RingCentral, a provider of business communications and contact center solutions, has revealed its financial results and achievements for the second quarter ended June 30, 2024.
RingCentral’s revenue increased 10 percent to $593 million. RingCentral’s subscriptions revenue rose 10 percent to $567 million.
RingCentral has 16,000+ channel partners. Some of the leading channel partners include AT&T, Avaya, AWS, BT, CDW, Charter, COX, T-Mobile, Telus, and Vodafone Business. RingCentral did not reveal the size of its sales through channel partners.
RingCentral’s Annualized Exit Monthly Recurring Subscriptions (ARR) grew 9 percent to $2.43 billion.
Mid-market and Enterprise ARR grew 11 percent to $1.52 billion.
Enterprise ARR rose 12 percent to $1.05 billion.
Vlad Shmunis, RingCentral’s Founder and CEO, said: “Demand in our core UCaaS business remains solid, our new products are gaining traction as our pace of innovation is quickening.”
RingCentral has raised revenue target to $2.393 billion – $2.399 billion, representing annual growth of 9 percent, for 2024.
RingCentral innovation
RingCentral says RingEX, its UCaaS product, won a number of enterprise customers, including Whirlpool, a Fortune 500 company, and two 10,000 plus seat deals in the retail vertical, one of them being the largest APAC deal in company history.
Whirlpool has selected RingCentral to power communications at its U.S. manufacturing plant. The company purchased 5,000 RingEX seats and selected for its ability to deliver a cloud communications platform that is reliable, easily deployable, and scalable.
RingCX, its AI-powered native contact center, won a number of customers, including one of the top 25 largest counties in the U.S. As part of innovation, RingCentral added over 300 features to RingCX, including new integrations with ServiceNow, HubSpot and Microsoft Teams.
RingCentral Events, the hybrid events platform, won several tech contracts with enterprise customers, including a large, six figure deal with a leading, global management consulting firm, one of the world’s largest aerospace companies, and a large, global personal computing company. RingCentral did not reveal name of its customers.
RingCentral introduced enhancements to RingSense for Sales, its AI-driven conversation intelligence platform, including a new AI coaching dashboard, integration into Microsoft Teams, and expansion of CRM capabilities.
Cox Communications, a broadband provider in the U.S. and a technology provider for businesses, has selected RingCentral to support their future UCaaS and CCaaS solutions.
RingCentral also announced partnership with Vodafone Business to resell RingCX.
RingCentral has revealed large businesses or enterprises, which generate over $100,000 of ARR, now represents about 40 percent of total ARR.
Mid-markets customers, which generate between $25,000 to $100,000 of ARR, represent about 20 percent of total ARR.
Small businesses customers, which generate less than $25,000 of ARR, represent about 40 percent of total ARR.
RingCentral closed around 20 deals with over 1 million TCV or total contract value in Q2, which was in line with the number of such deals in Q2 2023. The average TCV of large deals grew by 30 percent year over year.
RingCentral said more than half of large deals were to customers that are utilizing solutions integrated with and alongside Microsoft Teams. This is a key differentiator and an important reason why Microsoft Teams is an opportunity to grow presence with the many large enterprises.
Last quarter, RingCentral announced a 40,000-seat deal with Cloud PBX UCaaS, RingEX product with a large Fortune 500 retailer. This quarter, RingCentral won two 10,000-plus seat deals in the retail vertical as well. The first is a large retailer with hundreds of stores across Europe that purchased 13,000 RingEX seats.
A leading retailer in the Asia Pacific purchased 11,000 RingEX seats, the largest APEC deal in its history. Customers selected RingCentral because of combination of vertical-specific integrations, deep team integration, proven ability in solving complex use cases, and reliability.
The number of customers for RingCX has reached more than 350, up more than 70 percent sequentially. RingCX bookings nearly doubled in 2Q, delivering a higher average revenue per account. This ARR-PA expansion has been largely fueled by over 25 percent of 1 million-plus TCV deals, now including both RingEX and RingCX. RingCX wins because it is a modern AI-first product that is natively integrated with RingEX UCaaS solution.
RingCentral is offering price benefits to customers. For instance, nearly two-thirds of 1 million-plus TCV deals included RingCX also attaching RingSense. When RingSense is purchased alongside RingCX, the combined list price is roughly $100.
An example of a combined RingEX, RingCX, and RingSense win last quarter is a large county in the Midwestern United States. The county, one of the 25 largest in the U.S., purchased 5,000 RingEX seats and 500 RingCX seats, as well as added on RingSense for RingCX.
The county will use RingEX to power communications for its workforce and RingCX to power its contact center, allowing seamless collaboration across departments such as treasury and election.
RingCentral said its total contact center business now stands at $390 million of ARR up 19 percent year over year.
RingSense for Sales has 800 customers with bookings almost tripling sequentially. Customers choose RingSense for Sales for its ability to record and summarize conversations, provide AI-powered coaching, deliver insights, and allow managers to have a easy-to-access view of the team’s performance.
Tarrytown Expocare, the largest IGD-focused pharmacy in America, reported that it is able to review 100 percent of their customer calls, thus realizing significant productivity gains.
Baburajan Kizhakedath
