RingCentral beats Q2 estimates with strong partnerships

RingCentral on Tuesday published second quarter financial results that beat market expectations. CEO Vlad Shmunis in part credited contributions from RingCentral’s partners for the strong quarter. 

The cloud communications firm’s non-GAAP net income per diluted share was 32 cents on revenue of  $379 million, an increase of 36 percent year-over-year. 

Analysts were expecting earnings of 28 cents per share on revenue of $359.51 million.

“Second quarter results were outstanding, as contributions from our upmarket momentum and key partners including Avaya, Atos, ATT, BT, and Telus continued to increase,” Shmunis said in a statement. “As businesses embrace hybrid workforces, they require next generation mobile-first platforms that support team messaging, video meetings, and phone system capabilities. RingCentral, with its unparalleled track record of trust, innovation, and partnerships, and its differentiated MVP platform, now seamlessly integrated with an industry leading cloud contact center solution, is uniquely positioned to meet these communication and collaboration needs.”

Subscriptions revenue increased 37 percent year-over-year to $351 million and accounted for 93 percent of total revenue. 

Total Annualized Exit Monthly Recurring Subscriptions (ARR) increased 37 percent year-over-year to $1.5 billion. RingCentral Office ARR (UCaaS + CCaaS) increased 41 percent year-over-year to $1.4 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 in the range of $1.539 billion to $1.545 billion. For the third quarter, the company expects revenue in the range of $390.5 million to $393.5 million.

Article source: https://www.zdnet.com/article/ringcentral-beats-q2-estimates-with-strong-partnerships/#ftag=RSSbaffb68