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

Belmont, Calif., -- 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.”

 

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.


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.

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.

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.

February 10, 2020

RingCentral Announces Fourth Quarter 2019 Results

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

)

 

$

(0.33

)

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

 

 

 

 

 

 

 

Basic and diluted

85,449

 

 

80,638

 

 

83,130

 

 

79,500

 

TABLE 3
RINGCENTRAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

 

Year Ended
December 31,

 

2019

 

2018

Cash flows from operating activities

 

 

 

Net loss

$

(53,607

)

 

$

(26,203

)

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

 

 

 

Depreciation and amortization

37,870

 

 

23,273

 

Share-based compensation

101,354

 

 

68,088

 

Amortization of deferred sales commission cost

30,134

 

 

19,754

 

Amortization of debt discount and issuance cost

20,337

 

 

15,918

 

Loss (gain) and other related costs on investments

3,369

 

 

 

Foreign currency remeasurement (gain) loss

(105

)

 

951

 

Provision for bad debt

2,949

 

 

3,091

 

Deferred income taxes

(737

)

 

(303

)

Tax benefit from release of valuation allowance

(3,210

)

 

 

Other

(334

)

 

614

 

Changes in assets and liabilities:

 

 

 

Accounts receivable

(37,163

)

 

(47,877

)

Deferred and prepaid sales commission costs

(102,303

)

 

(45,232

)

Prepaid expenses and other current assets

(1,575

)

 

(342

)

Other assets

764

 

 

279

 

Accounts payable

21,753

 

 

2,783

 

Accrued liabilities

27,095

 

 

33,695

 

Deferred revenue

18,845

 

 

24,780

 

Other liabilities

(590

)

 

(1,139

)

Net cash provided by operating activities

64,846

 

 

72,130

 

Cash flows from investing activities

 

 

 

Purchases of property and equipment

(27,767

)

 

(27,123

)

Capitalized internal-use software

(16,526

)

 

(11,421

)

Cash paid for business combination, net of cash acquired

(27,870

)

 

(26,434

)

Purchases of long-term investments

(135,557

)

 

 

Cash paid for acquisition of intangible assets

(89,060

)

 

(18,470

)

Net cash used in investing activities

(296,780

)

 

(83,448

)

Cash flows from financing activities

 

 

 

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

 

 

449,457

 

Payments for capped call transactions and costs

 

 

(49,910

)

Repurchase of common stock

 

 

(15,000

)

Proceeds from issuance of stock in connection with stock plans

29,827

 

 

20,621

 

Taxes paid related to net share settlement of equity awards

(14,666

)

 

(7,172

)

Payment of contingent consideration for business combination

(5,176

)

 

 

Repayment of financing obligations

(943

)

 

(741

)

Net cash provided by financing activities

9,042

 

 

397,255

 

Effect of exchange rate changes

169

 

 

(800

)

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

(222,723

)

 

385,137

 

Cash, cash equivalents, and restricted cash

 

 

 

Beginning of year

566,329

 

 

181,192

 

End of year

$

343,606

 

 

$

566,329

 

TABLE 4
RINGCENTRAL, INC.
RECONCILIATION OF OPERATING INCOME (LOSS)
GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited, in thousands)

 

Three Months Ended
December 31,

 

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 reconciliation

 

 

 

 

 

 

 

GAAP Subscriptions cost of revenues

45,977

 

 

30,254

 

 

160,320

 

 

109,454

 

Share-based compensation

(2,095

)

 

(1,162

)

 

(6,891

)

 

(4,343

)

Amortization of acquisition intangibles

(3,310

)

 

(277

)

 

(6,998

)

 

(729

)

Acquisition related matters

(81

)

 

(29

)

 

(145

)

 

(29

)

Non-GAAP Subscriptions cost of revenues

40,491

 

 

28,786

 

 

146,286

 

 

104,353

 

 

 

 

 

 

 

 

 

GAAP Other cost of revenues

20,896

 

 

13,861

 

 

70,723

 

 

47,675

 

Share-based compensation

(534

)

 

(194

)

 

(1,850

)

 

(639

)

Non-GAAP Other cost of revenues

20,362

 

 

13,667

 

 

68,873

 

 

47,036

 

Gross profit and gross margin reconciliation

 

 

 

 

 

 

 

Non-GAAP Subscriptions

82.3

%

 

83.3

%

 

