RingCentral Press Releases

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

November 7, 2024

RingCentral and Verint Announce Strategic Partnership to Bring AI-Powered Workforce Engagement Management and CX Automation to RingCX Customers

BELMONT, Calif. & MELVILLE, N.Y.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a global leader in AI-powered trusted business communications for companies of all sizes, and Verint® (NASDAQ: VRNT), a leader in CX automation, today announced a strategic partnership to provide RingCX™ customers access to best-in-class workforce engagement management (WEM) and CX automation. Through this partnership, RingCX customers will have more choice and be able to leverage Verint’s leading WEM and CX automation solutions, which complement RingCentral’s native AI capabilities, to enhance employee productivity and improve customer experiences, ultimately driving competitive advantage and operational efficiency.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20241107126443/en/

“We’ve seen strong traction in all segments of the market, and to further enhance the value proposition of RingCX in the mid and enterprise segments, we see integration with Verint as a key component of delivering a complete customer experience platform,” said Vlad Shmunis, founder, chairman, and CEO of RingCentral. “We will now be able to offer our RingCX customers integration with industry-leading WEM and CX automation solutions from Verint. As the landscape of customer engagement solutions rapidly evolves, we remain committed to equipping our customers with cutting-edge, AI-powered solutions that not only enhance support and increase productivity, but also significantly reduce costs.”

“This partnership presents a great opportunity for RingCentral’s customers to benefit from significant AI business outcomes driven by the Verint Open Platform. Verint’s market-leading CX automation and Workforce Engagement Management cloud solutions will be seamlessly integrated with RingCX providing customers the opportunity to address a broad range of sophisticated contact center use cases,” said Dan Bodner, CEO of Verint. “Through this partnership, we are excited about extending our market reach by leveraging RingCentral’s extensive base and partner network.”

Key capabilities for RingCX customers will include:

  • Workforce Engagement Management (WEM): Enhances employee productivity through enterprise-grade quality management, interaction analytics, forecasting and scheduling. Provides performance and feedback management for efficient contact center operations and quality excellence.
  • AI Automation: Streamlines customer interactions by automating routine tasks and processes to reduce handling time and enhance service efficiency, contributing to improved customer satisfaction.
  • Intelligent Virtual Agents: Offers conversational AI capabilities that handle inquiries across voice and digital communication channels 24x7. Ensures consistent and accurate responses, freeing agents to focus on more complex customer support issues.
  • Knowledge Management: Provides a centralized repository for information, ensuring agents have quick access to accurate data during customer interactions. Improves response times and increases first-contact resolution rates by equipping agents with the right tools to assist customers effectively.

“In 2023 and 2024, the market began to embrace AI-enhanced applications such as intelligent virtual assistants and summarization - with measurable success,” said Sheila McGee-Smith, President & Principal Analyst, McGee-Smith Analytics, LLC. “Now, as we head into 2025, a broader set of companies is ready to gain the benefits AI can bring to CX operations. Verint’s market-leading WEM solutions and unique bot technology, combined with RingCentral's unique, AI-first contact center solution will be a powerful new option for RingCX customers.”

About RingCentral

RingCentral is a global leader in AI-powered trusted business communications, contact center, revenue intelligence, video and hybrid event solutions. RingCentral empowers businesses with conversation intelligence and unlocks rich customer and employee interactions to provide insights and improved business outcomes. With decades of expertise in reliable and secure cloud communications, RingCentral has earned the trust of hundreds of thousands of customers and millions of users worldwide. Visit ringcentral.com to learn more.

©2024 RingCentral, Inc. All rights reserved. RingCentral, RingCX, and the RingCentral logo are trademarks of RingCentral, Inc.

This press release contains “forward-looking statements,” including but not limited to, statements regarding RingCentral’s partnership with Verint to offer RingCX customers integration with WEM and CX automation solutions from Verint and the anticipated benefits of and activity under RingCentral’s partnership with Verint, including the ability to create growth opportunities for RingCentral. 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. Refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our most recent Form 10-K and Form 10-Q 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 the Company 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.

About Verint

Verint® (NASDAQ: VRNT) is a leader in customer experience (CX) automation. The world’s most iconic brands – including more than 80 of the Fortune 100 companies – use the Verint Open Platform and our team of AI-powered bots to deliver tangible AI business outcomes across the enterprise.

Verint, The CX Automation Company™, is proud to be Certified™ by Great Place To Work®. Learn more at Verint.com.

This press release contains “forward-looking statements,” including statements regarding expectations, predictions, views, opportunities, plans, strategies, beliefs, and statements of similar effect relating to Verint Systems Inc. These forward-looking statements are not guarantees of future performance and they are based on management’s expectations that involve a number of risks, uncertainties and assumptions, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. For a detailed discussion of these risk factors, see our Annual Report on Form 10-K for the fiscal year ended January 31, 2023, and other filings we make with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release and, except as required by law, Verint assumes no obligation to update or revise them or to provide reasons why actual results may differ.

VERINT, VERINT DA VINCI THE CUSTOMER ENGAGEMENT COMPANY, BOUNDLESS CUSTOMER ENGAGEMENT AND THE ENGAGEMENT CAPACITY GAP are trademarks of Verint Systems Inc. or its subsidiaries. Verint and other parties may also have trademark rights in other terms used herein.

View source version on businesswire.comhttps://www.businesswire.com/news/home/20241107126443/en/

 

November 7, 2024

RingCentral Appoints Abhey Lamba as Chief Financial Officer

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a leading global provider of trusted AI communications for businesses of all sizes, today announced that Abhey Lamba has been appointed Chief Financial Officer and will join in his new role in the coming weeks. Lamba will be responsible for all the Company’s financial functions, including financial planning, controllership, tax, treasury, corporate development and investor relations.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20241107140330/en/

A seasoned finance and technology leader with more than 30 years of experience, Lamba joins RingCentral from Amazon Web Services, where he is Vice President of Finance for Global Infrastructure, including Gen AI investments. Prior to Amazon, he held finance leadership roles at Cisco Systems and Autodesk, Inc. In his various roles, he has driven growth and profitability for multi-billion dollar businesses. Previously, he served as a sell-side analyst on Wall Street for over 15 years, where he covered enterprise technology, hardware, and SaaS companies at UBS, ISI Group, and Mizuho Securities. Lamba began his career as a software engineer at Bentley Systems before earning his MBA in Finance and Marketing from the Wharton School at the University of Pennsylvania.

Vlad Shmunis, Founder, Chairman and CEO of RingCentral, said, “Abhey brings an exceptional combination of skills to the CFO role at RingCentral. He has a strong track record of driving growth and profitability at the world’s premier technology companies, working with leading AI technologies, and he brings a unique perspective having covered public companies on Wall Street as a sell-side analyst. On top of that, he understands the importance of product development, having begun his career as a software engineer, and shares our passion for innovation. We look forward to having him on our leadership team where together we will continue to drive profitable growth and margin expansion.”

Lamba said, “RingCentral is the pioneer of cloud-based business communications solutions and is now leading the way in AI innovation for businesses around the world and across a multitude of use cases and industry verticals. I am impressed with what Vlad and his tenured leadership team have built over the years and view this as an incredible opportunity to create additional value for shareholders. RingCentral’s new product sales are highly inspiring and demonstrate that we have a long runway ahead to drive disciplined profitable growth and free cash flow generation for the Company.”

