RingCentral Press Releases

Stay on top of breaking news and stories from RingCentral—including new partnerships, customer successes, and event announcements.

October 20, 2020

RingCentral Announces Fully Integrated High-Volume SMS Services for Rapid Business Communications

Code Together Conference 2020 brings together industry leaders and developers, features several new product innovations driven by RingCentral’s Open Platform

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced a new high-volume SMS service that enables businesses to send SMS messages and updates to their customers rapidly and reliably. Using this service, developers can build customized apps using RingCentral’s business communications platform. RingCentral also offers the service via pre-built applications available in the RingCentral App Gallery.

“In these unprecedented times, staffing healthcare workers is more critical than ever, and all hinges on the speed of effectively managing increased demand. Using RingCentral’s High Volume SMS API on top of the RingCentral platform has helped us communicate more effectively and proven to be a great tool for delivering the responsiveness required to ensure nursing facilities are properly staffed,” said Ron Bhavnani of All American Healthcare. “We’ve used other companies in the past that have open APIs, but there are limitations and the backend isn’t orchestrated. RingCentral’s product is seamless with a far superior interface.”

The new High Volume SMS Application Programming Interface (API), which is currently in beta, enables customers to use their business number, an extension, or any other U.S. phone number to send high-volume and commercial SMS messages, eliminating the need to purchase and program a separate number. Using RingCentral numbers for high-volume SMS, businesses can send one-off messages or batch requests. Further, RingCentral provides access to message status, logs, store, and analytics for advanced insights and regulatory compliance.

“Effective communications is getting the right message, to the right person, in the right way,” said Will Moxley, senior vice president and chief product officer, RingCentral. “In a world where people are working from anywhere, using a variety of tools, our job is to provide customers and developers with the reliable and secure capabilities to communicate using the most effective channels for their needs. That can be any combination of team messaging, video meetings, cloud phone calls and even SMS. Adding programmable High Volume SMS to our portfolio, helps organizations to communicate with their customers using an automated messaging service. Additionally, customers now have the ability to transition seamlessly from text to voice or video using an organization’s business number instead of having to search for contact information online.”

The new high-volume SMS service also enables RingCentral customers to take advantage of SMS for mass marketing purposes, automated messages, notifications, customer polls/surveys, chatbots, Two-Factor Authentication (2FA), One Time Passwords (OTP) and other business use cases.

Available as part of RingCentral’s Open Platform™, the high-volume SMS service seamlessly integrates with Message, Video, Phone™ APIs to allow new and innovative business solutions, helping connect customers and team members.

“We are seeing businesses and developers increasingly turning to programmable communications to automate workflows, enhance customer engagement, and ultimately sustain and grow their business,” said Michael Brandenburg, Senior Industry Analyst, Frost & Sullivan. “RingCentral’s platform and pre-built applications offer customers a wide array of integrations to solve many of the biggest communications challenges facing businesses today.”

RingCentral will demo the high-volume SMS Service at its first-ever virtual Code Together 2020 developer conference from Oct. 20 - 22, 2020.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Open Platform, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc.

Jyotsna Grover
jyotsna.grover@ringcentral.com
650-513-8712

Source: RingCentral, Inc.

October 19, 2020

RingCentral Hosts Business Communications Developer Virtual Conference

‘Code Together’ brings together developers, industry leaders, and experts to explore how video, messaging, and phone communications transforms productivity in enterprise applications workflows

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG) a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, will host its first-ever virtual developer conference - Code Together - from October 20-22, 2020. The conference will bring together developers from around the world to explore the latest developments in business communication technology with fresh thinking from leaders and innovators including Guy Kawasaki, chief evangelist at Canva, and Kira Makagon, chief innovation officer at RingCentral. The RingCentral developer community now exceeds 45,000.

“If you want to provide users with productive and effective communications services within business workflows, it must combine great functionality with reliability and security with open APIs,” said Kira Makagon, chief innovation officer, RingCentral. “This commitment to providing access to our platform services to developers has always been a core principle for RingCentral. We look forward to our developer community joining us to hear from your peers, from industry leaders, and customers. If you’re a developer interested in the future of communications, this is where you need to be.”

The first day of the conference will feature sessions with key customers including Chais Meyer, owner and founder, 24 Hour Tees and Joe Rini, senior director, IT, Columbia University and several technical sessions presented by technical experts. The conference agenda includes:

  • What’s New at RingCentral for Developers
  • Winning with RC Integration: A Customer’s Point of View
  • The Programmable Contact Center: Customize Your Customer Experience & Differentiate Yourself from Competitors
  • RingCentral Platform Roadmap

The conference will end with an award ceremony honoring the most active RingCentral developers, innovative creators, and RingCentral’s Independent Software Vendor (ISV) partners.

Guy Kawasaki, chief evangelist, Canva will deliver the opening keynote address and talk about the art of innovation.

“I admire RingCentral for its innovation and growth strategy so I am excited to share my knowledge at the company’s Code Together conference. I will be discussing the fine art of innovating and ‘denting the universe’,” said Guy Kawasaki, chief evangelist, Canva.

For more details on the talks, speakers, and the complete agenda, please click here.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc.

Media Contact
Jyotsna Grover
650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

October 14, 2020

RingCentral Announces Date of Third Quarter 2020 Financial Results Conference Call

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that it will report financial results for the third quarter ended September 30, 2020 after market close on Monday, November 9, 2020. The company also announced that it will hold a conference call on the same day at 2:00 PM Pacific Time (5:00 PM Eastern Time) to discuss its quarterly financial results.

The conference call can be accessed by dialing (877) 705-6003 from the United States or (201) 493-6725 internationally with reference to the company name and conference title, and a live webcast and replay of the conference call can be accessed from the investor relations page of RingCentral’s company website at http://ir.ringcentral.com. Following the completion of the call through 11:59 PM Eastern Time on November 16, 2020, a telephone replay will be available by dialing (844) 512-2921 from the United States or (412) 317-6671 internationally with recording access code 13711153.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral, Message Video Phone, and the RingCentral logo are trademarks of RingCentral, Inc.

Investor Relations Contact:
Ryan Goodman, RingCentral
(650) 918-5356
Ryan.Goodman@ringcentral.com

Media Contact:
Mariana Leventis, RingCentral
(650) 562-6545
Mariana.Leventis@ringcentral.com

Source: RingCentral, Inc.

October 13, 2020

RingCentral Video Receives W3 Gold Award

RingCentral wins for 'General Website Application-Services' category and also receives Silver Awards for ‘Best Visual Appeal - Experience’ and ‘Best Visual Appeal - Utility’ categories

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that RingCentral Video™ (RCV) has been recognized by the Academy of Interactive and Visual Arts with a W3 Gold award in the General Website Applications-Services category. RingCentral Video also received two W3 Silver awards for Best Visual Appeal - Experience and Best Visual Appeal - Utility.

RingCentral Video brings business class video meetings to RingCentral Office®, a unified communications solution that also includes team messaging and a cloud phone system.

“We’re really excited to see this recognition of our focus on building great user experiences that help people communicate with their colleagues and customers while working from anywhere,” said Michael Peachey, vice president, user experience at RingCentral. “We strive to create simple to use experiences, so that our users can easily connect and collaborate with anyone from anywhere using any device. We are happy that we are being recognized for the visual appeal and ease of use of RingCentral Video.”

The winners of the 15th Annual W3 Awards have been announced by the Academy of Interactive and Visual Arts. Receiving over 3,000 entries from across the globe, the W3 Awards honor outstanding websites, web marketing, web video, mobile sites/apps and social content created by some of the best interactive agencies, designers, and creators worldwide.

RingCentral Video (RCV), a reimagined video meetings experience, was launched in April 2020 and is already gaining momentum and recognition in the industry. Leveraging RingCentral’s open platform, RingCentral Video is offered as part of RingCentral’s differentiated Message Video Phone™ (MVP) Office solution. RingCentral Video addresses the demand in work from anywhere by leveraging next-generation technologies to enable a fast, unified, open, and trusted video meetings experience.

For more information on RingCentral Video, visit our website.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Video, RingCentral Office, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc.

Lela Gradman
lela.gradman@ringcentral.com
+1-650-525-6264

Source: RingCentral, Inc.

October 13, 2020

RingCentral Announces Expansion of RingCentral Global Office Across Six Continents with Unified Team Messaging, Video Meetings, and Cloud Phone System

Delivers best-in-class regulatory compliance and security

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that RingCentral Global Office™, a unified solution that includes team messaging, video meetings, and a cloud phone system, will be available in six continents including Africa, Asia, Australia, Europe, North America, and South America. RingCentral is also announcing expansion into several countries -- Estonia, Greece, Lithuania, Slovenia, and South Africa.

RingCentral Global Office enables businesses to connect their mobile and distributed workforces across multiple countries with local phone numbers, PSTN access, and other capabilities. The unique capabilities available to customers include:

  1. Licensing and Regulatory: Manages regulatory challenges on behalf of customers, enabling them to operate in compliance with local laws and regulations
  2. Emergency Services: Automatically provides the caller's location to emergency dispatchers
  3. Security and Compliance: Provides robust security measures at every level of the architecture and processes, and support for regional certifications and frameworks such as ISO 27001, UK Cyber Essentials and complies with the German requirements of Cloud Computing Compliance Controls Catalog (C5)
  4. Quality of Service and Service Level Agreement (SLA): Enables access to key operational Quality of Service metrics in near real-time to monitor the phone system's global health and proactively diagnose and troubleshoot issues, backed by an industry-leading 99.999 percent SLA
  5. Language localization: Enables users to seamlessly change language settings, setup multilingual IVRs, receive localized voice prompts, and more in over 10 languages

“When you expand a unified communications platform globally, it’s critical you meet all the local regulatory compliance, security, and Service Level Agreement (SLA) needs of those countries,” said Anand Eswaran, president and chief operating officer, RingCentral. “With RingCentral, customers can rest assured that they will get all the key capabilities to keep their global teams and customers connected. We are helping our customers move from legacy on-premise communications systems to the cloud with all the inherent benefits of reduced costs, higher flexibility, and increased capabilities.”

RingCentral offers its services via its cloud-based RingCentral Global Connect Network™, a redundant service delivery architecture built from the ground up and interconnects directly with service providers enabling RingCentral to provide carrier-grade reliability and quality of service globally. The RingCentral Global Connect Network is a purpose-built framework with the carrier peering relationships necessary to provide local service in various countries. By handling the interconnects directly, RingCentral removes the burden on enterprise customers of setting up and managing on-premise systems in other countries. Unlike other cloud competitors, RingCentral does not lease lines or outsource service delivery to third parties.

For customers who have a presence in multiple countries, they have traditionally had the complex problem of managing multiple legacy phone systems and multiple carrier relationships. RingCentral eliminates the need for businesses having to manage this complexity with its single global platform. Customers can also leverage Bring Your Own Carrier (BYOC) in most of the world, which offers the customer flexibility to use another PSTN provider to power their RingCentral solutions. This brings the added benefit of extending RingCentral services to additional countries, flexible migration to the cloud at the customer’s pace, and the ability to leverage existing carrier contracts.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Global Office, RingCentral Global Connect Network, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc.

Jyotsna Grover
650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

September 30, 2020

Atos and RingCentral Launch Unify Office by RingCentral in Germany

Unify Office by RingCentral now hosted in Germany

PARIS & BELMONT, Calif.--(BUSINESS WIRE)-- Atos SE (CAC40: ATO), a global leader in digital transformation and RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced the launch of Unify Office by RingCentral in Germany.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200930005279/en/

Unify Office by RingCentral combines the very latest Unified Communications as a Service (UCaaS) technology with the knowledge and insights of the German communications market from Atos and its strong partner community of 800 partners. The result is a unique set of capabilities that will enable German organizations to communicate and collaborate effectively from anywhere, on any device, using any mode.

Ursula Morgenstern, Atos Germany CEO, commented, “Atos has been at the forefront of Communications and Collaboration technology in Germany for many years. To be able to bring the world leader in UCaaS to Germany and tailor Unify Office to this market is an honor. RingCentral’s RCause signature Corporate Social Responsibility Program aligns perfectly with our own vision of a decarbonized digital future.”

Unify Office by RingCentral enables employees to leverage Message, Video, and Phone system capabilities and several out-of-the-box integrations with business applications they love so businesses can remain connected and productive from anywhere, as they continue to adapt to the new ways of working.

“We’re excited to see Atos bring the very latest business communications technology to Germany with Unify Office by RingCentral. With Atos, we have a market leading partner who knows the German unified communications and collaboration market,” said Sahil Rekhi, vice president, Global Strategic Partnerships, RingCentral. “Together with Atos, we are offering users a custom-built solution that will give them access to leading cloud communications technology, enabling them to stay connected and remain productive from anywhere and on any device.”

Unify Office by RingCentral offers customers several benefits including:

  • Data Residency: All customer data will reside in RingCentral’s Frankfurt datacenter ensuring the highest data protection, residency, and back up standards. The datacenter is supplied by 100 percent renewable energy.
  • Language support: 24/7 365 day German language support by Atos to meet local customer needs.
  • Seamless migration: Atos unified cloud communications and collaboration offers customers a dedicated product management team to ensure seamless migration from existing Atos Unify products to Unify Office by RingCentral and feature parity.
  • Security and Reliability: Unify Office by RingCentral offers a safe, stable, and secure solution with more than 20 years of product development behind it, 24/7 platform monitoring and 99.999 percent uptime SLA guaranteed.
  • Global footprint:Unify Office enables customers to deploy a single global solution across more than 40 countries without the need to deploy multiple on-premise systems. The solution is localized in more than 10 languages.

Unify Office by RingCentral will be available directly from Atos at www.unifyoffice.com as well as leading local Atos Unify partners including KOMSA, Herweck and ALSO.

Purchasing association Gemeinschaft Fernmelde-Technik eG (GFT) will support their partners with test access to Unify Office by RingCentral to familiarize them with the solution and aid onboarding. “We’re proud to be a launch partner for Unify Office by RingCentral in Germany. Its transformational capabilities will offer our partners and customers new ways of creating integrated digital workplaces,” said Rudolf Saken, Sprecher des Vorstands der GFT.

About Atos

Atos is a global leader in digital transformation with 110,000 employees in 73 countries and annual revenue of € 12 billion. European number one in Cloud, Cybersecurity and High-Performance Computing, the Group provides end-to-end Orchestrated Hybrid Cloud, Big Data, Business Applications and Digital Workplace solutions. The Group is the Worldwide Information Technology Partner for the Olympic & Paralympic Games and operates under the brands Atos, Atos|Syntel, and Unify. Atos is a SE (Societas Europaea), listed on the CAC40 Paris stock index.

The purpose of Atos is to help design the future of the information space. Its expertise and services support the development of knowledge, education and research in a multicultural approach and contribute to the development of scientific and technological excellence. Across the world, the Group enables its customers and employees, and members of societies at large to live, work and develop sustainably, in a safe and secure information space.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

Laura Fau
+33 6 73 64 04 18
laura.fau@atos.net

Jyotsna Grover
650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

September 29, 2020

Avaya and RingCentral Announce Expansion of Unified Cloud Communications Offering – Avaya Cloud Office™ – Across Europe to Keep Businesses Productive

Santa Clara & Belmont, Calif. –September 29, 2020 –  Avaya Holdings Corp. (NYSE: AVYA and RingCentral Inc. (NYSE: RNG) today announced the expansion of Avaya Cloud OfficeTM by RingCentral® across Europe, with the solution now generally available in France, Ireland, and the Netherlands. In addition, the companies also announced that they have signed their first seven-figure deal with a large United Kingdom-based Government customer.

This geographic expansion of Avaya Cloud Office follows the launch of the solution in Canada, the United Kingdom, and Australia in June and the United States in March. Since then, the solution has seen uptake continue to accelerate, with a growing number of new customers being signed across every country in which Avaya Cloud Office is available.

“It is now more important than ever before that vendors in UC&C are able to provide UCaaS for clients both new and potential,” said Oru Mohiuddin, Research Manager Enterprise Communications & Collaboration, IDC. “According to the IDC Europe forecast1, UCaaS will grow at a compounded annual growth rate of 23.3 percent between 2019 and 2023, higher than 17.1 percent as anticipated during the pre-COVID-19 period. Avaya Cloud Office is now available in France, Ireland, and the Netherlands and follows the success that Avaya has seen in North America, Australia, and other European countries. This is to facilitate remote collaboration as working from home becomes the new norm in the post-crisis period. It is, however, not just enough to provide UCaaS – it needs to be customizable, flexible, modular, agile, frictionless, scalable, omnichannel, and secure to cater to the varying needs of enterprises.”

Following today’s announcement, organizations in France, Ireland and the Netherlands will benefit from the same recently announced features that are available to all Avaya Cloud Office customers, including additional migration tools, enhanced devices support, along with advanced telephony management and other capabilities.

“Avaya Cloud Office is generating tremendous return on investment for our customers, who  appreciate the flexibility and reliability the solution provides,” said Dennis Kozak, SVP, Business Transformation, Avaya. “Over the last quarter, we have activated an eager base of customers and partners with this compelling UCaaS offer. As we expand availability of Avaya Cloud Office across Europe, we look forward to enabling more customers to achieve positive business outcomes as they transition to new ways of work and engagement.”

In addition to the recently announced features, Avaya Cloud Office customers will enjoy new capabilities, such as:

  • Avaya branded unified desktop app: Entirely reimagines the user experience for enterprise communications. The clean and refreshed redesign of the desktop application enables users to be more productive with an integrated experience between messaging, video, and phone services in one place. It will also let users switch from different devices while participating in video meetings. 
  • Avaya branded video: Offers a full meeting experience from a web browser so users do not have to download any application and can get their meetings started faster than before.
  • Network performance and video quality controls: Admins can set up custom alerts that proactively notify them of call quality and device status issues that could impact teams.
  • Admin & security controls: Provides hosts with multiple security options when scheduling, starting, or managing on-going meetings to prevent unwanted participation.
  • Adoption and usage analytics: Provides insight into usage data to identify areas of improvement and discover ways to help customers get the most out of Avaya Cloud Office. 

“The need for modern cloud communications has only become more pronounced since we jointly launched Avaya Cloud Office in March 2020, with many organizations realizing the benefits of a powerful UCaaS solution,” said Phil Sorgen, Chief Revenue Officer, RingCentral. “Avaya Cloud Office helps meet the communications needs of these organizations, and we continue to see adoption as we roll it more broadly worldwide. We look forward to expanding the ability of our joint European customers to take advantage of these capabilities.”

Avaya has initiated a comprehensive go-to-market strategy in Europe, having announced new master agent partnerships to meet the growing regional demand for Avaya Cloud Office. Avaya has signed a new master agent agreement with Itancia and ScanSource to rapidly enable adoption of the solution in France. The Netherlands will see Avaya Cloud Office offered by ScanSource. Finally, Avaya has expanded its master agent agreement with Westcon so that it now covers Ireland, France and the Netherlands.

1Source: The Impact of COVID-19 on European Unified Communications and Collaboration doc # EUR146381420.

About Avaya
Businesses are built by the experiences they provide, and everyday millions of those experiences are delivered by Avaya Holdings Corp. (NYSE: AVYA). Avaya is shaping what's next for the future of work, with innovation and partnerships that deliver game-changing business benefits. Our cloud communications solutions and multi-cloud application ecosystem power personalized, intelligent, and effortless customer and employee experiences to help achieve strategic ambitions and desired outcomes. Together, we are committed to help grow your business by delivering Experiences that Matter. Learn more at https://www.avaya.com

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect from any location, on any device, and via any mode. RingCentral provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world. © 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

Cautionary Note Regarding Forward-Looking Statements
This document contains certain “forward-looking statements”, including but not limited to, statements regarding the anticipated impact and benefits of Avaya Cloud Office. All statements other than statements of historical fact are “forward-looking” statements for purposes of the U.S. federal and state securities laws. These statements may be identified by the use of forward looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," “our vision,” "plan," "potential," "preliminary," "predict," "should," "will," or “would” or the negative thereof or other variations thereof or comparable terminology. RingCentral and Avaya have based these forward-looking statements on their current expectations, assumptions, estimates and projections. While RingCentral and Avaya believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond their control. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including risks related to the parties’ ability to successfully perform their obligations under the commercial arrangement, the parties ability to successfully market, sell and transition customers to Avaya Cloud Office, as well as those risks and uncertainties discussed in RingCentral’s and Avaya’s respective Annual Reports on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”) available at www.sec.gov. RingCentral and Avaya caution you that the list of important factors included in their respective filings may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this press release may not in fact occur. Neither RingCentral nor Avaya undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Source: Avaya Newsroom

 

September 23, 2020

RingCentral Launches in Germany with New Datacenter and Data Residency

Leading cloud communications provider opens new office in Hamburg

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that its unified communications platform including team messaging, video meetings, and cloud phone system will now be available in Germany with a new datacenter in Frankfurt, and a new office in Hamburg, Germany.

As RingCentral continues its global expansion efforts, Germany remains a key strategic location for the company. The new datacenter will also give users access to local phone numbers and emergency services in compliance with local laws and regulations. RingCentral will offer customers local data storage, the ability to register endpoints in-country, and keep voice and video call media local. The new datacenter will also give users access to local phone numbers and emergency services in compliance with local laws and regulation. All team messaging, voicemails, audio and video recordings, call logs, faxes and analytics data will also be stored locally.

In addition, as a cloud communications and collaboration provider, RingCentral complies with the European Union’s requirements of Cloud Computing Compliance Criteria Catalogue (C5), which is a baseline of security controls that was developed by the Federal Office for Information Security in Germany.

“We’ve always been focused on helping businesses modernize communications with the cloud solutions that enable their workforce to be productive regardless of their location. The current environment has accelerated the need for a solution that is easy to use, scalable, trusted, and secure,” said Ashu Varshney, senior vice president, Service Operations and Security, RingCentral. “We are excited to begin offering our customers in Germany a unified communications solution enabling them to communicate and collaborate seamlessly regardless of their industry or location.”

RingCentral offers its customers a cloud-based unified communications platform that combines team messaging, video conferencing, and cloud telephony in a single application. RingCentral’s open API platform already integrates more than 4,000 services and applications, including leading business applications from Google, Microsoft, and Salesforce. RingCentral enables organizations to increase productivity and accelerate business processes by unifying their communications services.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

Jyotsna Grover
+1 650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

September 21, 2020

Atos and RingCentral Launch Unify Office in France

PARIS & BELMONT, Calif.--(BUSINESS WIRE)-- Atos SE (CAC40: ATO), a global leader in digital transformation and RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced the first release of Unify Office (UO) by RingCentral in France. It will also be available in Austria, Belgium, Ireland, Italy, Spain and The Netherlands.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200921005242/en/

Pierrick Belledent, Head of the Business Information Department at the Ecole Normale Supérieure (ENS), which uses Unify Office by RingCentral, explains: “The pandemic has made it necessary to virtualize our exam grading process, which is a key strategic activity for the school. Our partnership with RingCentral and Atos enabled us to carry out remote sessions by allowing teachers to collaborate together, freeing them from technical challenges. Atos helped us to implement the RingCentral solution very quickly, which was appreciated by all our users.”

With Unify Office by RingCentral businesses of all sizes can communicate and collaborate with ease using industry leading voice, video, team messaging and fax capabilities from anywhere using any device via a single enterprise solution.

Unify Office offers several benefits to customers, including:

  • Seamless Migration: Customers can migrate at their own pace from traditional on-premise telephony solutions to Unify Office by RingCentral. They can also continue to use their existing Atos Unify OpenScape desk phones with Unify Office.
  • Simplicity: One Vendor, One Offer, One Solution. Whether a customer’s need is big or small we can support them with a simplified landscape to cover all their communication and collaboration needs, wherever their teams are working in the new normal.
  • Open Platform and Integrations: Easily integrate Unify Office with existing business applications, when using applications such as Salesforce, Microsoft and Google productivity suites through 200+ pre-built integrations or with help of Atos to develop integrations for specific custom workflows.

“Unify Office leverages an industry-leading cloud communication platform to enable flexible technology consumption and address the constantly evolving needs of the increasingly mobile and highly distributed workforce,” said Elka Popova, Vice President of Research, Frost & Sullivan. “Atos, with its Unify communications and collaboration business, stands out among other solution providers as it combines the skills of an independent systems integrator (SI) with the technology expertise of a communications solutions developer. Drawing on its deep vertical knowledge and vertical industry transformation program, Atos tailors its solutions and services to effectively address the unique challenges and objectives businesses face in their different industries.”

Available directly from Atos, at www.unifyoffice.com. Unify Office by RingCentral will also be available from partners of leading regional distributors including Itancia and BusinessCom.

For more information on Unify Office by RingCentral please go to: www.unifyoffice.com.

About Atos

Atos is a global leader in digital transformation with 110,000 employees in 73 countries and annual revenue of € 12 billion. European number one in Cloud, Cybersecurity and High-Performance Computing, the Group provides end-to-end Orchestrated Hybrid Cloud, Big Data, Business Applications and Digital Workplace solutions. The Group is the Worldwide Information Technology Partner for the Olympic & Paralympic Games and operates under the brands Atos, Atos|Syntel, and Unify. Atos is a SE (Societas Europaea), listed on the CAC40 Paris stock index.

The purpose of Atos is to help design the future of the information space. Its expertise and services support the development of knowledge, education and research in a multicultural approach and contribute to the development of scientific and technological excellence. Across the world, the Group enables its customers and employees, and members of societies at large to live, work and develop sustainably, in a safe and secure information space.

Atos UCC (Unified Communications and Collaboration) refers to the former Unify Division.

Atos Unify refers to the product family of former Unify products and partner program.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

Laura Fau
+33 6 73 64 04 18
laura.fau@atos.net

Jyotsna Grover
650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

September 16, 2020

Mindbody Adopts RingCentral’s Modern Cloud Communications Solution to Keep Its Distributed Workforce Connected

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that Mindbody, the leading technology platform for the wellness industry, has adopted RingCentral’s unified cloud communications platform to keep its distributed, global workforce connected from anywhere on any device, across the United States, United Kingdom, and Australia.

Founded in 2001 and headquartered in San Luis Obispo, CA with locations across the globe, Mindbody enables businesses and entrepreneurs in the wellness industry to run, market, and grow their businesses by enabling consumers to engage with wellness providers in their communities. With a mobile and distributed workforce located all over the world, Mindbody had to deploy disparate on-premise systems across the globe to support their employees. This solution experienced frequent outages, was costly, and difficult to manage. This negatively impacted the customer experience and its business did not meet the needs of its employees.

