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.
source uctoday
Industry: Unified Communications News
Latest Jobs
-
- VOIP / SIP App Developer. Contract. SIP | VOIP experience needed. SC Cleared Outside IR35 Contract. London
- London
- OUTSIDE IR35
-
SIP | VOIP Developer. SC Cleared Contract. London Looking for a SC Cleared SIP / VOIP Developer to develop an application that interacts with a set of voice and video signalling API’s You will also work on developing in-house applications, browser plugins and automated tooling to support secure communication systems. Responsibilities Develop an application that will manage number mapping and associated identities using commercial SBC API’s. Develop new user-facing features using React.js or other modern JavaScript frameworks. Build reusable components and front-end libraries for future use. Collaborate with the design team to translate UI/UX design wireframes into code. Work closely with backend developers to integrate front-end code with server-side logic. Conduct code reviews and provide constructive feedback to team members. Stay up-to-date on emerging technologies and industry trends to continuously improve our front-end development practices. Troubleshoot and debug issues that arise during development and in production environments. Maintain high coding standards and practices and ensure code is well-documented. Requirement Experience of developing specialist applications using REST API’s. Good knowledge of Go, Java and Python (open to alternative combinations of languages). Proficiency in front-end languages and frameworks such as HTML, CSS, JavaScript, React.js, etc. Strong understanding of web standards, responsive design, and cross-browser compatibility. Experience with version control systems such as Git. Knowledge of RESTful APIs and asynchronous request handling. Familiarity with UI/UX design principles and tools.
-
- Senior Data Privacy Consultant. Client Facing | London
- London
- N/A
-
Senior Data Privacy Consultant. Client Facing | London Senior Data Privacy Consultant needed for a key client facing opportunity. Must be willing to undergo SC Security Clearance. Hybrid role- onsite with customer / office 2-3 days a week. London Key Responsibilities: Lead and support client facing data privacy projects. Assess compliance, define and deliver strategic projects / implement privacy solutions. Manage project teams and develop business opportunities. Required Experience: Experience in data protection and privacy standards. Background in consulting. Skills and Qualifications: Business consulting experience IAPP Privacy Manager / Privacy Technologist Location Greater London UK based role. Not able to provide VISA sponsorship.
-
- Security Analyst - Internal role. London commutable. Permanent
- London
- N/A
-
Security Analyst - Internal role. London commutable opportunity. Operational Security - Investigate, escalate and proactively work to ensure household name remains protected. Project Security - Coordinate, log change requests with project delivery teams to meet security requirements Policy / compliance - work with team to aid in uplifting these as and where needed This role is role to investigate, escalate and proactively work to protect a globally recognised brand. You must have current hands on operational analytical security experience with Microsoft technology stack Someone with a SOC Analyst / security engineering background would be well suited. This position will join a small team and would suit someone that has broad experience across the security threat landscape. Experience / knowledge across industry GRC standards such NIST, ISO27001 etc very advantageous and a priority. You will work across multiple teams proactively working to secure the business. Must be able to commute to Central London 3 days a week. Visa sponsorship not available Apply today to find out more.
-
- Network / Security Infrastructure Engineer | West London | Permanent
- London
- N/A
-
Network / Security Infrastructure Engineer | West London | Current Config, Install, upgrade experience On prem / Datacetner experience essential. Hands on experience MUST include: Routing, Switching, Network Security (firewall, IDS etc), Microsoft exchange / Exchange 365. Scripting / automation experience wanted. Python, Powershell etc Regular travel to West London is required. Visa sponsorship not available. Apply today for more information chris.holt@dclsearch.com Use this whatapp link to reach out https://wa.me/message/6USF5RAQBOZIP1