About Abhey R. Lamba

Since January 2024, Abhey Lamba has served as Vice President of Finance for Global Infrastructure at Amazon Web Services, overseeing a global team of finance professionals. Prior to Amazon, he served in a variety of finance leadership roles, including SVP of Customer Experience and Operations Finance at Cisco Systems, VP of Go-To-Market Finance at Autodesk where he drove significant revenue growth, and VP of Investor Relations at Autodesk. Before that, he spent nearly 15 years on Wall Street as a sell-side analyst where he analyzed highly successful SaaS and other technology companies. Lamba began his career at Bentley Systems, Inc. where he worked as a software engineer. He earned a B.S. in Mechanical Engineering from the Indian Institute of Technology (IIT Bombay), an M.S. in Mechanical Engineering from the University of Connecticut, and an MBA in Finance and Marketing from the Wharton School at the University of Pennsylvania.

About RingCentral

RingCentral is a leading provider of trusted AI communications, contact center, sales intelligence, video and hybrid event solutions. RingCentral empowers businesses with conversation intelligence and unlocks rich customer and employee interactions to provide insights and improved business outcomes. With decades of expertise in reliable and secure cloud communications, RingCentral has earned the trust of hundreds of thousands of customers and millions of users worldwide. Visit ringcentral.com to learn more.

© 2024 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, and changes to the Company’s leadership structure and the timing and benefits thereof. 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. Refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our most recent Form 10-K and Form 10-Q 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 the Company 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.

View source version on businesswire.comhttps://www.businesswire.com/news/home/20241107140330/en/

 

November 7, 2024

RingCentral Announces Third Quarter 2024 Results

Q3 2024 revenue above high end of guidance

Achieves GAAP operating profitability in Q3 2024

Raising 2024 revenue, net cash provided by operating activities and free cash flow outlook

BELMONT, Calif.--(BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a global leader in AI-powered trusted business communications for companies of all sizes, today announced financial results for the third quarter ended September 30, 2024.

Third Quarter Financial Highlights

  • Total revenue increased 9% year-over-year to $609 million.
  • Subscriptions revenue increased 10% year-over-year to $583 million.
  • Annualized Exit Monthly Recurring Subscriptions (ARR) increased 9% year-over-year to $2.48 billion.
  • Enterprise ARR increased 11% year-over-year to $1.07 billion.
  • GAAP operating margin of 0.5%, compared to (9.7%) in the prior year.
  • Stock-based compensation as percent of total revenue of 14.0%, down 630 basis points year-over-year
  • Non-GAAP operating margin of 21.0%, up 190 basis points year-over-year.
  • Net cash provided by operating activities of $127 million, up 47% year-over-year
  • Free cash flow of $105 million, up 51% year-over-year.

“Our strong results were driven by continued momentum with new products, in particular RingCX, and strength in our core UCaaS market,” said Vlad Shmunis, RingCentral’s Founder, Chairman, and CEO. “Our healthy top line growth and significant margin expansion, resulted in robust free cash flow generation. This, combined with a material reduction in stock based compensation, resulted in positive GAAP operating income for the first time in our history.”

  • Revenue: Total revenue was $609 million for the third quarter of 2024, up from $558 million in the third quarter of 2023, representing 9% year-over-year growth. Adjusted for constant currency, total revenue rose 9%. Subscriptions revenue of $583 million increased 10% year-over-year and accounted for 96% of total revenue. Adjusted for constant currency, subscriptions revenue rose 10%.
  • Operating Income (Loss): GAAP operating income was $3 million, compared to a loss of ($54) million in the same period last year. Non-GAAP operating income was $128 million, or 21.0% of total revenue, compared to $107 million, or 19.1% of total revenue, in the same period last year.
  • Adjusted EBITDA: Adjusted EBITDA was $149 million, or 24.5% of total revenue, compared to $128 million, or 22.9% of total revenue, in the same period last year.
  • Net Income (Loss) Per Share: GAAP net loss per share was ($0.09), compared to ($0.45) in the same period last year. Diluted non-GAAP net income per share was $0.95, compared to $0.78 per share in the same period last year. The third quarters of 2024 and 2023 reflected an approximately 22.5% non-GAAP tax rate.
  • Cash Flow: Net cash provided by operating activities for the third quarter of 2024 was $127 million, or 20.9% of total revenue, compared to $87 million, or 15.5% of total revenue, for the third quarter of 2023. Free cash flow for the third quarter of 2024 was $105 million, or 17.3% of total revenue. This includes cash paid for interest of $22 million, restructuring and other payments of $5 million and cash received from certain strategic partners of $5 million. For comparison, free cash flow for the third quarter of 2023 was $70 million, which included cash paid for interest of $7 million, and restructuring and other payments of $10 million.
  • Cash and Cash Equivalents: Total cash and cash equivalents at the end of the third quarter of 2024 was $213 million. Our cash balance reflects the repurchase of $83 million in shares during the third quarter of 2024 under the plans previously authorized by our Board. We currently have approximately $243 million remaining on our total authorization.

Financial Outlook

Full Year 2024 Guidance:

  • Raising subscriptions revenue range to $2.295 to $2.297 billion, representing annual growth of 9%.
  • Raising total revenue range to $2.397 to $2.399 billion, representing annual growth of 9%.
  • Raising GAAP operating margin range to (0.7%) to (0.5%) from (1.3%) to (0.8%).
  • Maintaining non-GAAP operating margin of 21.0%.
  • Maintaining non-GAAP tax rate assumption of 22.5%. No material cash taxes expected given net operating loss carryforwards.
  • Raising non-GAAP EPS to $3.69 based on 94.5 million fully diluted shares. This compares to $3.62 to $3.67 based on 96.0 to 95.0 million fully diluted shares previously.
  • Lowering share-based compensation range to $350 to $355 million from $370 to $380 million.
  • Updating amortization of acquired intangibles to $138 million from $140 million.
  • Updating restructuring costs to $16 million from $6 to $7 million.
  • Raising free cash flow to $400 to $405 million, up from $395 to $400 million. This guidance includes capitalized expenditures of $85 million, cash paid for interest of $60 million and restructuring and other payments of $27 million, as well as $25 million of cash received from certain strategic partners.

Fourth Quarter 2024 Guidance:

  • Subscriptions revenue range of $587.0 to $589.0 million, representing year-over-year growth of 7% to 8%.
  • Total revenue range of $611.0 to $613.0 million, representing year-over-year growth of 7%.
  • GAAP operating margin range of (0.1%) to 0.8%.
  • Non-GAAP operating margin of 21.2%.
  • Non-GAAP tax rate assumption of 22.5%. No material cash taxes expected given net operating loss carryforwards.
  • Non-GAAP EPS of $0.96 to $0.97 based on 93.0 to 92.5 million fully diluted shares.
  • Share-based compensation range of $85 to $90 million.
  • Amortization of acquired intangibles of $35 million.
  • Restructuring costs of $5 million.

CFO Announcement

RingCentral today announced that Abhey Lamba has been appointed as the company's Chief Financial Officer. Lamba will be responsible for all the company's financial functions including financial planning, controllership, tax, treasury, corporate development and investor relations.

Please see our separate press release regarding this important announcement.

