Ringcentral, Inc. (NYSE: RNG) reported Q2 EPS of $0.19, $0.04 better than the analyst estimate of $0.15. Revenue for the quarter came in at $161 million versus the consensus estimate of $155.71 million.

Second Quarter Financial Highlights

• Total revenue increased 34% year over year to $161 million.
• Software subscriptions revenue increased 32% year over year to $146 million.
• Annualized Exit Monthly Recurring Subscriptions (ARR) increased 32% year over year to $630 million.
• RingCentral Office® ARR increased 37% year over year to $548 million.
• Enterprise ARR increased over 110% year over year to $122 million.
• GAAP operating margin was (2.9%), down 0.7 points year over year, while non-GAAP operating margin was 8.8%, up 1.8 points year over year.

“We had an outstanding second quarter, led by continuing strength in our mid-market and enterprise businesses and momentum from our channel partners. Our enterprise business again grew triple digits with significant wins from landing new logos and expanding into existing enterprise accounts,” said Vlad Shmunis, RingCentral’s founder, chairman and CEO. “We believe our relentless focus on product innovation continues to differentiate us in the marketplace and it underpins our broad-based momentum. With our growing lead in the cloud communications industry and the large underpenetrated market opportunity in front of us, we believe we are well positioned to achieve our goal of exceeding $1 billion in revenue in 2020.”

GUIDANCE:

Ringcentral, Inc. sees FY2018 EPS of $0.66-$0.70, versus the consensus of $0.62. Ringcentral, Inc. sees FY2018 revenue of $649-656 million, versus the consensus of $643.31 million.

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