RingCentral has posted double-digit total revenue growth (in constant currency) for the first time in 12 months.
Indeed, the enterprise communications stalwart saw its overall revenues rise by ten percent year-over-year (YoY) to $593MN, beating its guidance by $7BN.
The earnings come as a pleasant surprise to industry analysts, including Catharine Trebnick, Managing Director at Rosenblatt Securities.
“RingCentral’s Q2 results significantly exceeded expectations across all key metrics,” she noted.
Also, despite total revenue growth dropping below ten percent across the past 12 months – as RingCentral pushes for profitability – Trebnick revealed: “This was the fourth quarter of revenue exceeding expectations.
[This] consistent performance underscores RingCentral’s ability to attract and retain large enterprise customers.
Vladimir Shmunis, Founder, Chairman, and CEO of RingCentral, credited the growth of the vendor’s new products, singling out RingCX.
RingCX is a CCaaS platform that RingCentral only released in November last year.
However, net new bookings for RingCX “nearly doubled” in Q2, with more than 350 organizations now leveraging the platform.
Much of this new business stems from RingCentral expanding its existing RingEX customer base.
Indeed, Shmunis revealed that over 25 percent of the vendor’s $1MN+ total contract value (TCV) deals now include both RingEX and RingCX before stating:
RingCX wins because it is a modern AI-first product that is natively integrated with our industry-leading RingEX UCaaS solution.
The CCaaS platform also natively integrates with RingCentral’s conversational intelligence platform: RingSense.
Like RingCX, RingSense only became generally available in 2023. However, over 800 businesses already leverage the platform.
With the recent release of both RingCX and RingSense – and their close integration with RingEX – RingCentral is seemingly creating a “super suite” for enterprise communications.
What Is New on RingCX?
In a crowded CCaaS market, RingCentral recognizes the need to innovate quickly. Indeed, the vendor added 300+ features to RingCX last quarter.
Notably, these included the addition of HubSpot, Microsoft Teams, and ServiceNow integrations.
Also, RingCentral rolled out RingSense for RingCX, a premium add-on that provides new AI-powered quality management and conversational analytics capabilities.
Again, this underlines the vendor’s ambition to pull its UCaaS, CCaaS, and conversational intelligence platforms together within an enterprise communications “super suite”.
Meanwhile, RingCentral also expanded its partnership with Vodafone to resell RingCX globally.
However, it hasn’t given up on the RingCentral Contact Center, either, which integrates NICE CXone – the CCaaS Magic Quadrant leader – with RingEX.
“With all the great early traction we’re seeing with RingCX, we also continue winning with our upmarket RingCentral Contact Center product, which targets customers with more complex use cases,” confirmed Shmunis.
During the quarter, we significantly increased our presence with a multinational travel and leisure firm and a large global healthcare organization. We also added two large credit unions to RingCentral contact center customers.
In highlighting these deals, Shumnis showcases the ongoing success of RingCentral’s partnership with NICE. Alongside RingCX, this has helped push RingCentral’s CCaaS annual recurring revenues (ARR) to $390MN. That’s up 19 percent on last year.
The CEO is perhaps also hitting back against speculation that the partnership has waned since the launch of RingCX and – more recently – NICE 1CX.
In doing so, he stressed that customers have two options: an integrated CCaaS-UCaaS platform that blends the capabilities of two Magic Quadrant leading platforms or a native enterprise communications suite.
To learn more about the latter, check out our interview with RingCentral’s John Finch and Danita Belcher, which we filmed at the recent Customer Contact Week 2024 event in Las Vegas.
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