Additional Highlights

  • Announced new innovations for RingCX, our AI-powered contact center solution. These include a native, real-time AI-powered assistant for both agents and supervisors, advanced AI-based coaching insights for managers and supervisors, and a new bring-your-own IVA framework for customers and partners to quickly integrate their Intelligent Virtual Agent of choice with RingCX.
  • Announced a strategic partnership with Verint to provide RingCX customers access to best-in-class workforce engagement management (WEM) and CX Automation. Through this partnership, RingCX customers will have more choice and be able to leverage Verint’s leading WEM and CX automation solutions, which complement RingCentral’s native AI capabilities, to enhance employee productivity and improve customer experiences, ultimately driving competitive advantage and operational efficiency.
  • Announced new innovations for RingEX, our flagship cloud communications platform. This includes RingCentral AI Assistant, which automatically generates detailed, real-time notes for phone calls; helps write, polish, and translate texts and chats; and summarizes meetings with crisp action items, reducing employees’ daily mundane work to free up their time for more critical, strategic work. AI Assistant is now included in RingEX at no additional cost.
  • Announced the receipt of the PAN-India license from the Department of Telecommunications (DoT) to operate across all 22 telecommunications circles in India. As the first cloud provider to deliver fully-compliant UCaaS and CCaaS solutions across all of India, Global RingEX Select India connects teams across the globe with offices in India, ensuring secure and reliable connectivity and the ability to navigate the regulatory landscape so customers can focus on their core business operations.
  • Renewed our agreement with AT&T, the nation’s premier fiber, fixed wireless and wireless provider. This powerful combination will continue to make leading access and AI communications platforms available to businesses of all sizes.
  • Announced a new joint offering with Zayo, Zayo UC+ with RingCentral. The offering combines Zayo’s robust network infrastructure, integration planning, and engineering expertise with RingCentral’s native, AI-powered, and secure RingEX and RingCX solutions.
  • Announced that Gartner has recognized RingCentral as a Leader in the 2024 Magic Quadrant for Unified Communications as a Service (UCaaS) report for the tenth year in a row. The 2024 Gartner Critical Capabilities for UCaaS report, which accompanies the Magic Quadrant report, also revealed that RingCentral is ranked #1 in three out of the six product or service use case categories, including: #1 for Telephony-Centric/Heavy Organizations; #1 for UC with Integrated Contact Center; and #1 for Midsize Enterprises.

For a reconciliation of our forecasted non-GAAP operating margin and free cash flow, 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, gain (loss) on early debt conversions, 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 as it is based on future share prices, which are difficult to predict and subject to inherent uncertainties. We do not provide guidance on gain (loss) on debt early conversions as it is based on future conversion requests, future share prices, and interest rates, which are difficult to predict and are 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 2024, 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 third quarter of 2024 and outlook for the fourth quarter and full year of 2024.
  • When: Thursday, November 7, 2024 at 2:00PM PT (5:00PM ET).
  • Dial-in: 1-888-349-0093 from the United States; 1-412-317-5201 internationally
  • Webcast: RingCentral Q3 2024 Earnings Webcast (live and replay).
  • Replay: Following the completion of the call through 11:59 PM ET on November 14, 2024, a telephone replay will be available by dialing 1-844-512-2921 from the United States or 1-412-317-6671 internationally with recording access code 10193681.

Investor Presentation Details

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

About RingCentral

RingCentral is a leading provider of AI-powered cloud business communications, contact center, video and hybrid event solutions. RingCentral empowers businesses with conversation intelligence, and unlocks rich customer and employee interactions to provide insights and improved business outcomes. With decades of expertise in reliable and secure cloud communications, RingCentral has earned the trust of millions of customers and thousands of partners worldwide. Visit ringcentral.com to learn more.

© 2024 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Contact Center 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, the results of the pace of our innovation and our partner networks, our expectations regarding our profitability and our non-GAAP free cash flow, our expectations around the contribution of our new products, our estimates and expectations regarding third parties, and our ability to execute and lead in the UCaaS digital transformation market, our expectations around the demand for our products and the growth of the markets in which we compete. 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 strategic relationships; our expectations regarding our strategic acquisitions, including acquisition of select assets from Hopin and Mitel; 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 RingEX (formerly RingCentral MVP™), and RingCentral Video®; our ability to compete successfully against existing and new competitors; our ability to enter into and maintain relationships with resellers, carriers, channel partners 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 most recent Form 10-K and Form 10-Q 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 adjusted EBITDA, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP free cash flow, Non-GAAP free cash flow margin, and constant currency revenue. 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 which includes related employer payroll taxes, amortization of acquisition intangibles, third-party relocation costs tied to the conflict between Russia and Ukraine and other costs including acquisition-related transaction costs and retention payments, certain litigation-related costs, net impact of amended agreements with strategic partners, and restructuring costs. Non-GAAP operating margin is defined as Non-GAAP income (loss) from operations divided by total GAAP revenue. Non-GAAP adjusted EBITDA is defined as Non-GAAP income (loss) from operations excluding depreciation and amortization. Non-GAAP net income (loss) is defined as GAAP net income (loss) excluding share-based compensation which includes related employer payroll taxes, amortization of acquisition intangibles, third-party relocation costs tied to the conflict between Russia and Ukraine and other costs including acquisition-related transaction costs and retention payments, certain litigation-related costs, net impact of amended agreements with strategic partners, restructuring costs, non-cash interest expense associated with amortization of debt discount and issuance costs related to our long term debt, loss (gain) associated with investments, loss (gain) on early extinguishment of debt, intercompany remeasurement gains or losses, and the related income tax effect of these adjustments.

Non-GAAP free cash flow is defined as GAAP net cash provided by (used in) operating activities adjusted for capital expenditures including purchases of property and equipment and capitalized internal-use software. We believe information regarding Non-GAAP free cash flow provides useful information to investors in understanding and evaluating the strength of liquidity and available cash. Non-GAAP free cash flow margin is defined as Non-GAAP free cash flow divided by total GAAP revenues.

We have included Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP free cash flow, Non-GAAP free cash flow margin, and constant currency revenue 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 income (loss) from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP free cash flow, and Non-GAAP free cash flow margin provide useful measure for period-to-period comparisons of our business.

We have provided certain revenue-related information adjusted for constant currency to provide a framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. To present this information, current period results in currencies other than United States dollars are converted into United States dollars at the average exchange rate prevailing for the quarter being compared to for growth rate calculations presented, rather than the actual exchange rates in effect during that period.

Although Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP free cash flow, Non-GAAP free cash flow margin, and constant currency revenue 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 our 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, mid-market and enterprise annualized exit monthly recurring subscriptions, enterprise annualized exit monthly recurring subscriptions and net monthly subscriptions dollar retention rate. 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 mid-market and enterprise annualized exit monthly recurring subscriptions in the same manner as we calculate our 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 annualized exit monthly recurring subscriptions, except that only customer subscriptions from customers generating $100,000 or more in annual recurring revenue are included. We define our Net Monthly Subscription Dollar Retention Rate as (i) one plus (ii) the quotient of Dollar Net Change divided by Average Monthly Recurring Subscriptions. We calculate 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)

       

 

September 30, 2024

 

December 31, 2023

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

212,652

 

 

$

222,195

 

Accounts receivable, net

 

395,805

 

 

 

364,438

 

Deferred and prepaid sales commission costs

 

185,906

 

 

 

184,620

 

Prepaid expenses and other current assets

 

64,612

 

 

 

77,396

 

Total current assets

 

858,975

 

 

 

848,649

 

Property and equipment, net

 

185,160

 

 

 

184,390

 

Operating lease right-of-use assets

 

45,100

 

 

 

42,989

 

Deferred and prepaid sales commission costs, non-current

 

347,683

 

 

 

395,724

 

Goodwill

 

75,322

 

 

 

67,370

 

Acquired intangibles, net

 

290,234

 

 

 

393,767

 

Other assets

 

15,908

 

 

 

12,024

 

Total assets

$

1,818,382

 

 

$

1,944,913

 

Liabilities, Temporary Equity, and Stockholders’ Deficit

 

 

 

Current liabilities

 

 

 

Accounts payable

$

34,786

 

 

$

53,295

 

Accrued liabilities

 

287,820

 

 

 

325,632

 

Current portion of long-term debt, net

 

181,143

 

 

 

20,000

 

Deferred revenue

 

260,999

 

