|By Business Wire||
|February 6, 2014 04:05 PM EST||
Fourth Quarter Highlights:
- Revenue increased 37% year-over-year to $45.3 million.
- Total annualized exit monthly recurring subscriptions were up 39% year-over-year to $173.2 million.
- RingCentral OfficeTM annualized exit monthly recurring subscriptions were up 67% year-over-year to $112.3 million.
- Net monthly subscription dollar retention was 99%.
“2013 was a terrific year for RingCentral as more and more businesses chose our cloud-based solutions,” said Vlad Shmunis, RingCentral’s Chairman and CEO. “As businesses look for solutions to address today’s increasingly distributed and mobile workforce, they are increasingly choosing RingCentral.”
Financial Results of the Fourth Quarter 2013:
- Revenue: Total revenue was $45.3 million for the fourth quarter of 2013, up 37% from the fourth quarter of 2012. Service revenue was $41.3 million for the fourth quarter of 2013, up 35% from the fourth quarter of 2012. Product revenue was $4.0 million, up 66% from the fourth quarter of 2012.
- Net Income (Loss): Net income (loss) per diluted share was ($0.22) for the fourth quarter of 2013 compared with ($0.31) for the fourth quarter of 2012. Non-GAAP net income (loss) per diluted share was ($0.14) for the fourth quarter of 2013, compared with ($0.26) per diluted share for the fourth quarter of 2012.
- Balance Sheet: Total cash and marketable securities at the end of the fourth quarter of 2013 was $116.4 million, up from $25.5 million at the end of the third quarter of 2013 reflecting approximately $99 million of net proceeds from our initial public offering, which was funded in October 2013.
Financial Results of the Full Year 2013:
- Revenue: Total revenue was $160.5 million for the full year of 2013, up 40% from the full year of 2012. Service revenue was $146.0 million for the full year of 2013, up 38% from the full year of 2012. Product revenue was $14.5 million, up 64% from 2012.
- Net Income (Loss): Net income (loss) per diluted share was ($1.39) for the full year of 2013 compared with ($1.58) for the full year of 2012. Non-GAAP net income (loss) per diluted share was ($1.01) for the full year of 2013, compared with ($1.40) per diluted share for the full year of 2012.
- Balance Sheet: Total cash and marketable securities at the end of 2013 was $116.4 million, up from $37.9 million at the end of 2012.
Announcement of Agreement with TELUS
TELUS, a leading national telecommunications company in Canada, has selected RingCentral’s cloud-based services to deliver advanced communication solutions for its business customers.
“Enterprises across Canada are looking for the next generation of communication solutions to meet the rapidly changing needs of their business,” said Jim Senko, vice-president, Mobility Solutions at TELUS. “RingCentral brings in a unique cloud-based mobile solution combined with unparalleled ease of use and management.”
RingCentral has a proven track record of working with leading carriers like AT&T. Working with TELUS in Canada will further underscore the company’s ability to scale efficiently to meet the needs of global telecommunications service providers.
“We’re quite pleased with the strong growth of our direct business, and especially with our ability to move up-market, which we expect will be further strengthened by the recent introduction of our Office Enterprise Edition with RingCentral Meetings, the industry’s first mobile-centric integrated cloud communications solution,“ said Shmunis. “And we’re particularly excited to be working with TELUS, which is further validation of our platform and ability to work with major carriers to address the rapidly evolving needs of their business customers.”
Fourth Quarter 2013 and Recent Business Highlights:
- RingCentral was added to the U.S. Russell 2000®, Russell 3000® and Russell Global Indexes, effective after the market close on December 20, 2013.
- Launched the industry’s first mobile-centric, integrated cloud communications platform. RingCentral Office Enterprise Edition with RingCentral MeetingsTM, is a multi-point HD video and web conferencing product built for smartphones, tablets and PCs.