To modernize its communications infrastructure and enhance the customer experience, Mindbody deployed RingCentral’s cloud-based communications solution across all locations globally. With RingCentral, Mindbody has increased the quality of customer and employee engagement. Additionally, Mindbody has simplified management of its phone system under a single, unified solution from one centralized location, leading to reduced costs and a more streamlined approach.

“Our legacy phone system was impacting our ability to adequately serve our customers and ultimately, our bottom line,” said Henry Chang, senior manager of IT procurement at Mindbody. “RingCentral’s global solution has enabled us to move our entire communications infrastructure to the cloud and stay connected around the world. As a result, we’ve simplified management, reduced costs, and have become more productive and efficient internally, while successfully delivering a high-level of quality customer engagement.”

Key RingCentral benefits include:

  • Centralized communications: RingCentral allows Mindbody’s IT team to manage all communications worldwide - across the US, UK and Australia - from one centralized location.
  • Enhanced mobility: Mindbody employees use the RingCentral mobile capabilities to communicate with customers and peers from anywhere, using any device, using their business identity.
  • Reliability: RingCentral’s highly reliable and redundant architecture provides a truly global infrastructure that ensures 24/7 business continuity for Mindbody.

“Mental and physical wellness is especially critical during unprecedented times like these,” said Carson Hostetter, senior vice president, worldwide field sales at RingCentral. “We’re proud to enable an innovative organization like Mindbody to communicate and collaborate with their customers from anywhere so they can find the resources they need to take care of their wellbeing.”

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc.

Jyotsna Grover
jyotsna.grover@ringcentral.com
650-513-8712

Source: RingCentral, Inc.

September 11, 2020

RingCentral, Inc. Prices $650 Million 0% Convertible Senior Notes Offering (up 52.5% Conversion Premium)

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG) today announced the pricing of $650 million aggregate principal amount of 0% Convertible Senior Notes due 2026 (the “notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Act”). The size of the offering was increased from the previously announced $600 million aggregate principal amount. The notes priced with a 52.5% conversion premium to the last reported sale price per share (approximately $278 per share) of RingCentral’s Class A common stock (the “common stock”) on September 10, 2020.

Key elements of the transaction today include:

  • $650 Million 0% Convertible Senior Notes Offering (up 52.5% Conversion Premium)
  • RingCentral redemption option, on or after March 20, 2023 (as detailed below)
  • Capped Call purchased in conjunction with 0% Convertible Senior Notes due 2026 with a cap price of approximately $556, representing a premium of 100% over the last reported sale price of the common stock on September 10, 2020
  • Repurchase of approximately $132.6 million aggregate principal amount of 0% Convertible Senior Notes due 2023 issued in 2018 (the “2023 Notes”)

RingCentral also granted the initial purchasers of the notes an option to purchase, during a 13-day period from, and including, the initial issuance date of the notes, up to an additional $100 million aggregate principal amount of the notes. The sale of the notes to the initial purchasers is expected to settle on September 15, 2020, subject to customary closing conditions, and is expected to result in approximately $640.2 million in net proceeds to RingCentral after deducting the initial purchasers’ discounts and estimated offering expenses payable by RingCentral (assuming no exercise of the initial purchasers’ option).

The notes will be senior, unsecured obligations of RingCentral. The notes will not bear interest, and the principal amount of the notes will not accrete. The notes will mature on March 15, 2026, unless earlier repurchased, redeemed or converted. In addition, RingCentral may redeem the notes, at its option and subject to certain conditions, on or after March 20, 2023 as detailed below.

Capped Call purchased in conjunction with 0% Convertible Senior Notes due 2026: In conjunction with the pricing of the notes, RingCentral entered into capped call transactions with a cap price of approximately $556 (representing a premium of 100% over the last reported sale price of the common stock on September 10, 2020). The capped call transactions are scheduled to expire in March 2025.

Repurchase of 0% Convertible Senior Notes due 2023 issued in 2018: RingCentralalso agreed to repurchase approximately $132.6 million aggregate principal amount of the 2023 Notes.

Use of Proceeds: RingCentral intends to use the net proceeds of the offering for the following purposes:

- Approximately $41.8 million of the net proceeds to pay the cost of the capped call transactions described above
- Approximately $452.5 million of the net proceeds from the offering of notes to repurchase approximately $132.6 million of the aggregate principal amount of its outstanding 2023 Notes through individual privately negotiated transactions entered into concurrently with the offering of the notes (collectively, the “2023 Note Repurchases”). The 2023 Note Repurchases, and the potential related market activities by selling holders of the 2023 Notes (such as the unwinding of certain derivatives or the purchases of shares of common stock that RingCentral expects to occur in connection with the 2023 Note Repurchases), could have the effect of increasing, or limiting a decline in, the market price of the common stock.
- The remainder of the net proceeds for general corporate purposes, which may include working capital, capital expenditures, repayment of debt, including through the redemption of the 2023 Notes, potential acquisitions and strategic transactions of businesses, technologies or products. However, RingCentral has not designated any specific uses and have no current agreements with respect to any material acquisition or strategic transaction.

Additional Details for the new 0% Convertible Senior Notes due 2026 (up 52.5% Conversion Premium)

Conversion Features: The last reported sale price per share of the common stock on September 10, 2020 was approximately $278 per share. With a conversion premium of approximately 52.5%, the initial conversion rate for the notes is 2.3583 shares of common stock per $1,000 principal amount of notes (which is equivalent to an initial conversion price of approximately $424 per share). Prior to the close of business on the business day immediately preceding December 15, 2025, the notes will be convertible at the option of the note holders only upon the satisfaction of specified conditions and during certain periods. Thereafter until the close of business on the scheduled trading day preceding the maturity date, the notes will be convertible at the option of the noteholders at any time regardless of these conditions. Conversions of the notes will be settled in cash, shares of the common stock or a combination thereof, at RingCentral’s election.

Redemption Option: RingCentral may redeem the notes, at its option, on or after March 20, 2023, at a redemption price equal to 100% of the principal amount thereof, plus any accrued and unpaid special interest, if any, if the last reported sale price of the common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which RingCentral provides written notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which RingCentral provides written notice of redemption.

Holders of notes may require RingCentral to repurchase their notes upon the occurrence of certain events that constitute a fundamental change under the indenture governing the notes at a purchase price equal to 100% of the principal amount thereof, plus any accrued and unpaid special interest, if any, to, but excluding, the date of repurchase. In connection with certain corporate events or if RingCentral issues a notice of redemption, it will, under certain circumstances, increase the conversion rate for holders who elect to convert their notes in connection with such corporate event or convert its notes called for redemption during the relevant redemption period.

Additional Details for the Capped Call Transactions

Capped Call Transactions : In connection with the pricing of the notes, RingCentral entered into capped call transactions with certain initial purchasers or their affiliates and other financial institutions (the “counterparties”). The capped call transactions are expected generally to reduce or offset the potential dilution to the common stock upon any conversion of notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. The cap price of the capped call transactions will initially be approximately $556 per share, which represents a premium of 100% over the last reported sale price of the common stock of approximately $278 per share on September 10, 2020, and is subject to certain adjustments under the terms of the capped call transactions. If the initial purchasers exercise their option to purchase additional notes, RingCentral intends to enter into additional capped call transactions with the counterparties.

RingCentral expects that, in connection with establishing their initial hedge of the capped call transactions, the counterparties will enter into various derivative transactions with respect to the common stock and/or purchase shares of the common stock concurrently with, or shortly after, the pricing of the notes. These activities could increase (or reduce the size of any decrease in) the market price of the common stock or the notes at that time. In addition, RingCentral expects that the counterparties may modify their hedge positions by entering into or unwinding various derivatives with respect to the common stock and/or by purchasing or selling shares of the common stock or other securities of RingCentral in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so on each exercise date of the capped call transactions and in connection with any early termination event in respect of the capped call transactions). This activity could also cause or prevent an increase or a decrease in the market price of the common stock or the notes, which could affect the ability of noteholders to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of the notes, could affect the amount and value of the consideration that noteholders will receive upon conversion of the notes.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful.

The notes and the shares of common stock issuable upon conversion of the notes, if any, will not be registered under the Act or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Act and applicable state laws.

Forward-Looking Statements

This press release includes “forward-looking statements,” including, but not limited to, whether RingCentral will be able to consummate the offering, the final terms of the offering and the capped call transactions, prevailing market conditions, the anticipated use of net proceeds of the offering of the notes, including any repurchases of the 2023 Notes pursuant to the 2023 Note Repurchase, which could change as a result of market conditions or for other reasons, whether the capped call transactions will become effective, whether any 2023 Note Repurchase will close and the impact of general economic, industry or political conditions in the United States or internationally. Forward-looking statements are subject to known and unknown risks and uncertainties, and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. All forward-looking statements are subject to other risks detailed in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, filed with the Securities and Exchange Commission, and in other filings we make with the Securities and Exchange Commission from time to time. All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements.

Investor Relations Contact:
Ryan Goodman, RingCentral
(650) 918-5356
Ryan.Goodman@ringcentral.com
 
Media Contact:
Jyotsna Grover, RingCentral
(650) 513-8712
Jyotsna.Grover@ringcentral.com

Source: RingCentral, Inc.

September 10, 2020

Computer History Museum and RingCentral Partner to Modernize Communications Across Historical Bay Area Institution

RingCentral is the museum’s official enterprise cloud communications partner

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced a new multi-year partnership with The Computer History Museum, based in Mountain View, California. RingCentral will be the museum’s enterprise cloud communications partner, bringing a modern and unified communications infrastructure—including messaging, video and phone—to the Bay Area-based institution.

The Computer History Museum is a nonprofit organization with a four-decade history as the world’s leading institution exploring the history of computing and its ongoing impact on society. Over the last several years, the museum started to digitally transform the institution in order to extend its reach to various audiences virtually across the globe. Once the COVID-19 pandemic hit, the museum accelerated these initiatives by transitioning to an all-digital format, offering digital tours and video content across its various channels. With RingCentral, the museum will be able to accelerate these initiatives by enabling employees and partners to communicate from any location, on any device, across any mode - all from a single application, while leveraging the technology to cater to global audiences virtually.

“Computing has long contributed to many technologies that enhance human capabilities and has had an immense impact on the way we operate as a society,” said Dave Evans, chief information officer and vice president of technology, Computer History Museum. “Our mission at the Computer History Museum is to communicate digitally with audiences all over the world, which is now essential for business continuity given the current climate. RingCentral’s state-of-the-art cloud technology will enable us to modernize our communications infrastructure and reach our goal of transforming into a 21st century museum for the new digital age.”

Recognizing the robust capabilities of RingCentral, the museum will use RingCentral’s cloud platform to communicate and collaborate with visitors, partners, and employees. RingCentral enables greater mobility, flexibility, and delivers message, video, and phone capabilities, all from one unified solution in the cloud. Additionally, the museum will leverage RingCentral’s open platform to seamlessly integrate with other applications they plan to use on a daily basis. Easier to manage and more flexible and cost-efficient than legacy, on-premises communications systems, RingCentral’s cloud solutions meet the needs of today’s mobile and distributed workforce.

“The Computer History Museum is an incredibly important institution that combines preserving and enhancing the history of computing with advancing knowledge and facilitating learning and the exchange of ideas,” said Anand Eswaran, president and chief operating officer, RingCentral. “We look forward to enabling the museum to reach its digital transformation goals and finding new modern and creative ways to reach its diverse audiences virtually.”

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc.

About Computer History Museum

From the heart of Silicon Valley, CHM decodes technology through dynamic experiences that span its work in preservation, exploration, connection, and conversation to shape a better future. CHM shares insights gleaned from its research, exhibits, events, and an incomparable collection of computing artifacts and oral histories to convene, inform, and inspire people to build a better world.

CHM stewards the world’s foremost collection chronicling the history and impact of computing and technological innovation. Its exhibits and education programs facilitate learning through meaningful connections and exploration, while public events facilitate dialogue and stimulate debate to encourage civic discourse and creative ideas.

Jyotsna Grover
650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

September 9, 2020

RingCentral, Inc. Announces $600 Million Convertible Senior Notes Offering

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG) today announced its intention to offer, subject to market conditions and other factors, $600 million aggregate principal amount of Convertible Senior Notes due 2026 (the “notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Act”). RingCentral also expects to grant the initial purchasers of the notes an option to purchase, during a 13-day period from, and including, the initial issuance date of the notes, up to an additional $100 million aggregate principal amount of the notes.

Key elements of the transaction include:

  • $600 Million Convertible Senior Notes Offering with an initial purchaser option to purchase up to $100 million additional principal amount of the notes
  • Capped Call expected to be purchased in conjunction with Convertible Senior Notes with a premium of approximately 100% over the last reported sale price of the common stock on the pricing date of the offering
  • Expected repurchase of a portion of the aggregate principal amount of RingCentral’s outstanding 0% Convertible Senior Notes due 2023 issued in 2018 (the “2023 Notes”)

The notes will be senior, unsecured obligations of RingCentral. The notes will be convertible into cash, shares of RingCentral’s Class A common stock (“common stock”), or a combination thereof, at RingCentral’s election. The conversion rate and other terms of the notes are to be determined upon pricing of the offering. The notes will also be redeemable at the option of RingCentral after a specified date if certain conditions are met.

Capped Call to be purchased in conjunction with Convertible Senior Notes due 2026: In connection with the pricing of the notes, RingCentral expects to enter into capped call transactions with one or more of the initial purchasers or other financial institutions or their affiliates (the “counterparties”). The capped call transactions are expected generally to reduce or offset the potential dilution to the common stock upon any conversion of notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. RingCentral anticipates that the cap price of the capped call transactions will initially represent a premium of approximately 100% over the last reported sale price of the common stock on the pricing date of the offering. If the initial purchasers exercise their option to purchase additional notes, RingCentral intends to enter into additional capped call transactions with the counterparties.

RingCentral expects that, in connection with establishing their initial hedge of the capped call transactions, the counterparties will enter into various derivative transactions with respect to the common stock and/or purchase shares of the common stock concurrently with, or shortly after, the pricing of the notes. These activities could increase (or reduce the size of any decrease in) the market price of the common stock or the notes at that time. In addition, RingCentral expects that the counterparties may modify their hedge positions by entering into or unwinding various derivatives with respect to the common stock and/or by purchasing or selling shares of the common stock or other securities of RingCentral in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so on each exercise date of the capped call transactions and in connection with any early termination event in respect of the capped call transactions). This activity could also cause or prevent an increase or a decrease in the market price of the common stock or the notes, which could affect the ability of noteholders to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of the notes, could affect the amount and value of the consideration that noteholders will receive upon conversion of the notes.

Repurchase of 0% Convertible Senior Notes due 2023 issued in 2018: RingCentral also intends to use a portion of the net proceeds from this offering to repurchase a portion of the aggregate principal amount of its outstanding 0% Convertible Senior Notes due 2023 (the “2023 Notes”) for cash through individual privately negotiated transactions concurrently with the offering of the notes (collectively, the “2023 Note Repurchase”). Any 2023 Note Repurchase and the potential related market activities by selling holders of the 2023 Notes (such as the unwinding of certain derivatives or the purchases of shares of common stock that RingCentral expects to occur in connection with any 2023 Note Repurchase), could have the effect of increasing or limiting a decline in the market price of the common stock.

Use of Proceeds: RingCentral intends to use a portion of the net proceeds of the offering of the notes to pay the cost of the capped call transactions and repurchase a portion of the 2023 Notes described above. RingCentral intends to use the remainder of the net proceeds from this offering for general corporate purposes, which may include working capital, capital expenditures, repayment of debt, including through the redemption of the 2023 Notes, potential acquisitions and strategic transactions of businesses, technologies or products. However, RingCentral has not designated any specific uses and has no current agreements with respect to any material acquisition or strategic transaction.

The notes will be offered to qualified institutional buyers pursuant to Rule 144A under the Act. Neither the notes nor the shares of common stock issuable upon conversion of the notes, if any, have been, nor will be, registered under the Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful.

Forward-Looking Statements

This press release includes “forward-looking statements,” including, but not limited to, whether RingCentral will be able to consummate the offering, the final terms of the offering and the capped call transactions, prevailing market conditions, the anticipated use of net proceeds of the offering of the notes, including any repurchases of the 2023 Notes pursuant to the 2023 Note Repurchase, which could change as a result of market conditions or for other reasons, whether the capped call transactions will become effective, whether any 2023 Note Repurchase will close and the impact of general economic, industry or political conditions in the United States or internationally. Forward-looking statements are subject to known and unknown risks and uncertainties, and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. All forward-looking statements are subject to other risks detailed in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, filed with the Securities and Exchange Commission, and in other filings we make with the Securities and Exchange Commission from time to time. All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements.

Investor Relations Contact:
Ryan Goodman, RingCentral
(650) 918-5356
Ryan.Goodman@ringcentral.com

Media Contact:
Jyotsna Grover, RingCentral
(650) 513-8712
Jyotsna.Grover@ringcentral.com

Source: RingCentral, Inc.

August 24, 2020

Connex Joins RingCentral’s Channel Partner Program

BELMONT, Calif. – August 24, 2020 — Connex, a leading-edge system integrator, today announced that it will join RingCentral’s award-winning channel partner program to bring industry-leading cloud communications solutions to enterprise customers across North America.

“We’re seeing an uptick in customer demand for cloud communications solutions across various industries so that employees can effectively communicate with customers and peers from anywhere, on any device,” said Sayan Navaratnam, CEO  at Connex. “RingCentral is a leader in unified communications as a service (UCaaS) and delivers a seamless communications experience with the ability to call, message, or meet from a single platform. By offering our customers a leading UCaaS solution such as RingCentral, we’re confident that they’ll be able to meet growing end-user demands and increase productivity and collaboration.”

RingCentral works with world-class distributors, master agents, channel partners, and carrier partners to deliver cloud communications solutions to businesses around the world. Ranked in the CRN 5-Star Partner Program Guide for five years in a row and recognized as a leader in the Gartner 2019 Magic Quadrant for Unified Communications as a Service Worldwide, RingCentral provides mobile-first voice, video meetings, team messaging, digital customer engagement and integrated contact center solutions as a complete seamless experience. Easier to manage and more flexible and cost-efficient than legacy, on-premise communications systems, RingCentral’s cloud solutions meet the needs of today’s mobile and distributed workforce.

“Connex serves as a trusted advisor to their business customers who want to transition their communications solutions to the cloud,” said Zane Long, SVP of Global Channel Sales, RingCentral. “By offering RingCentral’s innovative and trusted cloud communications solution to their customers, Connex will advance their customers’ digital transformation efforts.”

About Connex

As a leading-edge system integrator with over 600 employees in 14 offices in North America, we provide next generation solutions and services, with best of breed technology, that meets each and every client’s needs – including client engagement solutions, team collaboration solutions and IT solutions. With over 150,000 endpoints managed across over 75,000 agents through our clients, our core values are client focused, being an innovative technology leader, and continued growth for our clients, partners and employees.

 

August 20, 2020

RingCentral Appoints Homayoun Razavi to Lead Global Service Provider Business Unit

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration and contact center solutions, today announced the appointment of Homayoun Razavi to lead its service provider business, globally. Razavi will oversee the continued expansion of partnerships with mobile operators, Internet Service Providers (ISPs), and managed service providers. Razavi brings over 30 years of telecom experience to RingCentral including senior leadership roles at BroadSoft, Coriant, Ditech Networks, Laurel Networks, Lucent, and MCI/Verizon.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200820005197/en/

Homayoun Razavi (Photo: Business Wire)

Homayoun Razavi (Photo: Business Wire)

RingCentral partners with leading service providers such as AT&T in the U.S., BT in the U.K., and TELUS in Canada. These relationships enable service providers to quickly and easily offer their customers world class cloud-based unified communications across mobile devices, tablets, and desktop computers.

“Service providers are playing a critical role in enabling businesses to transform,” said Anand Eswaran, president and chief operating officer for RingCentral. “Central to that transformation is powerful, reliable, and secure cloud-based communications services that bring together messaging, video, and phone capabilities enabling people to work from anywhere. We’re excited to have Homayoun join our team to champion that opportunity to partner with service providers, globally.”

“Service providers are focused on driving value for their business customers,” said Homayoun Razavi, senior vice president of Global Service Providers for RingCentral. “Recent events have accelerated the need for delivering advanced Unified Communications as a Service that include messaging, video, and phone capabilities to today’s remote workforce. I’m excited to join RingCentral to partner with global service providers as they continue to innovate in 5G, Mobile Edge Computing (MEC), and Internet of Things (IoT).”

Fazil Balkaya, industry analyst, Synergy Research commented, “RingCentral’s strategy of working closely with carriers and service providers enables them to capitalize on the global market opportunity to scale growth and demand for cloud-based communications services, while giving carriers and service providers an avenue to partner with the #1 UCaaS provider.”

Partnering with RingCentral gives service providers a turnkey cloud-based solution that is fully managed, significantly reducing the operating expenses (OPEX) and capital expenditures (CAPEX) burden. This allows service provider partners to dedicate resources toward other key strategic areas such as 5G and IoT, while expanding revenue to capture demand in the growing Unified Communications as a Service (UCaaS) market. RingCentral also offers service providers the ability to integrate their networks via IMS and SD-WAN to deliver differentiated next generation services with better quality and faster deployment.

To learn more about RingCentral's service provider program, join our upcoming webinar, hosted in partnership with Cavell Consulting Group.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc.

Jyotsna Grover
jyotsna.grover@ringcentral.com
650-513-8712

Source: RingCentral, Inc.

August 12, 2020

Frost & Sullivan Ranks RingCentral Highest for the European Hosted IP Telephony and UCaaS Market in 2020 UCaaS Radar Report

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced it has been ranked highest for both the European Hosted IP Telephony and Unified Cloud Communications as a Service (UCaaS) Market in the new 2020 Frost & Sullivan UCaaS Radar Report. The Frost & Sullivan Radar Report provides results from an in-depth analysis built on a 360-degree research methodology evaluating more than 120 companies. The team of industry analysts identified 20 industry leaders excelling at innovation, most poised for growth and ripe for investment. RingCentral received the highest combined growth and innovation score of all the providers.

“RingCentral stands out among providers offering hosted IP telephony and UCaaS in the European market with its keen ability to identify key mega trends and promptly align its solutions portfolio roadmap with rapidly evolving business technology requirements,” explained Elka Popova, Vice President of Research at Frost & Sullivan. “Unique partnerships with leading industry participants and a growth-focused company culture, combined with the provider’s relentless pursuit of technology innovation, are likely to boost RingCentral’s future growth prospects in Europe, as well as the rest of the world.”

The 2020 Frost & Sullivan UCaaS Radar report highlights a number of key strengths for RingCentral, including:

  • RingCentral ranks high on both the innovation and growth axes on Frost Radar due to the company’s robust and constantly evolving UCaaS portfolio and market-leading growth rates
  • Being cited for constantly enhancing customer value by adding new features and capabilities to its flagship RingCentral Office® solution
  • RingCentral’s growth in European markets, which may accelerate the company’s creative partnerships with Atos, Avaya and BT, among other partners, and highly effective direct sales
  • Using flexible cloud technology and a proprietary platform that enable cost-effective scalability

“Our platform was built for the mobile and distributed workforce, so that enterprises can keep their customers, partners, and employees connected,” said Anand Eswaran, president and chief operating officer, RingCentral. “We’re honored to be ranked highest in this new report by Frost & Sullivan, a validation of our continued commitment to providing the secure messaging, video, and phone communications and collaboration solutions for the ‘work from anywhere’ reality of today’s unique circumstances and the years to come.”

Results are based on the 2020 Frost & Sullivan UCaaS Radar report. For more information, please view a complimentary copy of the report. Results are not an endorsement of RingCentral. Visit ww2.frost.com for more details.

About Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Office, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc.

Jyotsna Grover
650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

August 11, 2020

Alcatel-Lucent Enterprise and RingCentral Enter into a Strategic Partnership

PARIS & BELMONT, Calif.--(BUSINESS WIRE)-- Alcatel-Lucent Enterprise, a leading provider of communications, networking and cloud solutions, and RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration and contact center solutions, today announced that they have entered into a strategic partnership to introduce a new co-branded cloud solution – Rainbow Office powered by RingCentral – making it unique and exclusive for Alcatel-Lucent Enterprise. RingCentral and Alcatel-Lucent Enterprise will jointly develop programs enabling both companies to lead the cloud communications services for the enterprise market.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200811005259/en/

“We are excited to partner with Alcatel-Lucent Enterprise and to bring our industry-leading cloud communications solutions to their customers and partners,” said Vlad Shmunis, founder, chairman and CEO. “Alcatel-Lucent Enterprise’s strong presence in Europe and beyond will enhance our ability to jointly enable customers and partners accelerate their migration to cloud communication solutions in these markets.”

Alcatel-Lucent Enterprise’s mission is to deliver customized technology experiences to enterprises with a verticalized business approach in networking, communications, and cloud. Rainbow Office powered by RingCentral will enrich the company’s cloud portfolio enabling customers to accelerate their digital transformation with public Unified Communications as a Service (UCaaS).

“Customers demand agile, robust and secured cloud communication and collaboration solutions in today’s high-speed technology world,” said Jack Chen, CEO of Alcatel-Lucent Enterprise. “For our customers and partners, this strategic partnership enables us to offer them a wider choice of technology-leading cloud solutions, to comprehensively cover their business needs. This partnership will also enable Alcatel-Lucent Enterprise to accelerate the development and transformation of our cloud business to become the number one player in cloud solutions in Europe and beyond focusing on vertical solutions and services to make everything connect. It will bring significant opportunities for our well-established business partner ecosystem and strong values for our customers.”

Rainbow Office powered by RingCentral will be available in the first quarter of 2021.

Financial Terms:

Under the commercial agreement, both companies will contribute resources towards development and sales & marketing of Rainbow Office powered by RingCentral. RingCentral will pay Alcatel-Lucent Enterprise $100 million in cash for exclusive access, a minimum seat commitment, and future commissions.

Conference Call Details:

The companies also announced that they will hold a conference call today August 11, 2020 at 5:15 AM Pacific Time (8:15 AM Eastern Time) to discuss this partnership.

  • When: Tuesday, August 11, 2020 at 5:15AM PT (8:15AM ET).
  • Dial-in: To access the call in the United States, please call 1-877-705-6003, and for international callers, dial 1-201-493-6725. Callers 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: Following the completion of the call through 11:59 PM ET on August 18, 2020, a telephone replay will be available by dialing 1-844-512-2921 from the United States or 1-412-317-6671 internationally with recording access code 13708193.

Investor Presentation Details:

An investor presentation providing additional information and analysis can be found at http://ir.ringcentral.com/.