 

 

233,619

 

Total current liabilities

 

764,748

 

 

 

632,546

 

Long-term debt, net

 

1,352,057

 

 

 

1,525,482

 

Operating lease liabilities

 

29,830

 

 

 

28,178

 

Other long-term liabilities

 

17,648

 

 

 

61,827

 

Total liabilities

 

2,164,283

 

 

 

2,248,033

 

 

 

 

 

Temporary equity

 

 

 

Series A convertible preferred stock

 

199,449

 

 

 

199,449

 

 

 

 

 

Stockholders’ deficit

 

 

 

Common stock

 

9

 

 

 

9

 

Additional paid-in capital

 

1,210,961

 

 

 

1,204,781

 

Accumulated other comprehensive loss

 

(6,084

)

 

 

(8,223

)

Accumulated deficit

 

(1,750,236

)

 

 

(1,699,136

)

Total stockholders’ deficit

$

(545,350

)

 

$

(502,569

)

Total liabilities, temporary equity and stockholders’ deficit

$

1,818,382

 

 

$

1,944,913

 

TABLE 2

RINGCENTRAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

       

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2024

 

2023

 

2024

 

2023

Revenues

 

 

 

 

 

 

 

Subscriptions

$

582,970

 

 

$

531,030

 

 

$

1,707,515

 

 

$

1,552,956

 

Other

 

25,795

 

 

 

27,134

 

 

 

78,368

 

 

 

78,202

 

Total revenues

 

608,765

 

 

 

558,164

 

 

 

1,785,883

 

 

 

1,631,158

 

Cost of revenues

 

 

 

 

 

 

 

Subscriptions

 

150,864

 

 

 

141,172

 

 

 

442,621

 

 

 

413,664

 

Other

 

29,320

 

 

 

27,802

 

 

 

84,712

 

 

 

80,403

 

Total cost of revenues

 

180,184

 

 

 

168,974

 

 

 

527,333

 

 

 

494,067

 

Gross profit

 

428,581

 

 

 

389,190

 

 

 

1,258,550

 

 

 

1,137,091

 

Operating expenses

 

 

 

 

 

 

 

Research and development

 

84,144

 

 

 

85,444

 

 

 

244,422

 

 

 

250,965

 

Sales and marketing

 

276,976

 

 

 

270,767

 

 

 

819,193

 

 

 

795,422

 

General and administrative

 

64,170

 

 

 

87,154

 

 

 

207,902

 

 

 

244,472

 

Total operating expenses

 

425,290

 

 

 

443,365

 

 

 

1,271,517

 

 

 

1,290,859

 

Income (loss) from operations

 

3,291

 

 

 

(54,175

)

 

 

(12,967

)

 

 

(153,768

)

Other income (expense), net

 

 

 

 

 

 

 

Interest expense

 

(16,393

)

 

 

(12,162

)

 

 

(48,668

)

 

 

(19,492

)

Other income

 

1,073

 

 

 

20,441

 

 

 

12,820

 

 

 

61,521

 

Other income (expense), net

 

(15,320

)

 

 

8,279

 

 

 

(35,848

)

 

 

42,029

 

Loss before income taxes

 

(12,029

)

 

 

(45,896

)

 

 

(48,815

)

 

 

(111,739

)

(Benefit from) provision for income taxes

 

(4,176

)

 

 

(3,780

)

 

 

2,285

 

 

 

6,258

 

Net loss

$

(7,853

)

 

$

(42,116

)

 

$

(51,100

)

 

$

(117,997

)

Net loss per common share

 

 

 

 

 

 

 

Basic and diluted

$

(0.09

)

 

$

(0.45

)

 

$

(0.55

)

 

$

(1.24

)

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

 

 

 

 

 

 

 

Basic and diluted

 

91,892

 

 

 

94,593

 

 

 

92,590

 

 

 

95,213

 

TABLE 3

RINGCENTRAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

   

 

Nine Months Ended

September 30,

 

2024

 

2023

Cash flows from operating activities

 

 

 

Net loss

$

(51,100

)

 

$

(117,997

)

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

 

 

 

Depreciation and amortization

 

167,557

 

 

 

174,723

 

Share-based compensation

 

258,607

 

 

 

314,533

 

Unrealized loss on investments

 

 

 

 

1,646

 

Amortization of deferred and prepaid sales commission costs

 

120,685

 

 

 

100,618

 

Amortization of debt discount and issuance costs

 

3,112

 

 

 

3,465

 

Gain on early extinguishment of debt

 

 

 

 

(42,891

)

Reduction of operating lease right-of-use assets

 

15,329

 

 

 

15,272

 

Provision for bad debt

 

4,852

 

 

 

5,200

 

Other

 

(11,762

)

 

 

4,879

 

Changes in assets and liabilities:

 

 

 

Accounts receivable

 

(36,219

)

 

 

(39,641

)

Deferred and prepaid sales commission costs

 

(99,238

)

 

 

(103,773

)

Prepaid expenses and other assets

 

15,592

 

 

 

(7,251

)

Accounts payable

 

(17,473

)

 

 

(31,664

)

Accrued and other liabilities

 

(24,461

)

 

 

9,383

 

Deferred revenue

 

18,709

 

 

 

15,309

 

Operating lease liabilities

 

(13,796

)

 

 

(15,993

)

Net cash provided by operating activities

 

350,394

 

 

 

285,818

 

Cash flows from investing activities

 

 

 

Purchases of property and equipment

 

(18,617

)

 

 

(17,515

)

Capitalized internal-use software

 

(40,858

)

 

 

(38,241

)

Cash paid for business combination, net of cash acquired

 

(26,291

)

 

 

(14,709

)

Purchases of intangible assets

 

(2,540

)

 

 

 

Net cash used in investing activities

 

(88,306

)

 

 

(70,465

)

Cash flows from financing activities

 

 

 

Proceeds from issuance of stock in connection with stock plans

 

10,000

 

 

 

10,954

 

Payments for taxes related to net share settlement of equity awards

 

(5,333

)

 

 

(7,124

)

Payments for repurchases of common stock

 

(244,996

)

 

 

(249,568

)

Proceeds from issuance of long-term debt, net of issuance costs

 

 

 

 

786,311

 

Payments for the repurchase of convertible notes

 

 

 

 

(580,960

)

Payments for fees on long-term debt

 

(4,308

)

 

 

 

Repayments of principal on long-term debt

 

(15,000

)

 

 

(5,000

)

Repayments for financing obligations

 

(3,085

)

 

 

(4,738

)

Payments for contingent consideration

 

(10,345

)

 

 

(1,673

)

Net cash used in financing activities

 

(273,067

)

 

 

(51,798

)

Effect of exchange rate changes

 

1,436

 

 

 

(1,187

)

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

 

(9,543

)

 

 

162,368

 

Cash, cash equivalents, and restricted cash

 

 

 

Beginning of period

 

222,195

 

 

 

269,984

 

End of period

$

212,652

 

 

$

432,352

 

TABLE 4

RINGCENTRAL, INC.

