhere, on any device.

Westcon-Comstor has been acting as Master Agent for RingCentral in the UK and Ireland since July 2019, and has been a platinum partner since November 2019. The expansion of this partnership between Westcon-Comstor and RingCentral into France brings a new generation of cloud communications solutions to channel partners in the region.

Marianne Nickenig, Vice President for Westcon Collaboration & Networking EMEA, at Westcon-Comstor, said: “We are pleased to be expanding the partnership with RingCentral with the addition of France. Our work together in the UK and Ireland has been a great success so far, bringing benefits to partners throughout the region, and we are looking forward to expanding this further.”

Nickenig added, “Trust and transparency are fundamental to every Master Agent relationship. We work to ensure that we support partners to easily buy, sell or deploy cloud solutions with all the elements needed for success; with our BlueSky cloud management platform, partners have complete visibility of every deal. We believe that our approach will yield successful results for RingCentral as well as our partners in France. We are committed to a long and fruitful partnership together.”

“Weston-Comstor is a leader in enterprise tech and we are excited to expand this partnership into France,” said Zane Long, SVP of global channel sales, RingCentral. “We have seen growing international demand for cloud communications, and together, we look forward to helping French businesses transition to the cloud to streamline communications across their organizations.”

About Westcon-Comstor

Westcon-Comstor is a global technology distributor with annual revenues that exceed US$3 billion. Operating in more than 70 countries, it delivers business value and opportunity by connecting the world’s leading IT vendors with a channel of technology resellers, systems integrators and service providers. It combines industry insight, technical know-how and more than 30 years of distribution experience to deliver value and accelerate vendor and partner business success. It goes to market through two lines of business: Westcon and Comstor.

WestconComstor.com | Twitter | Facebook

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect from any location, on any device, and via any mode. RingCentral provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

 

February 28, 2020

RingCentral, Inc. Prices $1.0 Billion 0% Convertible Senior Notes Offering (up 50% Conversion Premium)

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE:RNG) today announced the pricing of $1.0 billion aggregate principal amount of 0% Convertible Senior Notes due 2025 (the “notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Act”). The notes priced with a 50% conversion premium to the volume weighted average price per share (approximately $240.28 per share) of RingCentral’s Class A common stock (the “common stock”) on February 27, 2020.

Key elements of the transaction today include:

  • $1.0 Billion 0% Convertible Senior Notes Offering (up 50% Conversion Premium)
  • RingCentral redemption option, on or after March 5, 2022 (as detailed below)
  • Capped Call purchased in conjunction with 0% Convertible Senior Notes due 2025 with a cap price of approximately $481
  • Repurchase of approximately $172.5 million aggregate principal amount of 0% Convertible Senior Notes due 2023 issued in 2018

RingCentral also granted the initial purchasers of the notes an option to purchase, during a 13-day period from, and including, the initial issuance date of the notes, up to an additional $150 million aggregate principal amount of the notes. The sale of the notes to the initial purchasers is expected to settle on March 3, 2020, subject to customary closing conditions, and is expected to result in approximately $986.5 million in net proceeds to RingCentral after deducting the initial purchasers’ discounts and estimated offering expenses payable by RingCentral (assuming no exercise of the initial purchasers’ option).

The notes will be senior, unsecured obligations of RingCentral. The notes will not bear interest, and the principal amount of the notes will not accrete. The notes will mature on March 1, 2025, unless earlier repurchased, redeemed or converted. In addition, RingCentral may redeem the notes, at its option and subject to certain conditions, on or after March 5, 2022 as detailed below.

Capped Call purchased in conjunction with 0% Convertible Senior Notes due 2025: In conjunction with the issuance of the notes, RingCentral entered into capped call transactions with a cap price of approximately $480.56 (representing a premium of 100% over the volume weighted average price of the common stock on February 27, 2020). The capped call transactions are scheduled to expire in February 2024.

Repurchase of 0% Convertible Senior Notes due 2023 issued in 2018: RingCentral also agreed to repurchase approximately $172.5 million aggregate principal amount of its outstanding 0% Convertible Senior Notes due 2023 (the “2023 Notes”).

Use of Proceeds: RingCentral intends to use the net proceeds of the offering for the following purposes:

  • Approximately $60.9 million of the net proceeds to pay the cost of the capped call transactions described above
  • Approximately $509.6 million of the net proceeds from the offering of notes to repurchase approximately $172.5 million of the aggregate principal amount of its outstanding 2023 Notes through individual privately negotiated transactions entered into concurrently with the offering of the notes (collectively, the “Note Repurchases”). The Note Repurchases, and the potential related market activities by selling holders of the 2023 Notes (such as the unwinding of certain derivatives or the purchases of shares of common stock that RingCentral expects to occur in connection with the Note Repurchases), could have the effect of increasing, or limiting a decline in, the market price of the common stock.
  • The remainder of the net proceeds for general corporate purposes, which may include working capital, capital expenditures, repayment of debt, potential acquisitions and strategic transactions of businesses, technologies or product. However, RingCentral has not designated any specific uses and have no current agreements with respect to any material acquisition or strategic transaction.

Additional Details for the new 0% Convertible Senior Notes due 2025 (up 50% Conversion Premium)

Conversion Features: The volume weighted average price per share of the common stock on February 27, 2020 was approximately $240.28 per share. With a conversion premium of approximately 50%, the initial conversion rate for the notes is 2.7745 shares of common stock per $1,000 principal amount of notes (which is equivalent to an initial conversion price of approximately $360.43 per share). Prior to the close of business on the business day immediately preceding December 1, 2024, the notes will be convertible at the option of the note holders only upon the satisfaction of specified conditions and during certain periods. Thereafter until the close of business on the scheduled trading day preceding the maturity date, the notes will be convertible at the option of the noteholders at any time regardless of these conditions. Conversions of the notes will be settled in cash, shares of the common stock or a combination thereof, at RingCentral’s election.

Redemption Option: RingCentral may redeem the notes, at its option, on or after March 5, 2022, at a redemption price equal to 100% of the principal amount thereof, plus any accrued and unpaid special interest, if any, if the last reported sale price of the common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which RingCentral provides written notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which RingCentral provides written notice of redemption.

Holders of notes may require RingCentral to repurchase their notes upon the occurrence of certain events that constitute a fundamental change under the indenture governing the notes at a purchase price equal to 100% of the principal amount thereof, plus any accrued and unpaid special interest, if any, to, but excluding, the date of repurchase. In connection with certain corporate events or if RingCentral issues a notice of redemption, it will, under certain circumstances, increase the conversion rate for holders who elect to convert their notes in connection with such corporate event or convert its notes called for redemption during the relevant redemption period.

Additional Details for the Capped Call Transactions

Capped Call Transactions: In connection with the pricing of the notes, RingCentral entered into capped call transactions with an initial purchaser or its affiliate and other financial institutions (the “hedge counterparties”). The capped call transactions are expected generally to reduce or offset the potential dilution to the common stock upon any conversion of notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. The cap price of the capped call transactions will initially be approximately $480.56 per share, which represents a premium of 100% over the volume weighted average price of the common stock of approximately $240.28 per share on February 27, 2020, and is subject to certain adjustments under the terms of the capped call transactions. If the initial purchasers exercise their option to purchase additional notes, RingCentral intends to enter into additional capped call transactions with the hedge counterparties.