82.1

%

 

83.0

%

Non-GAAP Other

13.2

%

 

18.3

%

 

19.0

%

 

22.6

%

Non-GAAP Gross profit

75.9

%

 

77.5

%

 

76.2

%

 

77.5

%

Operating expenses reconciliation

 

 

 

 

 

 

 

GAAP Research and development

38,658

 

 

27,230

 

 

136,363

 

 

101,042

 

Share-based compensation

(7,132

)

 

(3,906

)

 

(23,132

)

 

(14,975

)

Acquisition related matters

(341

)

 

(9

)

 

(693

)

 

(9

)

Non-GAAP Research and development

31,185

 

 

23,315

 

 

112,538

 

 

86,058

 

As a % of total revenues non-GAAP

12.3

%

 

12.4

%

 

12.5

%

 

12.8

%

 

 

 

 

 

 

 

 

GAAP Sales and marketing

126,077

 

 

91,894

 

 

439,100

 

 

329,116

 

Share-based compensation

(10,736

)

 

(7,645

)

 

(38,325

)

 

(27,324

)

Amortization of acquisition intangibles

(929

)

 

(726

)

 

(3,720

)

 

(3,617

)

Acquisition related matters

(8,374

)

 

(146

)

 

(10,483

)

 

(146

)

Non-GAAP Sales and marketing

106,038

 

 

83,377

 

 

386,572

 

 

298,029

 

As a % of total revenues non-GAAP

41.9

%

 

44.2

%

 

42.8

%

 

44.2

%

 

 

 

 

 

 

 

 

GAAP General and administrative

41,626

 

 

28,789

 

 

142,027

 

 

102,773

 

Share-based compensation

(9,167

)

 

(5,802

)

 

(31,156

)

 

(20,807

)

Acquisition related matters

(1,947

)

 

(794

)

 

(4,955

)

 

(2,536

)

Non-GAAP General and administrative

30,512

 

 

22,193

 

 

105,916

 

 

79,430

 

As a % of total revenues non-GAAP

12.1

%

 

11.8

%

 

11.7

%

 

11.8

%

Income (loss) from operations reconciliation

 

 

 

 

 

 

 

GAAP loss from operations

(20,369

)

 

(3,404

)

 

(45,675

)

 

(16,436

)

Share-based compensation

29,664

 

 

18,709

 

 

101,354

 

 

68,088

 

Amortization of acquisition intangibles

4,239

 

 

1,003

 

 

10,718

 

 

4,346

 

Acquisition related matters

10,743

 

 

978

 

 

16,276

 

 

2,720

 

Non-GAAP Income from operations

24,277

 

 

17,286

 

 

82,673

 

 

58,718

 

Non-GAAP Operating margin

9.6

%

9.2

%

9.2

%

8.7

%

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
December 31,

 

Year Ended
December 31,

 

2019

 

2018

 

2019

 

2018

Net (loss) income reconciliation

 

 

 

 

 

 

 

GAAP net loss

$

(25,257

)

 

$

(5,678

)

 

$

(53,607

)

 

$

(26,203

)

Share-based compensation

29,664

 

 

18,709

 

 

101,354

 

 

68,088

 

Amortization of acquisition intangibles

4,239

 

 

1,003

 

 

10,718

 

 

4,346

 

Acquisition related matters

21,300

 

 

978

 

 

26,833

 

 

2,720

 

Amortization of debt discount and issuance costs

5,188

 

 

4,915

 

 

20,337

 

 

15,918

 

Gain associated with investments and strategic partnerships

(8,343

)

 

 

 

(8,343

)

 

 

Intercompany remeasurement loss (gain)

(383

)

 

309

 

 

(119

)

 

1,183

 

Income tax expense effects (1)

(6,105

)

 

 

 

(24,446

)

 

 

Non-GAAP net income

$

20,303

 

 

$

20,236

 

 

$

72,727

 

 

$

66,052

 

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

85,449

 

 

80,638

 

 

83,130

 

 

79,500

 

Effect of dilutive securities

5,783

 

 

5,694

 

 

5,393

 

 

6,341

 

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

91,232

 

 

86,332

 

 

88,523

 

 

85,841

 

 

 

 

 

 

 

 

 

Diluted net (loss) income per share

 

 

 

 

 

 

 

GAAP net loss per share

$

(0.30

)

 

$

(0.07

)

 

$

(0.64

)

 

$

(0.33

)

Non-GAAP net income per share

$

0.22

 

 

$

0.23

 

 

$

0.82

 

 

$

0.77

 

(1) Income tax expense effects include the tax benefit from release of valuation allowance.