RECONCILIATION OF OPERATING INCOME (LOSS)

GAAP MEASURES TO NON-GAAP MEASURES

(Unaudited, in thousands)

       

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2024

 

2023

 

2024

 

2023

Revenues

 

 

 

 

 

 

 

Subscriptions

$

582,970

 

 

$

531,030

 

 

$

1,707,515

 

 

$

1,552,956

 

Other

 

25,795

 

 

 

27,134

 

 

 

78,368

 

 

 

78,202

 

Total revenues

$

608,765

 

 

$

558,164

 

 

$

1,785,883

 

 

$

1,631,158

 

Cost of revenues reconciliation

 

 

 

 

 

 

 

GAAP Subscriptions cost of revenues

$

150,864

 

 

$

141,172

 

 

$

442,621

 

 

$

413,664

 

Share-based compensation

 

(5,536

)

 

 

(7,392

)

 

 

(18,028

)

 

 

(21,096

)

Amortization of acquired intangibles

 

(31,376

)

 

 

(37,045

)

 

 

(99,228

)

 

 

(110,324

)

Third-party relocation and other costs

 

 

 

 

(93

)

 

 

(49

)

 

 

(105

)

Restructuring costs

 

(313

)

 

 

 

 

 

(572

)

 

 

(637

)

Non-GAAP Subscriptions cost of revenues

$

113,639

 

 

$

96,642

 

 

$

324,744

 

 

$

281,502

 

 

 

 

 

 

 

 

 

GAAP Other cost of revenues

$

29,320

 

 

$

27,802

 

 

$

84,712

 

 

$

80,403

 

Share-based compensation

 

(1,919

)

 

 

(2,380

)

 

 

(5,995

)

 

 

(6,892

)

Amortization of acquired intangibles

 

(21

)

 

 

(22

)

 

 

(65

)

 

 

(66

)

Restructuring costs

 

(400

)

 

 

(6

)

 

 

(748

)

 

 

(58

)

Non-GAAP Other cost of revenues

$

26,980

 

 

$

25,394

 

 

$

77,904

 

 

$

73,387

 

Gross profit and gross margin reconciliation

 

 

 

 

 

 

 

Non-GAAP Subscriptions

 

80.5

%

 

 

81.8

%

 

 

81.0

%

 

 

81.9

%

Non-GAAP Other

 

(4.6

)%

 

 

6.4

%

 

 

0.6

%

 

 

6.2

%

Non-GAAP Gross profit

 

76.9

%

 

 

78.1

%

 

 

77.5

%

 

 

78.2

%

Operating expenses reconciliation

 

 

 

 

 

 

 

GAAP Research and development

$

84,144

 

 

$

85,444

 

 

$

244,422

 

 

$

250,965

 

Share-based compensation

 

(20,033

)

 

 

(24,576

)

 

 

(59,644

)

 

 

(71,804

)

Third-party relocation and other costs

 

(732

)

 

 

(3,401

)

 

 

(2,277

)

 

 

(4,964

)

Restructuring costs

 

(1,056

)

 

 

(1,794

)

 

 

(2,829

)

 

 

(4,281

)

Non-GAAP Research and development

$

62,323

 

 

$

55,673

 

 

$

179,672

 

 

$

169,916

 

As a % of total revenues non-GAAP

 

10.2

%

 

 

10.0

%

 

 

10.1

%

 

 

10.4

%

 

 

 

 

 

 

 

 

GAAP Sales and marketing

$

276,976

 

 

$

270,767

 

 

$

819,193

 

 

$

795,422

 

Share-based compensation

 

(35,528

)

 

 

(38,287

)

 

 

(104,028

)

 

 

(117,063

)

Amortization of acquired intangibles

 

(2,055

)

 

 

(1,134

)

 

 

(3,798

)

 

 

(2,529

)

Third-party relocation and other costs

 

 

 

 

(86

)

 

 

(332

)

 

 

(101

)

Restructuring costs

 

(2,028

)

 

 

(1,124

)

 

 

(4,639

)

 

 

(5,093

)

Non-GAAP Sales and marketing

$

237,365

 

 

$

230,136

 

 

$

706,396

 

 

$

670,636

 

As a % of total revenues non-GAAP

 

39.0

%

 

 

41.2

%

 

 

39.6

%

 

 

41.1

%

 

 

 

 

 

 

 

 

GAAP General and administrative

$

64,170

 

 

$

87,154

 

 

$

207,902

 

 

$

244,472

 

Share-based compensation

 

(22,092

)

 

 

(40,456

)

 

 

(77,374

)

 

 

(103,858

)

Third-party relocation and other costs

 

(463

)

 

 

(1,689

)

 

 

(4,691

)

 

 

(5,317

)

Restructuring costs

 

(1,049

)

 

 

(1,520

)

 

 

(1,838

)

 

 

(2,856

)

Non-GAAP General and administrative

$

40,566

 

 

$

43,489

 

 

$

123,999

 

 

$

132,441

 

As a % of total revenues non-GAAP

 

6.7

%

 

 

7.8

%

 

 

6.9

%

 

 

8.1

%

Income (loss) from operations reconciliation

 

 

 

 

 

 

 

GAAP income (loss) from operations

$

3,291

 

 

$

(54,175

)

 

$

(12,967

)

 

$

(153,768

)

Share-based compensation

 

85,108

 

 

 

113,091

 

 

 

265,069

 

 

 

320,713

 

Amortization of acquired intangibles

 

33,452

 

 

 

38,201

 

 

 

103,091

 

 

 

112,919

 

Third-party relocation and other costs, net

 

1,195

 

 

 

5,269

 

 

 

7,349

 

 

 

10,487

 

Restructuring costs

 

4,846

 

 

 

4,444

 

 

 

10,626

 

 

 

12,925

 

Non-GAAP Income from operations

$

127,892

 

 

$

106,830

 

 

$

373,168

 

 

$

303,276

 

Non-GAAP Operating margin

 

21.0

%

 

 

19.1

%

 

 

20.9

%

 

 

18.6

%

 

 

 

 

 

 

 

 

Depreciation and amortization

$

21,131

 

 

$

20,966

 

 

$

64,466

 

 

$

61,804

 

Non-GAAP Adjusted EBITDA

$

149,023

 

 

$

127,796

 

 

$

437,634

 

 

$

365,080

 

As a % of total revenues non-GAAP

 

24.5

%

 

 

22.9

%

 

 

24.5

%

 

 

22.4

%

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

September 30,

 

Nine Months Ended

September 30,

 

2024

 

2023

 

2024

 

2023

Net income (loss) reconciliation

 

 

 

 

 

 

 

GAAP net loss

$

(7,853

)

 

$

(42,116

)

 

$

(51,100

)

 

$

(117,997

)

Share-based compensation

 

85,108

 

 

 

113,091

 

 

 

265,069

 

 

 

320,713

 

Amortization of acquired intangibles

 

33,452

 

 

 

38,201

 

 

 

103,091

 

 

 

112,919

 

Third-party relocation and other costs, net

 

1,158

 

 

 

(1,731

)

 

 

(349

)

 

 

(22

)

Restructuring costs

 

4,846

 

 

 

4,444

 

 

 

10,626

 

 

 

12,925

 

Amortization of debt discount and issuance costs

 

1,098

 

 

 

1,067

 

 

 

3,112

 

 

 

3,465

 

Loss associated with investments

 

 

 

 

99

 

 

 

458

 

 

 

1,745

 

Gain on early extinguishment of debt

 

 

 

 

(11,784

)

 

 

 

 

 

(42,891

)

Intercompany remeasurement loss (gain)

 

1,116

 

 

 

669

 

 

 

820

 

 

 

(1,217

)

Income tax expense effects

 

(29,995

)

 

 

(25,866

)

 

 

(72,868

)

 

 

(60,319

)

Non-GAAP net income

$

88,930

 

 

$

76,074

 

 

$

258,859

 

 

$

229,321

 

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

 

 

 

 

 

 

 

Weighted average number of shares used in

computing basic net loss per share

 

91,892

 

 

 

94,593

 

 

 

92,590

 

 

 

95,213

 

Effect of dilutive securities

 

1,952

 

 

 

2,362

 

 

 

2,308

 

 

 

1,622

 

Non-GAAP weighted average shares used in

computing non-GAAP diluted net income per share

 

93,844

 

 

 

96,955

 

 

 

94,898

 

 

 

96,835

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share

 

 

 

 

 

 

 

GAAP net loss per share

$

(0.09

)

 

$

(0.45

)

 

$

(0.55

)

 

$

(1.24

)

Non-GAAP net income per share

$

0.95

 

 

$

0.78

 

 

$

2.73

 

 

$

2.37

 

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

September 30,

 

Nine Months Ended

September 30,

 

2024

 

2023

 

2024

 

2023

Net cash provided by operating activities

$

127,219

 

 

$

86,594

 

 

$

350,394

 

 

$

285,818

 

Capitalized expenditures

 

(21,774

)

 

 

(16,632

)

 

 

(59,475

)

 

 

(55,756

)

Non-GAAP free cash flow

$

105,445

 

 

$

69,962

 

 

$

290,919

 

 

$

230,062

 

Non-GAAP free cash flow margin

 

17.3

%

 

 

12.5

%

 

 

16.3

%

 

 

14.1

%

TABLE 7

RINGCENTRAL, INC.

