RingCentral Q3 revenue and earnings top expectations, revenue outlook also higher than expected

The maker of cloud-based phone systems saw revenue for subscriptions surge by a third as it won new customers.

Shares of cloud-based office phone systems RingCentral were up slightly in late trading on Monday after the company reported Q3 revenue that comfortably beat expectations, profit that was slightly ahead, and forecast this quarter's revenue also comfortably ahead of Wall Street's average forecast. 

The results were "solid," according to founder, CEO and chair Vlad Shmunis. Results were helped by "strong new logo momentum across SMB, mid-market, and enterprise sized businesses and continued contributions from channel partners," said Shmunis, 

RingCentral added Alcatel-Lucent Enterprise as a distribution partner in the quarter, the company said. It also expanded an existing relationship with British Telecom. 

For the three months ending in September, RingCentral's revenue rose 30%, year over year, to $303.6 million, yielding EPS of 26 cents. That was better than the average Wall Street projection for $273 million and 24 cents per share.

Subscription revenue in the quart rose 33% to $280 million. 

For the current quarter, the company sees revenue in a range of $315 million to $318 million, and EPS of 26 cents to 27 cents. That compares to current Street consensus of $292 million and 26 cents per share. 

For the current quarter, RingCentral sees subscription revenue in a range of $290.5 million to to $292.5 million, representing annual growth of 27% to 28%.

RingCentral shares rose 2% in late trading to $272.95.  

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