Written by Jeff Owen | Feb 8, 2016 5:00:00 AM
RingCentral Office® Annualized Exit Monthly Recurring Software Subscriptions up 45%
Expands Software Subscriptions Gross Margin by 540 bps year-over-year to 78.7% BELMONT, Calif.--(BUSINESS WIRE)--
RingCentral, Inc. (NYSE: RNG), a leading provider of
cloud business communications and collaboration solutions, today announced financial results for the fourth quarter and full year ended December 31, 2015.
Fourth Quarter Financial Highlights:
- Overall revenue increased 35% year-over-year to $83.4 million; software subscriptions revenue increased 36% year-over-year to $76.5 million.
- Total annualized exit monthly recurring software subscriptions were up 34% year-over-year to $317.4 million.
- RingCentral Office® annualized exit monthly recurring software subscriptions were up 45% year-over-year to $247.4 million.
- Net monthly subscriptions dollar retention: RingCentral Office® over 100% and overall over 99%
- Non-GAAP software subscriptions gross margin improved 5.4 points to 78.7% in the fourth quarter of 2015 from 73.3% in the same period a year ago. GAAP software subscriptions gross margin improved 5.2 points to 78.0% in the fourth quarter of 2015 from 72.8% in the same period a year ago.
- Non-GAAP operating margin improved to 1.0% up from (8.3%) in the fourth quarter of 2014. GAAP operating margin of (7.2%) improved from (15.1%) in the fourth quarter of 2014.
“Q4 was a strong finish to an outstanding year. In 2015 we exhibited a combination of solid top line growth and meaningful margin expansion, resulting in the company reaching profitability in Q3. We continued our rapid pace of innovation and expansion up-market, successfully launched two new major carrier partners, and were selected by Gartner as the UCaaS Magic Quadrant leader,” said Vlad Shmunis, RingCentral’s Chairman and CEO. “We finished the year with tremendous momentum. In Q4 we had strong revenue growth across all market segments, our highest gross margins to date, and excellent traction up-market.”
Financial Results of the Fourth Quarter 2015:
- Revenue: Total revenue was $83.4 million for the fourth quarter of 2015, up 35% from the fourth quarter of 2014. Software subscriptions revenue was $76.5 million for the fourth quarter of 2015, up 36% from the fourth quarter of 2014.
- Net Income (Loss): GAAP net income (loss) per diluted share was ($0.10) for the fourth quarter of 2015 compared with ($0.15) for the fourth quarter of 2014. Non-GAAP net income (loss) per diluted share was $0.01 for the fourth quarter of 2015, compared with ($0.08) per diluted share for the fourth quarter of 2014.
- Balance Sheet: Total cash and short-term investments at the end of the fourth quarter of 2015 was $137.6 million, compared with $132.3 million at the end of the third quarter of 2015.
Financial Results of the Full Year 2015:
- Revenue: Total revenue was $296.2 million for the full year of 2015, up 35% from the full year of 2014. Software subscriptions revenue was $271.2 million for the full year of 2015, up 36% from the full year of 2014.
- Net Income (Loss): GAAP net income (loss) per diluted share was ($0.46) for the full year of 2015 compared with ($0.72) for the full year of 2014. Non-GAAP net income (loss) per diluted share was ($0.12) for the full year of 2015, compared with ($0.48) per diluted share for the full year of 2014.
- Balance Sheet: Total cash and short-term investments at the end of 2015 was $137.6 million, down from $141.7 million at the end of 2014.
Fourth Quarter 2015 and Recent Business Highlights:
- Launched RingCentral Global Office, designed to address needs of multinational enterprises. Connecting the global workforce across multiple countries, RingCentral Global Office reduces complexity and high costs for multinational enterprises that have multiple, legacy on-premise PBX systems with a single cloud solution.
- Entered into an agreement with Westcon Group to distribute phones to RingCentral customers, removing phone revenue from the Company’s future P&L. Westcon has also become a VAR for the Company’s cloud business communications solutions.
- Chosen by Google as a top partner and one of the first solutions in the “Recommended for Google Apps for Work” program.
- Appointed David Sipes as Chief Revenue Officer, a newly created position to oversee the company’s worldwide go-to-market activities including sales, marketing, customer care, as well as business and corporate development.
Conference Call Details:
- What: RingCentral financial results for the fourth quarter and full year of 2015 and outlook for the first quarter and full year of 2016.
- When: Thursday, February 4, 2016 at 2PM PT (5PM ET).
- Dial in: To access the call in the United States, please (877) 705-6003, and for international callers dial (201) 493-6725. Callers may provide confirmation number 13629019 to access the call more quickly, and 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: A replay of the call will be available via telephone for seven days, beginning two hours after the call. To listen to the telephone replay in the U.S., please dial (877) 870-5176 from the United States or (858) 384-5517 internationally with recording access code 13629019.
About RingCentral RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud-based business communications and collaboration solutions. RingCentral’s cloud solution is easier to manage, and more flexible and cost-efficient than legacy on-premises communications systems. It meets the needs of modern distributed and mobile workforces spanning SMB to Enterprises globally. RingCentral, Business Communications Made Simple. RingCentral is headquartered in Belmont, California. RingCentral and the RingCentral logo are registered trademarks of RingCentral, Inc.