RECONCILIATION OF FORECASTED OPERATING MARGIN AND FREE CASH FLOW

GAAP MEASURES TO NON-GAAP MEASURES

(Unaudited, in millions)

       

 

Q4 2024

 

FY 2024

 

Low Range

 

High Range

 

Low Range

 

High Range

GAAP revenues

611.0

 

 

613.0

 

 

 

2,396.9

 

 

 

2,398.9

 

 

 

 

 

 

 

 

 

GAAP loss from operations

(0.5

)

 

5.0

 

 

 

(17.0

)

 

 

(11.6

)

GAAP operating margin

(0.1

%)

 

0.8

%

 

 

(0.7

%)

 

 

(0.5

%)

Share-based compensation

90.0

 

 

85.0

 

 

 

355.0

 

 

 

350.0

 

Amortization of acquired intangibles

35.0

 

 

35.0

 

 

 

137.8

 

 

 

137.8

 

Third-party relocation and other costs, net

 

 

 

 

 

10.8

 

 

 

10.8

 

Restructuring costs

5.0

 

 

5.0

 

 

 

16.0

 

 

 

16.0

 

Non-GAAP income from operations

129.5

 

 

130.0

 

 

 

502.6

 

 

 

503.0

 

Non-GAAP operating margin

21.2

%

 

21.2

%

 

 

21.0

%

 

 

21.0

%

   

 

FY 2024

 

Low Range

 

High Range

GAAP net cash provided by operating activities

$

485.0

 

 

$

490.0

 

Capitalized expenditures

 

(85.0

)

 

 

(85.0

)

Non-GAAP free cash flow

$

400.0

 

 

$

405.0

 

 

View source version on businesswire.comhttps://www.businesswire.com/news/home/20241107332378/en/

 

March 26, 2024

RingCentral Expands Global Footprint and Drives Adoption Momentum of RingCX, AI-Powered Contact Centre

RingCX boasts more than 1,000 features and is now available across 6 countries including US, Canada, UK, France, Germany, Australia

New CRM integrations enable integrated, immersive agent experience

ORLANDO, FL.— March 26, 2024 — Today at Enterprise Connect 2024 in Orlando, RingCentral, Inc. (NYSE: RNG), a leading provider of AI-driven cloud business communications, contact centre, video, and hybrid event solutions, announced its native, AI-powered contact centre, RingCX,™ touts more than 1,000 features, has extended global availability, increased adoption, and added new CRM integrations.

Initially launched in the US and Canada in November 2023, RingCX has extended availability in the UK and EU, including France and Germany, and is now launching in Australia. RingCX now supports multiple languages, including US and UK English, French, Italian, Spanish, and German. This rapid international expansion is enabling customers in more markets to benefit from RingCX’s AI-powered, rich omnichannel, simple-to-use and easy-to-deploy solution.

RingCX now has more than 160 customers globally since its general availability launch in November 2023. Built for organisations of all sizes, customers include multiple Fortune 1,000 firms, international health organisations, and public sector. RingCentral credits this fast momentum to the continuous and accelerated roll-out of new, robust RingCX capabilities, which now includes more than 1,000 features.

"RingCX gives us everything we need - voice call routing, fantastic analytics, and over 20 digital channels – all in a single package. We were able to get implemented and functioning well with ease," said Devon Lemay of EON Health. "Before RingCX, we were overwhelmed and struggled to route our calls in an efficient manner, and had to calculate our own metrics."

Integrated Experiences
RingCentral has also added integrations with five leading CRMs, including Salesforce, Hubspot, ServiceNow, Zendesk, and Microsoft Dynamics 365, all currently available in beta. Multiple additional integrations are planned for the second half of 2024. 

RingCX continues to provide immersive and integrated agent experiences, with full omnichannel capabilities, automatic screen pops, contact matching in the CRM, case and ticket creation, and interaction logging for all voice and digital interactions. All of this is available as an embedded RingCX agent experience inside CRM systems, where agents can manage interactions across voice, and 20+ digital channels. The CRM integrations are provided at no additional charge and included in the £60 per agent RingCX package.

“We’re proud of the adoption momentum of RingCX and the accelerated roll out of more than 1,000 RingCX features. Providing an intuitive and integrated agent experience has been one of the core tenets of RingCX since we launched it,” said Jim Dvorkin, Senior Vice President, Customer Engagement at RingCentral. “These out of the box CRM integrations enable a fully connected omnichannel experience for agents to be able to leverage the technology they use every day.”

“Platform integration is a huge priority among CX leaders, and CRM is at the top of the list,” said Robin Gareiss, CEO and principal analyst at Metrigy. “Already, 56.5% of companies have integrated their contact centre and CRM platforms—both of which are the most commonly used on agents’ desktops. Integrated CRM provides smooth access to customer data, fulfilling a critical and growing requirement to personalise customer service. Combined, the value of these platforms helps drive improved CSAT and agent efficiency.”

RingCX has open APIs that enable a growing ecosystem of partners such as Google Dialogflow, Cognigy, Yellow.ai and Calabrio with pre-built integrations now available in RingCentral's App Gallery. RingCentral is committed to expanding partnerships and growing the ecosystem of pre-built integrations with RingCX.

To learn more about RingCX, please visit https://www.ringcentral.com/gb/en/ringcx.html

About RingCentral
RingCentral is a leading provider of AI-driven cloud business communications, contact centre, video and hybrid event solutions. RingCentral empowers businesses with conversation intelligence and unlocks rich customer and employee interactions to provide insights and improved business outcomes. With decades of expertise in reliable and secure cloud communications, RingCentral has earned the trust of millions of customers and thousands of partners worldwide. Visit ringcentral.com to learn more.

©2024 RingCentral, Inc. All rights reserved. RingCentral, RingSense, RingEX, RingCentral MVP, RingCX, RingCentral Events, and the RingCentral logo are trademarks of RingCentral, Inc.

 

 

March 25, 2024

RingCentral Reimagines the Business Phone System with Real-Time AI

Adding AI for an immersive employee experience, RingCentral MVP is now RingEX

New RingEX AI capabilities include real-time call notes, conversation intelligence, AI writer and translator for messages, and generative AI search

ORLANDO, FL.— March 25, 2024 — Today at Enterprise Connect 2024 in Orlando, RingCentral, Inc. (NYSE: RNG), a leading provider of AI-driven cloud business communications, contact center, video, and hybrid event solutions, announced new transformative AI for its rebranded flagship solution, RingEX. By infusing RingSense™ AI across its secure, reliable platform, RingCentral is empowering every employee in an organisation, from customer service to sales and marketing, with personalised and context-aware interactions that make every conversation smarter and everyday work more efficient.

