CCaaS is becoming more of a fertile market for RingCentral, with its RingCX platform helping to land contracts with two Fortune 1000 companies.
Having recently launched its new CCaaS platform, RingCX – as well as branching out to offer solutions in hybrid and virtual events and conversational intelligence for sales – these ventures have contributed to the vendor landing big enterprise communications deals.
Amongst these adjacencies, CCaaS has been particularly key to the company’s business, with a recent Aragon report naming RingCentral as one of the 10 key providers that are actively contributing to intelligent contact centers tailored for small and medium-sized businesses.
In discussing the news at the Q4 2023 earnings call, Vlad Shmunis, Founder, Chairman, and CEO of RingCentral, doubled down RingCX’s achievements:
Regarding customers, we now have over 100 paying RingCX accounts, up from about 50 when we launched in November. And these accounts include two Fortune 1000 enterprises who each purchased over 1,000 seats.
Progress In CCaaS
The recent wins follow the announcement of a 1,000+ seat contact center megadeal with a Fortune 500 company in November of last year.
If the original megadeal announced RingCX to the CCaaS world, signal its rising presence in the sector.
Moreover, by coupling RingCX with the company’s UCaaS suite, RingCentral aims to expand its value to its existing customers.
This option is proving to be vital to the success of RingCX, with Sonalee Parekh, CFO of RingCentral, commenting: “Once again, we saw more than 60 percent of our large, million-dollar-plus TCV deals include both UCaaS and CCaaS.
CCaaS ARR now represents over $350 million of our total ARR base.
CCaaS Wins Not Enough to Halt Stock Drop
In spite of the progress made with its CCaaS offerings, there were still some areas of concern in RingCentral’s earnings call, with its stock currently trading lower in the extended session.
On the surface of it, RingCentral appears to have had a very successful year.
The company’s reported net loss of $47.2 million in the fourth quarter of fiscal 2023 was significantly better than the $284 million loss it reported a year earlier.
There was also cause for optimism when looking at revenue, with quarterly numbers up nine percent to $571.3 million and total revenue hitting $2.2 billion – an 11 percent increase from the previous year.
In addition, annualized recurring revenue from subscriptions rose by 11 percent to $2.33 billion, while mid-market and enterprise ARR was up 12% from a year earlier to $1.458 billion.
With all these figures seemingly heading in the right direction, RingCentral was still only able to offer a conservative forecast for the current quarter.
The forecast clearly concerned investors, with RingCentral’s stock trading 6% lower in the after-hours session.
The forecast clearly concerned investors, with RingCentral’s stock trading 6 percent lower in the after-hours session.
Although the drop in stock price leaves a bitter taste in the mouth, there are still plenty of positives to take from the earnings call – particularly concerning the success of RingCX.
Having only launched their CCaaS offering late last year, to have already deployed multiple large-scale solutions is a seriously impressive feat.
If RingCentral continues at this rate, it won’t be long before CCaaS moves from an adjacency to a primary focal point.