RingCentral expects that, in connection with establishing their initial hedge of the capped call transactions, the hedge counterparties will enter into various derivative transactions with respect to the common stock and/or purchase shares of the common stock concurrently with, or shortly after, the pricing of the notes. These activities could increase (or reduce the size of any decrease in) the market price of the common stock or the notes at that time. In addition, RingCentral expects that the hedge counterparties may modify their hedge positions by entering into or unwinding various derivatives with respect to the common stock and/or by purchasing or selling shares of the common stock or other securities of RingCentral in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so on each exercise date of the capped call transactions and in connection with any early termination event in respect of the capped call transactions). This activity could also cause or avoid an increase or a decrease in the market price of the common stock or the notes, which could affect the ability of noteholders to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of the notes, could affect the amount and value of the consideration that noteholders will receive upon conversion of the notes.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful.

The notes and the shares of common stock issuable upon conversion of the notes, if any, will not be registered under the Act or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Act and applicable state laws.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Act and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to, whether RingCentral will be able to consummate the offering, the satisfaction of customary closing conditions with respect to the offering of the notes, prevailing market conditions, the anticipated use of net proceeds of the offering of the notes which could change as a result of market conditions or for other reasons, whether the capped call transactions will become effective, whether the Note Repurchases will close and the impact of general economic, industry or political conditions in the United States or internationally. Forward-looking statements may be identified by the use of the words “may,” “will,” “expect,” “intend” and other similar expressions. These forward-looking statements are based on estimates and assumptions by RingCentral’s management that, although believed to be reasonable, are inherently uncertain and subject to a number of risks. Actual results may differ materially from those anticipated or predicted by RingCentral’s forward-looking statements. All forward-looking statements are subject to other risks detailed in our Annual Report on Form 10-K for the year ended December 31, 2019 and the risks discussed in our other filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and RingCentral undertakes no obligation to revise or update this news release to reflect events or circumstances after the date hereof, except as required by applicable law.

 

February 27, 2020

RingCentral, Inc. Announces $1.0 Billion Convertible Senior Notes Offering

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE:RNG) today announced its intention to offer, subject to market conditions and other factors, $1.0 billion aggregate principal amount of convertible senior notes due 2025 (the “notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Act”). RingCentral also expects to grant the initial purchasers of the notes an option to purchase, during a 13-day period from, and including, the initial issuance date of the notes, up to an additional $150 million aggregate principal amount of the notes.

The notes will be senior, unsecured obligations of RingCentral. The notes will be convertible into cash, shares of RingCentral’s Class A common stock (“common stock”), or a combination thereof, at RingCentral’s election. The conversion rate and other terms of the notes are to be determined upon pricing of the offering. The notes will also be redeemable at the option of RingCentral after a specified date if certain conditions are met.

In connection with the pricing of the notes, RingCentral expects to enter into capped call transactions with one or more of the initial purchasers or other financial institutions or their affiliates (the “hedge counterparties”). The capped call transactions are expected generally to reduce or offset the potential dilution to the common stock upon any conversion of notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. RingCentral anticipates that the cap price of the capped call transactions will initially represent a premium of approximately 100% over the last reported sale price of the common stock on the pricing date of the offering. If the initial purchasers exercise their option to purchase additional notes, RingCentral intends to enter into additional capped call transactions with the hedge counterparties.

RingCentral expects that, in connection with establishing their initial hedge of the capped call transactions, the hedge counterparties will enter into various derivative transactions with respect to the common stock and/or purchase shares of the common stock concurrently with, or shortly after, the pricing of the notes. These activities could increase (or reduce the size of any decrease in) the market price of the common stock or the notes at that time. In addition, RingCentral expects that the hedge counterparties may modify their hedge positions by entering into or unwinding various derivatives with respect to the common stock and/or by purchasing or selling shares of the common stock or other securities of RingCentral in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so on each exercise date of the capped call transactions and in connection with any early termination event in respect of the capped call transactions). This activity could also cause or avoid an increase or a decrease in the market price of the common stock or the notes, which could affect the ability of noteholders to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of the notes, could affect the amount and value of the consideration that noteholders will receive upon conversion of the notes.

RingCentral intends to use a portion of the net proceeds of the offering of the notes to pay the cost of the capped call transactions described above. RingCentral also intends to use a portion of the net proceeds from this offering to repurchase up to 1.0 million shares of the common stock from certain purchasers of notes concurrently with the offering of notes (the “Share Repurchase”), to repurchase up to approximately $230 million of the aggregate principal amount of its outstanding 0% Convertible Senior Notes due 2023 (the “2023 Notes”) for cash through individually privately negotiated transactions concurrently with the offering of the notes (collectively, the “Note Repurchase”), or for a combination of the foregoing; provided that RingCentral does not anticipate using more than approximately $650 million of the net proceeds from the offering to finance the Share Repurchase and Note Repurchase on a combined basis. Any Share Repurchase or Note Repurchase, and the potential related market activities by selling holders of the 2023 Notes (such as the unwinding of certain derivatives or the purchases of shares of common stock that RingCentral expects to occur in connection with any Note Repurchase), could have the effect of increasing or limiting a decline in the market price of the common stock. RingCentral intends to use the remainder of the net proceeds from this offering for general corporate purposes, which may include working capital, capital expenditures, repayment of debt, potential acquisitions and strategic transactions of businesses, technologies or product. However, RingCentral has not designated any specific uses and has no current agreements with respect to any material acquisition or strategic transaction.

The notes will be offered to qualified institutional buyers pursuant to Rule 144A under the Act. Neither the notes nor the shares of common stock issuable upon conversion of the notes, if any, have been, nor will be, registered under the Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful.

About RingCentral

RingCentral, Inc. (NYSE:RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect from any location, on any device, and via any mode. RingCentral provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Act and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to, whether RingCentral will be able to consummate the offering, the final terms of the offering and the capped call transactions, the satisfaction of customary closing conditions with respect to the offering of the notes, prevailing market conditions, the anticipated use of net proceeds of the offering of the notes which could change as a result of market conditions or for other reasons, whether the capped call transactions will become effective, whether any Share Repurchase or Note Repurchase will close and the impact of general economic, industry or political conditions in the United States or internationally. Forward-looking statements may be identified by the use of the words “may,” “will,” “expect,” “intend” and other similar expressions. These forward-looking statements are based on estimates and assumptions by RingCentral’s management that, although believed to be reasonable, are inherently uncertain and subject to a number of risks. Actual results may differ materially from those anticipated or predicted by RingCentral’s forward-looking statements. All forward-looking statements are subject to other risks detailed in our Annual Report on Form 10-K for the year ended December 31, 2019 and the risks discussed in our other filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and RingCentral undertakes no obligation to revise or update this news release to reflect events or circumstances after the date hereof, except as required by applicable law.

 

February 12, 2020

Zane Long, RingCentral SVP Global Channel Sales, Recognized as 2020 CRN® Channel Chief

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, announced today that CRN ® , a brand of The Channel Company, has named RingCentral’s SVP of Global Channel Sales, Zane Long, to its prestigious list of 2020 Channel Chiefs for the fourth consecutive year. The executives on this annual list are distinguished leaders who continue to drive growth and influence the IT channel with cutting-edge strategies and partnerships.

Each of the 2020 Channel Chiefs have shown outstanding commitment, an ability to lead, and a passion for progress within the channel through their partner programs. Channel Chief honorees were chosen by the CRN editorial staff for their dedication, industry prestige, and exceptional accomplishments in driving the channel agenda and evangelizing the importance of channel partnerships.

Long has succeeded in driving consistent growth in global channel partner bookings during his tenure at RingCentral. Under his leadership in Q4 2019, RingCentral’s channel business reached $300 million in annual recurring revenue (ARR), up 63% year-over-year. The channel has also contributed greatly to the company’s midmarket and enterprise business, with this segment now a $479 million ARR business that grew 59% year-over-year in Q4 2019.