About Alcatel-Lucent Enterprise

Alcatel-Lucent Enterprise delivers the customized technology experiences enterprises need to make everything connect. Their digital-age networking, communications and cloud solutions tailored to ensure customers’ success, are offered with flexible business models; in the cloud, on premises, and hybrid. These solutions have built-in security and are designed to limit their environmental impact. Over 100 years of innovation have made Alcatel-Lucent Enterprise a trusted advisor to more than 830,000 customers in 100 countries around the world. The privately-owned company with headquarters in France has over 2900 direct business partners worldwide, achieving an effective global reach with a local focus.

For more information, visit our web site at: https://www.al-enterprise.com/.

For ongoing news, visit our LinkedIn, Facebook and Twitter.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

Forward-Looking Statements

This press release contains “forward-looking statements,” including but not limited to, statements regarding RingCentral’s future financial and operating performance, RingCentral’s future financial and operating performance, RingCentral’s plans to partner with Alcatel-Lucent Enterprise to offer Rainbow Office powered by RingCentral, the anticipated benefits of and activity under RingCentral’s strategic partnership with Alcatel-Lucent Enterprise, including the ability to create a long-term growth opportunities for RingCentral, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in RingCentral’s Form 10-Q for the quarter ended June 30, 2020, filed with the Securities and Exchange Commission; and in other filings RingCentral makes with the Securities and Exchange Commission from time to time.

All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates.

Investor Relations Contacts:
Cliff Warder, Alcatel-Lucent Enterprise
Cliff.Warder@al-enterprise.com
+44 7736 121 506

Ryan Goodman, RingCentral
+ 1 (650) 918-5356
Ryan.Goodman@ringcentral.com

Press Contacts:
Maire Collins, Alcatel-Lucent Enterprise
Maire.Collins@al-enterprise.com
+ 33 6 38 64 43 39

Jyotsna Grover, RingCentral
+ 1 650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

August 4, 2020

RingCentral Partners with Poly to Transform Meeting Rooms with RingCentral Video

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced RingCentral Rooms™ for Poly, bringing the power and ease-of-use of RingCentral Video™ to every work space. Designed for a flexible and hybrid workforce, the powerful and intuitive RingCentral Rooms service will be built into the simple Poly Studio X all-in-one video bars. Additionally, RingCentral Rooms for Poly consolidates any workspace needs into a minimal number of devices while enabling a new wave of rooms intelligence, analytics, and manageability. The solution is specifically designed to simplify large-scale deployments by enabling frictionless procurement, quick installations, and easier management.

RingCentral Rooms for Poly is currently in beta and fully integrated with Poly Studio X30 and Poly Studio X50 bringing simplicity, convenience, and a modern meetings experience to physical work spaces.

A recent Gartner survey revealed that while 30 percent of employees surveyed worked remotely at least part of the time before the pandemic, Gartner analysis reveals that post-pandemic 41 percent of employees are likely to work remotely at least some of the time1. This hybrid workforce will require new ways for colleagues to meet and share ideas. RingCentral Rooms enables remote and on-site employees to collaborate seamlessly, as if they were in the same room. Built with leading-edge video and unified collaboration technology, RingCentral Rooms enhances meetings for the workplace of the future, with remote and on-site employees able to collaborate on equal footing.

“The ability to work from anywhere has significantly changed how businesses operate now and in the future. Modern teams need flexible solutions that enable them to collaborate and adapt to rapidly changing work environments,” said Will Moxley, chief product officer at RingCentral. “RingCentral Rooms brings that flexibility to any workspace and is designed to meet the immediate work-from-home needs of teams while still serving the needs of onsite employees as companies gradually return to the office.”

The Poly Studio X30 and Poly Studio X50 enhance the RingCentral Rooms meeting experience with full board-room quality audio, intelligent noise suppression, production-grade video, and wireless content sharing. More details about Rooms and the Poly partnership will be available later this quarter.

“Poly and RingCentral have a long-standing partnership, which we are now excited to extend to include video meetings,” said Tim Root, vice president and general manager, Room Collaboration business unit, Poly. “We believe that the best meetings take place when technology like RingCentral is so seamless that you no longer realize it’s there. The RingCentral Rooms application running on the Poly Studio X family enables users to walk into a room and get right to business, all while having the same quality of interaction with remote participants as if they were face-to-face.”

Dave Evans, chief information officer and vice president of technology, Computer History Museum said, “By deploying RingCentral Rooms we have taken an important step in modernizing our communications infrastructure. Our employees and partners will be able to walk right into a conference room and immediately start their meetings with a single click for increased productivity and an optimal user experience. The advanced technology will make our venue more attractive and useful for all types of future events.”

RingCentral Rooms extends the power of cloud communication to workspaces and meeting spaces of all sizes. RingCentral Rooms for Poly offers one-touch robust video, audio, and web conferencing capabilities, allowing teams to enjoy the following benefits:

  1. Collaboration with anyone, anywhere: RingCentral Rooms allows users to instantly connect and collaborate with other participants joining from anywhere on any device with a one-tap interface.
  2. Modern workspace for rooms of all sizes: Teams can utilize advanced conferencing services, from digital whiteboards to wireless file and screen sharing through Wi-Fi and AirPlay Mirror, all wrapped into a touch-based, high-quality collaboration experience.
  3. Easy to deploy, monitor, and manage: IT teams can set up a cloud-based telepresence room with off-the-shelf equipment, avoiding costly proprietary endpoints and complicated configuration. With a single iPad controller, the host can manage camera functions, speakers, and participants during online meetings.
  4. Consistent and unified experience: Built on the RingCentral platform, users enjoy a simple, interactive experience that is seamless across RingCentral Video and RingCentral Team Messaging™.

Bill Haskins, partner at Wainhouse Research said, “Having evaluated both RingCentral Video and the Poly Studio X30 and X50 solutions, we’re bullish about the RingCentral Rooms launch. Every successful meeting platform does two things: delights the user at their desktop, and delights the user in the meeting room – and you need to do both to delight IT. RingCentral Rooms is positioned to hit that sweet spot – high quality experience, ease-of-use, and consistency across personal and meeting room environments.”

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Rooms, RingCentral Video, RingCentral Team Messaging, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc.

Sources

1Gartner Press Release, “Gartner HR Survey Reveals 41% of Employees Likely to Work Remotely at Least Some of the Time Post Coronavirus Pandemic”, April 14, 2020 https://www.gartner.com/en/newsroom/press-releases/2020-04-14-gartner-hr-survey-reveals-41--of-employees-likely-to-

Jyotsna Grover
650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

August 3, 2020

RingCentral Announces Second Quarter 2020 Results

RingCentral Office® ARR surpassed $1 billion, up 36%

Subscriptions Revenue up 32%

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced financial results for the second quarter ended June 30, 2020.

Second Quarter Financial Highlights

  • Total revenue increased 29% year over year to $278 million.
  • Subscriptions revenue increased 32% year over year to $257 million.
  • Total Annualized Exit Monthly Recurring Subscriptions (ARR) increased 33% year over year to $1.1 billion.
  • RingCentral Office® ARR increased 36% year over year to $1.0 billion.
  • Mid-market and Enterprise ARR increased 50% year over year to $581 million.
  • Enterprise ARR increased 58% year over year to $363 million.
  • Channel ARR increased 60% year over year to $375 million.

“We delivered solid Q2 results driven again by strong contributions from mid-market and enterprise customers, as well as our channel partners,” said Vlad Shmunis, RingCentral's founder, chairman and CEO. “We are seeing a high level of adoption and engagement with our Message Video Phone (MVP) solution as businesses adapt to a work from anywhere environment. The ongoing global pandemic has elevated digital transformation of enterprise communications platforms to a top IT priority. Our strategic partnerships are broadening our global market reach, and we remain committed to delivering cloud solutions that enable our customers’ workforces to productively communicate and collaborate from anywhere, on any device, in any mode.”

Financial Results for the Second Quarter 2020

  • Revenue: Subscriptions revenue of $257 million increased 32% year over year and accounted for 92% of total revenue. Other revenue of $21 million increased 3% year over year, reflecting higher adoption of RingCentral apps in the current work from anywhere environment. Total revenue was $278 million for the second quarter of 2020, up from $215 million in the second quarter of 2019, representing 29% growth.
  • Operating Income (Loss): GAAP operating loss was ($29) million, compared to a GAAP operating loss of ($7) million in the same period last year, primarily driven by higher share-based compensation and amortization of intangibles. Non-GAAP operating income was $29 million, compared to a non-GAAP operating income of $20 million in the same period last year.
  • Net Income (Loss) Per Share: GAAP net profit per diluted share was $0.01, compared to ($0.11) in the same period last year, primarily driven by mark-to-market gains associated with investments and strategic partnerships, partially offset by higher share-based compensation, amortization of intangibles, and amortization of debt discount and issuance costs. Non-GAAP net income per diluted share was $0.24, compared to $0.21 per diluted share in the same period last year. The second quarter of 2020 reflected a 22.5% non-GAAP tax rate. There were no material cashtaxes given our net operating loss carryforwards.
  • Cash and Cash Equivalents: Total cash and cash equivalents at the end of the second quarter of 2020 was $774 million. This compares with $762 million at the end of the first quarter of 2020.

Additional Highlights

  • Announced that RingCentral has been named to the Forbes “Global 2000: The World's Largest Public Companies” list, released in May, 2020.
  • Announced RingCentral Video™ (RCV), a reimagined video meetings experience. Leveraging RingCentral’s years of experience as a global UCaaS leader, RingCentral Video joins RingCentral messaging and RingCentral phone to complete our differentiated Message Video Phone™ (MVP) solution.
  • Announced expansion of strategic partnership with Atos SE with new Unify Office as the exclusive UCaaS solution for 40 million users of the Atos Unify family of products.
  • Announced global expansion and general availability of Avaya Cloud Office™ by RingCentral® in Australia, Canada, and the UK along with the availability of several key new features and capabilities including tools to help migrate customers more efficiently and effectively.
  • Launched IGNITE™ Partner Program, which enables partners to own the entire sales cycle with organizations of up to 400 employees. The program reinforces RingCentral's commitment to the channel, and gives partners greater flexibility to choose the sales process that best suits the needs of each individual prospect.
  • Announced RingCentral PBX for Microsoft Teams with Direct Routing integration, enabling Microsoft Teams users to have access to more robust cloud PBX capabilities without ever having to leave the Teams interface on mobile, web, and desktop.
  • Launched initial release of RingCentral Rooms, extending the power of RingCentral Video to conference rooms and meeting spaces that have dedicated video conferencing equipment, such as monitors, speakers, microphones, and cameras.

Financial Outlook

Full Year 2020 Guidance:

  • Raising subscriptions revenue range to $1.043 to $1.048 billion, representing annual growth of 28%. This is up from our prior range of $1.024 to $1.030 billion and annual growth of 25% to 26%.
  • Raising total revenue range to $1.135 to $1.143 billion, representing annual growth of 26% to 27%. This is up from our prior range of $1.116 to $1.125 billion and annual growth of 24% to 25%.
  • GAAP operating margin between (10.8%) and (10.1%).
  • Non-GAAP operating margin between 9.6% and 9.7%.
  • Non-GAAP tax rate for 2020 assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
  • Raising non-GAAP EPS range to $0.92 to $0.94 based on 93.5 million fully diluted shares. This is up from our prior range of $0.91 to $0.94, and reflects a $0.01 impact from lower other income assumptions.
  • Share-based compensation range of $190 to $195 million, amortization of debt discount of $44 million, amortization of acquired intangibles of $35 million, and acquisition related matters of approximately $2.2 million.

Third Quarter 2020 Guidance:

  • Subscriptions revenue range of $263 to $265 million, representing annual growth of 25% to 26%.
  • Total revenue range of $283.5 to $289.5 million, representing annual growth of 21% to 24%.
  • GAAP operating margin range of (12.0%) to (11.0%).
  • Non-GAAP operating margin of 10.0% to 10.2%.
  • Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
  • Non-GAAP EPS of $0.24 based on 94 million fully diluted shares.
  • Share-based compensation range of $53 to $54 million, amortization of debt discount of $12 million, and amortization of acquired intangibles of $8.5 million.

For a reconciliation of our forecasted non-GAAP operating margin, see “Reconciliation of Forecasted Operating Margin GAAP Measures to Non-GAAP Measures.” We have not reconciled our forecasted non-GAAP EPS to its respective forecasted GAAP measure because we do not provide guidance on it. We do not provide guidance on forecasted GAAP EPS because of the inherent uncertainty and complexity involved in forecasting the intercompany remeasurement gain (loss), gain (loss) associated with investments and strategic partnerships, and provision (benefit) from income taxes, which could be significant reconciling items between the non-GAAP and respective GAAP measures. The intercompany remeasurement gain (loss) is affected by the movement in various exchange rates relative to the U.S. Dollar, which is difficult to predict and subject to constant change. We do not provide guidance on gain (loss) associated with investments and strategic partnerships as it is based on future share prices, which are difficult to predict and subject to inherent uncertainties. We do not provide guidance on forecasted GAAP tax rates as we do not forecast discrete tax items as they are difficult to predict. The provision (benefit) from income taxes, excluding discrete items, is expected to have an immaterial impact to our GAAP EPS. We utilized a projected long-term tax rate in our computation of the non-GAAP income tax provision. For fiscal 2020, we have determined the projected non-GAAP tax rate to be 22.5%. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.

Conference Call Details:

  • What: RingCentral financial results for the second quarter of 2020 and outlook for the third quarter and full year of 2020.
  • When: Monday, August 3, 2020 at 2:00PM PT (5:00PM ET).
  • Dial-in: To access the call in the United States, please dial (877) 705-6003, and for international callers, dial (201) 493-6725. Callers 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: Following the completion of the call through 11:59 PM ET on August 10, 2020, a telephone replay will be available by dialing (844) 512-2921 from the United States or (412) 317-6671 internationally with recording access code 13706835.

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at http://ir.ringcentral.com/.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Office, RingCentral Video, Message Video Phone, and the RingCentral logo are trademarks of RingCentral, Inc.

Forward-Looking Statements

This press release contains “forward-looking statements,” including but not limited to, statements regarding our future financial results, our GAAP and non-GAAP guidance, our momentum in mid-market and enterprise, the success of our RCV solution, the success of our strategic relationships, such as our relationships with Avaya and Atos, our market opportunity, and the effects of the COVID-19 pandemic. Forward-looking statements are subject to known and unknown risks and uncertainties, and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those in any forward-looking statements are: the future effects of the COVID-19 pandemic, our ability to realize the anticipated benefits of our strategic relationships, such as our relationships with Avaya and Atos; our ability to grow at our expected rate of growth; our ability to add and retain larger and enterprise customers and enter new geographies and markets; our ability to continue to release, and gain customer acceptance of, new and improved versions of our services, including RCV; our ability to compete successfully against existing and new competitors; our ability to enter into and maintain relationships with resellers, carriers and strategic partners; our ability to successfully and timely integrate, and realize the benefits of any significant acquisition we may make; our ability to manage our expenses and growth; and general market, political, economic, and business conditions, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Form 10-Q for the quarter ended March 31, 2020, filed with the Securities and Exchange Commission, and in other filings we make with the Securities and Exchange Commission from time to time.

All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.

Non-GAAP Financial Measures

Our reported financial results and financial outlook include certain Non-GAAP financial measures, including Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP net cash provided by (used in) operating activities, and non-GAAP free cash flow. Non-GAAP subscriptions gross margin is defined as Non-GAAP subscriptions gross profit divided by GAAP subscriptions revenue. Non-GAAP other gross margin is defined as Non-GAAP other gross profit divided by GAAP other revenue. Non-GAAP income (loss) from operations is defined as GAAP income (loss) from operations excluding share-based compensation, amortization of acquisition intangibles, and acquisition related matters including transaction costs, integration costs, restructuring costs, and acquisition-related retention payments, as well as changes in the fair value of contingent consideration obligations. Non-GAAP operating margin is defined as Non-GAAP income (loss) from operations divided by total GAAP revenue. Non-GAAP net income (loss) is defined as GAAP net income (loss) excluding share-based compensation, intercompany remeasurement gains or losses, acquisition related matters, amortization of acquisition intangibles, non-cash interest expense associated with amortization of debt discount and issuance costs related to our convertible senior notes, gain (loss) associated with investments and strategic partnerships, tax benefit from release of valuation allowance, and the related income tax effect of these adjustments.

Non-GAAP diluted shares outstanding include the impact on shares used in per share calculations of our outstanding capped call transactions. Our outstanding capped call transactions are anti-dilutive in GAAP earnings per share but are expected to mitigate the dilutive effect of our convertible notes and therefore are included in the calculations of non-GAAP diluted shares outstanding.

Non-GAAP net cash provided by (used in) operating activities is defined as net cash provided by (used in) operating activities plus cash paid for repayments of convertible senior notes attributable to debt discount. Non-GAAP free cash flow is defined as Non-GAAP net cash provided by (used in) operating activities reduced by purchases of property and equipment and capitalized internal-use software. We believe information regarding free cash flow provides useful information to investors in understanding and evaluating the strength of liquidity and available cash.

We have included Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP net cash provided by (used in) operating activities, and Non-GAAP free cash flow in this press release because they are key measures used by us to understand and evaluate our operating performance and trends, to prepare and approve our annual budget, and to develop short and long-term operational plans. In particular, the exclusion of certain expenses and cash flow items in calculating Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP net cash provided by (used in) operating activities, and Non-GAAP free cash flow provide useful measure for period-to-period comparisons of our business.

Although Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP net cash provided by (used in) operating activities, and Non-GAAP free cash flow are frequently used by investors in their evaluations of companies, these non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered alongside other financial performance measures.

Reconciliations of the Company’s non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release.

Other Measures

Our reported results also include our annualized exit monthly recurring subscriptions, RingCentral Office® annualized exit monthly recurring subscriptions, mid-market and enterprise annualized exit monthly recurring subscriptions, enterprise annualized exit monthly recurring subscriptions, channel partner annualized exit monthly recurring subscriptions, and net monthly subscriptions dollar retention. We define our annualized exit monthly recurring subscriptions as our monthly recurring subscriptions multiplied by 12. Our monthly recurring subscriptions equal the monthly value of all customer recurring charges contracted at the end of a given month. We believe this metric is a leading indicator of our anticipated subscriptions revenue. We calculate our RingCentral Office® annualized exit monthly recurring subscriptions in the same manner as we calculate our annualized exit monthly recurring subscriptions, except that only customer subscriptions from RingCentral Office® and RingCentral customer engagement solutions customers are included when determining monthly recurring subscriptions for the purposes of calculating this key business metric. We calculate mid-market and enterprise annualized exit monthly recurring subscriptions in the same manner as we calculate our RingCentral Office® annualized exit monthly recurring subscriptions, except that only customer subscriptions from customers generating $25,000 or more in annual recurring revenue are included. We calculate enterprise annualized exit monthly recurring subscriptions in the same manner as we calculate our RingCentral Office® annualized exit monthly recurring subscriptions, except that only customer subscriptions from customers generating $100,000 or more in annual recurring revenue are included. We calculate channel partner annualized exit monthly recurring subscriptions in the same manner as we calculate our annualized exit monthly revenue subscriptions, except that only customer subscriptions generated from channel partners are included. We define Dollar Net Change as the quotient of (i) the difference of our Monthly Recurring Subscriptions at the end of a period minus our Monthly Recurring Subscriptions at the beginning of a period minus our Monthly Recurring Subscriptions at the end of the period from new customers we added during the period, (ii) all divided by the number of months in the period. We define our Average Monthly Recurring Subscriptions as the average of the Monthly Recurring Subscriptions at the beginning and end of the measurement period.

TABLE 1

RINGCENTRAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

 

 

June 30, 2020

 

December 31, 2019

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

773,756

 

 

$

343,606

 

Accounts receivable, net

142,317

 

 

129,990

 

Deferred and prepaid sales commission costs

46,577

 

 

36,589

 

Prepaid expenses and other current assets

39,366

 

 

25,354

 

Total current assets

1,002,016

 

 

535,539

 

Property and equipment, net

114,423

 

 

89,230

 

Operating lease right-of-use-assets

38,107

 

 

39,269

 

Long-term investments

149,337

 

 

132,188

 

Deferred and prepaid sales commission costs, non-current

486,500

 

 

462,344

 

Goodwill

55,287

 

 

55,278

 

Acquired intangibles, net

110,090

 

 

127,338

 

Other assets

8,883

 

 

9,561

 

Total assets

$

1,964,643

 

 

$

1,450,747

 

Liabilities, Temporary Equity, and Stockholders’ Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

36,476

 

 

$

34,612

 

Accrued liabilities

167,721

 

 

138,729

 

Current portion of convertible senior notes, net

44,417

 

 

 

Deferred revenue

122,514

 

 

107,372

 

Total current liabilities

371,128

 

 

280,713

 

Convertible senior notes, net

1,008,477

 

 

386,889

 

Operating lease liabilities

25,392

 

 

28,516

 

Other long-term liabilities

11,314

 

 

8,929

 

Total liabilities

1,416,311

 

 

705,047

 

 

 

 

 

Temporary equity

6,756

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

Common stock

9

 

 

9

 

Additional paid-in capital

889,987

 

 

1,033,053

 

Accumulated other comprehensive income

1,102

 

 

1,948

 

Accumulated deficit

(349,522

)

 

(289,310

)

Total stockholders’ equity

$

541,576

 

 

$

745,700

 

Total liabilities, temporary equity and stockholders’ equity

$

1,964,643

 

 

$

1,450,747

 

TABLE 2

RINGCENTRAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2020

 

2019

 

2020

 

2019

Revenues

 

 

 

 

 

 

 

Subscriptions

$

257,038

 

 

$

194,792

 

 

$

500,142

 

 

$

377,500

 

Other

20,947

 

 

20,360

 

 

45,355

 

 

39,141

 

Total revenues

277,985

 

 

215,152

 

 

545,497

 

 

416,641

 

Cost of revenues

 

 

 

 

 

 

 

Subscriptions

56,721

 

 

38,079

 

 

109,154

 

 

73,413

 

Other

19,916

 

 

15,551

 

 

40,927

 

 

31,052

 

Total cost of revenues

76,637

 

 

53,630

 

 

150,081

 

 

104,465

 

Gross profit

201,348

 

 

161,522

 

 

395,416

 

 

312,176

 

Operating expenses

 

 

 

 

 

 

 

Research and development

43,519

 

 

32,632

 

 

84,429

 

 

62,419

 

Sales and marketing

137,633

 

 

103,590

 

 

268,945

 

 

203,141

 

General and administrative

49,532

 

 

32,480

 

 

96,868

 

 

61,259

 

Total operating expenses

230,684

 

 

168,702

 

 

450,242

 

 

326,819

 

Loss from operations

(29,336

)

 

(7,180

)

 

(54,826

)

 

(14,643

)

Other income (expense), net

 

 

 

 

 

 

 

Interest expense

(12,598

)

 

(5,088

)

 

(20,100

)

 

(10,120

)

Other income, net

42,603

 

 

3,141

 

 

15,086

 

 

6,192

 

Other income (expense), net

30,005

 

 

(1,947

)

 

(5,014

)

 

(3,928

)

Income (loss) before income taxes

669

 

 

(9,127

)

 

(59,840

)

 

(18,571

)

Provision for (benefit from) income taxes

160

 

 

116

 

 

372

 

 

(2,970

)

Net income (loss)

$

509

 

 

$

(9,243

)

 

$

(60,212

)

 

$

(15,601

)

Net income (loss) per common share

 

 

 

 

 

 

 

Basic

$

0.01

 

 

$

(0.11

)

 

$

(0.69

)

 

$

(0.19

)

Diluted

0.01

 

 

(0.11

)

 

(0.69

)

 

(0.19

)

Weighted-average number of shares used in computing net income (loss) per share

 

 

 

 

 

 

 

Basic

88,254

 

 

82,339

 

 

87,797

 

 

81,872

 

Diluted

94,145

 

 

82,339

 

 

87,797

 

 

81,872

 

TABLE 3

RINGCENTRAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

 

 

Six Months Ended
June 30,

 

2020

 

2019

Cash flows from operating activities

 

 

 

Net loss

$

(60,212

)

 

$

(15,601

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization

34,500

 

 

16,486

 

Share-based compensation

85,844

 

 

44,314

 

Amortization of deferred and prepaid sales commission costs

20,659

 

 

13,196

 

Amortization of debt discount and issuance costs

20,018

 

 

10,031

 

Loss on early extinguishment of debt

7,207

 

 

 

Repayment of convertible senior notes attributable to debt discount

(14,230

)

 

 

Reduction of operating lease right-of-use assets

7,754

 

 

6,708

 

Unrealized gain and other related costs on investments

(17,149

)

 

 

Foreign currency remeasurement (gain) loss

305

 

 

(323

)

Provision for bad debt

3,071

 

 

995

 

Deferred income taxes

(162

)

 

(347

)

Tax benefit from release of valuation allowance

 

 

(3,210

)

Other

116

 

 

1,427

 

Changes in assets and liabilities:

 

 

 

Accounts receivable

(15,398

)

 

(10,804

)

Deferred and prepaid sales commission costs

(53,316

)

 

(33,032

)

Prepaid expenses and other current assets

(13,728

)

 

(9,253

)

Other assets

(106

)

 

181

 

Accounts payable

(973

)

 

11,146

 

Accrued liabilities

23,792

 

 

4,730

 

Deferred revenue

15,142

 

 

14,835

 

Operating lease liabilities

(7,322

)

 

(6,903

)

Other liabilities

4,297

 

 

(328

)

Net cash provided by operating activities

40,109

 

 

44,248

 

Cash flows from investing activities

 

 

 

Purchases of property and equipment

(15,581

)

 

(14,994

)

Capitalized internal-use software

(17,021

)

 

(7,602

)

Cash paid for business combination, net of cash acquired

 

 

(27,870

)

Net cash used in investing activities

(32,602

)

 

(50,466

)

Cash flows from financing activities

 

 

 

Proceeds from issuance of convertible senior notes, net of issuance costs

986,508

 

 

 

Payments for 2023 convertible senior notes partial repurchase

(501,039

)

 

 

Payments for capped calls and transaction costs

(60,900

)

 

 

Proceeds from issuance of stock in connection with stock plans

21,604

 

 

13,509

 

Payments for taxes related to net share settlement of equity awards

(18,603

)

 

(5,047

)

Payment for contingent consideration for business acquisition

(3,548

)

 

 

Repayment of financing obligations

(943

)

 

(943

)

Net cash provided by financing activities

423,079

 

 

7,519

 

Effect of exchange rate changes

(436

)

 

38

 

Net increase (decrease) in cash, cash equivalents and restricted cash

430,150

 

 

1,339

 

Cash, cash equivalents and restricted cash

 

 

 

Beginning of period

343,606

 

 

566,329

 

End of period

$

773,756

 

 

$

567,668

 

TABLE 4

RINGCENTRAL, INC.

