RingCentral

RingCentral is a provider of communication and collaboration tools, which includes its flagship product, RingCentral MVP (formerly RingCentral Office), a cloud-based unified communication as a service (UCaaS) platform for enterprises. It offers a range of features such as HD voice communication, online fax, text, video conferencing, screen sharing. The platform connects in-office, remote, and field employees under one phone system. In FY2021, the product accounted for 90% of the company’s subscription revenue. The company offers a free version of RingCentral MVP and a range of paid plans starting from USD 19.99 per user per month.

The company announced plans in March 2022 to introduce two UCaaS products with phone, messaging and video services targeting schools (Education Essentials priced USD12.99 per user per month) and colleges (Education Standard; USD 19.99 per user per month). RingCentral also disclosed plans to launch vertical-specific products for areas such as healthcare, financial services and government. The company launched the beta version of RingCentral Webinar (March 2022), a webinar software for users in the US, Canada, UK, Europe, and Australia, which will be provided as an add-on for Ring Central MVP in the Summer of 2022.

Its recent acquisitions include Hopin’s flagship ‘Events’ platform and ‘Sessions’ services for an undisclosed amount in August 2023 . With this acquisition RingCentral expects to enhance virtual events and meetings to provide a more personalized experience to its customers. Prior to that it acquired cloud security startup Kindite’s technology and engineering team for an undisclosed amount in March 2021. Through the acquisition, RingCentral shored up its platform security by adding end-to-end encryption capabilities through the integration of Kindite’s technology. The company acquired DeepAffects, an AI intelligence startup, in December 2020. DeepAffects’ capabilities facilitated the development of RingCentral’s video meetings. 

Key customers and partnerships

The company has also partnered with Atos (2020), Alcatel-Lucent Enterprise (2020), and Avaya Holdings (2019) to launch UCaaS products offering a combination of messaging and video conferencing solutions.

Funding and financials

RingCentral’s total revenue grew by 25% YoY to USD 2.0 billion in FY2022, driven by a 27% YoY increase in subscription revenue to USD 1.9 billion, which accounted for 95% of total revenue. For FY2022, the gross margin declined by 400 basis points YoY to 67.7%, while the adjusted EBITDA margin slightly improved to 16.0% (vs. 13.9% in FY2021) and delivered a YoY growth of 43.9% YoY to USD 318 million. The company guided FY2023 full-year revenue to be at USD 2.18–2.20 billion (implying 9.6–11.7% YoY growth). FY2023 non-GAAP EPS guidance was USD 3.04–3.10, implying 52.8–55.8% YoY growth.