“The IT channel is undergoing constant evolution to meet customer demands and changing business environments,” said Bob Skelley, CEO of The Channel Company. “CRN’s Channel Chiefs work tirelessly, leading the industry forward through superior partner programs and strategies with a focus on helping solution providers transform and grow. Our team here at The Channel Company congratulates these outstanding individuals for their dedication to the channel.”

“Channel has been a key growth driver for RingCentral, and we’re proud to see Zane’s ongoing leadership efforts and achievements recognized by The Channel Company,” said Anand Eswaran, president and chief operating officer of RingCentral. “Zane has cultivated a strong channel harmony program that makes partners successful. We look forward to seeing this momentum continue in 2020.”

CRN’s 2020 Channel Chiefs list will be featured in the February 2020 issue of CRN Magazine and online at www.CRN.com/ChannelChiefs.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect from any location, on any device, and via any mode. RingCentral provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

About The Channel Company

The Channel Company enables breakthrough IT channel performance with our dominant media, engaging events, expert consulting and education, and innovative marketing services and platforms. As the channel catalyst, we connect and empower technology suppliers, solution providers and end users. Backed by more than 30 years of unequalled channel experience, we draw from our deep knowledge to envision innovative new solutions for ever-evolving challenges in the technology marketplace. www.thechannelcompany.com

Follow The Channel Company: TwitterLinkedIn, and Facebook.

© 2020. CRN is a registered trademark of The Channel Company, LLC. All rights reserved.

February 10, 2020

Atos adds RingCentral as Preferred Provider of UCaaS Solutions

BELMONT, Calif. & PARIS--(BUSINESS WIRE)-- Atos SE (CAC40: ATO), a global leader in digital transformation, and RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that Atos will add RingCentral as the preferred provider of Unified Communications as a Service (UCaaS) solutions. Atos and RingCentral will enter into a System Integrator (SI) relationship and will introduce a co-branded UCaaS solution. The co-branded solution will be a key part of Atos’ Digital Workplace client and partner offer, complementing its existing OpenScape UC solutions.

“We are excited to welcome Atos as our first global Systems Integrations partner, creating opportunities for RingCentral to provide our global cloud communications platform to large, marquee customers in Atos’ digital transformation practice,” said Vlad Shmunis, founder, chairman and CEO, RingCentral. “Atos provides a new dimension of long-term growth as we continue to lead the charge in UC to UCaaS transformation with our unwavering commitment to innovation and strong culture of strategic partnerships.”

Atos is a global leader in enabling digital transformation with annual revenue of approximately $13 billion. Atos is ranked #1 in Europe for Cloud, Cybersecurity and High-Performance Computing. Atos supports the digital transformation of its clients across all business sectors including: healthcare, energy and utilities, telecom and media, retail and transport, public sector, defense, manufacturing, financial services and insurance. The co-branded solution will help grow its global market opportunity for larger digital transformation projects.

“RingCentral’s world-class communications platform combined with Atos’ proven leadership in Digital Workplace solutions provides our customers the opportunity to further streamline their digital transformation projects across all lines of business IT,” said Elie Girard, CEO, Atos. “With an Atos installed base ranging across large enterprises and governmental agencies, we are excited about the potential of the new strategic partnership.”

Along with this strategic partnership, RingCentral will acquire IP from Atos, including a portfolio of certain patents.

About Atos

Atos is a global leader in digital transformation with over 110,000 employees in 73 countries and annual revenue of over € 11 billion. European number one in Cloud, Cybersecurity and High-Performance Computing, the Group provides end-to-end Orchestrated Hybrid Cloud, Big Data, Business Applications and Digital Workplace solutions. The group is the Worldwide Information Technology Partner for the Olympic & Paralympic Games and operates under the brands Atos, Atos Syntel, and Unify. Atos is a SE (Societas Europaea), listed on the CAC40 Paris stock index.

The purpose of Atos is to help design the future of the information technology space. Its expertise and services support the development of knowledge, education as well as multicultural and pluralistic approaches to research that contribute to scientific and technological excellence. Across the world, the group enables its customers, employees and collaborators, and members of societies at large to live, work and develop sustainably and confidently in the information technology space.

About RingCentral

RingCentral, Inc. (NYSE:RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, the RingCentral platform empowers employees to work better together, from any location, on any device, and via any mode to serve customers, improving business efficiency and customer satisfaction. The company provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

Forward-Looking Statements

This press release contains “forward-looking statements,” including but not limited to, statements regarding RingCentral’s plans to partner with Atos to offer a co-branded UCaaS solution and the anticipated benefits of and activity under RingCentral’s strategic partnership with Atos, including the ability to create long-term growth opportunities for RingCentral and RingCentral’s leadership in UC to UCaaS transformation. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including risks related to the parties’ ability to perform their obligations under the commercial arrangement, the parties ability to successfully develop and execute the envisioned jointly developed programs, technology and automation, the ability to successfully transition customers to RingCentral’s UCaaS solution, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in RingCentral’s Form 10-Q for the quarter ended September 30, 2019, filed with the Securities and Exchange Commission; and in other filings RingCentral makes with the Securities and Exchange Commission from time to time. All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

February 10, 2020

RingCentral Announces Fourth Quarter 2019 Results


BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced financial results for the fourth quarter ended December 31, 2019.

Fourth Quarter Financial Highlights

  • Total revenue increased 34% year over year to $253 million.
  • Subscriptions revenue increased 33% year over year to $229 million.
  • Annualized Exit Monthly Recurring Subscriptions (ARR) increased 32% year over year to $960 million.
  • RingCentral Office® ARR increased 36% year over year to $877 million.
  • Mid-market and Enterprise ARR increased 59% year over year to $479 million.
  • Enterprise ARR increased 71% year over year to $293 million.
  • Channel ARR increased 63% year over year to $300 million.

“Fourth quarter results were outstanding, driven by continued momentum in mid-market and enterprise markets. We are very excited to have surpassed our previous goal of a $1 billion annual revenue run-rate ahead of schedule,” said Vlad Shmunis, RingCentral’s founder, chairman and CEO. “Our success is rooted in our deep commitment to product excellence and a culture of strategic partnerships, as evidenced by our unique relationships with AT&T, Avaya, and now Atos. These partnerships are a strong validation of our industry leadership and provide additional opportunities for our long-term growth.”

Financial Results for the Fourth Quarter 2019

  • Revenue: Total revenue was $253 million for the fourth quarter of 2019, up from $189 million in the fourth quarter of 2018, representing 34% growth.
  • Operating Income (Loss): GAAP operating loss was ($20) million, compared to a GAAP operating loss of ($3) million in the same period last year, primarily driven by higher share-based compensation, amortization of intangibles, and acquisition related matters. Non-GAAP operating income was $24 million, compared to a non-GAAP operating income of $17 million in the same period last year.
  • Net Income (Loss) Per Share: GAAP net loss per share was ($0.30), compared to ($0.07) in the same period last year, primarily driven by higher share-based compensation, amortization of intangibles, and acquisition related matters. Non-GAAP net income per diluted share was $0.22, compared to $0.23 per diluted share in the same period last year. The fourth quarter of 2019 reflected a 22.5% non-GAAP tax rate, compared to nearly 0% non-GAAP tax rate in our 2018 reporting. There were no material cash taxes given our net operating loss carryforwards.
  • Balance Sheet: Total cash and cash equivalents at the end of the fourth quarter of 2019 was $344 million, which reflects one-time payments related to our recent strategic partnerships. This compares with $583 million at the end of the third quarter of 2019.