RECONCILIATION OF OPERATING INCOME (LOSS)

GAAP MEASURES TO NON-GAAP MEASURES

(Unaudited, in thousands)

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2020

 

2019

 

2020

 

2019

Revenues

 

 

 

 

 

 

 

Subscriptions

$

257,038

 

 

$

194,792

 

 

$

500,142

 

 

$

377,500

 

Other

20,947

 

 

20,360

 

 

45,355

 

 

39,141

 

Total revenues

277,985

 

 

215,152

 

 

545,497

 

 

416,641

 

Cost of revenues reconciliation

 

 

 

 

 

 

 

GAAP Subscriptions cost of revenues

56,721

 

 

38,079

 

 

109,154

 

 

73,413

 

Share-based compensation

(2,676

)

 

(1,691

)

 

(4,752

)

 

(3,037

)

Amortization of acquisition intangibles

(7,672

)

 

(1,340

)

 

(15,373

)

 

(2,350

)

Acquisition related matters

 

 

(14

)

 

 

 

(64

)

Non-GAAP Subscriptions cost of revenues

46,373

 

 

35,034

 

 

89,029

 

 

67,962

 

 

 

 

 

 

 

 

 

GAAP Other cost of revenues

19,916

 

 

15,551

 

 

40,927

 

 

31,052

 

Share-based compensation

(1,170

)

 

(429

)

 

(1,820

)

 

(724

)

Non-GAAP Other cost of revenues

18,746

 

 

15,122

 

 

39,107

 

 

30,328

 

Gross profit and gross margin reconciliation

 

 

 

 

 

 

 

Non-GAAP Subscriptions

82.0

%

 

82.0

%

 

82.2

%

 

82.0

%

Non-GAAP Other

10.5

%

 

25.7

%

 

13.8

%

 

22.5

%

Non-GAAP Gross profit

76.6

%

 

76.7

%

 

76.5

%

 

76.4

%

Operating expenses reconciliation

 

 

 

 

 

 

 

GAAP Research and development

43,519

 

 

32,632

 

 

84,429

 

 

62,419

 

Share-based compensation

(9,772

)

 

(5,508

)

 

(17,239

)

 

(9,770

)

Acquisition related matters

 

 

(5

)

 

 

 

(352

)

Non-GAAP Research and development

33,747

 

 

27,119

 

 

67,190

 

 

52,297

 

As a % of total revenues non-GAAP

12.1

%

 

12.6

%

 

12.3

%

 

12.6

%

 

 

 

 

 

 

 

 

GAAP Sales and marketing

137,633

 

 

103,590

 

 

268,945

 

 

203,141

 

Share-based compensation

(16,322

)

 

(9,799

)

 

(27,613

)

 

(17,407

)

Amortization of acquisition intangibles

(929

)

 

(938

)

 

(1,860

)

 

(1,860

)

Acquisition related matters

 

 

32

 

 

4

 

 

(1,610

)

Non-GAAP Sales and marketing

120,382

 

 

92,885

 

 

239,476

 

 

182,264

 

As a % of total revenues non-GAAP

43.3

%

 

43.2

%

 

43.9

%

 

43.7

%

 

 

 

 

 

 

 

 

GAAP General and administrative

49,532

 

 

32,480

 

 

96,868

 

 

61,259

 

Share-based compensation

(19,315

)

 

(7,489

)

 

(34,420

)

 

(13,376

)

Acquisition related matters

(293

)

 

(402

)

 

(2,156

)

 

(825

)

Non-GAAP General and administrative

29,924

 

 

24,589

 

 

60,292

 

 

47,058

 

As a % of total revenues non-GAAP

10.8

%

 

11.4

%

 

11.1

%

 

11.3

%

Income (loss) from operations reconciliation

 

 

 

 

 

 

 

GAAP loss from operations

(29,336

)

 

(7,180

)

 

(54,826

)

 

(14,643

)

Share-based compensation

49,255

 

 

24,916

 

 

85,844

 

 

44,314

 

Amortization of acquisition intangibles

8,601

 

 

2,278

 

 

17,233

 

 

4,210

 

Acquisition related matters

293

 

 

389

 

 

2,152

 

 

2,851

 

Non-GAAP Income from operations

28,813

 

 

20,403

 

 

50,403

 

 

36,732

 

Non-GAAP Operating margin

10.4

%

 

9.5

%

 

9.2

%

 

8.8

%

TABLE 5

RINGCENTRAL, INC.

RECONCILIATION OF NET INCOME (LOSS)

GAAP MEASURES TO NON-GAAP MEASURES

(In thousands, except per share data) (Unaudited)

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2020

 

2019

 

2020

 

2019

Net income (loss) reconciliation

 

 

 

 

 

 

 

GAAP net income (loss)

$

509

 

 

$

(9,243

)

 

$

(60,212

)

 

$

(15,601

)

Share-based compensation

49,255

 

 

24,916

 

 

85,844

 

 

44,314

 

Amortization of acquisition intangibles

8,601

 

 

2,278

 

 

17,233

 

 

4,210

 

Acquisition related matters

293

 

 

389

 

 

2,152

 

 

2,851

 

Amortization of debt discount and issuance costs

12,566

 

 

5,049

 

 

20,018

 

 

10,031

 

Gain associated with investments and strategic partnerships

(41,506

)

 

 

 

(21,358

)

 

 

Loss (gain) on early extinguishment of debt

(43

)

 

 

 

7,207

 

 

 

Intercompany remeasurement loss (gain)

(360

)

 

(202

)

 

538

 

 

(76

)

Income tax expense effects (1)

(6,473

)

 

(5,127

)

 

(11,282

)

 

(12,590

)

Non-GAAP net income

$

22,842

 

 

$

18,060

 

 

$

40,140

 

 

$

33,139

 

Reconciliation between GAAP and non-GAAP weighted average shares used in computing basic and diluted net income (loss) per common share:

 

 

 

 

 

 

 

Weighted average number of shares used in computing basic net income (loss) per share

88,254

 

 

82,339

 

 

87,797

 

 

81,872

 

Effect of dilutive securities

5,891

 

 

 

 

 

 

 

GAAP weighted average shares used in computing GAAP diluted net income (loss) per share

94,145

 

 

82,339

 

 

87,797

 

 

81,872

 

Effect of dilutive securities

(839

)

 

5,137

 

 

4,990

 

 

5,331

 

Non-GAAP weighted average shares used in computing non-GAAP diluted net income per share

93,306

 

 

87,476

 

 

92,787

 

 

87,203

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share

 

 

 

 

 

 

 

GAAP net income (loss) per share

$

0.01

 

 

$

(0.11

)

 

$

(0.69

)

 

$

(0.19

)

Non-GAAP net income per share

$

0.24

 

 

$

0.21

 

 

$

0.43

 

 

$

0.38

 

(1) Income tax expense effects for the three and six months ended June 30, 2019 include the tax benefit from release of valuation allowance.

TABLE 6

RINGCENTRAL, INC.

RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES

GAAP MEASURES TO NON-GAAP FREE CASH FLOW MEASURES

(Unaudited, in thousands)

 

 

Six Months Ended
June 30,

 

2020

 

2019

Net cash provided by operating activities

$

40,109

 

 

$

44,248

 

Repayment of convertible senior notes attributable to debt discount

14,230

 

 

 

Non-GAAP net cash provided by operating activities

54,339

 

 

44,248

 

Purchases of property and equipment

(15,581

)

 

(14,994

)

Capitalized internal-use software

(17,021

)

 

(7,602

)

Non-GAAP free cash flow

$

21,737

 

 

$

21,652

 

TABLE 7

RINGCENTRAL, INC.

RECONCILIATION OF FORECASTED OPERATING MARGIN

GAAP MEASURES TO NON-GAAP MEASURES

(Unaudited, in millions)

 

 

Q3 2020

 

FY 2020

 

Low Range

 

High Range

 

Low Range

 

High Range

GAAP revenues

283.5

 

 

289.5

 

 

1,135.0

 

 

1,143.0

 

 

 

 

 

 

 

 

 

GAAP loss from operations

(34.2)

 

 

(32.0)

 

 

(122.7)

 

 

(115.8)

 

GAAP operating margin

(12.0

%)

 

(11.0

%)

 

(10.8

%)

 

(10.1

%)

Share-based compensation

54.0

 

 

53.0

 

 

195.0

 

 

190.0

 

Amortization of acquisition intangibles

8.5

 

 

8.5

 

 

34.5

 

 

34.5

 

Acquisition related matters

 

 

 

 

2.2

 

 

2.2

 

Non-GAAP income from operations

28.4

 

 

29.5

 

 

109.0

 

 

110.9

 

Non-GAAP operating margin

10.0

%

 

10.2

%

 

9.6

%

 

9.7

%

 

Investor Relations Contact:
Ryan Goodman, RingCentral
(650) 918-5356
Ryan.Goodman@ringcentral.com

Media Contact:
Jyotsna Grover, RingCentral
(650) 513-8712
Jyotsna.Grover@ringcentral.com

Source: RingCentral, Inc.

July 27, 2020

Gunjan Aggarwal Joins RingCentral as Chief People Officer to Accelerate Purpose-Driven Culture

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced the appointment of Gunjan Aggarwal as Chief People Officer, reporting to Anand Eswaran, president and COO at the company. Aggarwal will be responsible for continuing to ensure that RingCentral is a great place to work for our people, from talent acquisition and development, to organization effectiveness, rewards and recognition, and global inclusion and diversity.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200727005114/en/

Gunjan Aggarwal, courtsey of RingCentral

Gunjan Aggarwal, courtsey of RingCentral

Aggarwal is a 20-year industry veteran who joins RingCentral from RELX Group, a world-leading provider of information solutions based on big data analytics for professional and business customers with revenues of $10 billion. At RELX, she was responsible for all aspects of the people function across the 30,000 employee population. She also led executive and board engagements in planning, culture, inclusion, and risk mitigation in the people domain and oversaw a team of over 400 HR professionals.

“Successful companies create an inclusive environment that enables people to bring their best and authentic self to work,” according to Anand Eswaran, president and chief operating officer RingCentral. “RingCentral is a purpose-led company, and we are on a journey to constantly reimagine a people-centered, inclusive workplace. We’re excited Gunjan is joining us to accelerate our progress, attract, retain, empower and coach great talent; and evolve a culture that delivers the best outcomes for our people, our customers, partners, shareholders and communities. In Gunjan we have a leader who combines clarity of purpose with creative intent and we’re looking forward to seeing her impact.”

“RingCentral’s success is a testament to the company’s strong values and culture,” said Aggarwal. “I have always been focused on fostering strong cultures that are diverse and all inclusive. I see tremendous opportunities at RingCentral to continue to develop the company as both a destination for top talent and a great place to work. Great outcomes for our customers depend on ensuring our people have the best environment to learn, develop, and deliver. It’s an exciting journey.”

Prior to joining RELX, Aggarwal held a variety of leadership positions at Ericsson, where she spent five years, including vice president of people and culture. In her role, she supported the Media business growth via mergers and acquisitions, attracting software and cloud media talent to build Ericson’s TV-as-a-service (TVaaS) offerings in a dynamic industry domain. Aggarwal also served as global head of talent acquisition for Diversity & Inclusion (D&I) and Mergers & Acquisition (M&A) where she worked closely with executive staff and the talent board to recruit top executive talent.

Aggarwal also served as vice president and head of HR for North America at Ericsson, leading HR strategy for 20,000 employees with a team of 250 HR associates. Before joining Ericsson, Aggarwal held various positions at leading companies including Novartis and Unilever.

Aggarwal holds a Bachelor of Science degree in Electronics and Communication and a Masters in Business Administration from XLRI in Jamshedpur, India.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

Jyotsna Grover
650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

July 27, 2020

Pax8 Partners with RingCentral

DENVER, CO (July 27, 2020) -- Pax8, the best place to buy cloud solutions, today announced it has joined RingCentral’s award-winning channel partner program. RingCentral is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. Through the relationship, Pax8 will bring the RingCentral Office® solution that includes Message, Video, Phone™ (MVP) capabilities, along with RingCentral Cloud PBX™ for Microsoft Teams to its partners in North America. 

“As we continue to expand our Networking and Communications solutions for our partners, we are excited to join forces with RingCentral,” said Andrew Pryfolgle, chief market development officer at Pax8. “RingCentral’s solutions offer secure and reliable technology to enable people to work from anywhere through their best-in-class cloud communications and collaboration platform.”

As the leader in distribution of cloud solutions, Pax8 is focused on providing its partners with technologies that enable growth in the modern business landscape. 

RingCentral provides core Unified Communications as a Service (UCaaS) cloud solutions that enable efficient business communications. UCaaS solutions transform the way a company does business—offering team messaging, videoconferencing and enterprise phone system capabilities in one unified solution. RingCentral’s recently announced RingCentral Cloud PBX for Microsoft Teams integration includes call controls, interactive voice response, call handling, call queues and offers an open platform with access to RingCentral’s robust library of other integrations. 

Phil Sorgen, chief revenue officer at RingCentral, said, “Pax8 is a proven disruptor and innovator in the industry with a strong customer base looking for cloud-first communications solutions to support their distributed, global and mobile workforces. Together, we look forward to enabling business of all sizes to communicate and collaborate with ease and efficiency from anywhere, on any device, across any mode.”  

To learn more about RingCentral solutions, please contact the cloud solutions advisors at (855) 884-PAX8, email info@pax8.com, or visit www.pax8.com

About Pax8

Pax8 is modernizing how partners buy, sell, and manage cloud. As a born-in-the-cloud company, Pax8 simplifies the buying journey, empowering its partners to achieve more with cloud technology. The company’s technology displaces legacy distribution by connecting the channel ecosystem to its award-winning transactional cloud marketplace. Through billing, provisioning, automation, industry-leading PSA integrations, and pre and post-sales support, and education, Pax8 is a proven disruptor in the market. In 2018, Pax8 was ranked number 68 on the Inc. 5000 and in 2019, the company was ranked number 60. If you want to be successful with cloud, you want to work with Pax8. Get started today at www.pax8.com

Follow Pax8 on Facebook, LinkedIn, and Twitter.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Office, Message Video Phone, RingCentral Cloud PBX and the RingCentral logo are trademarks of RingCentral, Inc.

 

July 21, 2020

Atos and RingCentral Announce Expansion of Strategic Partnership with New “Unify Office” as Exclusive UCaaS Solution for 40 Million Users of the Atos Unify Family of Products

Atos to become a customer of Unify Office, starting deployment with Atos Unified Communications and Collaboration (former Unify Division)

PARIS & BELMONT, Calif.--(BUSINESS WIRE)-- Atos SE (CAC40: ATO), a global leader in digital transformation, and RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced the expansion of their strategic partnership with the launch of a co-branded UCaaS solution called Unify Office (UO) by RingCentral. In addition to the system integrator relationship announced previously, the expanded partnership will now include Unify Office as the exclusive UCaaS offering for the 40 million user installed base of the Atos Unify product family. Unify Office is expected to be available starting August 31, 2020.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200721005365/en/

This will allow Atos to maximize the global market opportunity in digital transformation by adding a strong cloud communications solution to its portfolio. Unify Office, combined with the Atos Unify OpenScape product family and market leading Atos Unify Cloud Contact Center offering, gives Atos’ customers unique access to leading solutions across all the major Unified Communications categories.

Atos will also become a customer of Unify Office and start to deploy Unify Office for Atos UCC (former Unify Division) with a view to expand this across the 110,000 employees. Unify, formerly Siemens Enterprise Communications, was acquired by Atos in 2016.

During the ongoing Covid-19 pandemic, Atos accelerated its relationship with RingCentral and engaged within the strong Atos Unify reseller landscape to certify more than 90 channel partners with an Early Adopter Program to sell the new Unify Office.

“At RingCentral we’ve always been focused on enabling employees to be productive and collaborate from anywhere, using any device and through the modality of their choice to drive effective business outcomes,” said Vlad Shmunis, Founder, Chairman and CEO, RingCentral. “By bringing Unify Office to the 40 million users of Atos Unify’s family of products, we will provide organizations with the ability to accelerate digital transformation across their entire enterprise.”

Atos will bring added value to RingCentral’s leading UCaaS offering through the exclusive compatibility of the Atos Unify family of devices and market leading services capabilities. In addition, Atos will provide fully integrated Digital Workplace offers with some of Atos’ biggest technology and alliance partners. Unify Office will be the exclusive UCaaS solution offered through the Atos Unify Channel Program, allowing its reseller community of more than 1,700 partners worldwide to add their own value.

“This is a critical moment for workplace communications. Organizations are returning to their offices in a new normal and require accelerated digital transformation of their workplace environment,” said Elie Girard, CEO, Atos. “With our unique heritage in Unified Communications, we’re excited about combining our knowledge with the market leader in UCaaS to start a new chapter for business communication solutions worldwide.”

About Atos

Atos is a global leader in digital transformation with 110,000 employees in 73 countries and annual revenue of € 12 billion. European number one in Cloud, Cybersecurity and High-Performance Computing, the Group provides end-to-end Orchestrated Hybrid Cloud, Big Data, Business Applications and Digital Workplace solutions. The Group is the Worldwide Information Technology Partner for the Olympic & Paralympic Games and operates under the brands Atos, Atos|Syntel, and Unify. Atos is a SE (Societas Europaea), listed on the CAC40 Paris stock index.

The purpose of Atos is to help design the future of the information space. Its expertise and services support the development of knowledge, education and research in a multicultural approach and contribute to the development of scientific and technological excellence. Across the world, the Group enables its customers and employees, and members of societies at large to live, work and develop sustainably, in a safe and secure information space.

Atos UCC refers to the former Unify Division.
Atos Unify refers to the product family of former Unify products and partner program.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

Forward-Looking Statements

This press release contains “forward-looking statements,” including but not limited to, statements regarding RingCentral’s plans to partner with Atos to offer a co-branded UCaaS solution and the anticipated benefits of and activity under RingCentral’s strategic partnership with Atos, including the ability to create long-term growth opportunities for RingCentral. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including risks related to the parties’ ability to perform their obligations under the commercial arrangement, the parties ability to successfully develop and execute the envisioned jointly developed programs, technology and automation, the ability to successfully transition customers to RingCentral’s UCaaS solution, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in RingCentral’s Form 10-Q for the quarter ended March 31, 2020, filed with the Securities and Exchange Commission; and in other filings RingCentral makes with the Securities and Exchange Commission from time to time. All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates.

Investor Relations Contact:
Ryan Goodman, RingCentral
(650) 918-5356
Ryan.Goodman@ringcentral.com

Press Contacts:
Laura Fau
+33 6 73 64 04 18
laura.fau@atos.net

Jyotsna Grover
650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

July 15, 2020

RingCentral Announces Date of Second Quarter 2020 Financial Results Conference Call

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that it will report financial results for the second quarter ended June 30, 2020 after market close on Monday, August 3, 2020. The company also announced that it will hold a conference call on the same day at 2:00 PM Pacific Time (5:00 PM Eastern Time) to discuss its quarterly financial results.

The conference call can be accessed by dialing (877) 705-6003 from the United States or (201) 493-6725 internationally with reference to the company name and conference title, and a live webcast and replay of the conference call can be accessed from the investor relations page of RingCentral’s company website at http://ir.ringcentral.com. Following the completion of the call through 11:59 PM Eastern Time on August 10, 2020, a telephone replay will be available by dialing (844) 512-2921 from the United States or (412) 317-6671 internationally with recording access code 13706835.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral, Message Video Phone, and the RingCentral logo are trademarks of RingCentral, Inc.

Investor Relations Contact:
Ryan Goodman, RingCentral
(650) 918-5356
Ryan.Goodman@ringcentral.com

Media Contact:
Jyotsna Grover, RingCentral
650-513-8712
Jyotsna.Grover@ringcentral.com

Source: RingCentral, Inc.

July 14, 2020

PM Pediatrics Uses RingCentral’s Modern Cloud Communications Solution to Keep Patients and Employees Connected from Anywhere

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that PM Pediatrics, the nation’s largest provider of specialized pediatric urgent care, is using RingCentral’s cloud communications solution to help meet the rapid acceleration of patient and staff communications needs amidst the COVID-19 pandemic. RingCentral is enabling patients to connect with health professionals, while enabling their employees to work together while working from home.

Established in 2005, PM Pediatrics has over 60 locations across the country and is growing rapidly. Prior to COVID-19, the urgent care network was already using RingCentral’s cloud communications solution in some of its newer locations. Once the pandemic hit, the increasing volume of patient communications quickly overwhelmed their existing legacy communications infrastructure at older locations.

In order to improve overall patient communications and engagement as they began to offer COVID-19 testing, PM Pediatrics accelerated the adoption of RingCentral’s cloud-based solution. It was successfully rolled out across most remaining locations in a number of days, allowing the urgent care network to seamlessly reroute patient communications from their busiest locations to doctors located in PM Pediatrics offices less impacted by the current crisis and to update their Interactive Voice Response (IVR) as messaging changed. Additionally, employees based at the organization’s headquarters were able to work from home and maintain business continuity.

“When the COVID-19 outbreak first occurred, it became clear that our legacy phone systems were unable to keep up with the increasing demands from patients and could no longer meet our needs. We knew we needed to accelerate the deployment of RingCentral's cloud communications solutions across locations in order to support our patients, improve patient engagement and provide them access to the best care,” said Steven Xenos, CIO at PM Pediatrics. “With RingCentral up and running in just a few days, we were able to provide first rate communication for our patients, while also allowing our employees to stay connected and remain productive from anywhere.”

RingCentral Key Benefits for PM Pediatrics include:

  • Centralized communications: RingCentral allows PM Pediatrics' IT team to manage all patient communications and reroute calls quickly and easily across 60 office locations, nationwide from one centralized location.
  • Enhanced mobility: PM Pediatrics’ employees use RingCentral Contact Center™ to handle patient billing needs from any location and maintain business continuity while working remotely.
  • Security and Privacy: RingCentral meets the urgent care provider’s stringent healthcare compliance, security, and privacy requirements so they can cater to patients with ease and without any concern.

“Our focus is providing customers with the communications and collaboration capabilities they need to help their people be productive while serving the needs of their customers during this difficult time,” said Carson Hostetter, senior vice president, worldwide field sales at RingCentral. “We are pleased that with RingCentral’s solutions, PM Pediatrics is able to better serve their patients nationwide during this difficult time.”

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Contact Center and the RingCentral logo are trademarks of RingCentral, Inc.

June 30, 2020

Avaya Cloud OfficeTM UCaaS Solution Now Available in Australia, Canada, and the UK

Santa Clara & Belmont, Calif. –June 30, 2020 –  Avaya Holdings Corp. (NYSE: AVYA and RingCentral Inc. (NYSE: RNG) today announced the global expansion and general availability of Avaya Cloud Office™ by RingCentral® in Australia, Canada, and the UK along with the availability of several key new features and capabilities including tools to help migrate customers more efficiently and effectively.

Avaya Cloud Office is experiencing rapid global customer adoption, enhancing the way organizations communicate with customers, partners and with colleagues through an all-in-one solution that delivers seamless collaboration across multiple channels. Communication delivered via a single platform is increasingly important as 85 percent of companies use two or more disparate collaboration applications to meet customer and end-user requirements.1 By enabling voice calls, team messaging, meetings, conferencing and file sharing in a single solution, Avaya Cloud Office reduces cost and complexity while empowering workforces to call, meet and message across any device from wherever they are. 

Today’s announcement highlights the continued expansion of Avaya Cloud Office to more countries and customers around the globe. For example, the CIUSSS Est-de-l’Ile-de-Montreal (or CEMTL), a Canadian healthcare and social services provider with 15,000 employees across two hospitals, one university institute, eight clinics and fifteen long term care facilities turned to Avaya to power their communication needs. “Avaya Cloud Office demonstrates the true value of UCaaS and enables us to act quickly and stay engaged across our locations, in particular during the COVID-19 crisis when effective and efficient communications and collaboration are critical and not an option. Avaya Cloud Office enables our team to collaborate seamlessly across locations and devices to better focus on the needs of our customers. Additionally, the deployment was fast and effortless, literally within hours we were up and running.”

“The way we work continues to change as we see real examples of digital transformation accelerating rapidly across businesses of all sizes,” said Dennis Kozak, SVP, Business Transformation, Avaya. “Nothing is more critical to a business than communications and we have seen unprecedented uptake of our collaboration solutions as a result of the new working environment we are all experiencing. Organizations of all kinds are quickly adopting solutions that provide a single integrated platform to seamlessly manage communications with customers and employees, across multiple devices.”

Since its introduction in March, new features, including additional migration tools, enhanced devices support, along with advanced telephony management and other capabilities have been added to Avaya Cloud Office including:

  • Expanded support for Avaya endpoint devices to ensure users have the solution that suits their needs. The additional device support also extends the rich meeting capabilities of Avaya Cloud Office into conference rooms, providing high fidelity sound quality. 
  • Migration tools and features to facilitate the transition of customers on previous Avaya UC premise-based platforms to Avaya Cloud Office, enabling them to seamlessly enjoy the feature rich UCaaS capabilities of calling, meetings, messaging and more – all based in the cloud.
  • Additional features like Call Park and Page that allow customers to transition from existing Avaya platforms without changing the current processes they use every day.
  • Over 130 integrations on the Avaya Cloud Office App Gallery leveraging desktop software tools, like Google Docs or O365, that people use every day, creating a seamless experience that eliminates the need to switch between applications.

“It is now more important than ever before that vendors in UC&C are able to provide UCaaS for clients both new and potential,” said Oru Mohiuddin, Research Manager Enterprise Communications & Collaboration, IDC. “According to IDC Europe forecast, UCaaS will grow at a compounded annual growth rate of 23.3% between 2019 and 2022, which is higher than the 17.1% anticipated during the pre-covid-19 period. IDC is seeing similar trends in places like Canada and Australia as well. This is to facilitate remote collaboration as working from home becomes the new norm in the post crisis period. It is, however, not just enough to provide UCaaS – it needs to be customizable, flexible, modular, agile, frictionless, scalable, omnichannel and secure to cater to the varying needs of enterprises.  

Avaya Cloud Office recently won CUSTOMER Magazine’s 2020 Unified Communications Product of the Year Award honoring the most innovative unified communications products and solutions available over the past year.