- RingCentral’s mobile cloud communications was named winner of the Gold Stevie® Award for "Best New Product or Service of the Year - Telecommunication Services" for the 11th Annual American Business Awards.
- TMC, a global, integrated media company, named RingCentral OfficeTM as a recipient of a 2014 INTERNET TELEPHONY Product of the Year Award
Conference Call Details:
- What: RingCentral financial results for the fourth quarter and full year of 2013 and outlook for the first quarter and full year of 2014.
- When: Thursday, February 6, 2013 at 2PM PT (5PM 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 may provide confirmation number 10000539 to access the call more quickly, and are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining.
- Webcast: http://ir.ringcentral.com/ (live and replay).
- Replay: A replay of the call will be available via telephone for seven days, beginning two hours after the call. To listen to the telephone replay in the U.S., please dial (877) 870-5176 from the United States or (858) 384-5517 internationally with recording access code 10000539.
RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud business communications solutions. Easier to manage and more flexible than on-premise communications systems, RingCentral’s cloud solution meets the needs of modern distributed and mobile workforces, while eliminating the expense of on-premise hardware and software. RingCentral is headquartered in San Mateo, California.
This press release contains “forward-looking statements”, including statements regarding the expected ongoing trend toward a distributed and mobile workforce, our ability to scale and to continue to move up market, and our alliance with TELUS. 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 grow at our expected rate of growth; our ability to add and retain larger 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; whether our relationship with TELUS is successful; our ability to compete successfully against existing and new competitors; 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, 2013, 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 results include certain non-GAAP financial measures, including Non-GAAP operating income (loss) and Non-GAAP net income (loss) per share. We define Non-GAAP operating income (loss) as operating income (loss) excluding share-based compensation, legal settlements and other one-time items. We define Non-GAAP net income (loss) per share as net income (loss) per share assuming all preferred stock converted into common stock at the later of the start of the period or the date of issuance.
We have included Non-GAAP operating income (loss) and Non-GAAP net income (loss) per share in this press release because they are key measures used by us to understand and evaluate our core 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 operating income (loss) and Non-GAAP net income (loss) per share can provide a useful measure for period-to-period comparisons of our core business.
Although Non-GAAP operating income (loss) and Non-GAAP net income (loss) per 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.
We have not reconciled Non-GAAP operating income (loss) to operating income (loss) guidance or Non-GAAP net income (loss) per share to net income (loss) per share guidance because we do not provide guidance for share-based compensation expense, provision for income taxes, interest income, interest expense, and other income and expenses, which are reconciling items between Non-GAAP operating income (loss) to operating income (loss) guidance or Non-GAAP net income (loss) per share to net income (loss) per share. As items that impact net income (loss) are out of our control and/or cannot be reasonably predicted, we are unable to provide such guidance. Accordingly, reconciliation to net income (loss) is not available without unreasonable effort. For a reconciliation of historical non-GAAP financial measures to the nearest comparable GAAP measures, see the reconciliation tables included in this press release.
Our reported results also include our total annualized exit monthly recurring subscriptions and RingCentral Office annualized exit monthly recurring subscriptions. We define our total annualized exit monthly recurring subscriptions as our total monthly recurring subscriptions multiplied by 12. Our total monthly recurring subscriptions equals the monthly value of all customer subscriptions in effect at the end of a given month. We believe this metric is a leading indicator of our anticipated services revenues. We calculate our RingCentral Office annualized exit monthly recurring subscriptions in the same manner as we calculate our total annualized exit monthly recurring subscriptions, except that only customer subscriptions from RingCentral Office customers are included when determining monthly recurring subscriptions for the purposes of calculating this key business metric.