Financial Results for the Full Year 2019

  • Revenue: Total revenue was $903 million for 2019, up from $674 million in 2018, representing 34% growth.
  • Operating Income (Loss): GAAP operating loss was ($46) million, compared to a GAAP operating loss of ($16) million in 2018, primarily driven by higher share-based compensation, amortization of intangibles, and acquisition related matters. Non-GAAP operating income was $83 million, compared to a non-GAAP operating income of $59 million in 2018.
  • Net Income (Loss) Per Share: GAAP net loss per share was ($0.64), compared to ($0.33) in 2018, primarily driven by higher share-based compensation, amortization of intangibles, and acquisition related matters. Non-GAAP net income per diluted share was $0.82, compared to $0.77 in 2018. 2019 reflected a 22.5% non-GAAP tax rate, compared to a nearly 0% non-GAAP tax rate in 2018 reporting. There were no material cash taxes given our net operating loss carryforwards.

Additional Highlights

  • Announced that Anand Eswaran, former Corporate Vice President for Microsoft’s Global Enterprise Business, has joined the company as its President and Chief Operating Officer.
  • Named a November 2019 Gartner Peer Insights Customers’ Choice for Unified Communications as a Service Worldwide as reviewed by customers. RingCentral received an overall rating of 4.5 out of 5 stars, based on 125 reviews, as of October 31, 2019.
  • Announced that CarouselTelarus, and Westcon have been named Platinum Partners by RingCentral, a designation held by RingCentral’s most strategic partners.

Financial Outlook

Full Year 2020 Guidance:

  • Total revenue range of $1.125 to $1.135 billion, representing annual growth of 25% to 26%.
  • Subscriptions revenue range of $1.019 to $1.027 billion, representing annual growth of 25% to 26%.
  • GAAP operating margin between (10.9%) and (9.6%).
  • Non-GAAP operating margin between 9.6% and 9.7%.
  • Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
  • Non-GAAP EPS range of $0.93 to $0.94 based on 94.5 million fully diluted shares. This reflects additional imputed shares from the convertible debt due to stock price appreciation and shares issued to Avaya in November 2019, which if excluded would have increased the guidance range by $0.04.
  • Share-based compensation range of $185 to $195 million, amortization of debt discount of $22 million, and amortization of acquired intangibles range of $34 to $36 million.

First Quarter 2020 Guidance:

  • Total revenue range of $257 to $259 million, representing annual growth of 28% to 29%.
  • Subscriptions revenue range of $233 to $235 million, representing annual growth of 28% to 29%.
  • GAAP operating margin range of (10.3%) to (9.5%).
  • Non-GAAP operating margin of 8.0% to 8.1%.
  • Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
  • Non-GAAP EPS of $0.18 to $0.19 based on 93.0 million fully diluted shares.
  • Share-based compensation range of $37 to $38 million, amortization of debt discount of $5 million, and amortization of acquired intangibles range of $8.5 to $9.0 million.

For a reconciliation of our forecasted non-GAAP operating margin, see “Reconciliation of Forecasted Operating Margin GAAP Measures to Non-GAAP Measures.” We have not reconciled our non-GAAP EPS to its respective forecasted GAAP measure because we do not provide guidance on it. We do not provide guidance on forecasted GAAP EPS because of the inherent uncertainty and complexity involved in forecasting the intercompany remeasurement gain (loss), gain (loss) associated with investments and strategic partnerships, and provision (benefit) from income taxes, which could be significant reconciling items between the non-GAAP and respective GAAP measures. The intercompany remeasurement gain (loss) is affected by the movement in various exchange rates relative to the U.S. Dollar, which is difficult to predict and subject to constant change. We do not provide guidance on gain (loss) associated with investments and strategic partnerships as it is based on future share prices, which are difficult to predict and subject to inherent uncertainties. We do not provide guidance on forecasted GAAP tax rates as we do not forecast discrete tax items as they are difficult to predict. The provision (benefit) from income taxes, excluding discrete items, is expected to have an immaterial impact to our GAAP EPS. We utilized a projected long-term tax rate in our computation of the non-GAAP income tax provision. For fiscal 2020, we have determined the projected non-GAAP tax rate to be 22.5%. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.

Conference Call Details:

  • What: RingCentral financial results for the fourth quarter of 2019 and outlook for first quarter and the full year of 2020.
  • When: Monday, February 10, 2020 at 2:00PM PT (5:00PM 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 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: Following the completion of the call through 11:59 PM ET on February 17, 2020, a telephone replay will be available by dialing (844) 512-2921 from the United States or (412) 317-6671 internationally with recording access code 13698019.

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at http://ir.ringcentral.com/ .

About RingCentral

RingCentral, Inc. (NYSE:RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, the RingCentral platform empowers employees to work better together, from any location, on any device, and via any mode to serve customers, improving business efficiency and customer satisfaction. The company provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

Forward-Looking Statements

This press release contains “forward-looking statements,” including but not limited to, statements regarding our future financial results, our GAAP and non-GAAP guidance, our momentum in mid-market and enterprise, the contribution of the channel, the success of our relationships with AT&T, Avaya, and Atos in broadening our global sales reach, and our market opportunity. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those in any forward-looking statements are: our ability to realize the anticipated benefits of our relationships with AT&T, Avaya, and Atos; our ability to grow at our expected rate of growth; our ability to add and retain larger and enterprise customers and enter new geographies and markets; our ability to continue to release, and gain customer acceptance of, new and improved versions of our services; our ability to compete successfully against existing and new competitors; our ability to enter into and maintain relationships with resellers, carriers and strategic partners; our ability to successfully and timely integrate, and realize the benefits of any significant acquisition we may make; our ability to manage our expenses and growth; and general market, political, economic, and business conditions, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Form 10-Q for the quarter ended September 30, 2019, filed with the Securities and Exchange Commission; and in other filings we make with the Securities and Exchange Commission from time to time.

All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.

Non-GAAP Financial Measures

Our reported financial results and financial outlook include certain Non-GAAP financial measures, including Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP net income (loss) and Non-GAAP net income (loss) per diluted share. Non-GAAP subscriptions gross margin is defined as Non-GAAP subscriptions gross profit divided by GAAP subscriptions revenue. Non-GAAP other gross margin is defined as Non-GAAP other gross profit divided by GAAP other revenue. Non-GAAP income (loss) from operations is defined as GAAP income (loss) from operations excluding share-based compensation, amortization of acquisition intangibles, and acquisition related matters including transaction costs, integration costs, restructuring costs, and acquisition-related retention payments, as well as changes in the fair value of contingent consideration obligations. Non-GAAP operating margin is defined as Non-GAAP income (loss) from operations divided by total GAAP revenue. Non-GAAP net income (loss) is defined as GAAP net income (loss) excluding share-based compensation, intercompany remeasurement gains or losses, acquisition related matters, amortization of acquisition intangibles, non-cash interest expense associated with amortization of debt discount and issuance costs related to our convertible senior notes, gain (loss) associated with investments and strategic partnerships, tax benefit from release of valuation allowance, and the related income tax effect of these adjustments.

Non-GAAP diluted shares outstanding include the impact on shares used in per share calculations of our outstanding capped call transactions. Our outstanding capped call transactions are anti-dilutive in GAAP earnings per share but are expected to mitigate the dilutive effect of our convertible notes and therefore are included in the calculations of non-GAAP diluted shares outstanding.

We have included Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), and Non-GAAP net income (loss) per diluted share in this press release because they are key measures used by us to understand and evaluate our operating performance and trends, to prepare and approve our annual budget, and to develop short and long-term operational plans. In particular, the exclusion of certain expenses in calculating Non-GAAP software subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), and Non-GAAP net income (loss) per diluted share provide useful measure for period-to-period comparisons of our business.

Although Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), and Non-GAAP net income (loss) per diluted share are frequently used by investors in their evaluations of companies, these non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered alongside other financial performance measures.

Reconciliations of the Company’s non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release.