“Organizations need modern cloud communications solutions to remain connected and accelerate business outcomes,” said Anand Eswaran, president and chief operating officer, RingCentral. “Avaya Cloud Office enables businesses to keep moving forward and helps ensure that customers have the necessary solutions at their fingertips to connect, communicate, and collaborate effectively. Ever since we launched in the US market, we have seen tremendous uptick for Avaya Cloud Office by the extensive and trusted ecosystem that Avaya has nurtured for many years.”

Also announced today is an Avaya Cloud Office promotional offer, providing customers who sign up now with a full free month of service and 20 percent discount. Customers will get free Basic Avaya Cloud Office Implementation, discounts on Avaya Cloud Office Professional Migration Services, and discounts on select desk phones. The promotion details and further conditions can be found here.

Avaya also recently announced master agent partnerships to meet the growing global demand for Avaya Cloud Office including:

Australia

Canada

UK

Additional Resources

1TalkingPointz Research Note, "The Firstline/deskless Opportunity 2019", by Dave Michels, July 2019

About Avaya
Businesses are built on the experiences they provide, and every day millions of those experiences are built by Avaya (NYSE: AVYA). For over one hundred years, we’ve enabled organizations around the globe to win - by creating intelligent communications experiences for customers and employees. Avaya builds open, converged and innovative solutions to enhance and simplify communications and collaboration - in the cloud, on-premise or a hybrid of both. To grow your business, we’re committed to innovation, partnership, and a relentless focus on what’s next. We’re the technology company you trust to help you deliver Experiences that Matter. Visit us at https://www.avaya.com © 2020 Avaya Holdings Corp. All rights reserved. Avaya, Avaya Cloud Office and the Avaya logo are trademarks of Avaya Holdings Corp.

About RingCentral
RingCentral, Inc. (NYSE: RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect from any location, on any device, and via any mode. RingCentral provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world. © 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

Cautionary Note Regarding Forward-Looking Statements
This document contains certain “forward-looking statements”, including but not limited to, statements regarding the anticipated impact and benefits of Avaya Cloud Office. All statements other than statements of historical fact are “forward-looking” statements for purposes of the U.S. federal and state securities laws. These statements may be identified by the use of forward looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," “our vision,” "plan," "potential," "preliminary," "predict," "should," "will," or “would” or the negative thereof or other variations thereof or comparable terminology. RingCentral and Avaya have based these forward-looking statements on their current expectations, assumptions, estimates and projections. While RingCentral and Avaya believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond their control. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including risks related to the parties’ ability to successfully perform their obligations under the commercial arrangement, the parties ability to successfully market, sell and transition customers to Avaya Cloud Office, as well as those risks and uncertainties discussed in RingCentral’s and Avaya’s respective Annual Reports on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”) available at www.sec.gov. RingCentral and Avaya caution you that the list of important factors included in their respective filings may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this press release may not in fact occur. Neither RingCentral nor Avaya undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Source: Avaya Newsroom

June 29, 2020

RingCentral Announces RingCentral Cloud PBX for Microsoft Teams with Direct Routing Integration

Broadens Microsoft Teams integrations to empower users to be more productive

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced RingCentral Cloud PBX™ for Microsoft Teams enabling Direct Routing integration. With RingCentral Cloud PBX for Microsoft Teams users will have access to more robust cloud PBX capabilities without ever having to leave the Teams interface on mobile, web, and desktop. RingCentral also provides broader integrations with Microsoft Teams that enhance user productivity across the platform.

“Today’s modern workforce wants the flexibility to communicate using their preferred channels, both within and outside their organization,” said Will Moxley, chief product officer, RingCentral. “For organizations using Microsoft Teams for team messaging, RingCentral Cloud PBX for Microsoft Teams provides exceptional enterprise PBX capabilities, enabling users to remain productive from within their Teams environment. Our integrations with Teams aligns with our vision of delivering an open platform, where our rich integration ecosystem empowers users to effortlessly and intuitively access RingCentral communications capabilities from their applications of choice to drive productivity across their enterprise.”

RingCentral Cloud PBX for Microsoft Teams with Direct Routing integration includes:

  • Call controls: Enables users to mute/unmute, hold, resume, and transfer calls
  • Interactive Voice Response (IVR): Businesses can create sophisticated and global call-flow configurations
  • Call handling: Route incoming calls to any or all of the users’ devices eliminating the need to be tethered to a desktop computer
  • Call queues: Route and distribute calls to several extensions and set up overflow capabilities for when it gets busy
  • Open Platform: Organizations can take advantage of RingCentral’s robust library of native integrations or build their own with RingCentral APIs. The RingCentral open platform ecosystem continues to expand with more than 40,000 developers and 4,000 out-of-the-box and custom app integrations
  • Global Coverage: Enterprises can leverage RingCentral’s global phone system capabilities in 40+ countries and local and toll-free numbers in 100+ countries
  • Service Level Agreements (SLA): RingCentral Cloud PBX for Microsoft Teams offers native PSTN with industry-leading available 99.999% SLA. RingCentral Cloud PBX features and functionality remain at RingCentral's SLA. End users accessing the integration via Teams are subject to the Teams SLA.
  • Security Certifications and Compliance: RingCentral provides audit reports demonstrating applicable safeguards for requirements such as HIPAA and FINRA, and offers leading audits and security certifications such as SOC2, SOC3, HITRUST, and others
  • Native call recording: The solution enables users to seamlessly record inbound and outbound calls from any device as needed
  • Analytics and Call Reports: Provides users complete visibility into all their calls, identify key trends, set up automated alerts, and more to drive real-time decisions

Paul Weiss, chief knowledge officer at Helm Partners, a leading telecom and technology advisory services firm and valued RingCentral Channel partner, said, “Our clients are demanding secure and reliable technology solutions that enable work from anywhere flexibility, allowing them to communicate through the channels they want, and on the devices of their choice. RingCentral’s integrations create even greater business agility by extending this flexibility to our clients’ workplace applications of choice. Whether it is Teams, G-Suite, a CRM, or the RingCentral application, RingCentral’s platform is taking user enablement and workflow efficiency to the next level. They have created an ecosystem that works for all businesses, making RingCentral an integral strategic element as we assist our clients in accelerating their digital transformation journey.”

Jim Lundy, founder, CEO, and lead analyst, Aragon Research, said, “The drastic shift to a fully remote working world has shed a spotlight on the limitations of legacy on-premise systems, which cause disruption and loss of productivity. With RingCentral Cloud PBX for Microsoft Teams, users can easily leverage the global enterprise phone system capabilities along with top-notch security and reliability that comes with RingCentral.”

Additional RingCentral App Integrations for Microsoft Teams and Office 365

RingCentral’s app integrations for Microsoft Teams, which are native to Teams and accessible via the Office 365 chrome extension are both available on the RingCentral app gallery.

  • Office 365 Chrome extension integration: Drives productivity from Microsoft Teams by quickly accessing RingCentral to schedule a video meeting, send an SMS, search their directory, or make a call within Teams, without requiring a separate desktop app.
  • Microsoft Teams RingCentral native integrations: Users can click an embedded message button or “@” mention RingCentral to directly schedule meetings, start a video call, or phone conversation from within Teams. The integration enables users to access a contact (both with web + desktop) without leaving Teams, eliminates the problem of siloed apps.

RingCentral also supports integrations across different Microsoft products such as Outlook, Office 365, Skype for Business, and Dynamics 365, which streamline workflows with RingCentral as a communications hub. You can find these integrations and more ISV integrations such as Canvas, NetSuite, Salesforce, and Zendesk in the RingCentral app gallery.

Availability

RingCentral is announcing limited availability of RingCentral Cloud PBX for Microsoft for customers globally with general availability to follow. Additional integrations of RingCentral with Microsoft Teams mentioned above are available immediately to all global users.

Resources

Click here to learn more about RingCentral Cloud PBX for Microsoft. To read the blog click here.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Cloud PBX and the RingCentral logo are trademarks of RingCentral, Inc.

Jyotsna Grover
650-513-8712
Jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

June 15, 2020

Higher Educational Institutions Deploy RingCentral to Keep Students, Faculty, and Staff Connected

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that higher educational institutions including Berkeley College, Southern New Hampshire University (SNHU), and Texas Christian University (TCU) have selected RingCentral to enable a smooth transition to remote communications and collaboration.

“Millions of people around the world are learning how to go about their daily lives via new generation cloud communication platforms and we believe the experience should always be seamless,” said Anand Eswaran, president and chief operating officer, RingCentral. “At RingCentral, we are steadfast in our focus on the future of work and remote learning, and we are pleased that we could enable these institutions to modernize their communications infrastructure so they are still connected, even when physically separated.”

RingCentral delivers integrated, secure, and reliable cloud communication solutions to colleges and universities including:

Berkeley College

  • Amid uncertain times, Berkeley College was faced with bringing its on-site students and faculty to an all-virtual environment across six locations in New York and New Jersey. With RingCentral’s solution, Berkeley College has the capability to integrate communications with other applications that they use on a daily basis, including Salesforce. The College also has utilized a real-time dashboard to measure usage and quality of communications to ensure that students and staff get the most out of their platform.

“At Berkeley College, our focus is on inspiring students to learn and develop successful career paths,” said Leonard De Botton, senior vice president & chief information officer, Berkeley College. “RingCentral’s cloud communications solution provided the college with the communication tools we needed to remain productive from any location, or on the go all from a single application. Their solution has been especially helpful as we’ve transitioned to a remote work environment given the current climate.”

Southern New Hampshire University (SNHU)

  • SNHU, one of the fastest-growing universities in the U.S., replaced its legacy on-premises communications system with RingCentral Office®, a unified solution for messaging, video, and phone capabilities that is providing the school’s staff and faculty with an intuitive and simple end-user experience to seamlessly connect.
  • With RingCentral’s cloud platform, SNHU’s lean IT team can easily manage a network of nearly 3,000 users from a central location. The solution’s infrastructure ensures 24/7 business continuity for the University, giving faculty and staff the freedom to focus on what matters most—continuing to provide a world-class education.

“It’s crucial for us at SNHU to have a state-of-the-art cloud communications platform in order to remain connected from anywhere,” said John Limongelli, chief technology officer at Southern New Hampshire University. “RingCentral allows our faculty and staff to use one unified solution for messaging, video meetings and phone system capabilities so we can remain productive from any location, which has been crucial given the current need to work from home. With RingCentral, we’ve been empowered to continue catering to our students, faculty and staff, regardless of where we are physically.”

Texas Christian University (TCU)

  • TCU, an award-winning college in Fort Worth, Texas, recently faced the unique challenge of becoming an all-virtual university almost overnight. With RingCentral’s cloud communications solution in place, faculty and staff were able to make, receive and reroute calls from their business numbers from anywhere, on any device. This allowed TCU to quickly transition its nearly-1,000 faculty and staff to a work from home environment almost seamlessly.
  • The University was also faced with transitioning its IT help desk to a completely remote setup almost immediately. With RingCentral, support agents were able to sign into the system remotely and continue to serve employees from any location. RingCentral’s solution allowed the University to keep the help desk open and accessible for staff while they adjusted to their new work from home environments.

“When COVID-19 hit, we were faced with the need to enable a remote work and learning environment almost immediately. Being able to use the RingCentral solution on any device from anywhere has made for a very smooth adjustment period,” said Bryan Lucas, chief technology officer at TCU. “RingCentral helped make the day-to-day experience easier for our students, faculty and staff during this difficult time.”

Having pivoted successfully to remote operations, Berkeley College, SNHU, and TCU are now demonstrating their ability to provide a quality educational experience digitally.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Office and the RingCentral logo are trademarks of RingCentral, Inc.

Jyotsna Grover
jyotsna.grover@ringcentral.com
650-513-8712

Source: RingCentral, Inc.

June 3, 2020

RingCentral Ranked Amongst Largest Publicly Traded Companies in Forbes Annual Global 2000 Listing

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that the company has been named to the Forbes “Global 2000: The World’s Largest Public Companies” list, released in May, 2020. The annual list, which has been released for the past 18 years, features a ranking of the biggest, most powerful and most valuable companies in the world.

“RingCentral has always been focused on delivering next generation communications solutions for the ever-expanding global, mobile, and distributed workforces,” said Vlad Shmunis, founder, chairman and CEO, RingCentral. “Our inclusion in the Forbes 2020 list is an honor and validates our continued commitment to providing enterprises with modern cloud communications solutions that keep them connected and thriving.”

The Forbes Global 2000 list is a highly regarded authority on corporate rankings globally. The Global 2000 list is based on four metrics: sales, profits, assets and market value. Forbes uses an equal weighting of all four metrics to rank companies according to size. Each company receives a separate score for each metric. Forbes adds up all the scores to compile a composite score. The highest composite score gets the highest rank. RingCentral was ranked #1818 on the May 2020 annual list.

For more information and to view the full Global 2000 list, please visit https://www.forbes.com/global2000.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

Jyotsna Grover
jyotsna.grover@ringcentral.com
650-513-8712

Source: RingCentral, Inc.

June 2, 2020

RingCentral Launches IGNITE! Partner Program

New channel program builds on Channel Harmony program and provides partners with greater flexibility in sales cycles

BELMONT, Calif.--(BUSINESS WIRE)--

RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced the launch of its IGNITE!™ Partner Program, which enables partners to own the entire sales cycle with organizations of up to 400 employees. IGNITE! builds on RingCentral’s existing industry-leading Channel Harmony® program. The program reinforces RingCentral’s commitment to the channel, and gives partners greater flexibility to choose the sales process that best suits the needs of each individual prospect.

“Now more than ever, organizations need technology that allows them to work from anywhere,” said Zane Long, senior vice president, global partner sales. “With the new IGNITE! program, we remain committed to our partners by providing them with even more flexibility and choice. Partners can continue to look to RingCentralas the complete cloud solution for today's modern digital workforce across businesses of any size.”

The RingCentral IGNITE! Partner Program enables qualifying partners to manage the sales process end-to-end for opportunities for organizations of up to 400 employees when selling RingCentral’s cloud communications solutions. Certified partners will be able to provide quotes, access a dedicated remote team for sales support, and have the ability to close deals with higher sales incentives. For larger, more complex deals, partners will continue to leverage RingCentral’s Channel Harmony program for complete RingCentral sales resources.

“Cloud communications solutions are now a must have for businesses of all sizes and across industry verticals to maintain business continuity,” said Joe Rittenhouse, president of business development, Converged Technology Professionals. “RingCentral is a leader in cloud communications and their IGNITE program provides us with the flexibility to expedite the sales process when catering to small and medium businesses, while still having the option to leverage RingCentral’s resources for larger enterprise deals."

RingCentral works with world-class distributors, master agents, channel partners, and carrier partners to deliver cloud communications solutions to businesses around the world. Ranked in the CRN 5-Star Partner Program Guide for five years in a row and recognized as a leader in the Gartner 2019 Magic Quadrant for Unified Communications as a Service Worldwide, RingCentral provides a mobile-first, unified message video phone solution, as well as digital customer engagement and integrated contact center solutions to enable a complete seamless experience. Easier to manage, more flexible and cost-efficient than legacy, on-premise communications systems, RingCentral’s cloud solutions meet the needs of today’s mobile and distributed workforce.

To learn more about RingCentral’s partner programs, visit https://www.ringcentral.com/partner/overview.html.

About RingCentral
RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, IGNITE!, Channel Harmony and the RingCentral logo are trademarks of RingCentral, Inc.

Jyotsna Grover
jyotsna.grover@ringcentral.com
650-513-8712

Source: RingCentral, Inc.

May 6, 2020

RingCentral Announces First Quarter 2020 Results

Total Revenue up 33%

Total ARR surpassed $1 billion

Enterprise ARR and Channel ARR each surpassed $300 million

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced financial results for the first quarter ended March 31, 2020.

First Quarter Financial Highlights

  • Total revenue increased 33% year over year to $268 million.
  • Subscriptions revenue increased 33% year over year to $243 million.
  • Annualized Exit Monthly Recurring Subscriptions (ARR) increased 33% year over year to over $1 billion.
  • RingCentral Office® ARR increased 36% year over year to $943 million.
  • Mid-market and Enterprise ARR increased 52% year over year to $524 million.
  • Enterprise ARR increased 59% year over year to $318 million.
  • Channel ARR increased 62% year over year to $329 million.

“We delivered another solid quarter, driven by continued strength in mid-market and enterprise markets,” said Vlad Shmunis, RingCentral’s founder, chairman and CEO. “During this difficult time, it has become even more apparent that legacy on-premise communication systems cannot meet flexible business needs in a work from anywhere environment. Since inception, RingCentral's cloud platform was designed to enable employees to communicate and collaborate from anywhere, on any device, in any mode. This quarter we introduced RingCentral Video (RCV), a reimagined video meetings experience. RCV now completes our differentiated Message Video Phone (MVP) solution that enables workers to stay productive as they work from anywhere.”

Financial Results for the First Quarter 2020

  • Revenue: Total revenue was $268 million for the first quarter of 2020, up from $201 million in the first quarter of 2019, representing 33% growth.
  • Operating Income (Loss): GAAP operating loss was ($25) million, compared to a GAAP operating loss of ($7) million in the same period last year, primarily driven by higher share-based compensation and amortization of intangibles. Non-GAAP operating income was $22 million, compared to a non-GAAP operating income of $16 million in the same period last year.
  • Net Income (Loss) Per Share: GAAP net loss per diluted share was ($0.70), compared to ($0.08) in the same period last year, primarily driven by higher share-based compensation, amortization of intangibles, and losses associated with investments and strategic partnerships. Non-GAAP net income per diluted share was $0.19, compared to $0.17 per diluted share in the same period last year. The first quarter of 2020 reflected a 22.5% non-GAAP tax rate. There were no material cashtaxes given our net operating loss carryforwards.
  • Cash and Cash Equivalents: Total cash and cash equivalents at the end of the first quarter of 2020 was $762 million. This compares with $344 million at the end of the fourth quarter of 2019.

Additional Highlights

  • Announced RingCentral Video™ (RCV), a reimagined video meetings experience. Leveraging RingCentral's years of experience as a global UCaaS leader, RingCentral Video joins RingCentral messaging and RingCentral phone to complete our differentiated Message Video Phone™ (MVP) solution.
  • Announced general availability of the highly anticipated Avaya Cloud Office™ by RingCentral® solution. Avaya Cloud Office enhances the way organizations communicate with customers, partners, and with colleagues through an all-in-one solution that delivers seamless collaboration across multiple channels.
  • Announced AT&T Office@Hand powered by RingCentral now provides enhanced HD video capabilities through new RingCentral Video™ technology.
  • Issued $1.0 billion aggregate principal amount of 0% Convertible Senior Notes due 2025 priced with a 50% premium to the volume weighted average price per share on February 27, 2020.
  • Announced a new unified desktop app, an entirely reimagined user experience for enterprise communications available both on Windows PCs and Macs. This new app makes it much more efficient for users to communicate, share documents, make calls and schedule, join and host video meetings.
  • Announced the addition of Chief Revenue Officer, Phil Sorgen. Phil is a 24-year Microsoft veteran, and most recently was the Corporate Vice President for the US Enterprise Commercial business. Prior to that, Phil was the Global Channel Chief, harnessing the power of all partners to drive growth for Microsoft.

Financial Outlook

COVID-19 highlights the resiliency of RingCentral's subscription business model. We have incorporated incremental assumptions to our outlook to reflect the current macroeconomic backdrop.

We are raising our 2020 subscriptions revenue outlook to reflect Q1 strength and positive new logo trends in early Q2, along with a prudent outlook for the remainder of the year. We have also assumed $5 to $10 million FX headwinds from weakness of international currencies versus the US dollar. We are adjusting our implied desktop phone revenue outlook to reflect reduced desktop phone demand in the current work from home environment.

Full Year 2020 Guidance:

  • Raising subscriptions revenue range to $1.024 to $1.030 billion, representing annual growth of 25% to 26%. This is up from our prior range of $1.019 to $1.027 billion and annual growth of 25% to 26%.
  • Total revenue range to $1.116 to $1.125 billion, representing annual growth of 24% to 25%, vs the prior range of $1.125 to $1.135 billion.
  • GAAP operating margin between (11.3%) and (9.9%).
  • Non-GAAP operating margin between 9.6% and 9.7%.
  • Non-GAAP tax rate for 2020 assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
  • Non-GAAP EPS range of $0.91 to $0.94 based on 93.5 million fully diluted shares, vs the prior range of $0.93 to $0.94. This reflects a $0.02 impact from lower interest rate assumptions.
  • Share-based compensation range of $185 to $195 million, amortization of debt discount of $46 million, amortization of acquired intangibles range of $34 to $36 million, and acquisition related matters of approximately $1.9 million.

Second Quarter 2020 Guidance:

  • Subscriptions revenue range of $244.5 to $246.5 million, representing annual growth of 26% to 27%.
  • Total revenue range of $260 to $266 million, representing annual growth of 21% to 24%.
  • GAAP operating margin range of (13.8%) to (12.6%).
  • Non-GAAP operating margin of 8.9% to 9.0%.
  • Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
  • Non-GAAP EPS of $0.20 to $0.21 based on 93 million fully diluted shares.
  • Share-based compensation range of $49 to $50 million, amortization of debt discount of $13 million, and amortization of acquired intangibles of $8.5 to $9.0 million.

For a reconciliation of our forecasted non-GAAP operating margin, see “Reconciliation of Forecasted Operating Margin GAAP Measures to Non-GAAP Measures.” We have not reconciled our forecasted non-GAAP EPS to its respective forecasted GAAP measure because we do not provide guidance on it. We do not provide guidance on forecasted GAAP EPS because of the inherent uncertainty and complexity involved in forecasting the intercompany remeasurement gain (loss), gain (loss) associated with investments and strategic partnerships, and provision (benefit) from income taxes, which could be significant reconciling items between the non-GAAP and respective GAAP measures. The intercompany remeasurement gain (loss) is affected by the movement in various exchange rates relative to the U.S. Dollar, which is difficult to predict and subject to constant change. We do not provide guidance on gain (loss) associated with investments and strategic partnerships as it is based on future share prices, which are difficult to predict and subject to inherent uncertainties. We do not provide guidance on forecasted GAAP tax rates as we do not forecast discrete tax items as they are difficult to predict. The provision (benefit) from income taxes, excluding discrete items, is expected to have an immaterial impact to our GAAP EPS. We utilized a projected long-term tax rate in our computation of the non-GAAP income tax provision. For fiscal 2020, we have determined the projected non-GAAP tax rate to be 22.5%. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.

Conference Call Details:

  • What: RingCentral financial results for the first quarter of 2020 and outlook for the second quarter and full year of 2020.
  • When: Wednesday, May 6, 2020 at 2:00PM PT (5:00PM ET).
  • Dial-in: To access the call in the United States, please dial (877) 705-6003, and for international callers, dial (201) 493-6725. Callers 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: Following the completion of the call through 11:59 PM ET on May 13, 2020, a telephone replay will be available by dialing (844) 512-2921 from the United States or (412) 317-6671 internationally with recording access code 13701796.

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at http://ir.ringcentral.com/.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Office, RingCentral Video, Message Video Phone, and the RingCentral logo are trademarks of RingCentral, Inc.

Forward-Looking Statements

This press release contains “forward-looking statements,” including but not limited to, statements regarding our future financial results, our GAAP and non-GAAP guidance, our momentum in mid-market and enterprise, the success of our RCV solution, the success of our relationships with Avaya and AT&T, our market opportunity, and the effects of the COVID-19 pandemic. Forward-looking statements are subject to known and unknown risks and uncertainties, and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those in any forward-looking statements are: the future effects of the COVID-19 pandemic, our ability to realize the anticipated benefits of our relationships with Avaya and AT&T; our ability to grow at our expected rate of growth; our ability to add and retain larger and enterprise customers and enter new geographies and markets; our ability to continue to release, and gain customer acceptance of, new and improved versions of our services, including RCV; our ability to compete successfully against existing and new competitors; our ability to enter into and maintain relationships with resellers, carriers and strategic partners; our ability to successfully and timely integrate, and realize the benefits of any significant acquisition we may make; our ability to manage our expenses and growth; and general market, political, economic, and business conditions, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission, and in other filings we make with the Securities and Exchange Commission from time to time.

All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.

Non-GAAP Financial Measures

Our reported financial results and financial outlook include certain Non-GAAP financial measures, including Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, and non-GAAP free cash flow. Non-GAAP subscriptions gross margin is defined as Non-GAAP subscriptions gross profit divided by GAAP subscriptions revenue. Non-GAAP other gross margin is defined as Non-GAAP other gross profit divided by GAAP other revenue. Non-GAAP income (loss) from operations is defined as GAAP income (loss) from operations excluding share-based compensation, amortization of acquisition intangibles, and acquisition related matters including transaction costs, integration costs, restructuring costs, and acquisition-related retention payments, as well as changes in the fair value of contingent consideration obligations. Non-GAAP operating margin is defined as Non-GAAP income (loss) from operations divided by total GAAP revenue. Non-GAAP net income (loss) is defined as GAAP net income (loss) excluding share-based compensation, intercompany remeasurement gains or losses, acquisition related matters, amortization of acquisition intangibles, non-cash interest expense associated with amortization of debt discount and issuance costs related to our convertible senior notes, gain (loss) associated with investments and strategic partnerships, tax benefit from release of valuation allowance, and the related income tax effect of these adjustments.

Non-GAAP diluted shares outstanding include the impact on shares used in per share calculations of our outstanding capped call transactions. Our outstanding capped call transactions are anti-dilutive in GAAP earnings per share but are expected to mitigate the dilutive effect of our convertible notes and therefore are included in the calculations of non-GAAP diluted shares outstanding.

Non-GAAP free cash flow is defined as net cash provided by (used in) operating activities plus cash paid for repayments of convertible senior notes attributable to debt discount, reduced by purchases of property and equipment and capitalized internal-use software. We believe information regarding free cash flow provides useful information to investors in understanding and evaluating the strength of liquidity and available cash.

We have included Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, and Non-GAAP free cash flow in this press release because they are key measures used by us to understand and evaluate our operating performance and trends, to prepare and approve our annual budget, and to develop short and long-term operational plans. In particular, the exclusion of certain expenses and cash flow items in calculating Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, and non-GAAP free cash flow provide useful measure for period-to-period comparisons of our business.

Although Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, and non-GAAP free cash flow are frequently used by investors in their evaluations of companies, these non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered alongside other financial performance measures.

Reconciliations of the Company’s non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release.