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|(Unaudited, in thousands)|
|Cash and cash equivalents||$||116,378||$||37,864|
|Accounts receivable, net||3,045||2,690|
|Prepaid expenses and other current assets||5,214||3,408|
|Total current assets||126,748||44,795|
|Property and equipment, net||16,660||17,008|
|Total assets||$ 145,185||$||63,354|
|Liabilities and Shareholders’ Equity|
|Current portion of capital lease obligation||347||312|
|Current portion of long-term debt||10,184||7,636|
|Total current liabilities||52,056||45,279|
|Sales tax liability||3,988||3,877|
|Capital lease obligation||247||703|
|Other long-term liabilities||1,336||996|
|Convertible preferred stock||—||74,020|
|Additional paid-in capital||193,574||9,791|
|Accumulated other comprehensive loss||(310)||(85)|
|Total shareholders’ equity||63,515||71|
|Total liabilities and shareholders’ equity||$||145,185||$||63,354|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|(Unaudited, in thousands, except per share data)|
Three Months Ended
|Cost of revenues:|
|Total cost of revenues||17,151||12,370||61,519||44,903|
|Research and development||9,139||6,868||33,399||24,450|
|Sales and marketing||19,983||14,941||72,336||54,566|
|General and administrative||9,425||5,287||34,284||24,434|
|Total operating expenses||38,547||27,096||140,019||103,450|
|Loss from operations||(10,355)||(6,341||)||(41,033)||(33,827||)|
|Other expense, net||(2,990)||(707||)||(5,110)||(1,471||)|
|Loss before provision (benefit) for income taxes||(13,345)||(7,048||)||(46,143)||(35,298||)|
|Provision (benefit) for income taxes||20||35||(45)||92|
|Net loss per common share:|
|Basic and diluted||($||0.22)||($||0.31||)||($||1.39||)||($||1.58||)|
|Weighted-average number of shares used in computing net loss per share:|
|Basic and diluted||62,098||22,539||33,155||22,353|
|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS|
|(Unaudited, in thousands)|
|Cash flows from operating activities:|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Depreciation and amortization||8,980||6,191|
|Deferred income tax||(16)||(56)|
|Non-cash interest and other expense related to debt||2,014||265|
|Loss on disposal of assets||338||26|
|Changes in assets and liabilities|
|Prepaid expenses and other current assets||(1,873)||(2,022||)|
|Net cash used in operating activities||(23,771)||(15,015||)|
|Cash flows from investing activities:|
|Purchases of property and equipment||(10,789)||(10,172||)|
|Net cash used in investing activities||(10,919)||(10,172||)|
|Cash flows from financing activities:|
|Net proceeds from debt agreements||37,857||24,538|
|Proceeds from issuance of preferred stock warrants in connection with debt||1,625||501|
|Repayment of debt||(26,309)||(5,356||)|
|Repayment of capital lease obligations||(422)||(675||)|
|Net proceeds from initial public offering||103,309||—|
|Payment of deferred initial public offering costs||(3,720)||—|
|Proceeds from issuance of preferred stock||—||29,911|
|Proceeds from exercise of stock options and common stock warrants||893||556|
|Net cash provided by financing activities||113,233||49,475|
|Effect of exchange rate changes on cash and cash equivalents||(29)||(1||)|
|Net increase in cash and cash equivalents||78,514||24,287|
|Cash and cash equivalents:|
|Beginning of period||37,864||13,577|
|End of period||$116,378||$37,864|
|RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES|
|(In thousands, except per share data)|
Three Months Ended
Three Months Ended
|Services||$ 41,327||$ 30,704||$ 145,995||$ 105,693|
|Cost of Revenues reconciliation:|
|GAAP Services cost of revenues||13,051||9,905||47,230||36,215|
|Non-GAAP services cost of revenues||12,809||9,845||46,691||35,980|
|GAAP Product cost of revenues||4,100||2,465||14,289||8,688|
|Gross profit and gross margin reconciliation:|
|Non-GAAP Gross profit||62.7%||62.8%||62.0%||61.0%|
|Operating expenses reconciliation:|
|GAAP Research and development||9,139||6,868||33,399||24,450|