TABLE 6
RINGCENTRAL, INC.
RECONCILIATION OF FORECASTED OPERATING MARGIN
GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited, in millions)

 

Q1 2020

 

FY 2020

 

Low Range

 

High Range

 

Low Range

 

High Range

GAAP revenues

257.0

 

 

259.0

 

 

1,125.0

 

 

1,135.0

 

 

 

 

 

 

 

 

 

GAAP loss from operations

(26.4

)

 

(24.5

)

 

(123.0

)

 

(108.9

)

GAAP operating margin

(10.3

%)

 

(9.5

%)

 

(10.9

%)

 

(9.6

%)

Share-based compensation

38.0

 

 

37.0

 

 

195.0

 

 

185.0

 

Amortization of acquisition intangibles

9.0

 

 

8.5

 

 

36.0

 

 

34.0

 

Acquisition related matters

 

 

 

 

 

 

 

Non-GAAP income from operations

20.6

 

 

21.0

 

 

108.0

 

 

110.1

 

Non-GAAP operating margin

8.0

%

 

8.1

%

 

9.6

%

 

9.7

%

 

February 10, 2020

RingCentral Gains Momentum in Public Sector and Education Vertical With Key Agreement

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, continues to gain momentum in the public sector and education vertical through a new agreement with The Educational Services Commission of New Jersey (ESCNJ), which serves more than 1,300 members in public agencies including educational institutions across the state of New Jersey. Organizations will now have a simplified purchasing process of RingCentral solutions, that includes voice, video and team messaging on a single platform.

“We’re seeing public institutions move away from their legacy on-premise phone systems to modern unified cloud solutions that provide mobility and robust multi-modal communications capabilities for deeper engagement among employees and with their constituents,” said Carson Hostetter, SVP worldwide sales, RingCentral. “Through our agreement with the ESCNJ, the purchasing process to acquire RingCentral solutions for their members has been streamlined, which will make it easier for them to quickly modernize their legacy communications and collaboration systems.”

ESCNJ brings technology solutions to New Jersey’s state and local government, public schools and universities through the New Jersey State Approved Co-op #65MCESCCPS. Working to coordinate cost-efficient purchasing opportunities for educational institutions, ESCNJ selected RingCentral as a cloud communications solutions provider for their members in accordance with the award ESCNJ 19/20-30. Schools and education institutions across the state will now have access to RingCentral’s complete portfolio of cloud communications and collaboration solutions to help meet their digital transformation goals and transition to the cloud. With RingCentral, New Jersey educators and municipalities can communicate in modern ways with ease, both internally among staff and externally with students, parents, and their constituents.

For more information on how RingCentral supports education institutions, please visit: https://www.ringcentral.com/office/industry-solutions/education-cloud-phone-systems.html.

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.

February 3, 2020

Avaya and RingCentral Introduce Avaya Cloud Office™, Making Cloud Communications Simple

Avaya ENGAGE 2020 – Phoenix, AZ and 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 introduced Avaya Cloud Office™ by RingCentral®. Together, Avaya and RingCentral are redefining business communications by offering a solution delivering a seamless communication and collaboration through multiple channels.

The unified communications offering is based on the recent strategic partnership with RingCentral announced in October 2019. Being previewed at the annual Avaya ENGAGE user conference this week, Avaya Cloud Office combines RingCentral’s industry-leading unified communications as a service (UCaaS) platform with Avaya phones, services and migration capabilities to create a highly differentiated solution backed by communications experts that delivers cloud services with extensive communication and collaboration capabilities for businesses of all sizes. Avaya Cloud Office will be generally available for customers and partners this Spring.

Avaya Cloud Office enables users to realize how easy it is to communicate using an all-in-one solution that delivers calling, team messaging, video conferencing, file sharing and collaboration. Regardless of your workforce location, the types of devices they use, or what environments and applications they work with, Avaya Cloud Office works seamlessly. Avaya predicts that this solution will be the answer to growing demand for an evolving unified communications environment that captures cloud innovation while leveraging existing investments. Built on RingCentral’s open platform with over 200 pre-built business solution integrations, users can keep the tools they love and will be able to integrate them with Avaya Cloud Office. Overall, this allows users to benefit from Avaya enterprise-grade features and services with the ease and speed of the leading cloud unified communications platform to meet their unique requirements and budget.

