February 10, 2020

RingCentral Announces Fourth Quarter 2019 Results

Surpasses $1 billion annual revenue run-rate

Total Revenue up 34%

Enterprise ARR up 71%

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

Fourth Quarter Financial Highlights

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

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

Financial Results for the Fourth Quarter 2019

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

Financial Results for the Full Year 2019

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

Additional Highlights

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

Financial Outlook

Full Year 2020 Guidance:

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

First Quarter 2020 Guidance:

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

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

Conference Call Details:

  • What: RingCentral financial results for the fourth quarter of 2019 and outlook for first quarter and the full year of 2020.
  • When: Monday, February 10, 2020 at 2:00PM PT ( 5:00PM ET ).
  • Dial-in: To access the call in the United States , please dial (877) 705-6003, and for international callers, dial (201) 493-6725. Callers are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining.
  • Webcast: http://ir.ringcentral.com/ (live and replay).
  • Replay: Following the completion of the call through 11:59 PM ET on February 17, 2020 , a telephone replay will be available by dialing (844) 512-2921 from the United States or (412) 317-6671 internationally with recording access code 13698019.

Investor Presentation Details

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

About RingCentral

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

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

Forward-Looking Statements

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

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

Non-GAAP Financial Measures

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

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

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

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

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

Other Measures

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

Disclaimer

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

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

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

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


December 31, 2019


December 31, 2018

Assets




Current assets




Cash and cash equivalents

$

343,606



$

566,329


Accounts receivable, net

129,990



94,375


Deferred sales commission costs

36,589



23,038


Prepaid expenses and other current assets

25,354



23,772


Total current assets

535,539



707,514


Property and equipment, net

89,230



70,205


Operating lease right-of-use-assets

39,269




Long-term investments

132,188




Deferred and prepaid sales commission costs, non-current

462,344



55,735


Goodwill

55,278



31,238


Acquired intangibles, net

127,338



19,480


Other assets

9,561



10,154


Total assets

$

1,450,747



$

894,326


Liabilities and Stockholders’ Equity




Current liabilities




Accounts payable

$

34,612



$

10,145


Accrued liabilities

138,729



100,687


Deferred revenue

107,372



88,527


Total current liabilities

280,713



199,359


Convertible senior notes, net

386,889



366,552


Operating lease liabilities

28,516




Other long-term liabilities

8,929



10,806


Total liabilities

705,047



576,717






Stockholders’ equity




Common stock

9



8


Additional paid-in capital

1,033,053



551,078


Accumulated other comprehensive income

1,948



2,226


Accumulated deficit

(289,310

)


(235,703

)

Total stockholders’ equity

$

745,700



$

317,609


Total liabilities and stockholders’ equity

$

1,450,747



$

894,326


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

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


Three Months Ended
December 31, 2019


Year Ended
December 31 ,


2019


2018


2019


2018

Revenues








Subscriptions

$

229,405



$

171,901



$

817,811



$

612,888


Other

23,460



16,723



85,047



60,736


Total revenues

252,865



188,624



902,858



673,624


Cost of revenues








Subscriptions

45,977



30,254



160,320



109,454


Other

20,896



13,861



70,723



47,675


Total cost of revenues

66,873



44,115



231,043



157,129


Gross profit

185,992



144,509



671,815



516,495


Operating expenses








Research and development

38,658



27,230



136,363



101,042


Sales and marketing

126,077



91,894



439,100



329,116


General and administrative

41,626



28,789



142,027



102,773


Total operating expenses

206,361



147,913



717,490



532,931


Loss from operations

(20,369

)


(3,404

)


(45,675

)


(16,436

)

Other income (expense), net








Interest expense

(5,232

)


(4,939

)


(20,512

)


(16,102

)

Other income, net

129



2,531



9,247



6,475


Other income (expense), net

(5,103

)


(2,408

)


(11,265

)


(9,627

)

Loss before income taxes

(25,472

)


(5,812

)


(56,940

)


(26,063

)

Provision for (benefit from) income taxes

(215

)


(134

)


(3,333

)


140


Net loss

$

(25,257

)


$

(5,678

)


$

(53,607

)


$

(26,203

)

Net loss per common share








Basic and diluted

$

(0.30

)


$

(0.07

)


$

(0.64

)


$

(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

%

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

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

Source: RingCentral, Inc.

Back to press releases
Products
Partners
Developers
Resources
About Us
RingCentral App
© 2020 RingCentral, Inc. All rights reserved.
Close X