|Non-GAAP research and development||8,528||6,567||31,904||23,613|
|As a % of total revenues non-GAAP||18.8%||19.8%||19.9%||20.6%|
|GAAP Sales and marketing||19,983||14,941||72,336||54,566|
|Non-GAAP sales and marketing||19,404||14,773||71,023||53,915|
|As a % of total revenues non-GAAP||42.8%||44.6%||44.3%||47.1%|
|GAAP General and administrative||9,425||5,287||34,284||24,434|
|Legal related matters||-||-||(3,097)||(1,000)|
|Non-GAAP general and administrative||7,864||4,698||26,995||22,055|
|As a % of total revenues non-GAAP||17.3%||14.2%||16.8%||19.3%|
|Loss from operations reconciliation:|
|GAAP loss from operations||(10,355)||(6,341)||(41,033)||(33,827)|
|Legal related matters||-||-||3,097||1,000|
|Non-GAAP loss from Operations||(7,362)||(5,223)||(30,397)||(29,725)|
|Net loss reconciliation:|
|GAAP Net loss||(13,365)||(7,083)||(46,098)||(35,390)|
|Legal related matters||-||-||3,097||1,000|
|Non-GAAP Net loss||$ (8,539)||$ (5,965)||$ (33,629)||$ (31,288)|
|Basic and diluted net loss per share|
|GAAP||$ (0.22)||$ (0.31)||$ (1.39)||$ (1.58)|
|Non-GAAP||$ (0.14)||$ (0.26)||$ (1.01)||$ (1.40)|
|Shares used to compute basic and diluted GAAP and Non-GAAP net loss per share||62,098||22,539||33,155||22,353|
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Sep. 1, 2015 03:00 AM EDT Reads: 460
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, discussed why containers should be paired with new architectural practices such as microservices rathe...
Sep. 1, 2015 01:00 AM EDT Reads: 408
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
Aug. 31, 2015 11:00 PM EDT Reads: 501
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
Aug. 31, 2015 10:30 PM EDT Reads: 402
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Aug. 31, 2015 09:00 PM EDT Reads: 370
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...
Aug. 31, 2015 07:15 PM EDT Reads: 485
The Internet of Things is in the early stages of mainstream deployment but it promises to unlock value and rapidly transform how organizations manage, operationalize, and monetize their assets. IoT is a complex structure of hardware, sensors, applications, analytics and devices that need to be able to communicate geographically and across all functions. Once the data is collected from numerous endpoints, the challenge then becomes converting it into actionable insight.
Aug. 31, 2015 07:00 PM EDT
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
Aug. 31, 2015 06:30 PM EDT Reads: 523
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Trel...
Aug. 31, 2015 06:00 PM EDT Reads: 243
Amazon and Google have built software-defined data centers (SDDCs) that deliver massively scalable services with great efficiency. Yet, building SDDCs has proven to be a near impossibility for ‘normal’ companies without hyper-scale resources. In his session at 17th Cloud Expo, David Cauthron, founder and chief executive officer of Nimboxx, will discuss the evolution of virtualization (hardware, application, memory, storage) and how commodity / open source hyper converged infrastructure (HCI) so...
Aug. 31, 2015 04:45 PM EDT
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
Aug. 31, 2015 04:30 PM EDT Reads: 464
The web app is agile. The REST API is agile. The testing and planning are agile. But alas, data infrastructures certainly are not. Once an application matures, changing the shape or indexing scheme of data often forces at best a top down planning exercise and at worst includes schema changes that force downtime. The time has come for a new approach that fundamentally advances the agility of distributed data infrastructures. Come learn about a new solution to the problems faced by software organ...
Aug. 31, 2015 04:30 PM EDT
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Aug. 31, 2015 03:15 PM EDT
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
Aug. 31, 2015 03:00 PM EDT Reads: 249
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...
Aug. 31, 2015 02:45 PM EDT Reads: 380