“With Avaya Cloud Office, users can transform business communications and collaboration via the cloud at a pace that is right for them, simplify communications, easily scale as needed, and receive industry-leading security and support from a trusted partner,” said Dennis Kozak, SVP Business Transformation, Avaya. “At our Avaya ENGAGE 2020 user conference, we are excited to demonstrate Avaya Cloud Office to attendees. In addition, we are planning to train and certify partners and agents to be able to sell this solution so that it can reach customers as quickly as possible.”

“By bringing RingCentral’s industry-leading unified communications platform together with Avaya, our aim is to help businesses empower employees to communicate, collaborate, and work better together and best serve their customers and partners,” said Anand Eswaran, President and COO, RingCentral. “We look forward to the ongoing collaboration with Avaya that will continue to enhance and strengthen our partnership and bring industry-leading solutions to customers.”

With Avaya Cloud Office, users get:

  • The most requested functionality and the most advanced features in the market, such as Video, Chat, Collaboration, along with Calling and more – for organizations of any size
  • 200+ ready-to-use integrations with business cloud apps, including Microsoft Office 365, Salesforce, ServiceNow, Zendesk and Google G-Suite
  • Leading security and reliability features to keep business secure and operational, while also providing compliance for cloud providers
  • Compatibility with the Avaya phones and devices, including: J139, J169 and J179 Series phones, with additional devices to be added
  • Service and support managed by Avaya’s highly respected customer success team

“We are excited about the new partnership between Avaya and RingCentral, and we are looking forward to bringing Avaya Cloud Office to market,” said Jeff Gardner, CEO of Carousel, a top technology integrator, managed services and cloud solution provider, and a key Avaya partner. “The initial feedback we are hearing from our customers is very positive, and we have every expectation that they will embrace this new cloud offer as they seek communication solutions that more effectively address their evolving business needs.”

Avaya Cloud Office adds UCaaS solutions to the company’s industry-leading portfolio, which includes a full suite of communications software and hardware solutions to a global customer base that includes more than 120,000 customers, over 100 million UC seats and 5 million Contact Center users in over 180 countries.

“Businesses currently using premise-based or cloud solutions now have a new, compelling public cloud option available to them with Avaya Cloud Office, providing integrated and intuitive unified communications and collaboration,” said Elka Popova, Vice President of Connected Work research, Frost & Sullivan. “Avaya customers now have a smoother, more cost-effective migration path to a public cloud solution that makes it easier to realize enhanced workforce productivity and business agility.”

Avaya Cloud Office, and more innovations in communications and collaboration, will be featured at Avaya ENGAGE 2020, taking place in Phoenix, AZ from February 2nd to 5th. Expected to attract 3,000 attendees, Avaya ENGAGE is the annual conference for the world’s largest community of contact center and unified communications users, co-sponsored by IAUG, the International Avaya Users Group.

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 Avya Holdings Corp. All rights reserved. Avaya and the Avaya logo are trademarks of Avya 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 release contains certain “forward-looking statements.” 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 factors include risks related to the ability to successfully complete development of Avaya Cloud Office, the ability to successfully market, sell and transition customers to Avaya Cloud Office and other risks and uncertainties discussed in Avaya’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on November 29, 2019 and in RingCentral’s Quarterly Report on Form 10-Q filed with the SEC on November 12, 2019, and in other filings RingCentral and Avaya may make with the SEC from time to time. These risks and uncertainties may cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. For a further list and description of such risks and uncertainties, please refer to Ringcentral’s and Avaya’s respective filings with the SEC that are available at www.sec.gov. RingCentral and Avaya caution you that the list of important factors included in their SEC 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 report may not in fact occur. RingCentral and Avaya undertake no 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.

January 27, 2020

Altura Partners With RingCentral to Bring Industry-Leading Cloud Communications and Contact Center Solutions to US Enterprises

ANAHEIM, Calif. & BELMONT, Calif.--(BUSINESS WIRE)-- Altura, a leading provider of unified communications and network solutions, today announced it has joined RingCentral’s (NYSE:RNG) award-winning channel partner program. Altura will bring RingCentral’s cloud communications and contact center solutions to US enterprises across multiple sectors, including healthcare, government, and education.

