RingCentral has announced earnings of $448 million for the fourth quarter of 2021.
Representing a 34% Year over-Year (YoY) growth, the figure is up from $335 million in the fourth quarter of 2020.
Overall, the results cap off a successful year of revenues for RingCentral, achieving annual earnings of $1.6 billion and surpassing estimates from analysts.
Speaking on an earnings call, Vlad Shmunis, CEO at RingCentral, added:
2021 was a transformative year for how businesses worldwide operate. And RingCentral is well poised to continue leading through our differentiated trust, innovation, and partnership strategy.
Looking ahead to the future, Shmunis also senses an opportunity. “We are in the early innings of a generational transformation from legacy landline voice-only telephony to mobile-first multimodal cloud communications… RingCentral is well-positioned to provide a feature-rich, highly reliable enterprise PBX replacement.”
Despite this optimism, RingCentral stock prices have plunged in late 2021 and early 2022. From their peak of $437.02 in February 2021, they have fallen to $126.13 one year later.
Many factors play their part in this downward trend. Increased competition across the UCaaS and CCaaS space is perhaps the most obvious.
The announcement of Zoom entering the contact centre space and encroaching on the territory of RingCentral and its competitors is one recent example.
However, Shmunis has confidence in the culture of trust, innovation, and partnerships that the RingCentral team strives to create. He stated:
Trust is something we earn with our customers day in and day out. The communications platform is the central nervous system of the business. Reliability, security, and data privacy are table stakes.
“Next, innovation. At the core of our innovation is our multi-mode mobile service approach to our mission to make business communications easy.”
Finally, in terms of partnerships, Shmunis points to the recent alliance with Mitel. “Mitel is off to a very promising start with rapid channel enablement underway and already contributing to our seven-digit TCV customer portfolio,” he said.
The partnership follows alliances with Avaya, Atos, and Alcatel-Lucent Enterprise.
Such partnerships contribute to its growth forecast for 2022, with estimated revenue ranging between $1.990 to $2.015 billion, representing annual growth of 25% to 26%.
