RingCentral has reported $487 million in Q2 revenues, up 28 percent year over year.
In achieving these results, the vendor topped analyst estimates. At the same time, its share prices rose by 9.6 percent – a considerable uplift after a period of sharp declines in valuations across the enterprise technology sector.
Enthused by the results, Vlad Shmunis, Founder and CEO of RingCentral, shared the four trends during a recent earnings call which are supporting its revenue rises:
- Cementing of hybrid work in the pre-COVID era
- The ongoing adoption of mobility by businesses worldwide
- Teams in the enterprise
- A preference to purchase an integrated cloud-based UC and CC from a single provider
Notably, the theme of integrating unified communications and the contact centre embeds itself across these four trends.
After all, by supporting increased organizational collaboration, connecting the technologies can enhance hybrid work. Moreover, mobility embeds itself into the heart of UC solutions. The connection is also clear-cut for the final two points.
Discussing how these trends impacted its results, Mo Katibeh, President and Chief Operating Officer at RingCentral, said:
We won close to 50 deals with a TCV (total contract value) of over $1 million. Our integrated market-leading UCaaS and CCaaS offering also performed very well with continued increase in the attach of CC on UC for our upmarket teams.
In addition, Katibeh said: “Microsoft Teams continues to be a growth driver for RingCentral. [The] second quarter was the single largest quarter of growth yet.”
The growth of its Microsoft Teams solution comes after a 500 percent uplift in the take-up of the integration in Q1.
Such growth is likely because most Teams customers have E1 or E3 licenses, which do not include telephony. RingCentral sees an opportunity here to complete the cloud communication suite.
Even the minority that holds an E5 license often requires an incremental calling plan to make calls outside of their company, which RingCentral aims to provide.
Alongside this, RingCentral offers its own native UCaas and CCaaS solutions, giving its clients more choice. Shmunis believes this is a critical differentiator, having stated:
We are still in the unique position of being able to provide market-leading UCaaS and CCaaS on the same paper and on the same network. So that is just a unique differentiator, not existing elsewhere. Clearly, customers are liking it.
Historically, many companies bought UC and CC solutions from the same on-premise provider, whether that was Cisco or Avaya.
Now, as the same trend repeats itself in the cloud-first world, RingCentral is seemingly striving to lead the way.
Discover how RingCentral is supports calling in Teams by reading our article: How to Integrate Calling Into Microsoft Teams and Improve Total Experience