Altura works with midmarket and enterprise businesses including local, state and federal government, as well as healthcare and education institutions across the US. Altura will partner with RingCentral to help its enterprise customers drive tighter collaboration and improve worker productivity and efficiency - all through the power of the cloud.

“As today’s workforce becomes more mobile and distributed, our customers are demanding solutions that allow their employees to communicate and collaborate seamlessly, wherever they are located so they can remain productive,” said Bob Blazek, president and CEO, Altura Communication Solutions. “RingCentral’s cloud communications platform is a strong addition to our portfolio, and we look forward to partnering with RingCentral to help our enterprise customers transition to the cloud.”

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.

“Altura has a strong network of enterprise customers looking for cloud-first, company-wide communications solutions,” said Zane Long, SVP of global channel sales, RingCentral. “Together we will help businesses of all sizes realize the benefits of a comprehensive, reliable cloud communications platform that enables them to scale globally and communicate effortlessly.”

About Altura

Altura Communications Solutions, Inc., is a leading provider of unified communications and network solutions. Headquartered in Anaheim, CA, the company serves the needs of enterprise customers with sales and service locations nationwide. Altura offers a complete range of voice and data applications and services, and is a leading provider of communication-enabled solutions and managed services. For more information, visit www.alturacs.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.

January 27, 2020

Altura Partners With RingCentral to Bring Industry-Leading Cloud Communications and Contact Center Solutions to US Enterprises

ANAHEIM, Calif. & BELMONT, Calif. --(BUSINESS WIRE)-- Altura , a leading provider of unified communications and network solutions, today announced it has joined RingCentral’s (NYSE:RNG) award-winning channel partner program. Altura will bring RingCentral’s cloud communications and contact center solutions to US enterprises across multiple sectors, including healthcare, government, and education.

Altura works with midmarket and enterprise businesses including local, state and federal government, as well as healthcare and education institutions across the US. Altura will partner with RingCentral to help its enterprise customers drive tighter collaboration and improve worker productivity and efficiency - all through the power of the cloud.

“As today’s workforce becomes more mobile and distributed, our customers are demanding solutions that allow their employees to communicate and collaborate seamlessly, wherever they are located so they can remain productive,” said Bob Blazek , president and CEO, Altura Communication Solutions . “RingCentral’s cloud communications platform is a strong addition to our portfolio, and we look forward to partnering with RingCentral to help our enterprise customers transition to the cloud.”

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.

“Altura has a strong network of enterprise customers looking for cloud-first, company-wide communications solutions,” said Zane Long , SVP of global channel sales, RingCentral . “Together we will help businesses of all sizes realize the benefits of a comprehensive, reliable cloud communications platform that enables them to scale globally and communicate effortlessly.”

About Altura

Altura Communications Solutions, Inc. , is a leading provider of unified communications and network solutions. Headquartered in Anaheim, CA , the company serves the needs of enterprise customers with sales and service locations nationwide. Altura offers a complete range of voice and data applications and services, and is a leading provider of communication-enabled solutions and managed services. For more information, visit www.alturacs.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.

Mariana Leventis
RingCentral
650-562-6545
mariana.leventis@ringcentral.com

Source: RingCentral, Inc.

January 13, 2020

Anand Eswaran, Former Microsoft Corporate Vice President for Global Enterprise Business, Joins RingCentral as President and Chief Operating Officer

RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today 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, reporting to CEO Vlad Shmunis. Eswaran will be responsible for leadership and execution across products, engineering, sales, marketing, services, customer care, operations, and human resources.

Eswaran’s experience spans over 24 years in global business leadership roles at technology organizations including Microsoft, SAP and HP. Eswaran was most recently responsible for Microsoft’s Enterprise Commercial and Public Sector business globally. Prior to that, he led Microsoft Services, Industry & Digital, Customer Care, and Customer Success; a global team of 24,000 professionals. Eswaran’s leadership and vision played a key role in the last five years in shaping Microsoft’s digital and industry strategy as a strategic partner to its customers in guiding and accelerating their digital transformation journeys.

“It is my pleasure to welcome Anand to RingCentral,” said Vlad Shmunis, RingCentral’s founder, chairman and CEO. “I am impressed by his deep customer-first mindset, his proven track record of building high growth global businesses and teams, and his ability to nurture a winning culture with vision, values and inspiration. I am confident that Anand’s joining our leadership team will be invaluable to RingCentral’s next phase of growth.”