Other Measures

Our reported results also include our annualized exit monthly recurring subscriptions, RingCentral Office® annualized exit monthly recurring subscriptions, mid-market and enterprise annualized exit monthly recurring subscriptions, enterprise annualized exit monthly recurring subscriptions, channel partner annualized exit monthly recurring subscriptions, and net monthly subscriptions dollar retention. We define our annualized exit monthly recurring subscriptions as our monthly recurring subscriptions multiplied by 12. Our monthly recurring subscriptions equal the monthly value of all customer recurring charges contracted at the end of a given month. We believe this metric is a leading indicator of our anticipated subscriptions revenue. We calculate our RingCentral Office® annualized exit monthly recurring subscriptions in the same manner as we calculate our annualized exit monthly recurring subscriptions, except that only customer subscriptions from RingCentral Office® and RingCentral customer engagement solutions customers are included when determining monthly recurring subscriptions for the purposes of calculating this key business metric. We calculate mid-market and enterprise annualized exit monthly recurring subscriptions in the same manner as we calculate our RingCentral Office® annualized exit monthly recurring subscriptions, except that only customer subscriptions from customers generating $25,000 or more in annual recurring revenue are included. We calculate enterprise annualized exit monthly recurring subscriptions in the same manner as we calculate our RingCentral Office® annualized exit monthly recurring subscriptions, except that only customer subscriptions from customers generating $100,000 or more in annual recurring revenue are included. We calculate channel partner annualized exit monthly recurring subscriptions in the same manner as we calculate our annualized exit monthly revenue subscriptions, except that only customer subscriptions generated from channel partners are included. We define Dollar Net Change as the quotient of (i) the difference of our Monthly Recurring Subscriptions at the end of a period minus our Monthly Recurring Subscriptions at the beginning of a period minus our Monthly Recurring Subscriptions at the end of the period from new customers we added during the period, (ii) all divided by the number of months in the period. We define our Average Monthly Recurring Subscriptions as the average of the Monthly Recurring Subscriptions at the beginning and end of the measurement period.

TABLE 1

RINGCENTRAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

 

 

March 31, 2020

 

December 31, 2019

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

762,064

 

 

$

343,606

 

Accounts receivable, net

135,433

 

 

129,990

 

Deferred and prepaid sales commission costs

39,775

 

 

36,589

 

Prepaid expenses and other current assets

34,312

 

 

25,354

 

Total current assets

971,584

 

 

535,539

 

Property and equipment, net

97,924

 

 

89,230

 

Operating lease right-of-use-assets

38,820

 

 

39,269

 

Long-term investments

109,942

 

 

132,188

 

Deferred and prepaid sales commission costs, non-current

471,120

 

 

462,344

 

Goodwill

54,830

 

 

55,278

 

Acquired intangibles, net

118,524

 

 

127,338

 

Other assets

9,176

 

 

9,561

 

Total assets

$

1,871,920

 

 

$

1,450,747

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

35,306

 

 

$

34,612

 

Accrued liabilities

162,286

 

 

138,729

 

Deferred revenue

110,178

 

 

107,372

 

Total current liabilities

307,770

 

 

280,713

 

Convertible senior notes, net

1,041,991

 

 

386,889

 

Operating lease liabilities

27,027

 

 

28,516

 

Other long-term liabilities

4,708

 

 

8,929

 

Total liabilities

1,381,496

 

 

705,047

 

 

 

 

 

Stockholders' equity

 

 

 

Common stock

9

 

 

9

 

Additional paid-in capital

840,115

 

 

1,033,053

 

Accumulated other comprehensive income

331

 

 

1,948

 

Accumulated deficit

(350,031

)

 

(289,310

)

Total stockholders' equity

$

490,424

 

 

$

745,700

 

Total liabilities and stockholders' equity

$

1,871,920

 

 

$

1,450,747

 

TABLE 2

RINGCENTRAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

 

 

Three Months Ended
March 31,

 

2020

 

2019

Revenues

 

 

 

Subscriptions

$

243,104

 

 

$

182,708

 

Other

24,408

 

 

18,781

 

Total revenues

267,512

 

 

201,489

 

Cost of revenues

 

 

 

Subscriptions

52,433

 

 

35,334

 

Other

21,011

 

 

15,501

 

Total cost of revenues

73,444

 

 

50,835

 

Gross profit

194,068

 

 

150,654

 

Operating expenses

 

 

 

Research and development

40,910

 

 

29,787

 

Sales and marketing

131,312

 

 

99,551

 

General and administrative

47,336

 

 

28,779

 

Total operating expenses

219,558

 

 

158,117

 

Loss from operations

(25,490

)

 

(7,463

)

Other income (expense), net

 

 

 

Interest expense

(7,502

)

 

(5,032

)

Other (expense) income, net

(27,517

)

 

3,051

 

Other expense, net

(35,019

)

 

(1,981

)

Loss before income taxes

(60,509

)

 

(9,444

)

Provision for (benefit from) income taxes

212

 

 

(3,086

)

Net loss

$

(60,721

)

 

$

(6,358

)

Net loss per common share

 

 

 

Basic and diluted

$

(0.70

)

 

$

(0.08

)

Weighted-average number of shares used in computing net loss per share

 

 

 

Basic and diluted

87,339

 

 

81,400

 

TABLE 3

RINGCENTRAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

 

 

Three Months Ended
March 31,

 

2020

 

2019

Cash flows from operating activities

 

 

 

Net loss

$

(60,721

)

 

$

(6,358

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization

16,548

 

 

7,696

 

Share-based compensation

36,589

 

 

19,398

 

Amortization of deferred and prepaid sales commission costs

9,809

 

 

6,228

 

Amortization of debt discount and issuance costs

7,452

 

 

4,982

 

Loss on early extinguishment of debt

7,250

 

 

 

Repayment of convertible senior notes attributable to debt discount

(13,894

)

 

 

Reduction of operating lease right-of-use assets

3,843

 

 

3,131

 

Loss (gain) and other related costs on investments

22,246

 

 

 

Foreign currency remeasurement (gain) loss

964

 

 

(11

)

Provision for bad debt

1,492

 

 

337

 

Deferred income taxes

(33

)

 

(235

)

Tax benefit from release of valuation allowance

 

 

(3,245

)

Other

45

 

 

1,433

 

Changes in assets and liabilities:

 

 

 

Accounts receivable

(6,935

)

 

(5,267

)

Deferred and prepaid sales commission costs

(22,544

)

 

(11,477

)

Prepaid expenses and other current assets

(8,958

)

 

(5,834

)

Other assets

131

 

 

(83

)

Accounts payable

888

 

 

7,757

 

Accrued liabilities

19,948

 

 

(103

)

Deferred revenue

2,806

 

 

5,301

 

Operating lease liabilities

(3,783

)

 

(3,217

)

Other liabilities

(74

)

 

(236

)

Net cash provided by operating activities

13,069

 

 

20,197

 

Cash flows from investing activities

 

 

 

Purchases of property and equipment

(6,861

)

 

(6,862

)

Capitalized internal-use software

(7,389

)

 

(3,543

)

Cash paid for business combination, net of cash acquired

 

 

(27,870

)

Net cash used in investing activities

(14,250

)

 

(38,275

)

Cash flows from financing activities

 

 

 

Proceeds from issuance of convertible senior notes, net of issuance costs

986,508

 

 

 

Payments for 2023 convertible senior notes partial repurchase

(495,704

)

 

 

Payments for capped calls and transaction costs

(60,900

)

 

 

Proceeds from issuance of stock in connection with stock plans

4,802

 

 

2,666

 

Payments for taxes related to net share settlement of equity awards

(10,351

)

 

(1,934

)

Payment for contingent consideration for business acquisition

(3,548

)

 

 

Repayment of financing obligations

(511

)

 

 

Net cash provided by financing activities

420,296

 

 

732

 

Effect of exchange rate changes

(657

)

 

47

 

Net increase (decrease) in cash, cash equivalents and restricted cash

418,458

 

 

(17,299

)

Cash, cash equivalents and restricted cash

 

 

 

Beginning of period

343,606

 

 

566,329

 

End of period

$

762,064

 

 

$

549,030

 

TABLE 4

RINGCENTRAL, INC.

RECONCILIATION OF OPERATING INCOME (LOSS)

GAAP MEASURES TO NON-GAAP MEASURES

(Unaudited, in thousands)

 

 

Three Months Ended
March 31,

 

2020

 

2019

Revenues

 

 

 

Subscriptions

$

243,104

 

 

$

182,708

 

Other

24,408

 

 

18,781

 

Total revenues

267,512

 

 

201,489

 

Cost of revenues reconciliation

 

 

 

GAAP Subscriptions cost of revenues

52,433

 

 

35,334

 

Share-based compensation

(2,076

)

 

(1,346

)

Amortization of acquisition intangibles

(7,701

)

 

(1,010

)

Acquisition related matters

 

 

(50

)

Non-GAAP Subscriptions cost of revenues

42,656

 

 

32,928

 

 

 

 

 

GAAP Other cost of revenues

21,011

 

 

15,501

 

Share-based compensation

(650

)

 

(295

)

Non-GAAP Other cost of revenues

20,361

 

 

15,206

 

Gross profit and gross margin reconciliation

 

 

 

Non-GAAP Subscriptions

82.5

%

 

82.0

%

Non-GAAP Other

16.6

%

 

19.0

%

Non-GAAP Gross profit

76.4

%

 

76.1

%

Operating expenses reconciliation

 

 

 

GAAP Research and development

40,910

 

 

29,787

 

Share-based compensation

(7,467

)

 

(4,262

)

Acquisition related matters

 

 

(347

)

Non-GAAP Research and development

33,443

 

 

25,178

 

As a % of total revenues non-GAAP

12.5

%

 

12.5

%

 

 

 

 

GAAP Sales and marketing

131,312

 

 

99,551

 

Share-based compensation

(11,291

)

 

(7,608

)

Amortization of acquisition intangibles

(931

)

 

(922

)

Acquisition related matters

4

 

 

(1,642

)

Non-GAAP Sales and marketing

119,094

 

 

89,379

 

As a % of total revenues non-GAAP

44.5

%

 

44.4

%

 

 

 

 

GAAP General and administrative

47,336

 

 

28,779

 

Share-based compensation

(15,105

)

 

(5,887

)

Acquisition related matters

(1,863

)

 

(423

)

Non-GAAP General and administrative

30,368

 

 

22,469

 

As a % of total revenues non-GAAP

11.4

%

 

11.2

%

Income (loss) from operations reconciliation

 

 

 

GAAP loss from operations

(25,490

)

 

(7,463

)

Share-based compensation

36,589

 

 

19,398

 

Amortization of acquisition intangibles

8,632

 

 

1,932

 

Acquisition related matters

1,859

 

 

2,462

 

Non-GAAP Income from operations

21,590

 

 

16,329

 

Non-GAAP Operating margin

8.1

%

 

8.1

%

TABLE 5

RINGCENTRAL, INC.

RECONCILIATION OF NET INCOME (LOSS)

GAAP MEASURES TO NON-GAAP MEASURES

(In thousands, except per share data) (Unaudited)

 

 

 

Three Months Ended
March 31,

 

 

2020

 

2019

Net (loss) income reconciliation

 

 

 

 

GAAP net loss

 

$

(60,721

)

 

$

(6,358

)

Share-based compensation

 

36,589

 

 

19,398

 

Amortization of acquisition intangibles

 

8,632

 

 

1,932

 

Acquisition related matters

 

1,859

 

 

2,462

 

Amortization of debt discount and issuance costs

 

7,452

 

 

4,982

 

Loss associated with investments and strategic partnerships

 

20,148

 

 

 

Loss on early extinguishment of debt

 

7,250

 

 

 

Intercompany remeasurement loss

 

898

 

 

126

 

Income tax expense effects (1)

 

(4,809

)

 

(7,463

)

Non-GAAP net income

 

$

17,298

 

 

$

15,079

 

Reconciliation between GAAP and non-GAAP weighted average shares used in computing basic and diluted net (loss) income per common share:

 

 

 

 

Weighted average number of shares used in computing basic net (loss) income per share

 

87,339

 

 

81,400

 

Effect of dilutive securities

 

4,927

 

 

5,525

 

Non-GAAP weighted average shares used in computing non-GAAP diluted net income per share

 

92,266

 

 

86,925

 

 

 

 

 

 

Diluted net (loss) income per share

 

 

 

 

GAAP net loss per share

 

$

(0.70

)

 

$

(0.08

)

Non-GAAP net income per share

 

$

0.19

 

 

$

0.17

 

 

(1) Income tax expense effects for the three months ended March 31, 2019 include the tax benefit from release of valuation allowance.

TABLE 6

RINGCENTRAL, INC.

RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES

GAAP MEASURES TO NON-GAAP FREE CASH FLOW MEASURES

(Unaudited, in thousands)

 

 

Three Months Ended
March 31,

 

2020

 

2019

Net cash provided by operating activities

$

13,069

 

 

$

20,197

 

Purchases of property and equipment

(6,861

)

 

(6,862

)

Capitalized internal-use software

(7,389

)

 

(3,543

)

Repayment of convertible senior notes attributable to debt discount

13,894

 

 

 

Non-GAAP free cash flow

$

12,713

 

 

$

9,792

 

TABLE 7

RINGCENTRAL, INC.

RECONCILIATION OF FORECASTED OPERATING MARGIN

GAAP MEASURES TO NON-GAAP MEASURES

(Unaudited, in millions)

 

 

Q2 2020

 

FY 2020

 

Low Range

 

High Range

 

Low Range

 

High Range

GAAP revenues

260.0

 

 

266.0

 

 

1,116.0

 

 

1,125.0

 

 

 

 

 

 

 

 

 

GAAP loss from operations

(35.9

)

 

(33.6

)

 

(125.7

)

 

(111.7

)

GAAP operating margin

(13.8

%)

 

(12.6

%)

 

(11.3

%)

 

(9.9

%)

Share-based compensation

50.0

 

 

49.0

 

 

195.0

 

 

185.0

 

Amortization of acquisition intangibles

9.0

 

 

8.5

 

 

36.0

 

 

34.0

 

Acquisition related matters

 

 

 

 

1.9

 

 

1.9

 

Non-GAAP income from operations

23.1

 

 

23.9

 

 

107.1

 

 

109.1

 

Non-GAAP operating margin

8.9

%

 

9.0

%

 

9.6

%

 

9.7

%

 

Investor Relations Contact:
Ryan Goodman, RingCentral
(650) 918-5356
Ryan.Goodman@ringcentral.com

Media Contact:
Jyotsna Grover
650-513-8712
Jyotsna.Grover@ringcentral.com

Source: RingCentral, Inc.

May 6, 2020

Phil Sorgen, Former Microsoft Corporate Vice President for US Enterprise Commercial Group, Joins RingCentral as Chief Revenue Officer

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that Phil Sorgen, former Corporate Vice President for Microsoft’s Enterprise Commercial Group, has joined the company as its Chief Revenue Officer. Reporting to Anand Eswaran, President and Chief Operating Officer at RingCentral, Sorgen will be responsible for global sales including all direct, service providers, channel and strategic partners. Earlier Sorgen served as the Corporate Vice President of the Worldwide Partner Group at Microsoft. Sorgen is a 30-year industry veteran and has spent the last 20+ years at Microsoft in a variety of leadership roles.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200506005872/en/

Phil Sorgen, courtesy of RingCentral

Phil Sorgen, courtesy of RingCentral

“We are excited to have Phil on board and extend him a very warm welcome. Phil brings 30 years of experience of leading sales and partner organizations at global scale,” said Anand Eswaran, president and chief operating officer, RingCentral. “Phil’s leadership is defined by his deep customer and partner relationships, a customer-first mindset and a track record of building sustainable growth businesses at scale. As we continue to enable our customers to thrive during these unprecedented times, Phil will lead the way in driving a powerful partner and customer ecosystem and take us through our next growth phase.”

Most recently, Sorgen was responsible for Microsoft’s U.S. Enterprise Commercial Group, an organization responsible for helping the company’s largest commercial customers in the U.S. navigate digital transformation. In this role, Sorgen led U.S. enterprise sales and customer success teams including national, industry and technical teams.

Prior to this, Phil was Corporate Vice President of the Worldwide Partner Group at Microsoft where he was responsible for setting the channel strategy for a broad network of diverse partner companies worldwide. In addition, his team was responsible for activating partners on Microsoft cloud offerings at scale. He also had oversight of partner capacity management, sales and technical readiness, partner incentives, and digital engagement.

Earlier, Sorgen led the Small and Mid-market Solutions and Partners business in the U.S. In this role he was responsible for sales, marketing and partner management serving Microsoft's business customers and partner community in the U.S. Sorgen also had responsibility for the Dynamics and Service Provider businesses across all customer segments. And prior to that Sorgen served as President of Microsoft Canada, where he had responsibility for all elements of Microsoft’s Canadian business and for deepening Microsoft’s commitment to the Canadian market.

“I am excited to join a rapidly growing organization like RingCentral that is at the forefront of transforming enterprise communications,” said Sorgen. “Throughout my career, I have worked with customers and helped them find ways to grow their business, solve their problems and recognize the value of joint solutions. I also believe deeply in the power of partnerships, which aligns closely with the strategy at RingCentral. I look forward to bringing that same spirit of collaboration to RingCentral and continuing the company's commitment to providing world-class cloud communications to its partners and customers at a time when this company is experiencing an incredible period of growth and innovation.”

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

Jyotsna Grover
650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

May 5, 2020

RingCentral Reimagines User Experience for Communications and Collaboration with New Unified Desktop App

Enables users to switch real-time between devices and different modes of communication including team messaging, calling, and video meetings

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced the launch of the new RingCentral unified desktop app, an entirely reimagined user experience for enterprise communications available both on Windows PCs and Macs. The new unified RingCentral desktop app is a modern contextual and collaboration-centric app that includes RingCentral’s Message Video Phone™ (MVP) capabilities in a single solution for a streamlined experience.

“Organizations face the new reality of their entire workforce working from home. Providing employees with communications solutions that enable them to be productive from any device, anywhere and on any mode of communication has become an absolute necessity for business continuity and success,” said Will Moxley, chief product officer, RingCentral. “With the new desktop app, we’ve modernized and reimagined the user experience and taken productivity to the next level for the digital enterprise.”

Key new differentiators in the RingCentral desktop application include:

  • Real-time switching between modes of communication: The tight integration between Message, Video, Phone all in a single unified application enables users to seamlessly switch between these modes of communication.
  • Seamless switching of meetings between devices: The new RingCentral desktop app enables users to seamlessly switch from one device to another while participating in a video meeting.
  • Advanced search functionality: The new RingCentral desktop application offers an advanced search functionality that enables users to search for messages directed to an individual user. Users can also filter their search results by an email address or team name, which makes the search functionality approximately 4X1 faster.
  • Third-party integrations: The application offers key calendar integrations with several business productivity applications such as Microsoft Office 365 and Google.

“For far too long, we’ve been faced with fragmented communications that create silos and make enterprise communications more challenging than it needs to be,” said David Baker, chief information and digital officer, Pacific Dental Services. “The new RingCentral desktop app makes it much more efficient for us to communicate, share documents, make calls and schedule, join and host video meetings. The ability to switch between different modes of communication, and between devices, is extremely productive for team members and it’s a total game changer. In addition to using the new desktop app, RingCentral is also powering our Teledentistry platform with RingCentral Video, which has been essential in treating our patients during this crisis.”

The clean and refreshed redesign of the RingCentral desktop application enables users to be more productive with a simplified experience.

“For enterprise communications users, easy to navigate solutions with a modern interface is a must have. But these users are on the go now more than ever which means they also require a multi-modal application that works the way people truly work. RingCentral’s new desktop application addresses this with fast and seamless call switching between desktop and mobile as well as including all the essential capabilities needed to communicate and collaborate in today’s digital enterprises,” said Fazil Balkaya, Principal Analyst at Synergy Research.

Availability

The new desktop version will be available starting May 7. For more information, please click here.

Source

1 Based on internal QA testing results

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, Message Video Phone and the RingCentral logo are trademarks of RingCentral, Inc.

Jyotsna Grover
650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

May 4, 2020

Goosehead Insurance Transitions Entire Organization to Work from Home Environment with RingCentral Cloud Communications Solutions

RingCentral’s Unified Cloud Communications and Contact Center Solutions enable 2,200+ users to work from anywhere

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that Goosehead Insurance, Inc. (NASDAQ: GSHD) a rapidly growing independent personal lines insurance agency, is using RingCentral’s cloud communications solutions to enable their entire organization to work from anywhere, using any device. Leveraging RingCentral Office®, a Unified Communications as a Service (UCaaS) solution, and RingCentral Contact Center™ capabilities, Goosehead is supporting over 2,200 people in a work from home environment across the nation.

Goosehead Insurance is one of America’s fastest growing insurance agencies, and allows customers to choose policies and products from more than 80 leading carriers. As a result of the COVID-19 global pandemic, Goosehead was faced with the need to enable all employees to work from anywhere in order to maintain business continuity. With RingCentral’s unified communications capabilities including team messaging, video meetings and phone system already in place, Goosehead was able to transition its employees seamlessly to a work from home environment.

“As the world came to terms with the COVID-19 pandemic and pivoted to working from anywhere, we too were faced with the reality of equipping our employees with the right technology to maintain operation of our business with all our employees working from home,” said Michael Moxley, vice president, Service Delivery at Goosehead Insurance. “RingCentral’s cloud solution, as presented to us from our partner Liquid Networx, has always been one of our most critical applications. By using RingCentral’s solutions, we were able to seamlessly transition to a work from home environment in just a few days. In fact, because of the simple user interface and enhanced mobile capabilities of the RingCentral platform, we have been able to sustain premium growth through April even with the switch to a virtual environment.”

Key RingCentral Benefits for Goosehead Insurance include:

  • Enhanced mobility: Goosehead employees use the RingCentral mobile capabilities to communicate and collaborate from anywhere, using any device, in any mode they choose.
  • Security and trust: RingCentral’s secure and reliable industry-leading platform has given Goosehead the peace of mind to work from home without any compromises or concerns.
  • Open Platform: The RingCentral Platform has more than 3,000 certified integrations that have enabled Goosehead to integrate communications services into their other business applications, including Google Chrome, Outlook and Salesforce.

“The COVID-19 pandemic has led to difficult circumstances that have changed the way businesses operate forever,” said Anand Eswaran, president and chief operating officer, RingCentral. “A modern communications infrastructure that can enable employees to remain productive while they work from home is no longer just a nice to have, it’s now a necessity. Legacy communications solutions lack the flexibility to support the surge in work from home and the new digital workforce.”

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Office, RingCentral Contact Center and the RingCentral logo are trademarks of RingCentral, Inc.

Jyotsna Grover
650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

April 27, 2020

RingCentral Recognized by San Francisco Business Times and Silicon Valley Business Journal as Best Place to Work San Francisco Bay Area

Company also honored with Bay Area Workplace Wellness Award

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that the San Francisco Business Times and the Silicon Valley Business Journal recognized RingCentral as a 2020 Bay Area Best Places to Work and as a Bay Area Workplace Wellness Award recipient. The awards are based on the results of an independent survey conducted by Quantum Workplace.

Bay Area award applicants were evaluated and ranked across five categories based on the number of employees. The ranking found companies in the region whose employees rate them as the highest on such values as fun, collaborative culture, solid compensation, benefits offerings, and other amenities as well as management practices.

According to the San Francisco Business Times and the Silicon Valley Business Journal, RingCentral’s Bay Area employees value:

  • Competitive and creative benefits, which continue to be refined and expanded as RingCentral evolves
  • The implementation of an internal recognition system that provides positive feedback and is tied to company values
  • The ability to create a strong work-life balance while maintaining high-performance standards

“We have invested our energy and resources to create an employee-first culture that makes RingCentral a place people want to work,” says Anand Eswaran, president and Chief Operating Officer, RingCentral. “The San Francisco Bay Area is known for its focus on creating great places to work, being named a top employer in this competitive environment is a tremendous honor because it demonstrates that our employees value our efforts and feel that they can bring their best selves to work at RingCentral”

The Workplace Wellness Award celebrates companies that prioritize benefits programs that rejuvenate employees’ mind, body, and soul.

For information about career opportunities at RingCentral, please visit: ringcentral.com/company/careers.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

Jyotsna Grover
650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

April 16, 2020

RingCentral Announces Date of First Quarter 2020 Financial Results Conference Call

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that it will report financial results for the first quarter ended March 31, 2020 after market close on Wednesday, May 6, 2020. The company also announced that it will hold a conference call on the same day at 2:00 PM Pacific Time (5:00 PM Eastern Time) to discuss its quarterly financial results.

The conference call can be accessed by dialing (877) 705-6003 from the United States or (201) 493-6725 internationally with reference to the company name and conference title, and a live webcast and replay of the conference call can be accessed from the investor relations page of RingCentral’s company website at http://ir.ringcentral.com. Following the completion of the call through 11:59 PM Eastern Time on May 13, 2020, a telephone replay will be available by dialing (844) 512-2921 from the United States or (412) 317-6671 internationally with recording access code 13701796.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral, Message Video Phone, and the RingCentral logo are trademarks of RingCentral, Inc.

Investor Relations Contact:
Ryan Goodman, RingCentral
(650) 918-5356
Ryan.Goodman@ringcentral.com

Media Contact:
Jyotsna Grover, RingCentral
650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

April 2, 2020

RingCentral Enhances AT&T Office@Hand with New Video Solution

BELMONT, Calif. & DALLAS--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions and AT&T (NYSE:T) today announced that AT&T Office@Hand powered by RingCentral now provides enhanced HD video capabilities through new RingCentral Video™ technology.

At a time where remote work solutions are more critical than ever, AT&T Office@Hand enables businesses to instantly activate and easily manage a remote workforce using voice, video meetings and messaging. By adding RingCentral’s Video technology, AT&T Office@Hand Meetings provides HIPAA and FINRA-compliant capabilities to businesses with stringent security and accessibility requirements.

“The nature of work changed overnight, and video is now an absolute necessity to keep businesses moving,” said Roman Pacewicz, Chief Product Officer, AT&T Business. “We’re all in this together, and we know that tools like AT&T Office@Hand are about more than just productivity. It can help minimize the isolation users can feel while being at home. It can help better balance work and everything that is hectic in their personal lives.”

AT&T will offer the AT&T Office@Hand Premium solution at no cost to eligible customers for 60 days to help schools (K-12), healthcare providers, and nonprofits stay connected in response to COVID-19.

AT&T Office@Hand users benefit from RingCentral’s industry-leading technology paired with AT&T’s intelligent network and trusted business solutions. All users also get AT&T Office@Hand Meetings alongside mobile-first phone, fax, and SMS capabilities.

“We are excited to work with AT&T to provide business solutions that fit rapidly changing and evolving customer needs,” said Anand Eswaran, President and COO of RingCentral. “The AT&T Office@Hand solution with the new RingCentral Video technology delivers a highly secure, modern voice and video collaboration experience to AT&T’s business customers to enable their employees to work productively from anywhere.”

