September 2018 marks the fifth anniversary of our initial public offering, and it’s been an exciting ride. We’re celebrating the event by ringing the closing bell at the New York Stock Exchange on September 5th.
It’s a significant milestone that allows us to reflect on how far we’ve come—and the opportunity still ahead.
RingCentral launched with a simple concept—help employees become more productive by creating seamless interactions across multiple devices and locations. It’s been humbling to see that idea turn into an industry-leading company.
RingCentral is now the #1 cloud business communications provider worldwide, winning industry-wide recognition from analysts, including Gartner. A little-known company in 2012, RingCentral became a Gartner Magic Quadrant leader for Unified Communications as a Service (UCaaS) in 2016 and 2017, distancing ourselves from the competition.
Our success is rooted in innovation. Five years ago, we had the foundation of our core cloud voice platform. We built on that foundation and expanded into team messaging, video meetings, and contact center. We also opened our global RingCentral Connect platform to allow developers to integrate with other business applications. All this innovation has enhanced and expanded the ways customers benefit from the RingCentral platform. This is one step in our journey to become the system of record for all business communications.
Customers have responded. At the time of our IPO, we served mainly U.S. small business customers. With an enterprise-ready product, we expanded our reach globally into Europe, Asia Pacific, and Latin America. We won significant enterprise business and have been endorsed by global 2000 companies, including Public Storage and Avery Dennison. Our enterprise business alone now is over $120 million, growing more than 110% year over year.
And today, we announced that AT&T has extended its relationship with RingCentral to provide enterprises with cloud communications and collaboration solutions.
We have translated all this success into impressive financial performance. Our annual revenue run rate of ~$650 million has grown nearly 4x since our IPO, and we’ve become profitable along the way. This demonstrates our operating principle of profitable growth: balancing substantial growth with increasing profitability.
Of course, this would not have been possible without the hard work and dedication of our employees. The passion of our employees is the driving force behind our relentless commitment to our customers. Our employees have recognized RingCentral as one of the best places to work in multiple locations, including the Bay Area, Denver, and even Xiamen, China. Together, we’ve realized a common vision to empower our customers to communicate and collaborate the way they want.
Thank you again to our customers, partners, and employees for your support and commitment to RingCentral.
I believe the best is yet to come.
Founder, CEO, and Chairman of the Board