Other Measures

Our reported results also include our annualized exit monthly recurring subscriptions, RingCentral Office® annualized exit monthly recurring subscriptions, mid-market and enterprise annualized exit monthly recurring subscriptions, enterprise annualized exit monthly recurring subscriptions, channel partner annualized exit monthly recurring subscriptions, and net monthly subscriptions dollar retention. We define our annualized exit monthly recurring subscriptions as our monthly recurring subscriptions multiplied by 12. Our monthly recurring subscriptions equal the monthly value of all customer recurring charges contracted at the end of a given month. We believe this metric is a leading indicator of our anticipated subscriptions revenue. We calculate our RingCentral Office® annualized exit monthly recurring subscriptions in the same manner as we calculate our annualized exit monthly recurring subscriptions, except that only customer subscriptions from RingCentral Office® and RingCentral customer engagement solutions customers are included when determining monthly recurring subscriptions for the purposes of calculating this key business metric. We calculate mid-market and enterprise annualized exit monthly recurring subscriptions in the same manner as we calculate our RingCentral Office® annualized exit monthly recurring subscriptions, except that only customer subscriptions from customers generating $25,000 or more in annual recurring revenue are included. We calculate enterprise annualized exit monthly recurring subscriptions in the same manner as we calculate our RingCentral Office® annualized exit monthly recurring subscriptions, except that only customer subscriptions from customers generating $100,000 or more in annual recurring revenue are included. We calculate channel partner annualized exit monthly recurring subscriptions in the same manner as we calculate our annualized exit monthly revenue subscriptions, except that only customer subscriptions generated from channel partners are included. We define Dollar Net Change as the quotient of (i) the difference of our Monthly Recurring Subscriptions at the end of a period minus our Monthly Recurring Subscriptions at the beginning of a period minus our Monthly Recurring Subscriptions at the end of the period from new customers we added during the period, (ii) all divided by the number of months in the period. We define our Average Monthly Recurring Subscriptions as the average of the Monthly Recurring Subscriptions at the beginning and end of the measurement period.

Disclaimer

Gartner, Gartner Peer Insights ‘Voice of the Customer’: Unified Communications as a Service, Worldwide, Peer Contributors, 10 December 2019.

Gartner Peer Insights Customers’ Choice constitute the subjective opinions of individual end-user reviews, ratings, and data applied against a documented methodology; they neither represent the views of, nor constitute an endorsement by, Gartner or its affiliates.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

TABLE 1
RINGCENTRAL, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)

 

December 31, 2019

 

December 31, 2018

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

343,606

 

 

$

566,329

 

Accounts receivable, net

129,990

 

 

94,375

 

Deferred sales commission costs

36,589

 

 

23,038

 

Prepaid expenses and other current assets

25,354

 

 

23,772

 

Total current assets

535,539

 

 

707,514

 

Property and equipment, net

89,230

 

 

70,205

 

Operating lease right-of-use-assets

39,269

 

 

 

Long-term investments

132,188

 

 

 

Deferred and prepaid sales commission costs, non-current               

462,344

 

 

55,735

 

Goodwill

55,278

 

 

31,238

 

Acquired intangibles, net

127,338

 

 

19,480

 

Other assets

9,561

 

 

10,154

 

Total assets

$

1,450,747

 

 

$

894,326

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

34,612

 

 

$

10,145

 

Accrued liabilities

138,729

 

 

100,687

 

Deferred revenue

107,372

 

 

88,527

 

Total current liabilities

280,713

 

 

199,359

 

Convertible senior notes, net

386,889

 

 

366,552

 

Operating lease liabilities

28,516

 

 

 

Other long-term liabilities

8,929

 

 

10,806

 

Total liabilities

705,047

 

 

576,717

 

 

 

 

 

Stockholders’ equity

 

 

 

Common stock

9

 

 

8

 

Additional paid-in capital

1,033,053

 

 

551,078

 

Accumulated other comprehensive income

1,948

 

 

2,226

 

Accumulated deficit

(289,310)

 

 

(235,703)

 

Total stockholders’ equity

$

745,700

 

 

$

317,609

 

Total liabilities and stockholders’ equity

$

1,450,747

 

 

$

894,326

 

The Company adopted the new accounting standard related to leases (Topic 842) effective January 1, 2019.

TABLE 2
RINGCENTRAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)

 

Three Months Ended
December 31, 2019

 

Year Ended
December 31,

 

2019

 

2018

 

2019

 

2018

Revenues

 

 

 

 

 

 

 

Subscriptions

$

229,405

 

 

$

171,901

 

 

$

817,811

 

 

$

612,888

 

Other

23,460

 

 

16,723

 

 

85,047

 

 

60,736

 

Total revenues

252,865

 

 

188,624

 

 

902,858

 

 

673,624

 

Cost of revenues

 

 

 

 

 

 

 

Subscriptions

45,977

 

 

30,254

 

 

160,320

 

 

109,454

 

Other

20,896

 

 

13,861

 

 

70,723

 

 

47,675

 

Total cost of revenues

66,873

 

 

44,115

 

 

231,043

 

 

157,129

 

Gross profit

185,992

 

 

144,509

 

 

671,815

 

 

516,495

 

Operating expenses

 

 

 

 

 

 

 

Research and development

38,658

 

 

27,230

 

 

136,363

 

 

101,042

 

Sales and marketing

126,077

 

 

91,894

 

 

439,100

 

 

329,116

 

General and administrative

41,626

 

 

28,789

 

 

142,027

 

 

102,773

 

Total operating expenses

206,361

 

 

147,913

 

 

717,490

 

 

532,931

 

Loss from operations

(20,369)

 

 

(3,404)

 

 

(45,675)

 

 

(16,436)

 

Other income (expense), net

 

 

 

 

 

 

 

Interest expense

(5,232)

 

 

(4,939)

 

 

(20,512)

 

 

(16,102)

 

Other income, net

129

 

 

2,531

 

 

9,247

 

 

6,475

 

Other income (expense), net

(5,103)

 

 

(2,408)

 

 

(11,265)

 

 

(9,627)

 

Loss before income taxes

(25,472)

 

 

(5,812)

 

 

(56,940)

 

 

(26,063)

 

Provision for (benefit from) income taxes

(215)

 

 

(134)

 

 

(3,333)

 

 

140

 

Net loss

$

(25,257)

 

 

$

(5,678)

 

 

$

(53,607)

 

 

$

(26,203)

 

Net loss per common share

 

 

 

 

 

 

 

Basic and diluted

$

(0.30)

 

 

$

(0.07)

 

 

$

(0.64)

 

 

$

(0.33)

 

Weighted-average number of shares used in computing net loss per share

 

 

 

 

 

 

 

Basic and diluted

85,449

 

 

80,638

 

 

83,130

 

 

79,500

 

TABLE 3
RINGCENTRAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

 

Year Ended
December 31,

 

2019

 

2018

Cash flows from operating activities

 

 

 

Net loss

$

(53,607)

 

 

$

(26,203)

 

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization

37,870

 

 

23,273

 

Share-based compensation

101,354

 

 

68,088

 

Amortization of deferred sales commission cost

30,134

 

 

19,754

 

Amortization of debt discount and issuance cost

20,337

 

 

15,918

 

Loss (gain) and other related costs on investments

3,369

 

 

 

Foreign currency remeasurement (gain) loss

(105)

 

 

 

951

 

Provision for bad debt

2,949

 

 

3,091

 

Deferred income taxes

(737)

 

 

(303)

 

Tax benefit from release of valuation allowance

(3,210)

 

 

 

Other

(334)

 

 

614

 

Changes in assets and liabilities:

 

 

 

Accounts receivable

(37,163)

 

 

(47,877)

 

Deferred and prepaid sales commission costs

(102,303)

 

 

(45,232)

 