AT&T Office@Hand is powered by RingCentral’s superior carrier-grade cloud communications platform for HD voice and video featuring built-in quality-of-service reporting and robust encryption. It also features pre-integration with AT&T SD-WAN and AT&T SD-WAN NOW that optimize voice and video quality to enable cost-effective enterprise deployments for distributed locations.

Learn more about AT&T Office@Hand here.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Video and the RingCentral logo are trademarks of RingCentral, Inc.

About AT&T Communications

We help family, friends and neighbors connect in meaningful ways every day. From the first phone call 140+ years ago to mobile video streaming, we innovate to improve lives. We have the nation’s fastest wireless network.** And according to America’s biggest test, we have the nation’s best wireless network.*** We’re building FirstNet just for first responders and creating next-generation mobile 5G. With a range of TV and video products, we deliver entertainment people love to talk about. Our smart, highly secure solutions serve nearly 3 million global businesses – nearly all of the Fortune 1000. And worldwide, our spirit of service drives employees to give back to their communities.

AT&T Communications is part of AT&T Inc. (NYSE:T). Learn more at att.com/CommunicationsNews.

AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc. Additional information about AT&T products and services is available at about.att.com. Follow our news on Twitter at @ATT, on Facebook at facebook.com/att and on YouTube at youtube.com/att.

© 2020 AT&T Intellectual Property. All rights reserved. AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

**Based on analysis by Ookla® of Speedtest Intelligence® data average download speeds for Q4 2019. Ookla trademarks used under license and reprinted with permission.

***GWS OneScore, September 2019.

Jyotsna Grover
RingCentral PR
jyotsna.grover@ringcentral.com
(650) 513-8712

Jesse Ngoo
AT&T Corporate Communications
jesse.ngoo@fleishman.com
(214) 665-1322

Source: RingCentral, Inc.


April 2, 2020

RingCentral Releases RingCentral Video to Address Work from Anywhere Demands; Completes Message Video Phone Solution

Available immediately as part of RingCentral Office, AT&T Office@Hand, and Avaya Cloud Office

Also available for free to educators, healthcare providers, NGOs, news organizations, and the public sector

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced RingCentral Video™ (RCV), a reimagined video meetings experience. Leveraging RingCentral’s open platform, RingCentral Video will be another component offered as part of RingCentral Office®, completing RingCentral’s differentiated Message Video Phone™ (MVP) solution. RingCentral Video addresses the demand in work from anywhere by leveraging next-generation technologies to enable a fast, unified, open, and trusted video meetings experience.

“The world is experiencing the largest work from home demand ever. At RingCentral, we've always been focused on addressing the needs of modern, mobile, and distributed workforces by delivering trusted, reliable, global, and easy to buy, manage, and use solutions,” said Vlad Shmunis, RingCentral’s founder, chairman and CEO. “Today, we’re taking the next step in delivering a world-class seamlessly integrated MVP experience to further enhance employee productivity as they work from anywhere.”

RingCentral is redefining and raising the bar for online collaboration and meetings. RingCentral, now with RingCentral Video, is:

  • UNIFIED: With Message Video Phone capabilities, including business voice, SMS and fax, tightly integrated, people and teams can collaborate across all modes of communication without losing context.
  • FAST: RingCentral Video offers a complete browser-based experience so users do not have to download an application to join, host, or schedule a meeting.
  • TRUSTED: RingCentral is committed to customers’ privacy and security. Per the company’s privacy policy, RingCentral does not rent or sell any of its customers’ personal information. In addition, RingCentral Video and RingCentral Office meet GDPR, CCPA and HIPAA privacy and security requirements.
  • RELIABLE: RingCentral Video is built on a new, state-of-the-art, high-availability infrastructure that leverages years of RingCentral’s experience as a global Unified Communications as a Service (UCaaS) leader for secure and reliable business communications.
  • GLOBAL: RingCentral offers full PBX capabilities in over 40 countries, and virtual presence in additional 80+ countries.
  • OPEN: Leveraging RingCentral’s open platform, RingCentral Video is tightly integrated with popular business productivity applications such as Google (G Suite and Gmail), HubSpot, Microsoft (Teams and O365), Slack, Theta Lake, and Zoho. RingCentral for Salesforce is available on Salesforce AppExchange. Coming later, RingCentral will add numerous integrations including those with Canvas, Epic, Gong.io, and Zendesk.
  • SMART: RingCentral Video includes a robust analytics platform that gives IT system administrators access to Key Performance Indicators (KPIs) such as adoption, usage, and Quality of Service (QoS) metrics. Easy to read dashboards help administrators deliver a seamless communication experience across their companies globally.

RingCentral worked closely with Google on RingCentral Video to ensure the highest quality browser-based video experience. Leveraging and extending Google Chrome’s WebRTC, RingCentral Video enables superior meetings experience using a browser while eliminating the need for additional downloads. Further, RingCentral Video went through rigorous beta testing with key customers and partners including the Detroit Pistons, Goosehead Insurance, Pro Football Hall of Fame, and World Vision, among others.

“RingCentral optimizing Google Chrome’s WebRTC to power RingCentral Video showcases the mutual value our companies have to bring hassle free communications to our customers,” said Gregg Fiddes, Head of Enterprise Ecosystems, Google. “We are excited to collaborate with RingCentral on their needs and see RingCentral choose Chrome as their inaugural launch platform for RingCentral Video, providing the greatest security and speed for their users.”

RingCentral Rooms

RingCentral Video will also power the new RingCentral Rooms™ product, which is currently in beta and is expected to be generally available later in Q2, 2020. RingCentral Rooms transforms any room into an easy-to-use video conference space for enhanced employee productivity. RingCentral Rooms’ easy installation, central management, and analytics dashboard also enable IT system administrators to modernize conference spaces quickly and efficiently.

Availability

RingCentral Video, seamlessly integrated into RingCentral Office, is generally available to new customers in North America for global use starting April 2, 2020. RingCentral Video is scheduled to be available to new RingCentral Office customers in EMEA later in Q2 and globally to new RingCentral Office customers in Q3. RingCentral Rooms, currently in beta, will be generally available to all customers in North America in Q2, 2020. Additional details about a full-scale release will be announced in the coming months. For more information, please visit https://www.ringcentral.com/video.

Serving our Community

RingCentral is committed to helping people and teams connect anytime, anywhere, and on any device. Working from home is no longer a matter of choice but that of necessity and safety. RingCentral previously announced a free offering of the RingCentral Office solution to healthcare organizations, educators and NGOs. RingCentral is now extending this offer to news organizations and the public sector to accommodate the evolving needs and challenges of these important front-line communities.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Office, RingCentral Video, Message Video Phone, RingCentral Rooms and the RingCentral logo are trademarks of RingCentral, Inc.

Salesforce, AppExchange and others are among the trademarks of Salesforce.com, inc.

QUOTE SHEET

Customers

Paul Rapier, Director of IT, Detroit Pistons

“We started the deployment of RingCentral Video with our IT team, then data and analytics. Following this, we rolled it out to the sponsorship team, and finally everyone else. We have had zero issues. The crystal-clear audio and impeccable HD video make our employees feel like they’re right there. In addition, meetings are now instant because people no longer have to download any software. RingCentral Video has by far the simplest and easiest user interface of any meetings application in the market, which makes it a clear winner.”

Michael P. Moxley, Vice President of Service Delivery, Goosehead

“RingCentral Video is a testament to the company’s continuous focus on innovation. With its simple and elegant user interface, RingCentral Video takes us one step closer to enhancing employee productivity for our teams. By removing all the complexities related to joining, hosting, and scheduling meetings RingCentral Video is hands down the easiest way for our teams to collaborate.”

Chad Reese, Senior Director, Senior Director of Technology, The Pro Football Hall of Fame

“Communications and collaboration is critical to our success at The Pro Football Hall of Fame. Offered as part of RingCentral’s unified application and integrated with a broad set of industry solutions, RingCentral Video enables us to share experiences, both internally and externally, as we work together on shaping a better future.”

ISV Partners

Brad Armstrong, Vice President, Business and Corporate Development, Slack Technologies

“Slack’s integration with RingCentral Video brings the context of Slack conversations into meeting experiences, seamlessly connecting team collaboration to communication. Not only does this enhance productivity, but it drives alignment across the organization. We look forward to continuing to work with RingCentral on this impactful partnership, and help our shared customers unlock productivity in their organizations.”

Anthony Cresci, Vice President, Business Development, Theta Lake

“RingCentral Video makes joining, hosting, and scheduling a meeting very easy with a seamless user experience. Theta Lake’s compliance artificial intelligence paired with RingCentral can effectively and efficiently identify regulatory and conduct risks in what is said, shown, and shared in each recording along with automating the archiving, eDiscovery, and supervision of recordings.”

Channel Partners

Craig Chumley EVP Cloud, Managed Services and Marketing ConvergeOne

“As a platinum partner ConvergeOne is very excited about the continual innovation of RingCentral. Video is now at the forefront of enabling companies to achieve a much more connected workforce experience.”

Adam Edwards, Co-Founder & CEO, Telarus

“Our independent sales partners know that customers seek an effortless experience, a quality meeting, and ample integrations to tie their most used applications. RingCentral Video delivers all of these and we’re proud to recommend RingCentral Video to our selling partners for their most demanding customers.”

Analysts/Influencers

Jon Arnold, Principal, J Arnold and Associates

“RCV is a solution RingCentral has been working towards for some time, and they have carefully listened to how collaboration needs are evolving. The main focus is on end users, who now get an effortless experience across voice, video and text with no downloads required across a full set of third-party applications. They have also listened to the needs of IT by providing rich usage analytics and supporting RCV with always-up network reliability.”

Jeremiah Owyang, Founding Partner, Kaleido Insights

“Home-based workers are busier than ever, managing personal affairs, the health of their household, and a frantic work schedule in a new environment – from their homes. The most important thing they will need is simplicity, to quickly connect, engage, and collaborate with their colleagues, customers and partners to drive business outcomes.”

Irwin Lazar, Vice President and Service Director, Nemertes Research

“Our research shows that video buyers demand ease of use, low cost, integration, and quick start times. With its WebRTC-based client, team collaboration integration, and its ability to leverage the RingCentral platform for high availability, RingCentral Video will enable customers to realize identified benefits of video including better support for remote work, reduced travel, cost savings, faster hiring, higher sales close rates, improved customer engagement, and more engaged meetings.”

Dave Michels, Principal Analyst, TalkingPointz

“Modern UCaaS increasingly includes voice, chat, and meetings. It's great to see RingCentral embrace WebRTC as an open, browser-based technology for its Meetings capability. The integration between the RingCentral services simplifies communications as conversations transition across different modalities. RingCentral Video leverages proven, scalable, and secure technologies for meetings while still allowing RingCentral to create its own, differentiated experience.”

Jyotsna Grover
650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.


March 31, 2020

Avaya and RingCentral Announce Avaya Cloud Office is Now Generally Available, to Meet Growing Global Need to Work, Meet and Collaborate From Anywhere on Any Device

Santa Clara & Belmont, Calif.  –  Avaya Holdings Corp. (NYSE: AVYA), a global leader in solutions to enhance and simplify communications and collaboration, and RingCentral Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration and contact center solutions, today announced general availability of the highly anticipated Avaya Cloud Office™ by RingCentral® solution.

Avaya Cloud Office enhances the way organizations communicate with customers, partners and with colleagues through an all-in-one solution that delivers seamless collaboration across multiple channels. By enabling voice calls, team messaging, meetings, conferencing, file sharing and more, Avaya Cloud Office empowers workforces to meet, share and collaborate productively no matter where they are. 

“Organizations of all kinds are adapting to new ways for their employees to communicate, collaborate and be productive, regardless of their location or the device they’re using, with the help of easy-to-use cloud solutions that empower a mobile, remote workforce,” said Jim Chirico, Avaya President and CEO. “Avaya Cloud Office provides a comprehensive yet simple communications app for a world where communications and collaboration tools are more critical than ever before. As we engage our extensive customer base to help them address the rapidly evolving future of work, new offerings like Avaya Cloud Office are an ideal solution to meet their needs.”

“In the current environment where working from anywhere, including home, is not just a matter of preference but a matter of necessity and safety, the challenge is real for businesses as they work to maintain productivity through these difficult times,” said Vlad Shmunis, RingCentral Founder, Chairman and CEO. “Cloud solutions enable people to work from anywhere, and we believe that with Avaya Cloud Office by RingCentral, businesses can keep moving forward. Our goal is to make remote work feel as in-person as possible, so people can feel connected and engaged with one another during these unprecedented times and beyond.”

With Avaya Cloud Office, customers can:

  • Communicate and collaborate using voice, video, team messaging, SMS and fax capabilities

  • Transform their business communications at a pace that’s right for them

  • Simplify communications through one app available on a wide range of devices and locations

  • Easily scale any time

  • Receive industry-leading security and support from a global leader in communications and collaboration solutions

  • Take advantage of RingCentral’s open platform APIs and over 200 pre-built business solution integrations combined with Avaya enterprise-grade features and services 

  • Have the ease of compatibility with Avaya phones and devices, including: J139, J169 and J179 Series phones, and additional devices to be added

“The launch of Avaya Cloud Office is a real game-changer in the UCaaS market,” said Elka Popova, Vice President, Information and Communications Technologies, Frost & Sullivan. “Avaya’s innovation, partner community and global services reach combined with the market-leading RingCentral platform provides an unprecedented opportunity for customers migrating to cloud communications. We are all seeing the importance of collaboration solutions that enable remote work increasing globally, and Avaya Cloud Office is a tremendous example of the kind of solution that will enable the future of work.”

“We have a very successful relationship with Avaya and RingCentral and are excited about this powerful new collaboration solution,” said Mike Baur, Chairman and CEO, ScanSource, Inc. “Our channel partners are ready for Avaya Cloud Office, as it’s adaptable, flexible and easy to use. ScanSource is uniquely positioned to support our community of Value-Added Resellers and Sales Agents in deploying the Avaya Cloud Office solution. With our design, pre-sale and technical support teams, coupled with our training, education and consulting services, we can enable partners to quickly ramp up their sales in what is becoming a critical moment in time for the remote workforce.”

Avaya has signed five master agents to launch Avaya Cloud Office, including Jenne, Inc., ScanSource, Inc., AVANT Communications, Synnex Corporation and Telarus LLC. Additionally, nearly 800 channel partner agents have been onboarded to sell Avaya Cloud Office, with scores of these being new to sell Avaya solutions. Sales and partner training has been underway since February, with well over a thousand sellers trained across Enterprise, MidMarket, SMB and SLED customer segments.

About Avaya

Businesses are built on the experiences they provide, and every day millions of those experiences are built by Avaya (NYSE: AVYA). For over one hundred years, we’ve enabled organizations around the globe to win - by creating intelligent communications experiences for customers and employees. Avaya builds open, converged and innovative solutions to enhance and simplify communications and collaboration - in the cloud, on-premise or a hybrid of both. To grow your business, we’re committed to innovation, partnership, and a relentless focus on what’s next. We’re the technology company you trust to help you deliver Experiences that Matter. Visit us at https://www.avaya.com  © 2020 Avaya Holdings Corp. All rights reserved. Avaya, Avaya Cloud Office and the Avaya logo are trademarks of Avaya Holdings Corp.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect from any location, on any device, and via any mode. RingCentral provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world. © 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

Cautionary Note Regarding Forward-Looking Statements

This document contains certain “forward-looking statements”, including but not limited to, statements regarding the anticipated impact and benefits of Avaya Cloud Office. All statements other than statements of historical fact are “forward-looking” statements for purposes of the U.S. federal and state securities laws. These statements may be identified by the use of forward looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," “our vision,” "plan," "potential," "preliminary," "predict," "should," "will," or “would” or the negative thereof or other variations thereof or comparable terminology. RingCentral and Avaya have based these forward-looking statements on their current expectations, assumptions, estimates and projections. While RingCentral and Avaya believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond their control. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including risks related to the parties’ ability to successfully perform their obligations under the commercial arrangement, the parties ability to successfully market, sell and transition customers to Avaya Cloud Office, as well as those risks and uncertainties discussed in RingCentral’s and Avaya’s respective Annual Reports on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”) available at www.sec.gov. RingCentral and Avaya caution you that the list of important factors included in their respective filings may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this press release may not in fact occur. Neither RingCentral nor Avaya undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

 

March 23, 2020

SKC Communications Joins RingCentral’s Partner Program to Bring Cloud Communications Solutions to US Enterprises

BELMONT, Calif. — SKC Communications, a nationwide leader in cloud-based solutions, will join RingCentral’s award-winning channel partner program to bring industry-leading cloud communications and contact center solutions to enterprise customers across the US.

“An increasing number of organizations across industry verticals are transitioning from legacy on-premise systems to cloud communications solutions for effective customer communication and collaboration,” said Jeff Holton, CTO at SKC Communications. “By adding RingCentral’s market-leading unified communications as a service (UCaaS) and contact center offerings to our portfolio, we will be able to bring our customers the leading solutions they need to achieve greater business outcomes.”

RingCentral works with world-class distributors, master agents, channel partners, and carrier partners to deliver cloud communications solutions to businesses around the world. Ranked in the CRN 5-Star Partner Program Guide for five years in a row and recognized as a leader in the Gartner 2019 Magic Quadrant for Unified Communications as a Service Worldwide, RingCentral provides mobile-first voice, video meetings, team messaging, digital customer engagement and integrated contact center solutions as a complete, seamless experience. Easier to manage and more flexible and cost-efficient than legacy, on-premise communications systems, RingCentral’s cloud solutions meet the needs of today’s mobile and distributed workforce.

“SKC Communications has a strong network of business customers thanks in part to its industry expertise in unified communications and ability to exceed customer expectations,” said Zane Long, SVP of Global Channel Sales, RingCentral. “We look forward to working with them to help their customers modernize their communications infrastructure by transitioning to cloud solutions.”

February 28, 2020

RingCentral, Inc. Prices $1.0 Billion 0% Convertible Senior Notes Offering (up 50% Conversion Premium)

BELMONT, Calif. --(BUSINESS WIRE)-- RingCentral, Inc. (NYSE:RNG) today announced the pricing of $1.0 billion aggregate principal amount of 0% Convertible Senior Notes due 2025 (the “notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Act”). The notes priced with a 50% conversion premium to the volume weighted average price per share (approximately $240.28 per share) of RingCentral’s Class A common stock (the “common stock”) on February 27, 2020 .

Key elements of the transaction today include:

  • $1.0 Billion 0% Convertible Senior Notes Offering (up 50% Conversion Premium)
  • RingCentral redemption option, on or after March 5, 2022 (as detailed below)
  • Capped Call purchased in conjunction with 0% Convertible Senior Notes due 2025 with a cap price of approximately $481
  • Repurchase of approximately $172.5 million aggregate principal amount of 0% Convertible Senior Notes due 2023 issued in 2018

RingCentral also granted the initial purchasers of the notes an option to purchase, during a 13-day period from, and including, the initial issuance date of the notes, up to an additional $150 million aggregate principal amount of the notes. The sale of the notes to the initial purchasers is expected to settle on March 3, 2020 , subject to customary closing conditions, and is expected to result in approximately $986.5 million in net proceeds to RingCentral after deducting the initial purchasers’ discounts and estimated offering expenses payable by RingCentral (assuming no exercise of the initial purchasers’ option).

The notes will be senior, unsecured obligations of RingCentral . The notes will not bear interest, and the principal amount of the notes will not accrete. The notes will mature on March 1, 2025 , unless earlier repurchased, redeemed or converted. In addition, RingCentral may redeem the notes, at its option and subject to certain conditions, on or after March 5, 2022 as detailed below.

Capped Call purchased in conjunction with 0% Convertible Senior Notes due 2025: In conjunction with the issuance of the notes, RingCentral entered into capped call transactions with a cap price of approximately $480.56 (representing a premium of 100% over the volume weighted average price of the common stock on February 27, 2020 ). The capped call transactions are scheduled to expire in February 2024 .

Repurchase of 0% Convertible Senior Notes due 2023 issued in 2018: RingCentral also agreed to repurchase approximately $172.5 million aggregate principal amount of its outstanding 0% Convertible Senior Notes due 2023 (the “2023 Notes”).

Use of Proceeds: RingCentral intends to use the net proceeds of the offering for the following purposes:

  • Approximately $60.9 million of the net proceeds to pay the cost of the capped call transactions described above
  • Approximately $509.6 million of the net proceeds from the offering of notes to repurchase approximately $172.5 million of the aggregate principal amount of its outstanding 2023 Notes through individual privately negotiated transactions entered into concurrently with the offering of the notes (collectively, the “Note Repurchases”). The Note Repurchases, and the potential related market activities by selling holders of the 2023 Notes (such as the unwinding of certain derivatives or the purchases of shares of common stock that RingCentral expects to occur in connection with the Note Repurchases), could have the effect of increasing, or limiting a decline in, the market price of the common stock.
  • The remainder of the net proceeds for general corporate purposes, which may include working capital, capital expenditures, repayment of debt, potential acquisitions and strategic transactions of businesses, technologies or product. However, RingCentral has not designated any specific uses and have no current agreements with respect to any material acquisition or strategic transaction.

Additional Details for the new 0% Convertible Senior Notes due 2025 (up 50% Conversion Premium)

Conversion Features: The volume weighted average price per share of the common stock on February 27, 2020 was approximately $240.28 per share. With a conversion premium of approximately 50%, the initial conversion rate for the notes is 2.7745 shares of common stock per $1,000 principal amount of notes (which is equivalent to an initial conversion price of approximately $360.43 per share). Prior to the close of business on the business day immediately preceding December 1, 2024 , the notes will be convertible at the option of the note holders only upon the satisfaction of specified conditions and during certain periods. Thereafter until the close of business on the scheduled trading day preceding the maturity date, the notes will be convertible at the option of the noteholders at any time regardless of these conditions. Conversions of the notes will be settled in cash, shares of the common stock or a combination thereof, at RingCentral’s election.

Redemption Option: RingCentral may redeem the notes, at its option, on or after March 5, 2022 , at a redemption price equal to 100% of the principal amount thereof, plus any accrued and unpaid special interest, if any, if the last reported sale price of the common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which RingCentral provides written notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which RingCentral provides written notice of redemption.

Holders of notes may require RingCentral to repurchase their notes upon the occurrence of certain events that constitute a fundamental change under the indenture governing the notes at a purchase price equal to 100% of the principal amount thereof, plus any accrued and unpaid special interest, if any, to, but excluding, the date of repurchase. In connection with certain corporate events or if RingCentral issues a notice of redemption, it will, under certain circumstances, increase the conversion rate for holders who elect to convert their notes in connection with such corporate event or convert its notes called for redemption during the relevant redemption period.

Additional Details for the Capped Call Transactions

Capped Call Transactions : In connection with the pricing of the notes, RingCentral entered into capped call transactions with an initial purchaser or its affiliate and other financial institutions (the “hedge counterparties”). The capped call transactions are expected generally to reduce or offset the potential dilution to the common stock upon any conversion of notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. The cap price of the capped call transactions will initially be approximately $480.56 per share, which represents a premium of 100% over the volume weighted average price of the common stock of approximately $240.28 per share on February 27, 2020 , and is subject to certain adjustments under the terms of the capped call transactions. If the initial purchasers exercise their option to purchase additional notes, RingCentral intends to enter into additional capped call transactions with the hedge counterparties.

RingCentral expects that, in connection with establishing their initial hedge of the capped call transactions, the hedge counterparties will enter into various derivative transactions with respect to the common stock and/or purchase shares of the common stock concurrently with, or shortly after, the pricing of the notes. These activities could increase (or reduce the size of any decrease in) the market price of the common stock or the notes at that time. In addition, RingCentral expects that the hedge counterparties may modify their hedge positions by entering into or unwinding various derivatives with respect to the common stock and/or by purchasing or selling shares of the common stock or other securities of RingCentral in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so on each exercise date of the capped call transactions and in connection with any early termination event in respect of the capped call transactions). This activity could also cause or avoid an increase or a decrease in the market price of the common stock or the notes, which could affect the ability of noteholders to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of the notes, could affect the amount and value of the consideration that noteholders will receive upon conversion of the notes.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful.

The notes and the shares of common stock issuable upon conversion of the notes, if any, will not be registered under the Act or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Act and applicable state laws.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Act and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to, whether RingCentral will be able to consummate the offering, the satisfaction of customary closing conditions with respect to the offering of the notes, prevailing market conditions, the anticipated use of net proceeds of the offering of the notes which could change as a result of market conditions or for other reasons, whether the capped call transactions will become effective, whether the Note Repurchases will close and the impact of general economic, industry or political conditions in the United States or internationally. Forward-looking statements may be identified by the use of the words “may,” “will,” “expect,” “intend” and other similar expressions. These forward-looking statements are based on estimates and assumptions by RingCentral’s management that, although believed to be reasonable, are inherently uncertain and subject to a number of risks. Actual results may differ materially from those anticipated or predicted by RingCentral’s forward-looking statements. All forward-looking statements are subject to other risks detailed in our Annual Report on Form 10-K for the year ended December 31, 2019 and the risks discussed in our other filings with the Securities and Exchange Commission . You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and RingCentral undertakes no obligation to revise or update this news release to reflect events or circumstances after the date hereof, except as required by applicable law.

Investor Relations Contact:
Ryan Goodman , RingCentral
(650) 918-5356
Ryan.Goodman@ringcentral.com

Media Contact:
Mariana Leventis , RingCentral
(650) 562-6545
Mariana.Leventis@ringcentral.com

Source: RingCentral, Inc.

February 27, 2020

RingCentral, Inc. Announces $1.0 Billion Convertible Senior Notes Offering

BELMONT, Calif. --(BUSINESS WIRE)-- RingCentral, Inc. (NYSE:RNG) today announced its intention to offer, subject to market conditions and other factors, $1.0 billion aggregate principal amount of convertible senior notes due 2025 (the “notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Act”). RingCentral also expects to grant the initial purchasers of the notes an option to purchase, during a 13-day period from, and including, the initial issuance date of the notes, up to an additional $150 million aggregate principal amount of the notes.

The notes will be senior, unsecured obligations of RingCentral . The notes will be convertible into cash, shares of RingCentral’s Class A common stock (“common stock”), or a combination thereof, at RingCentral’s election. The conversion rate and other terms of the notes are to be determined upon pricing of the offering. The notes will also be redeemable at the option of RingCentral after a specified date if certain conditions are met.

