The press release for the quarterly financials must be written by a marketing hobbit to spin everything to sound like roses – as they approach a billion dollars. Why do they have to have 3 or 4 statements about revenue? Why not just one real number?
RingCentral’s total revenue grew 34% year-over-year to $129.8 million for the quarter. So just passed $500M in annual — which is a far cry from a billion!!
RingCentral Office ARR up 37% <- that’s the UCaaS MRR…
RC was recognized by Frost, Gartner and Aragon which gets their name out in a “trusted” report, so it is worth courting the analysts with dinners and trips to your HQ and shows.
RC is making a lot of noise about Connect, their API and integrations:
“Enhanced RingCentral ecosystem including new integrations with Google G Suite, Amazon Alexa, and Slack. RingCentral’s integration with Amazon Alexa-powered devices will enable users to interface with RingCentral through voice commands. RingCentral for Gmail is an add-on that intuitively surfaces key contextual RingCentral capabilities within Gmail. RingCentral for Slack brings meetings and calling capabilities into the Slack messaging platform. In addition, we announced new AI and chatbot enhancements for Glip to better automate processes and enable seamless workflows.”
That RC integrated with Slack and BSFT doesn’t makes me chuckle. For BSFT-Slack help, call Slingr or TenFold or Cloudpipes.
• Mid-market and enterprise is now a $155 million annualized business; Grew 80% year-over-year. [source]
• Sales from our channel partners was up more than 100% YoY.
• Channel partners contributed about 30% of our overall bookings
Meanwhile 8×8 had total revenue increase just 15% YoY to $72.5 million. Annual total revenue in the $292 million to $294 million range, representing an approximately 15% to 16% year-over-year increase.
Mid-Market/Enterprise Service Revenue Increases 28%, Grows to 58% of Total Service Revenue. All the UCaaS players are going up-market. Lots of reasons including more revenue faster, but these bigger deals have a lot less margin.
Named in Gartner 2017 Unified Communications as a Service (UCaaS) Magic Quadrant and a Challenger in the Gartner 2017 Contact Center as a Service (CCaaS) Magic Quadrant.
In other UCaaS news, magicjack (Broadsmart) is being bought by a financial firm. The same firm (B. Riley Financial) also bought United Online [NetZero and Juno].
Broadsmart was acquired by MagicJack for $40M in 2015 and generated $13 million in revenues in 2015. Now, Broadsmart Global, Inc. contributed $2.7 million in revenues to magicjack in 1Q2017. That is just $10M!