Prepaid expenses and other current assets

(1,575)

 

 

(342)

 

Other assets

764

 

 

279

 

Accounts payable

21,753

 

 

2,783

 

Accrued liabilities

27,095

 

 

33,695

 

Deferred revenue

18,845

 

 

24,780

 

Other liabilities

(590)

 

 

(1,139)

 

Net cash provided by operating activities

64,846

 

 

72,130

 

Cash flows from investing activities

 

 

 

Purchases of property and equipment

(27,767)

 

 

(27,123)

 

Capitalised internal-use software

(16,526)

 

 

(11,421)

 

Cash paid for business combination, net of cash acquired

(27,870)

 

 

(26,434)

 

Purchases of long-term investments

(135,557)

 

 

 

Cash paid for acquisition of intangible assets

(89,060)

 

 

(18,470)

 

Net cash used in investing activities

(296,780)

 

 

(83,448)

 

Cash flows from financing activities

 

 

 

Proceeds from issuance of convertible senior notes, net of issuance costs

 

 

449,457

 

Payments for capped call transactions and costs

 

 

(49,910)

 

Repurchase of common stock

 

 

(15,000)

 

Proceeds from issuance of stock in connection with stock plans

29,827

 

 

20,621

 

Taxes paid related to net share settlement of equity awards

(14,666)

 

 

(7,172)

 

Payment of contingent consideration for business combination

(5,176)

 

 

 

Repayment of financing obligations

(943)

 

 

(741)

 

Net cash provided by financing activities

9,042

 

 

397,255

 

Effect of exchange rate changes

169

 

 

(800)

 

Net (decrease) increase in cash, cash equivalents, and restricted cash

(222,723)

 

 

385,137

 

Cash, cash equivalents, and restricted cash

 

 

 

Beginning of year

566,329

 

 

181,192

 

End of year

$

343,606

 

 

$

566,329

 

TABLE 4
RINGCENTRAL, INC.
RECONCILIATION OF OPERATING INCOME (LOSS)
GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited, in thousands)

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

2019

 

2018

 

2019

 

2018

Revenues

 

 

 

 

 

 

 

Subscriptions

$

229,405

 

 

$

171,901

 

 

$

817,811

 

 

$

612,888

 

Other

23,460

 

 

16,723

 

 

85,047

 

 

60,736

 

Total revenues

252,865

 

 

188,624

 

 

902,858

 

 

673,624

 

Cost of revenues reconciliation

 

 

 

 

 

 

 

GAAP Subscriptions cost of revenues

45,977

 

 

30,254

 

 

160,320

 

 

109,454

 

Share-based compensation

(2,095)

 

 

(1,162)

 

 

(6,891)

 

 

(4,343)

 

Amortization of acquisition intangibles

(3,310)

 

 

(277)

 

 

(6,998)

 

 

(729)

 

Acquisition related matters

(81)

 

 

(29)

 

 

(145)

 

 

(29)

 

Non-GAAP Subscriptions cost of revenues

40,491

 

 

28,786

 

 

146,286

 

 

104,353

 

 

 

 

 

 

 

 

 

GAAP Other cost of revenues

20,896

 

 

13,861

 

 

70,723

 

 

47,675

 

Share-based compensation

(534)

 

 

(194)

 

 

(1,850)

 

 

(639)

 

Non-GAAP Other cost of revenues

20,362

 

 

13,667

 

 

68,873

 

 

47,036

 

Gross profit and gross margin reconciliation

 

 

 

 

 

 

 

Non-GAAP Subscriptions

82.3%

 

 

83.3%

 

 

82.1%

 

 

83.0%

 

Non-GAAP Other

13.2%

 

 

18.3%

 

 

19.0%

 

 

22.6%

 

Non-GAAP Gross profit

75.9%

 

 

77.5%

 

 

76.2%

 

 

77.5%

 

Operating expenses reconciliation

 

 

 

 

 

 

 

GAAP Research and development

38,658

 

 

27,230

 

 

136,363

 

 

101,042

 

Share-based compensation

(7,132)

 

 

(3,906)

 

 

(23,132)

 

 

(14,975)

 

Acquisition related matters

(341)

 

 

(9)

 

 

(693)

 

 

(9)

 

Non-GAAP Research and development

31,185

 

 

23,315

 

 

112,538

 

 

86,058

 

As a % of total revenues non-GAAP

12.3%

 

 

12.4%

 

 

12.5%

 

 

12.8%

 

 

 

 

 

 

 

 

 

GAAP Sales and marketing

126,077

 

 

91,894

 

 

439,100

 

 

329,116

 

Share-based compensation

(10,736)

 

 

(7,645)

 

 

(38,325)

 

 

(27,324)

 

Amortization of acquisition intangibles

(929)

 

 

(726)

 

 

(3,720)

 

 

(3,617)

 

Acquisition related matters

(8,374)

 

 

(146)

 

 

(10,483)

 

 

(146)

 

Non-GAAP Sales and marketing

106,038

 

 

83,377

 

 

386,572

 

 

298,029

 

As a % of total revenues non-GAAP

41.9%

 

 

44.2%

 

 

42.8%

 

 

44.2%

 

 

 

 

 

 

 

 

 

GAAP General and administrative

41,626

 

 

28,789

 

 

142,027

 

 

102,773

 

Share-based compensation

(9,167)

 

 

(5,802)

 

 

(31,156)

 

 

(20,807)

 

Acquisition related matters

(1,947)

 

 

(794)

 

 

(4,955)

 

 

(2,536)

 

Non-GAAP General and administrative

30,512

 

 

22,193

 

 

105,916

 

 

79,430

 

As a % of total revenues non-GAAP

12.1%

 

 

11.8%

 

 

11.7%

 

 

11.8%

 

Income (loss) from operations reconciliation

 

 

 

 

 

 

 

GAAP loss from operations

(20,369)

 

 

(3,404)

 

 

(45,675)

 

 

(16,436)

 

Share-based compensation

29,664

 

 

18,709

 

 

101,354

 

 

68,088

 

Amortization of acquisition intangibles

4,239

 

 

1,003

 

 

10,718

 

 

4,346

 

Acquisition related matters

10,743

 

 

978

 

 

16,276

 

 

2,720

 

Non-GAAP Income from operations

24,277

 

 

17,286

 

 

82,673

 

 

58,718

 

Non-GAAP Operating margin

9.6%

   

9.2%

   

9.2%

   

8.7%

 

TABLE 5
RINGCENTRAL, INC.
RECONCILIATION OF NET INCOME (LOSS)
GAAP MEASURES TO NON-GAAP MEASURES
(In thousands, except per share data) (Unaudited)

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

2019

 

2018

 

2019

 

2018

Net (loss) income reconciliation

 

 

 

 

 

 

 

GAAP net loss

$

(25,257)

 

 

$

(5,678)

 

 

$

(53,607)

 

 

$

(26,203)

 

Share-based compensation

29,664

 

 

18,709

 

 

101,354

 

 

68,088

 

Amortization of acquisition intangibles

4,239

 

 

1,003

 

 

10,718

 

 

4,346

 

Acquisition related matters

21,300

 

 

978

 

 

26,833

 

 

2,720

 

Amortization of debt discount and issuance costs

5,188

 

 

4,915

 

 

20,337

 

 

15,918

 

Gain associated with investments and strategic partnerships

(8,343)

 

 

 

 

(8,343)

 

 

 

Intercompany remeasurement loss (gain)

(383)

 

 

309

 

 

(119)

 

 

1,183

 

Income tax expense effects (1)

(6,105)

 

 

 

 

(24,446)

 

 

 

Non-GAAP net income

$

20,303

 

 

$

20,236

 

 

$

72,727

 

 

$

66,052

 

Reconciliation between GAAP and non-GAAP weighted average shares used in computing basic and diluted net (loss) income per common share:

 

 

 

 

 

 

 

Weighted average number of shares used in computing basic net (loss) income per share

85,449

 

 

80,638

 

 

83,130

 

 

79,500

 

Effect of dilutive securities

5,783

 

 

5,694

 

 

5,393

 

 

6,341

 

Non-GAAP weighted average shares used in computing non-GAAP diluted net income per share

91,232

 

 

86,332

 

 

88,523

 

 

85,841

 

 

 

 

 

 

 

 

 

Diluted net (loss) income per share

 

 

 

 

 

 

 

GAAP net loss per share

$

(0.30)

 

 

$

(0.07)

 

 

$

(0.64)

 

 

$

(0.33)

 

Non-GAAP net income per share

$

0.22

 

 

$

0.23

 

 

$

0.82

 

 

$

0.77

 

(1) Income tax expense effects include the tax benefit from release of valuation allowance.

