Why is RingCentral Stock Such Hot Property?
The dramatic growth in the cloud communications market has seen the rise of some the tech industry’s hottest companies, RingCentral are a case in point.
RingCentral have just released their fourth-quarter 2018 results and they are even better than expected. Generally, if the financial report is positive then that is reflected in the stock price. Over the last few weeks the RingCentral stock price has risen more than 20% which is dramatic enough to be turning even more heads on the trading floor. The company is listed on the largest American stock exchange, The New York Stock Exchange (NYSE).
The headline figures from their Q4 report, which has garnered so much trading attention, are dramatic. Let’s start with the revenue. Many sceptics have claimed that cloud companies’ revenue figures are misleading, but they are still a viable indicator of overall growth and general market share. Total revenue for the quarter was up to $189 million representing a 34% increase year on year. Software subscriptions totalled £172 million also mirroring a dramatic increase of 32% against the previous period last year.
Perhaps the most impressive, an ominous from a competitor stand point, figures released relate to RingCentral’s success in their emerging go-to-market strategies. Many onlookers had considered RingCentral’s proposition to be most relevant to SME organisations, but the latest figures now show that the fastest growth is taking place with their offerings to the Enterprise. Customers that generate over $100000, or more, in annual recurring revenue (ARR) are classified by RingCentral as Enterprise. In the final quarter of 2018 RingCentral recorded a near doubling of their Enterprise business with 99% growth year on year. The total ARR accrued in the Enterprise sector, $171 million, still only represents around 23% of RingCentral’s overall total but this dramatic growth indicates that the proposition is becoming more and more appealing with potentially the most stringent of customers in terms of compliance and governance.
Sahil Rekhi, Managing Director for RingCentral EMEA, explained how their strategy has resulted in this impressive growth across the board.
“As part of our global strategy, we continue to evolve the organisation in EMEA to service the Enterprise market, showcasing strong performance and growth in region of customers with 100k+ ARR.”
Another area which is particularly interesting is the development of RingCentral’s channel partner business. Up until now RingCentral have primarily operated a direct sales model across the majority of their business territories. In recent months however they have been placing an increasing focus on developing their indirect channel business and this appears to be paying dividends. Last quarter there was an 80% increase in the annual recurring revenue created by their global channel partner community. Taking the total ARR generated by the channel to over $180 million, now representing nearly a quarter of the annual total. The fact that their partner business is growing so strongly alludes to another positive, increased customer demand. Partner businesses globally only tend to adopt new technology platforms when there is significant demand and enquiries from their customer base. The 80% increase infers that the brand is becoming even more synonymous globally and customers are requesting the platform from their technology partners, driving this conspicuous market development.
It might seem a simple concept that positive financial figures are reflected in a rise in stock value, but the markets are more nuanced than that. The dramatic rise in the stock value doesn’t just recognise RingCentral’s continually impressive growth it also perceives the areas in which the growth is occurring. With the business expanding from all angles, in the Enterprise sector and through the global partner channel, as well as its usual growth areas RingCentral’s proposition becomes even more attractive.
Industry: Unified Communications News
- Head of Penetration Testing
- United Kingdom
Head of Penetration Testing needed to join a security consultancy that are delivering client facing penetration testing services around Web app and Infrastructure. Looking for someone hands on that is able to manage a highly skilled technical team of testers. 50-60% of the time is expected to be hands on, other duties will include, but not be limited to; leading and managing the day to day running of the team, mentoring, team upskill, recruitment, reporting, escalation, process improvement etc. Flexible location although south east is preferred. Anyone with Check / CREST experience is highly desirable. MUST be able to achieve SC clearance. UK based role. All details kept in confidence.
- CONTRACT SOC Manager. London / Birmingham. URGENT Immediate role.
REF7847 Contract SOC Manager. SC cleared, London / Birmingham. Initial 3 month Contract. SOC Manager needed to for an URGENT 3-4 month CONTRACT. SC clearance is essential. The project is to aid in the setup, implementation and management of resources to help with the initial stand up stages of a new SOC within a greenfield site. This is a short term contract role whilst a permanent hire is brought on over the coming 3 to 4 months. Experience engaging with and managing client stakeholder relationships as well as 3rd party relationships is critical. The role will involve; setting up, implementing and fine tuning the various initial stages of a SOC environment. Experience establishing and building out technical process / operational capability, managing of technical teams (analysts, engineers and architects, creation of policy / playbooks, fine turning is key. SPLUNK is the tooling of choice… Interviewing immediately. Set up a call with me today on https://calendly.com/chris-holt/arranged-call-with-chris-holt-remote-soc-role Direct contact details Chris.Holt@dclsearch.com or 07884666351
- SPLUNK Level 3 SOC Consultant, SIEM Splunk, London / Birmingham
REF CH7825 Level 3 SOC Consultant, SIEM Splunk, London / Birmingham £55,000 + Level 3 SOC Consultant, SIEM SPLUNK needed. Security Clearance. Permanent role Level 3 SOC Consultant, SIEM SPLUNK needed to join a public sector client. The ability to achieve SC clearance is essential. MUST have experience working with SPLUNK ideally to an Advanced Power User level. Splunk Enterprise Security (ES) knowledge and hands on experience highly desirable. The role will include, but not be limited to; managing and handling incidents end to end, supporting and mentoring level 1 / level 2 staff, supporting the SOC manager in the delivery of the SOC roadmap, engaging with the client stakeholders (other technical teams) as and where needed, use case development, advanced search and reporting etc. The individual MUST currently be living in the UK and be able to achieve UK security clearance. (SC) This is a permanent role To arrange a call with Chris Holt use this calendy link https://calendly.com/chris-holt/arranged-call-with-chris-holt-remote-soc-role Chris.Holt@dclsearch.com
- Aspiring Cyber Partner. Business lead, market maker.
Aspiring Cyber Partner (management consultancy) with Cyber specialism into Healthcare, Utilities and or Public Sector. Working with new and existing clients to help them solve, transform or evolve their cyber capabilities. MUST have; A proven management consultancy background in cyber. A history of identifying and closing new business opportunities. Currently Revenue generating / must be able to demonstrate recent wins. Client facing to board level with international businesses. Team leadership / mentoring experience. Extensive cyber industry experience. Digital transformation, Start-up environments etc. Experienced presenter at industry events, to be the public face of a business / capability. Breadth of knowledge across Cyber security. Service definition / creation. Would consider a senior director with experience delivering the above looking to step up. All conversations kept in confidence. To arrange a discreet call book a time to speak in my diary via https://calendly.com/chris-holt/cyber-partner-call Chris.Holt@dclsearch.com