As part of the announcement, RingCentral is delivering the following: 

  • Replacing RingCentral MVP®, new RingEX™ with RingSense AI provides intelligence across phone calls, SMS*, meetings, and messaging, including real-time call notes, messaging recap, and generative AI search across conversations.

  • Purpose-built AI that enhances personal productivity and business collaboration,  broadly infused across RingCentral’s suite, including RingEX™, RingCX™, RingSense for Sales, and RingCentral Events™, to boost efficiency and teamwork in every interaction.

With RingSense AI now embedded in RingEX, customers have a personal AI assistant to supercharge their productivity and transform everyday conversations into actionable insights. RingEX with RingSense AI reinvents the phone experience altogether, saving employees time on tedious manual tasks, while enabling them to optimise workflows and focus on more creative or strategic parts of their interactions.

“AI brings a shift from unifying communication modes and functionality to merging employee and customer experiences, and it’s exciting,” said Vlad Shmunis, Founder, Chairman, and CEO, RingCentral. “Building on our battle-tested, mission critical platform, we are delivering AI that is purpose-built for specific use cases to drive tangible value – from enhancing everyday productivity to driving interaction efficiencies. RingSense AI unlocks data-rich conversations across phone calls, messaging, video meetings, and contact center interactions to deliver actionable insights that inform more intelligent workflows.”

RingSense AI for RingEX
Unlike other solutions on the market that only offer AI for video and messaging, RingCentral is among the first to have a complete AI-infused offering across message, video, and phone. RingSense AI capabilities for RingEX include:

  • Real-time note-taking: Powers phone conversations with a personal AI assistant for real time note-taking, capture of outstanding questions, and action items.

  • Powerful conversation intelligence: Delivers AI-generated distilled summaries, notes, action items, and recording highlights. Captures context of conversations, making engagements more personalised. 

  • Unread message recap: Provides AI-generated summaries of missed team messages in group chats for quick catch-up.

  • AI writer and translator for messages: Writes polished chat messages, keeping the context of conversations, in the style and length users prefer. Accurately translates messages in Spanish, French, German, Chinese, or English.

  • Generative AI search: Uses AI to search for information from conversations across phone, SMS*, and voicemails – with AI search in email, meetings, and chat coming soon.

  • Advanced meetings summaries and insights: Automatically generates video ‘highlight reels’ and searchable text summaries of meetings. Also generates keyword based clips, transcripts, summaries, topic lists, replays by specific speakers.

“Historically, voice-driven data has been largely inaccessible at scale,” said Jim Lundy, Founder and CEO, Aragon Research. “With RingSense AI, RingCentral is unlocking that data into key insights and action items. The ability for RingSense AI to create notes in real-time, interpret complex conversations, and dynamically automate action items on behalf of a user, all from a single, consistent user experience embedded directly within RingEX, is what makes this solution unique.”

RingSense AI for RingEX is currently rolling out in preview among select customers. Further information on pricing and specifics will be available in the coming months. Sign up here

While RingEX is the foundation of business communications for every employee across an organisation, RingSense AI also infuses collaborative intelligence across teams to transform both employee and customer experiences. Built for specific use cases, RingSense AI is woven into the following solutions:

  • RingCX, RingCentral’s native omnichannel contact centre, enables businesses to truly understand what is going on with their customer relationships and boost agent performance. 

  • RingSense for Sales equips sales teams with actionable intelligence derived from customer interactions across calls, emails, contact centre, and video meetings, seamlessly integrated with CRMs.

  • RingCentral Events simplifies end-to-end event management for marketing teams with AI-powered capabilities for virtual, hybrid, and in-person events.

* US and Canada only

AI Privacy by Design
RingCentral has built its AI-driven solutions with the same level of security, privacy by design, and transparency that RingCentral has always been known for. It’s fit to purpose to solve very specific problems across different use cases and different personas. In addition, it’s orchestrated between RingCentral’s own proprietary AI large language models and third-party models. And lastly it's open, whereby customers can go to the RingCentral developer portal and find RingSense APIs to customise and tailor RingCentral’s solutions to fit the needs of their business. 

About RingCentral
RingCentral is a leading provider of AI-driven cloud business communications, contact centre, video and hybrid event solutions. RingCentral empowers businesses with conversation intelligence and unlocks rich customer and employee interactions to provide insights and improved business outcomes. With decades of expertise in reliable and secure cloud communications, RingCentral has earned the trust of millions of customers and thousands of partners worldwide. Visit ringcentral.com to learn more.

©2024 RingCentral, Inc. All rights reserved. RingCentral, RingSense, RingEX, RingCentral MVP, RingCX, RingCentral Events, and the RingCentral logo are trademarks of RingCentral, Inc.

Aragon Research does not endorse vendors, or their products or services that are referenced in its research publications, and does not advise users to select those vendors that are rated the highest. Aragon Research publications consist of the opinions of Aragon Research and Advisory Services organisation and should not be construed as statements of fact. Aragon Research provides its research publications and the information contained in them "AS IS," without warranty of any kind.

 

 

February 5, 2024

RingCentral Modernises Patient Care Communications for Healthcare Organisations With New EHR Integrations and Generative AI

BELMONT, Calif. — February 5, 2024RingCentral, Inc. (NYSE: RNG), a leading provider of AI-first global enterprise cloud communications, video, webinars, hybrid events, and contact center solutions, today announced a unified patient care solution for healthcare organisations worldwide. New integrations with Electronic Health Record (EHR) providers, including industry titans Epic, Cerner, and AllScripts, combined with RingCentral’s AI-powered communications suite bridge gaps in the patient engagement journey and simplify workflows. Powered by a new partnership with patient engagement software platform SpinSci, these EHR integrations ensure optimal and secure patient experiences, improved documentation, and reduced administrative burden. 

“The healthcare industry is undergoing a massive transformation driven by cloud technology, and now generative AI,” said Srini Raghavan, Chief Product Officer at RingCentral. “By adding powerful new healthcare specific integrations, our solution offers high-touch assistance through any digital channel — be it text, voice, or chat — to deliver a comprehensive 360 degree view of patient records, breaking down silos and enabling staff and clinicians to triage with unprecedented speed and care. When you pair this with our RingSense AI capabilities, we’re creating pathways to a smarter, more connected healthcare experience.”  

Bridging the Gap in Healthcare Communication with Major EHR Integrations

This comprehensive communications integration with leading EHR systems solves common disruptive issues in the patient engagement journey, such as cumbersome patient administration, inefficient care delivery, and inadequate patient information. RingCentral’s Patient Assist feature maps all patient and healthcare provider interactions, providing cognitive insights that streamline the care process. For example, the system enables agents to know the patient's name, call reason, and key medical record aspects without unnecessary questioning or navigating multiple applications. 

Leveraging the Power of AI in Healthcare

With generative AI, healthcare providers are less burdened with manual note-taking and other administrative tasks, and can stay focused on delivering high-touch, personalised patient care. Key AI-powered capabilities of RingCentral for Healthcare include:

  • Automated Calling Experiences: AI-enabled virtual agents automate common inquiries or gather information before transferring patients to an agent. For providers, auto-blended inbound/outbound queues handle fluctuating call volumes, and auto-dialers handle high-volume programs, such as promos or surveys, simplifying workflows.

  • Data-Driven Insights for Healthcare Management: Analysis of patient interactions offer insights into operational efficiencies and patient needs. With call monitoring and omnichannel analytics across patient touchpoints, managers can optimise Primary Care Network (PCN) performance.