In connection with the pricing of the notes, RingCentral expects to enter into capped call transactions with one or more of the initial purchasers or other financial institutions or their affiliates (the “hedge counterparties”). The capped call transactions are expected generally to reduce or offset the potential dilution to the common stock upon any conversion of notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. RingCentral anticipates that the cap price of the capped call transactions will initially represent a premium of approximately 100% over the last reported sale price of the common stock on the pricing date of the offering. If the initial purchasers exercise their option to purchase additional notes, RingCentral intends to enter into additional capped call transactions with the hedge counterparties.

RingCentral expects that, in connection with establishing their initial hedge of the capped call transactions, the hedge counterparties will enter into various derivative transactions with respect to the common stock and/or purchase shares of the common stock concurrently with, or shortly after, the pricing of the notes. These activities could increase (or reduce the size of any decrease in) the market price of the common stock or the notes at that time. In addition, RingCentral expects that the hedge counterparties may modify their hedge positions by entering into or unwinding various derivatives with respect to the common stock and/or by purchasing or selling shares of the common stock or other securities of RingCentral in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so on each exercise date of the capped call transactions and in connection with any early termination event in respect of the capped call transactions). This activity could also cause or avoid an increase or a decrease in the market price of the common stock or the notes, which could affect the ability of noteholders to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of the notes, could affect the amount and value of the consideration that noteholders will receive upon conversion of the notes.

RingCentral intends to use a portion of the net proceeds of the offering of the notes to pay the cost of the capped call transactions described above. RingCentral also intends to use a portion of the net proceeds from this offering to repurchase up to 1.0 million shares of the common stock from certain purchasers of notes concurrently with the offering of notes (the “Share Repurchase”), to repurchase up to approximately $230 million of the aggregate principal amount of its outstanding 0% Convertible Senior Notes due 2023 (the “2023 Notes”) for cash through individually privately negotiated transactions concurrently with the offering of the notes (collectively, the “Note Repurchase”), or for a combination of the foregoing; provided that RingCentral does not anticipate using more than approximately $650 million of the net proceeds from the offering to finance the Share Repurchase and Note Repurchase on a combined basis. Any Share Repurchase or Note Repurchase, and the potential related market activities by selling holders of the 2023 Notes (such as the unwinding of certain derivatives or the purchases of shares of common stock that RingCentral expects to occur in connection with any Note Repurchase), could have the effect of increasing or limiting a decline in the market price of the common stock. RingCentral intends to use the remainder of the net proceeds from this offering for general corporate purposes, which may include working capital, capital expenditures, repayment of debt, potential acquisitions and strategic transactions of businesses, technologies or product. However, RingCentral has not designated any specific uses and has no current agreements with respect to any material acquisition or strategic transaction.

The notes will be offered to qualified institutional buyers pursuant to Rule 144A under the Act. Neither the notes nor the shares of common stock issuable upon conversion of the notes, if any, have been, nor will be, registered under the Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful.

About RingCentral

RingCentral, Inc. (NYSE:RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect from any location, on any device, and via any mode. RingCentral provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California , and has offices around the world.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Act and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to, whether RingCentral will be able to consummate the offering, the final terms of the offering and the capped call transactions, the satisfaction of customary closing conditions with respect to the offering of the notes, prevailing market conditions, the anticipated use of net proceeds of the offering of the notes which could change as a result of market conditions or for other reasons, whether the capped call transactions will become effective, whether any Share Repurchase or Note Repurchase will close and the impact of general economic, industry or political conditions in the United States or internationally. Forward-looking statements may be identified by the use of the words “may,” “will,” “expect,” “intend” and other similar expressions. These forward-looking statements are based on estimates and assumptions by RingCentral’s management that, although believed to be reasonable, are inherently uncertain and subject to a number of risks. Actual results may differ materially from those anticipated or predicted by RingCentral’s forward-looking statements. All forward-looking statements are subject to other risks detailed in our Annual Report on Form 10-K for the year ended December 31, 2019 and the risks discussed in our other filings with the Securities and Exchange Commission . You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and RingCentral undertakes no obligation to revise or update this news release to reflect events or circumstances after the date hereof, except as required by applicable law.

Investor Relations Contact:
Ryan Goodman , RingCentral
(650) 918-5356
Ryan.Goodman@ringcentral.com

Media Contact:
Mariana Leventis , RingCentral
(650) 562-6545
mariana.leventis@ringcentral.com

Source: RingCentral, Inc.

February 12, 2020

Zane Long, RingCentral SVP Global Channel Sales, Recognized as 2020 CRN® Channel Chief

BELMONT, Calif. --(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, announced today that CRN ® , a brand of The Channel Company , has named RingCentral’s SVP of Global Channel Sales, Zane Long , to its prestigious list of 2020 Channel Chiefs for the fourth consecutive year. The executives on this annual list are distinguished leaders who continue to drive growth and influence the IT channel with cutting-edge strategies and partnerships.

Each of the 2020 Channel Chiefs have shown outstanding commitment, an ability to lead, and a passion for progress within the channel through their partner programs. Channel Chief honorees were chosen by the CRN editorial staff for their dedication, industry prestige, and exceptional accomplishments in driving the channel agenda and evangelizing the importance of channel partnerships.

Long has succeeded in driving consistent growth in global channel partner bookings during his tenure at RingCentral . Under his leadership in Q4 2019, RingCentral’s channel business reached $300 million in annual recurring revenue (ARR), up 63% year-over-year. The channel has also contributed greatly to the company’s midmarket and enterprise business, with this segment now a $479 million ARR business that grew 59% year-over-year in Q4 2019.

“The IT channel is undergoing constant evolution to meet customer demands and changing business environments,” said Bob Skelley , CEO of The Channel Company . “CRN’s Channel Chiefs work tirelessly, leading the industry forward through superior partner programs and strategies with a focus on helping solution providers transform and grow. Our team here at The Channel Company congratulates these outstanding individuals for their dedication to the channel.”

“Channel has been a key growth driver for RingCentral , and we’re proud to see Zane’s ongoing leadership efforts and achievements recognized by The Channel Company ,” said Anand Eswaran , president and chief operating officer of RingCentral . “Zane has cultivated a strong channel harmony program that makes partners successful. We look forward to seeing this momentum continue in 2020.”

CRN’s 2020 Channel Chiefs list will be featured in the February 2020 issue of CRN Magazine and online at www.CRN.com/ChannelChiefs .

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect from any location, on any device, and via any mode. RingCentral provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California , and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

About The Channel Company

The Channel Company enables breakthrough IT channel performance with our dominant media, engaging events, expert consulting and education, and innovative marketing services and platforms. As the channel catalyst, we connect and empower technology suppliers, solution providers and end users. Backed by more than 30 years of unequalled channel experience, we draw from our deep knowledge to envision innovative new solutions for ever-evolving challenges in the technology marketplace. www.thechannelcompany.com

Follow The Channel Company : Twitter , LinkedIn , and Facebook .

© 2020. CRN is a registered trademark of The Channel Company, LLC . All rights reserved.

The Channel Company Contact:
Jennifer Hogan
The Channel Company
jhogan@thechannelcompany.com

RingCentral PR Contact:
Mariana Leventis
mariana.leventis@ringcentral.com

Source: RingCentral, Inc.

February 12, 2020

RingCentral Open Platform Reaches New Milestones

Platform now close to 30,000 developers and 3,000 certified integrations

BELMONT, Calif. --(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced continued momentum for the RingCentral Open Platform™ with approximately 30,000 developers and 3,000 certified integrations. The company is also announcing new and updated integrations with NetSuite , Salesforce, and Microsoft Teams, to name a few, that enhance overall business productivity and drive customer centric outcomes. In addition, RingCentral announced that the company won the DEVIES Award for ‘Best Innovation in Communications.’

“Our continuous growth and industry recognition is a testament to our rapid pace of innovation,” said Sangeeta Walsh , head of Platform Marketing. “RingCentral’s APIs are empowering developers across industries to revolutionize the way their organizations communicate and collaborate through custom integrations for their specific needs. We remain committed to enabling organizations to build customized workflows for their end users, making us an industry leader.”

Leading Use Cases for Key Integrations

RingCentral’s APIs allow partners and customers to integrate Unified Communications as a Service (UCaaS) capabilities into a software stack that fits their specific needs. Use cases of the new and enhanced integrations include:

  • NetSuite : With RingCentral’s newest integration for NetSuite , the company’s goal is to streamline business communications with key features such as click to dial, automatic call logging, and call assignments - driving quick business outcomes.
  • Salesforce : A new dashboard leverages RingCentral’s integration with Salesforce to provide managers with better insights on how their teams use call dispositions within Salesforce.
  • Microsoft Teams : RingCentral works across users’ Teams workspace, from web to desktop. It supports easy access for users to schedule a RingCentral meeting, initiate a call, and view communications history to drive productivity within Teams.

“Unified communications is evolving to support the way people want to work and collaborate and an open ecosystem is fundamental to that evolution,” said Jim Lundy , CEO, Aragon Research . “RingCentral’s open and flexible approach to enabling customizable communications has helped to fuel their accelerated market growth.”

Award Recognition

As the RingCentral platform continues to grow, the company remains focused on enabling organizations to build customized workflows for their end users, resulting in the rapid growth of the open platform. This vision has been recognized by the industry and led to several award wins for the company in the last 18 months, including:

  • 2020 DEVIES : RingCentral was named a winner of the 2020 DEVIES Award for ‘Best Innovation in Communications.’ The 2020 DEVIES Awards recognize technical innovation, adoption, and reception in the developer technology industry and by the developer community. RingCentral will be presented with the award on February 12, 2020 during DeveloperWeek 2020 , the world’s largest developer & engineering conference & expo at the Oakland Convention Center .

“Developer tools and solutions are continuing to grow in their importance to a global technology business' operations. RingCentral is a great example of the new era of products and services allowing developers and engineers to have a greater impact on a company's bottom line,” said Geoff Domoracki , CEO of DevNetwork, the producer of DeveloperWeek.

  • API World Award : In 2019, RingCentral was also awarded the API World Award for ‘Best in Communications APIs.’ The API World is the world's largest vendor-neutral API conference and expo, organizing the API Economy. API World is dedicated to the mission to be independent and facilitate connections, knowledge, trust and business within the developer community of API providers and consumers.

Continued Innovation

The RingCentral platform team is laser focused on enabling companies to innovate by expanding open APIs to bring simplified workflows across various products, verticals, and business sizes. RingCentral aims to unify business communications by empowering customers to discover, integrate or build customized business workflows involving communications.

For more information on building with the RingCentral API, visit https://developers.ringcentral.com .

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect from any location, on any device, and via any mode. RingCentral provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California , and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral , RingCentral Open Platform, and the RingCentral logo are trademarks of RingCentral, Inc.

Jyotsna Grover
650-513-8712
jyotsna.grover@ringcentral.com

Source: RingCentral, Inc.

February 10, 2020

RingCentral Announces Fourth Quarter 2019 Results

Surpasses $1 billion annual revenue run-rate

Total Revenue up 34%

Enterprise ARR up 71%

BELMONT, Calif. --(BUSINESS WIRE)-- RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced financial results for the fourth quarter ended December 31, 2019 .

Fourth Quarter Financial Highlights

  • Total revenue increased 34% year over year to $253 million .
  • Subscriptions revenue increased 33% year over year to $229 million .
  • Annualized Exit Monthly Recurring Subscriptions (ARR) increased 32% year over year to $960 million .
  • RingCentral Office ® ARR increased 36% year over year to $877 million .
  • Mid-market and Enterprise ARR increased 59% year over year to $479 million .
  • Enterprise ARR increased 71% year over year to $293 million .
  • Channel ARR increased 63% year over year to $300 million .

“Fourth quarter results were outstanding, driven by continued momentum in mid-market and enterprise markets. We are very excited to have surpassed our previous goal of a $1 billion annual revenue run-rate ahead of schedule,” said Vlad Shmunis , RingCentral’s founder, chairman and CEO. “Our success is rooted in our deep commitment to product excellence and a culture of strategic partnerships, as evidenced by our unique relationships with AT&T, Avaya, and now Atos . These partnerships are a strong validation of our industry leadership and provide additional opportunities for our long-term growth.”

Financial Results for the Fourth Quarter 2019

  • Revenue: Total revenue was $253 million for the fourth quarter of 2019, up from $189 million in the fourth quarter of 2018, representing 34% growth.
  • Operating Income (Loss): GAAP operating loss was ($20) million , compared to a GAAP operating loss of ($3) million in the same period last year, primarily driven by higher share-based compensation, amortization of intangibles, and acquisition related matters. Non-GAAP operating income was $24 million , compared to a non-GAAP operating income of $17 million in the same period last year.
  • Net Income (Loss) Per Share: GAAP net loss per share was ( $0.30 ), compared to ( $0.07 ) in the same period last year, primarily driven by higher share-based compensation, amortization of intangibles, and acquisition related matters. Non-GAAP net income per diluted share was $0.22 , compared to $0.23 per diluted share in the same period last year. The fourth quarter of 2019 reflected a 22.5% non-GAAP tax rate, compared to nearly 0% non-GAAP tax rate in our 2018 reporting. There were no material cash taxes given our net operating loss carryforwards.
  • Balance Sheet: Total cash and cash equivalents at the end of the fourth quarter of 2019 was $344 million , which reflects one-time payments related to our recent strategic partnerships. This compares with $583 million at the end of the third quarter of 2019.

Financial Results for the Full Year 2019

  • Revenue: Total revenue was $903 million for 2019, up from $674 million in 2018, representing 34% growth.
  • Operating Income (Loss): GAAP operating loss was ($46) million , compared to a GAAP operating loss of ($16) million in 2018, primarily driven by higher share-based compensation, amortization of intangibles, and acquisition related matters. Non-GAAP operating income was $83 million , compared to a non-GAAP operating income of $59 million in 2018.
  • Net Income (Loss) Per Share: GAAP net loss per share was ( $0.64 ), compared to ( $0.33 ) in 2018, primarily driven by higher share-based compensation, amortization of intangibles, and acquisition related matters. Non-GAAP net income per diluted share was $0.82 , compared to $0.77 in 2018. 2019 reflected a 22.5% non-GAAP tax rate, compared to a nearly 0% non-GAAP tax rate in 2018 reporting. There were no material cash taxes given our net operating loss carryforwards.

Additional Highlights

  • Announced that Anand Eswaran , former Corporate Vice President for Microsoft’s Global Enterprise Business, has joined the company as its President and Chief Operating Officer.
  • Named a November 2019 Gartner Peer Insights Customers’ Choice for Unified Communications as a Service Worldwide as reviewed by customers. RingCentral received an overall rating of 4.5 out of 5 stars, based on 125 reviews, as of October 31, 2019 .
  • Announced that Carousel , Telarus , and Westcon have been named Platinum Partners by RingCentral , a designation held by RingCentral’s most strategic partners.

Financial Outlook

Full Year 2020 Guidance:

  • Total revenue range of $1.125 to $1.135 billion , representing annual growth of 25% to 26%.
  • Subscriptions revenue range of $1.019 to $1.027 billion , representing annual growth of 25% to 26%.
  • GAAP operating margin between (10.9%) and (9.6%).
  • Non-GAAP operating margin between 9.6% and 9.7%.
  • Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
  • Non-GAAP EPS range of $0.93 to $0.94 based on 94.5 million fully diluted shares. This reflects additional imputed shares from the convertible debt due to stock price appreciation and shares issued to Avaya in November 2019 , which if excluded would have increased the guidance range by $0.04 .
  • Share-based compensation range of $185 to $195 million , amortization of debt discount of $22 million , and amortization of acquired intangibles range of $34 to $36 million .

First Quarter 2020 Guidance:

  • Total revenue range of $257 to $259 million , representing annual growth of 28% to 29%.
  • Subscriptions revenue range of $233 to $235 million , representing annual growth of 28% to 29%.
  • GAAP operating margin range of (10.3%) to (9.5%).
  • Non-GAAP operating margin of 8.0% to 8.1%.
  • Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
  • Non-GAAP EPS of $0.18 to $0.19 based on 93.0 million fully diluted shares.
  • Share-based compensation range of $37 to $38 million , amortization of debt discount of $5 million , and amortization of acquired intangibles range of $8.5 to $9.0 million .

For a reconciliation of our forecasted non-GAAP operating margin, see “Reconciliation of Forecasted Operating Margin GAAP Measures to Non-GAAP Measures.” We have not reconciled our non-GAAP EPS to its respective forecasted GAAP measure because we do not provide guidance on it. We do not provide guidance on forecasted GAAP EPS because of the inherent uncertainty and complexity involved in forecasting the intercompany remeasurement gain (loss), gain (loss) associated with investments and strategic partnerships, and provision (benefit) from income taxes, which could be significant reconciling items between the non-GAAP and respective GAAP measures. The intercompany remeasurement gain (loss) is affected by the movement in various exchange rates relative to the U.S. Dollar, which is difficult to predict and subject to constant change. We do not provide guidance on gain (loss) associated with investments and strategic partnerships as it is based on future share prices, which are difficult to predict and subject to inherent uncertainties. We do not provide guidance on forecasted GAAP tax rates as we do not forecast discrete tax items as they are difficult to predict. The provision (benefit) from income taxes, excluding discrete items, is expected to have an immaterial impact to our GAAP EPS. We utilized a projected long-term tax rate in our computation of the non-GAAP income tax provision. For fiscal 2020, we have determined the projected non-GAAP tax rate to be 22.5%. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.

Conference Call Details:

  • What: RingCentral financial results for the fourth quarter of 2019 and outlook for first quarter and the full year of 2020.
  • When: Monday, February 10, 2020 at 2:00PM PT ( 5:00PM ET ).
  • Dial-in: To access the call in the United States , please dial (877) 705-6003, and for international callers, dial (201) 493-6725. Callers 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: Following the completion of the call through 11:59 PM ET on February 17, 2020 , a telephone replay will be available by dialing (844) 512-2921 from the United States or (412) 317-6671 internationally with recording access code 13698019.

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at http://ir.ringcentral.com/ .

About RingCentral

RingCentral, Inc. (NYSE:RNG) is a leading provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, the RingCentral platform empowers employees to work better together, from any location, on any device, and via any mode to serve customers, improving business efficiency and customer satisfaction. The company provides unified voice, video meetings, team messaging, digital customer engagement, and integrated contact center solutions for enterprises globally. RingCentral’s open platform integrates with leading business apps and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California , and has offices around the world.

©2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

Forward-Looking Statements

This press release contains “forward-looking statements,” including but not limited to, statements regarding our future financial results, our GAAP and non-GAAP guidance, our momentum in mid-market and enterprise, the contribution of the channel, the success of our relationships with AT&T, Avaya, and Atos in broadening our global sales reach, and our market opportunity. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those in any forward-looking statements are: our ability to realize the anticipated benefits of our relationships with AT&T, Avaya, and Atos ; our ability to grow at our expected rate of growth; our ability to add and retain larger and enterprise customers and enter new geographies and markets; our ability to continue to release, and gain customer acceptance of, new and improved versions of our services; our ability to compete successfully against existing and new competitors; our ability to enter into and maintain relationships with resellers, carriers and strategic partners; our ability to successfully and timely integrate, and realize the benefits of any significant acquisition we may make; our ability to manage our expenses and growth; and general market, political, economic, and business conditions, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Form 10-Q for the quarter ended September 30, 2019 , filed with the Securities and Exchange Commission ; and in other filings we make with the Securities and Exchange Commission from time to time.

All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.

Non-GAAP Financial Measures

Our reported financial results and financial outlook include certain Non-GAAP financial measures, including Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP net income (loss) and Non-GAAP net income (loss) per diluted share. Non-GAAP subscriptions gross margin is defined as Non-GAAP subscriptions gross profit divided by GAAP subscriptions revenue. Non-GAAP other gross margin is defined as Non-GAAP other gross profit divided by GAAP other revenue. Non-GAAP income (loss) from operations is defined as GAAP income (loss) from operations excluding share-based compensation, amortization of acquisition intangibles, and acquisition related matters including transaction costs, integration costs, restructuring costs, and acquisition-related retention payments, as well as changes in the fair value of contingent consideration obligations. Non-GAAP operating margin is defined as Non-GAAP income (loss) from operations divided by total GAAP revenue. Non-GAAP net income (loss) is defined as GAAP net income (loss) excluding share-based compensation, intercompany remeasurement gains or losses, acquisition related matters, amortization of acquisition intangibles, non-cash interest expense associated with amortization of debt discount and issuance costs related to our convertible senior notes, gain (loss) associated with investments and strategic partnerships, tax benefit from release of valuation allowance, and the related income tax effect of these adjustments.

Non-GAAP diluted shares outstanding include the impact on shares used in per share calculations of our outstanding capped call transactions. Our outstanding capped call transactions are anti-dilutive in GAAP earnings per share but are expected to mitigate the dilutive effect of our convertible notes and therefore are included in the calculations of non-GAAP diluted shares outstanding.

We have included Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), and Non-GAAP net income (loss) per diluted share in this press release because they are key measures used by us to understand and evaluate our operating performance and trends, to prepare and approve our annual budget, and to develop short and long-term operational plans. In particular, the exclusion of certain expenses in calculating Non-GAAP software subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), and Non-GAAP net income (loss) per diluted share provide useful measure for period-to-period comparisons of our business.

Although Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), and Non-GAAP net income (loss) per diluted share are frequently used by investors in their evaluations of companies, these non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered alongside other financial performance measures.

Reconciliations of the Company’s non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release.

Other Measures

Our reported results also include our annualized exit monthly recurring subscriptions, RingCentral Office ® annualized exit monthly recurring subscriptions, mid-market and enterprise annualized exit monthly recurring subscriptions, enterprise annualized exit monthly recurring subscriptions, channel partner annualized exit monthly recurring subscriptions, and net monthly subscriptions dollar retention. We define our annualized exit monthly recurring subscriptions as our monthly recurring subscriptions multiplied by 12. Our monthly recurring subscriptions equal the monthly value of all customer recurring charges contracted at the end of a given month. We believe this metric is a leading indicator of our anticipated subscriptions revenue. We calculate our RingCentral Office ® annualized exit monthly recurring subscriptions in the same manner as we calculate our annualized exit monthly recurring subscriptions, except that only customer subscriptions from RingCentral Office ® and RingCentral customer engagement solutions customers are included when determining monthly recurring subscriptions for the purposes of calculating this key business metric. We calculate mid-market and enterprise annualized exit monthly recurring subscriptions in the same manner as we calculate our RingCentral Office ® annualized exit monthly recurring subscriptions, except that only customer subscriptions from customers generating $25,000 or more in annual recurring revenue are included. We calculate enterprise annualized exit monthly recurring subscriptions in the same manner as we calculate our RingCentral Office ® annualized exit monthly recurring subscriptions, except that only customer subscriptions from customers generating $100,000 or more in annual recurring revenue are included. We calculate channel partner annualized exit monthly recurring subscriptions in the same manner as we calculate our annualized exit monthly revenue subscriptions, except that only customer subscriptions generated from channel partners are included. We define Dollar Net Change as the quotient of (i) the difference of our Monthly Recurring Subscriptions at the end of a period minus our Monthly Recurring Subscriptions at the beginning of a period minus our Monthly Recurring Subscriptions at the end of the period from new customers we added during the period, (ii) all divided by the number of months in the period. We define our Average Monthly Recurring Subscriptions as the average of the Monthly Recurring Subscriptions at the beginning and end of the measurement period.

Disclaimer

Gartner, Gartner Peer Insights ‘Voice of the Customer’: Unified Communications as a Service, Worldwide, Peer Contributors, 10 December 2019 .

Gartner Peer Insights Customers’ Choice constitute the subjective opinions of individual end-user reviews, ratings, and data applied against a documented methodology; they neither represent the views of, nor constitute an endorsement by, Gartner or its affiliates.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

TABLE 1
RINGCENTRAL, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)


December 31, 2019


December 31, 2018

Assets




Current assets




Cash and cash equivalents

$

343,606



$

566,329


Accounts receivable, net

129,990



94,375


Deferred sales commission costs

36,589



23,038


Prepaid expenses and other current assets

25,354



23,772


Total current assets

535,539



707,514


Property and equipment, net

89,230



70,205


Operating lease right-of-use-assets

39,269




Long-term investments

132,188




Deferred and prepaid sales commission costs, non-current

462,344



55,735


Goodwill

55,278



31,238


Acquired intangibles, net

127,338



19,480


Other assets

9,561



10,154


Total assets

$

1,450,747



$

894,326


Liabilities and Stockholders’ Equity




Current liabilities




Accounts payable

$

34,612



$

10,145


Accrued liabilities

138,729



100,687


Deferred revenue

107,372



88,527


Total current liabilities

280,713



199,359


Convertible senior notes, net

386,889



366,552


Operating lease liabilities

28,516




Other long-term liabilities

8,929



10,806


Total liabilities

705,047



576,717






Stockholders’ equity




Common stock

9



8


Additional paid-in capital

1,033,053



551,078


Accumulated other comprehensive income

1,948



2,226


Accumulated deficit

(289,310

)


(235,703

)

Total stockholders’ equity

$

745,700



$

317,609


Total liabilities and stockholders’ equity

$

1,450,747



$

894,326


The Company adopted the new accounting standard related to leases (Topic 842) effective January 1, 2019 .

TABLE 2
RINGCENTRAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)


Three Months Ended
December 31, 2019


Year Ended
December 31 ,


2019


2018


2019


2018

Revenues








Subscriptions

$

229,405



$

171,901



$

817,811



$

612,888


Other

23,460



16,723



85,047



60,736


Total revenues

252,865



188,624



902,858



673,624


Cost of revenues








Subscriptions

45,977



30,254



160,320



109,454


Other

20,896



13,861



70,723



47,675


Total cost of revenues

66,873



44,115



231,043



157,129


Gross profit

185,992



144,509



671,815



516,495


Operating expenses








Research and development

38,658



27,230



136,363



101,042


Sales and marketing

126,077



91,894



439,100



329,116


General and administrative

41,626



28,789



142,027



102,773


Total operating expenses

206,361



147,913



717,490



532,931


Loss from operations

(20,369

)


(3,404

)


(45,675

)


(16,436

)

Other income (expense), net








Interest expense

(5,232

)


(4,939

)


(20,512

)


(16,102

)

Other income, net

129



2,531



9,247



6,475


Other income (expense), net

(5,103

)


(2,408

)


(11,265

)


(9,627

)

Loss before income taxes

(25,472

)


(5,812

)


(56,940

)


(26,063

)

Provision for (benefit from) income taxes

(215

)


(134

)


(3,333

)


140


Net loss

$

(25,257

)


$

(5,678

)


$

(53,607

)


$

(26,203

)

Net loss per common share








Basic and diluted

$

(0.30

)


$

(0.07

)


$

(0.64