TABLE 6
RINGCENTRAL, INC.
RECONCILIATION OF FORECASTED OPERATING MARGIN
GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited, in millions)

 

Q1 2020

 

FY 2020

 

Low Range

 

High Range

 

Low Range

 

High Range

GAAP revenues

257.0

 

 

259.0

 

 

1,125.0

 

 

1,135.0

 

 

 

 

 

 

 

 

 

GAAP loss from operations

(26.4)

 

 

(24.5)

 

 

(123.0)

 

 

(108.9)

 

GAAP operating margin

(10.3%)

 

 

(9.5%)

 

 

(10.9%)

 

 

(9.6%)

 

Share-based compensation

38.0

 

 

37.0

 

 

195.0

 

 

185.0

 

Amortization of acquisition intangibles        

9.0

 

 

8.5

 

 

36.0

 

 

34.0

 

Acquisition related matters

 

 

 

 

 

 

 

Non-GAAP income from operations

20.6

 

 

21.0

 

 

108.0

 

 

110.1

 

Non-GAAP operating margin

8.0%

 

 

8.1%

 

 

9.6%

 

 

9.7%

 

 

February 10, 2020

RingCentral Gains Momentum in Public Sector and Education Vertical With Key Agreement

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, continues to gain momentum in the public sector and education vertical through a new agreement with The Educational Services Commission of New Jersey (ESCNJ), which serves more than 1,300 members in public agencies including educational institutions across the state of New Jersey. Organizations will now have a simplified purchasing process of RingCentral solutions, that includes voice, video and team messaging on a single platform.

“We’re seeing public institutions move away from their legacy on-premise phone systems to modern unified cloud solutions that provide mobility and robust multi-modal communications capabilities for deeper engagement among employees and with their constituents,” said Carson Hostetter, SVP worldwide sales, RingCentral. “Through our agreement with the ESCNJ, the purchasing process to acquire RingCentral solutions for their members has been streamlined, which will make it easier for them to quickly modernize their legacy communications and collaboration systems.”

ESCNJ brings technology solutions to New Jersey’s state and local government, public schools and universities through the New Jersey State Approved Co-op #65MCESCCPS. Working to coordinate cost-efficient purchasing opportunities for educational institutions, ESCNJ selected RingCentral as a cloud communications solutions provider for their members in accordance with the award ESCNJ 19/20-30. Schools and education institutions across the state will now have access to RingCentral’s complete portfolio of cloud communications and collaboration solutions to help meet their digital transformation goals and transition to the cloud. With RingCentral, New Jersey educators and municipalities can communicate in modern ways with ease, both internally among staff and externally with students, parents, and their constituents.

For more information on how RingCentral supports education institutions, please visit: https://www.ringcentral.com/office/industry-solutions/education-cloud-phone-systems.html.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect from any location, on any device, and via any mode. RingCentral provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

January 27, 2020

Altura Partners With RingCentral to Bring Industry-Leading Cloud Communications and Contact Center Solutions to US Enterprises

ANAHEIM, Calif. & BELMONT, Calif. --(BUSINESS WIRE)-- Altura , a leading provider of unified communications and network solutions, today announced it has joined RingCentral’s (NYSE:RNG) award-winning channel partner program. Altura will bring RingCentral’s cloud communications and contact center solutions to US enterprises across multiple sectors, including healthcare, government, and education.

Altura works with midmarket and enterprise businesses including local, state and federal government, as well as healthcare and education institutions across the US. Altura will partner with RingCentral to help its enterprise customers drive tighter collaboration and improve worker productivity and efficiency - all through the power of the cloud.

“As today’s workforce becomes more mobile and distributed, our customers are demanding solutions that allow their employees to communicate and collaborate seamlessly, wherever they are located so they can remain productive,” said Bob Blazek , president and CEO, Altura Communication Solutions . “RingCentral’s cloud communications platform is a strong addition to our portfolio, and we look forward to partnering with RingCentral to help our enterprise customers transition to the cloud.”

RingCentral works with world-class distributors, master agents, channel partners, and carrier partners to deliver cloud communications solutions to businesses around the world. Ranked in the CRN 5-Star Partner Program Guide for five years in a row and recognized as a leader in the Gartner 2019 Magic Quadrant for Unified Communications as a Service Worldwide, RingCentral provides mobile-first voice, video meetings, team messaging, digital customer engagement and integrated contact center solutions as a complete seamless experience. Easier to manage and more flexible and cost-efficient than legacy, on-premise communications systems, RingCentral’s cloud solutions meet the needs of today’s mobile and distributed workforce.

“Altura has a strong network of enterprise customers looking for cloud-first, company-wide communications solutions,” said Zane Long , SVP of global channel sales, RingCentral . “Together we will help businesses of all sizes realize the benefits of a comprehensive, reliable cloud communications platform that enables them to scale globally and communicate effortlessly.”

About Altura

Altura Communications Solutions, Inc. , is a leading provider of unified communications and network solutions. Headquartered in Anaheim, CA , the company serves the needs of enterprise customers with sales and service locations nationwide. Altura offers a complete range of voice and data applications and services, and is a leading provider of communication-enabled solutions and managed services. For more information, visit www.alturacs.com .

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect from any location, on any device, and via any mode. RingCentral provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California , and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

View source version on businesswire.com :  https://www.businesswire.com/news/home/20200127005204/en/

 

January 15, 2020

CIO WaterCooler Transforms the Digital Boardroom with RingCentral’s Cloud Communications Platform

London, UK - January 15, 2020 – RingCentral UK Ltd., a leading provider of global enterprise cloud communications, collaboration, and contact center solutions and a wholly owned subsidiary of RingCentral, Inc. (NYSE: RNG), today announced that CIO WaterCooler, a digital networking forum for CIOs and tech leaders, is using RingCentral’s cloud communications platform to power their Digital Boardrooms and enable virtual engagement and collaboration in the CIO tech community.

CIO WaterCooler provides a digital networking space for CIOs and leading technologists to come together and share ideas through interactive, virtual video sessions. Since IT leaders are always on-the-go and travel year round, they rely on Digital Boardrooms to connect with others in the community and share ideas at any given time, from any location. Previously, CIO WaterCooler had been using another communications platform to support these interactions, which they found unreliable and lacking key functionality. They ultimately selected RingCentral’s robust cloud communications platform which includes voice, video, and team messaging capabilities to support their important conversations.

“It’s been a real challenge to find the right platform for our Digital Boardrooms,” said Daniel Warburton, co-founder of CIO WaterCooler. “CIOs and tech leaders have an expectation of excellence, so we're delighted that RingCentral helped us achieve this standard and allow this community to connect and engage with one another, regardless of their physical location.”