  • Appointment Scheduling and Follow-up: AI tools support scheduling, reminders, and follow-ups for appointments, streamlining the process and ensuring better patient compliance.

About RingCentral

RingCentral is a leading global provider of AI-first cloud-based business communications and collaboration that seamlessly combines phone system, messaging, video, webinars and hybrid events, and contact center. RingCentral empowers businesses with conversation intelligence, and unlocks rich customer and employee interactions to provide insights and improved business outcomes. With decades of expertise in reliable and secure cloud communications, RingCentral has earned the trust of millions of customers and thousands of partners worldwide. Visit ringcentral.com to learn more.

©2024 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

 

 

February 5, 2024

RingCentral Drives Momentum and Adoption Across Healthcare Organisations

Healthcare customers see 46% increase in staff productivity, a 53% increase in staff satisfaction, and a 42% increase in HCAHPS patient satisfaction1 from using RingCentral’s trusted HIPAA-compliant communications

BELMONT, Calif. — February 5, 2024RingCentral, Inc. (NYSE: RNG), a leading provider of AI-first global enterprise cloud communications, video, webinars, hybrid events, and contact center solutions, highlighted that healthcare organisations are adopting RingCentral for Healthcare solution for its trusted reputation in delivering consistent 99.999% reliability, innovative products, and an industry-leading open platform with rich APIs, plus security and privacy by design standards, and various certifications such as HIPAA and HITRUST. Over the past 18 months, RingCentral has added more than 500 new healthcare customers across small, midsize, and large enterprise segments.

Driving Adoption Across Healthcare Organisations 

Sun River Health, with 450,000 patient visits annually, selected RingCentral for its reliability and integrated unified communications and contact center solutions.

“We put together an extensive list of must-haves for a enterprise-wide communications solution that would unite our 2,000 employees across 50 distributed locations: reporting and analytics, contact center functionality, cost, mobility, security, and the company’s reputation for support,” said Eric Brosius, Vice President of Technology Services at Sun River Health, New York’s largest federally qualified health center. “When we evaluated all the vendors against these criteria, RingCentral was the optimal solution. As a leader in care, the adoption of cloud-based communications through RingCentral enables us to enhance our patient care journey, and aggressively grow our leadership in serving key provider segments across the country.”

RingCentral also has among four of the largest dental support organisations (DSOs) in the United States, including Heartland Dental. According to Jeremy Stroud, Vice President of Patient Services at Heartland Dental, the nation's largest DSO, “The thing that still amazes me every day about RingCentral is that it’s enabling our Patient Services Representatives to handle patient inquiries for more than 1,700 dental offices across the country—and in turn letting them provide a better level of service than they’ve ever had.” 

“RingCentral for Healthcare is providing a healthcare cloud solution that suits the needs of customers of all sizes, from small clinics to the largest hospitals, for secure, reliable communications,” said John Poli, Healthcare Industry Principal at RingCentral. “According to a RingCentral survey, by using our solutions, healthcare customers saw a 46% increase in staff productivity, a 53% increase in staff satisfaction, and a 42% increase in HCAHPS patient satisfaction. Many healthcare organisations are moving beyond land-locked on-prem models to the cloud, so they can support hybrid care delivery for both in-office and virtual — to better serve patients and staff.”

“RingCentral has a lot going for it in terms of functionality and industry reputation,” said Darryl Flores, director of Gonzaba Medical Group’s Patient Access Center. “But the big differentiator for us was that RingCentral has earned HITRUST certification. For healthcare organisations, that’s the gold standard because it demonstrates the platform meets the requirements of several data-privacy regulations, most importantly HIPAA.”

For more information about healthcare at RingCentral, please visit: https://www.ringcentral.com/office/industry-solutions/healthcare-providers.html.

About RingCentral

RingCentral is a leading global provider of AI-first cloud-based business communications and collaboration that seamlessly combines phone system, messaging, video, webinars and hybrid events, and contact center. RingCentral empowers businesses with conversation intelligence, and unlocks rich customer and employee interactions to provide insights and improved business outcomes. With decades of expertise in reliable and secure cloud communications, RingCentral has earned the trust of millions of customers and thousands of partners worldwide. Visit ringcentral.com to learn more.

©2024 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

1Based on data from a 2022 survey conducted by RingCentral.

 

January 31, 2024

Nearly one in five Brits would rather deal with a vermin infestation than contact customer services, finds RingCentral research

  • Almost two thirds (65%) of Brits say they would be unlikely to return to a business after poor customer service 

  • With Brits waiting 21 minutes on average to receive an initial response from customer service, 42% would rather go without internet access for one hour than contact customer services 

  • Meanwhile, 35% would like to see AI enable a single agent to access their full history to avoid repeating information 

London, 31 January 2024 - RingCentral, a leading provider of AI-first global enterprise cloud communications, video, webinars, hybrid events, and contact center solutions today shares research revealing many Brits are so frustrated with customer service interactions that nearly one in five (18%) would prefer to deal with a vermin infestation in their home than contact customer service. 

Customers shun businesses after poor customer service experience

Against the backdrop of the current cost-of-living crisis, the majority of Brits (97%) are naturally citing price as the most important factor influencing their purchasing decisions. However, not far behind, many Brits (87%) reference high quality customer service as an important factor. 

RingCentral’s data suggests high quality customer service experiences are a cornerstone for retaining customers, with two thirds (65%) saying they would be unlikely to return to a company that delivered bad customer service. 

Feelings of frustration with customer service are flourishing among Brits

Despite the clear importance of quality customer service, Brits are regularly being left frustrated, with automated customer service systems (53%), the amount of time to speak to / hear back from customer service (43%) and having to explain the issue multiple times to different people (42%) cited as the biggest frustrations. Compounding this, of the 91% of those who have been passed on between agents, 98% then have to re-explain their reason for contacting customer service. 

As a result, Brits are so frustrated with customer service interactions that more than half would rather be without TV for an hour (53%) or clean the bathroom (51%). Meanwhile, two fifths (42%) would rather go without the internet for an hour and almost a fifth of UK adults (18%) would prefer to deal with a vermin infestation in their home than contact customer service. 

Consumers feel AI can help improve customer service

Given the role AI tools can play in driving more positive agent and customer experiences, RingCentral’s research also explored where consumers would most like to see AI focused on the customer service journey to help mitigate frustrations.  

The data reveals over a third (35%) of UK adults would most like to see AI enable a single agent to access their full history to avoid repeating information. A further 34% would like AI to help reduce the average hold times when calling customer service, while 28% wish to see it playing a role in expanding availability of support to 24/7. 

By embedding generative AI in the contact centre, businesses can increase effectiveness of customer service agents and reduce time spent on admin, freeing agents up to focus on serving customers. 

Steve Rafferty, VP of International at RingCentral comments “Despite many businesses facing the need to cut costs, in the most extreme cases to avoid shutting up shop, this research shows they cannot afford to ignore customer experience and quality service. The data is clear that it is critical to customer loyalty and repeat purchases.

The good news for businesses is the latest advances in generative AI can solve many of the challenges our research highlights, by bringing together voice, video and digital channels seamlessly so agents can easily engage with customers. From giving customers access to their channel of choice to ensuring agents have the full context of that person’s journey and interaction history, technology has a huge role to play and should be a cornerstone in any strategy to delivering industry-leading customer experience.”

RingCentral’s own AI-first customer contact centre solution, RingCX is helping businesses increase effectiveness of customer service agents and decrease time on admin, to enable agents to deliver high quality customer service.

ENDS

Research Methodology

  • Opinium surveyed 2000 UK Adults aged 18 and above online between 21st December 2023 – 2nd January 2024 

  • Survey data is weighted to be nationally representative on age, gender and region.