RingCentral beats expectations, brings in $415 million for Q3
RingCentral on Tuesday published third-quarter financial results that beat market expectations. CEO Vlad Shmunis partly credited the popularity of the RingCentral Message Video Phone platform for the strong quarter.
The cloud communications firm's non-GAAP net income per diluted share was 36 cents on revenue of $415 million, increasing 37% year-over-year.
Analysts were expecting earnings of 33 cents per share on revenue of $393.46 million. The report sent the company's stock surging more than 16% in after hours trading.
"Third quarter results were outstanding, with accelerating growth driven by ramping contributions from our key partners and momentum from our upmarket customers," said Shmunis.
"With our award-winning RingCentral Message Video Phone (or MVP) platform, our seamless integration with an industry-leading cloud contact center solution, and our unparalleled market access with strategic partners, we believe we are uniquely positioned to meet the rising global demand for cloud-based communications solutions," Shmunis added.
Subscriptions revenue increased 38% year-over-year to $385 million and accounted for 93% of total revenue.
Total Annualized Exit Monthly Recurring Subscriptions (ARR) increased 39% year-over-year to $1.64 billion. RingCentral Office ARR (UCaaS + CCaaS) increased 42% year-over-year to $1.55 billion.
In the second quarter, RingCentral announced new and extended partnerships with a number of companies, including Avaya, Verizon Business, Deutsche Telekom and Alcatel-Lucent Enterprise, among others.
RingCentral is raising its full-year 2021 guidance, predicting revenue around $1.581 billion. For the fourth quarter, the company expects revenue in the range of $433.5 million to $434.5 million and a non-GAAP EPS of $0.37.