RingCentral’s unified communications as a service (UCaaS) solution provides a single cloud platform with multimodal communications capabilities including voice, video, online meetings, and team messaging. As the market-leading UCaaS provider, RingCentral is helping CIO WaterCooler deliver valuable, reliable and enjoyable engagement within the CIO tech community.

“Tech leaders are constantly travelling and rely on digital platforms, including CIO WaterCooler’s Digital Boardrooms, to regularly engage and connect with their colleagues and peers when they are unable to attend events in person,” said Sahil Rekhi, managing director of RingCentral EMEA. “Through our world-class UCaaS solution, RingCentral is empowering the CIO community to share challenges, deliver change and progress their organizations through vital engagement and collaboration from anywhere in the world, even while on-the-go.”

Digital Boardrooms are led by prominent technology leaders and commentators globally, and take place twice a month. To review upcoming Digital Boardrooms, visit https://ciowatercooler.co.uk/digital-boardrooms/.

About CIO WaterCooler
CIO WaterCooler is a global hub for tech leaders. CIO WaterCooler’s core belief is that a strong network of peers and trusted advisors, are the successful IT leader’s greatest asset. The ongoing goal is to support the community in developing valuable relationships, expanding their professional capabilities and sharing the value across the network. CIO WaterCooler’s initiatives exists to help tech leaders thrive.

We help our community:

  • Raise their profiles amongst their peers and position themselves as subject matter experts
  • Expand their personal networks of trusted peers and advisors
  • Increase their knowledge of emerging technologies and strategies
  • Benchmark their own projects and thought processes

About RingCentral
RingCentral, Inc. (NYSE:RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, the RingCentral platform empowers employees to work better together, from any location, on any device, and via any mode to serve customers, improving business efficiency and customer satisfaction. The company provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

January 13, 2020

Anand Eswaran, Former Microsoft Corporate Vice President for Global Enterprise Business, Joins RingCentral as President and Chief Operating Officer

RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that Anand Eswaran, former Corporate Vice President for Microsoft’s Global Enterprise Business, has joined the company as its President and Chief Operating Officer, reporting to CEO Vlad Shmunis. Eswaran will be responsible for leadership and execution across products, engineering, sales, marketing, services, customer care, operations, and human resources.

Eswaran’s experience spans over 24 years in global business leadership roles at technology organizations including Microsoft, SAP and HP. Eswaran was most recently responsible for Microsoft’s Enterprise Commercial and Public Sector business globally. Prior to that, he led Microsoft Services, Industry & Digital, Customer Care, and Customer Success; a global team of 24,000 professionals. Eswaran’s leadership and vision played a key role in the last five years in shaping Microsoft’s digital and industry strategy as a strategic partner to its customers in guiding and accelerating their digital transformation journeys.

“It is my pleasure to welcome Anand to RingCentral,” said Vlad Shmunis, RingCentral’s founder, chairman and CEO. “I am impressed by his deep customer-first mindset, his proven track record of building high growth global businesses and teams, and his ability to nurture a winning culture with vision, values and inspiration. I am confident that Anand’s joining our leadership team will be invaluable to RingCentral’s next phase of growth.”

Prior to joining Microsoft, Eswaran was the Executive Vice President of Global Services business at SAP, leading 17,000 business process and technology professionals to accelerate customer and partner value creation through SAP’s enterprise applications. Previously, he served as Vice President of Global Software Services at HP.

“I’m humbled and excited to join Vlad and the RingCentral team in transforming the world of enterprise cloud communications,” said Eswaran. “We are at an inflection point in changing the way we communicate, collaborate and work. RingCentral’s leadership in digital transformation of business communications worldwide is rooted in its proven technology platform and well-established partner ecosystem. I am thrilled to be joining this winning team and contributing to the entrepreneurial and continuous innovation culture at RingCentral.”

Additionally, Dave Sipes, COO, has announced that he will be retiring from the company at the end of Q2. After being part of RingCentral’s senior leadership team for nearly twelve years, Sipes plans to spend more time on family business interests and acting as a trusted advisor to startup companies. “The journey with RingCentral has been tremendous and personally fulfilling. I’m thankful for working with an amazing team and the success we have achieved. I look forward to working with Anand to ensure a seamless handoff over the next two quarters as we set up for the next phase of the Company’s growth and market leadership,” said Sipes.

“I’d like to thank Dave for his monumental contributions over the last twelve years,” added Shmunis. “He has played a pivotal role in RingCentral’s journey from an approximately ten million dollar company when he joined to the company’s nearly one billion dollars in revenue run rate. Dave has been instrumental in assembling and growing our winning team, and we thank him for his diligence, leadership, and dedication. We wish him all the best in the next stage of his journey and look forward to his continued friendship and mentorship. Looking ahead, I’m excited about Anand joining our team and look forward to working with him as we continue to extend our leadership position in the $50 billion UCaaS market.”

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect from any location, on any device, and via any mode. RingCentral provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

 

January 7, 2020

RingCentral Named a November 2019 Gartner Peer Insights Customers’ Choice for Unified Communications as a Service, Worldwide

RingCentral, Inc., (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced it has been recognized as a November 2019 Gartner Peer Insights Customers’ Choice for Unified Communications as a Service, Worldwide as reviewed by customers. RingCentral received an overall rating of 4.5 out of 5 stars, based on 125 reviews, as of 31 October 2019.

“We take great pride in being named a November 2019 Gartner Peer Insights Customers’ Choice. This recognition reflects our commitment to providing value to our customers through our industry-leading business communications and collaboration solutions,” said Amritesh Chaudhuri, SVP of Marketing for RingCentral. “Based on widespread feedback from customers, it’s clear that we are enabling our business users to communicate effortlessly both within their organizations and with their customers and partners regardless of location, device or preferred mode of communication.”

The Gartner Peer Insights Customers' Choice distinction recognizes vendors and products that are highly rated by their customers. Gartner Peer Insights gives IT buyers the confidence to select enterprise solutions based on reviews by IT peers, verified by Gartner. To be recognized with the Customers’ Choice distinction, a vendor must have 50 or more published reviews and an average overall rating of 4.2 stars or higher across those reviews accumulated within the 12-month submission period. In addition, at least 20% of all eligible reviews must be from outside of the primary industry, region, and company size.

The following are examples of RingCentral customer reviews from Gartner Peer Insights:

  • "We were able to make a clean switch to RingCentral with zero downtime and no hiccups thanks to the amazing work of their implementation team. The product has enabled our users to be more mobile and their deep integration into our other systems has increased our teams’ efficiency." - Vice President in the Financial Services Industry
  • "The implementation of this product was fantastic. We have had great customer experience and engagement with the product as well as a huge cost savings. Definitely 5 stars." - CIO in the Manufacturing Industry

For additional information, click here.

About Gartner Peer Insights

Peer Insights is an online platform of ratings and reviews of IT software and services that are written and read by IT professionals and technology decision-makers. The goal is to help IT leaders make more insightful purchase decisions and help technology providers improve their products by receiving objective, unbiased feedback from their customers. Gartner Peer Insights includes more than 70,000 verified reviews in more than 200 markets. For more information, please visit www.gartner.com/reviews/home.

Gartner, Gartner Peer Insights ‘Voice of the Customer’: Unified Communications as a Service, Worldwide, Peer Contributors, 10 December 2019.

Gartner Peer Insights Customers’ Choice constitute the subjective opinions of individual end-user reviews, ratings, and data applied against a documented methodology; they neither represent the views of, nor constitute an endorsement by, Gartner or its affiliates.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About RingCentral

RingCentral, Inc. (NYSE:RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, the RingCentral platform empowers employees to work better together, from any location, on any device, and via any mode to serve customers, improving business efficiency and customer satisfaction. The company provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

 

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