Prior to joining Microsoft, Eswaran was the Executive Vice President of Global Services business at SAP, leading 17,000 business process and technology professionals to accelerate customer and partner value creation through SAP’s enterprise applications. Previously, he served as Vice President of Global Software Services at HP.

“I’m humbled and excited to join Vlad and the RingCentral team in transforming the world of enterprise cloud communications,” said Eswaran. “We are at an inflection point in changing the way we communicate, collaborate and work. RingCentral’s leadership in digital transformation of business communications worldwide is rooted in its proven technology platform and well-established partner ecosystem. I am thrilled to be joining this winning team and contributing to the entrepreneurial and continuous innovation culture at RingCentral.”

Additionally, Dave Sipes, COO, has announced that he will be retiring from the company at the end of Q2. After being part of RingCentral’s senior leadership team for nearly twelve years, Sipes plans to spend more time on family business interests and acting as a trusted advisor to startup companies. “The journey with RingCentral has been tremendous and personally fulfilling. I’m thankful for working with an amazing team and the success we have achieved. I look forward to working with Anand to ensure a seamless handoff over the next two quarters as we set up for the next phase of the Company’s growth and market leadership,” said Sipes.

“I’d like to thank Dave for his monumental contributions over the last twelve years,” added Shmunis. “He has played a pivotal role in RingCentral’s journey from an approximately ten million dollar company when he joined to the company’s nearly one billion dollars in revenue run rate. Dave has been instrumental in assembling and growing our winning team, and we thank him for his diligence, leadership, and dedication. We wish him all the best in the next stage of his journey and look forward to his continued friendship and mentorship. Looking ahead, I’m excited about Anand joining our team and look forward to working with him as we continue to extend our leadership position in the $50 billion UCaaS market.”

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.

Mariana Kosturos
(650) 562-6545
Mariana.kosturos@ringcentral.com

January 7, 2020

RingCentral Named a November 2019 Gartner Peer Insights Customers’ Choice for Unified Communications as a Service, Worldwide

Customer feedback and high ratings for RingCentral, Named a November 2019 Gartner Peer Insights Customers’ Choice

RingCentral, Inc., (NYSE:RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced it has been recognized as 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 31 October 2019.

“We take great pride in being named a November 2019 Gartner Peer Insights Customers’ Choice. This recognition reflects our commitment to providing value to our customers through our industry-leading business communications and collaboration solutions,” said Amritesh Chaudhuri, SVP of Marketing for RingCentral. “Based on widespread feedback from customers, it’s clear that we are enabling our business users to communicate effortlessly both within their organizations and with their customers and partners regardless of location, device or preferred mode of communication.”

The Gartner Peer Insights Customers' Choice distinction recognizes vendors and products that are highly rated by their customers. Gartner Peer Insights gives IT buyers the confidence to select enterprise solutions based on reviews by IT peers, verified by Gartner. To be recognized with the Customers’ Choice distinction, a vendor must have 50 or more published reviews and an average overall rating of 4.2 stars or higher across those reviews accumulated within the 12-month submission period. In addition, at least 20% of all eligible reviews must be from outside of the primary industry, region, and company size.

The following are examples of RingCentral customer reviews from Gartner Peer Insights:

  • "We were able to make a clean switch to RingCentral with zero downtime and no hiccups thanks to the amazing work of their implementation team. The product has enabled our users to be more mobile and their deep integration into our other systems has increased our teams’ efficiency." - Vice President in the Financial Services Industry
  • "The implementation of this product was fantastic. We have had great customer experience and engagement with the product as well as a huge cost savings. Definitely 5 stars." - CIO in the Manufacturing Industry

For additional information, click here.

About Gartner Peer Insights

Peer Insights is an online platform of ratings and reviews of IT software and services that are written and read by IT professionals and technology decision-makers. The goal is to help IT leaders make more insightful purchase decisions and help technology providers improve their products by receiving objective, unbiased feedback from their customers. Gartner Peer Insights includes more than 70,000 verified reviews in more than 200 markets. For more information, please visit www.gartner.com/reviews/home.

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.

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.

Mariana Kosturos
Mariana.kosturos@ringcentral.com
(650) 562-6545

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