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UC-specialist RingCentral shares jumped 7.8% postmarket after reporting Q2 earnings that topped expectations and as it raised full-year revenue and profit guidance. Recurring channel sales were up 69%
Revenues rose by a third, and non-GAAP operating profit rose to $20.4m vs. the prior-year $14.2m.
Annualized Exit Monthly Recurring Subscriptions rose 32% to $831m, and RingCentral Office ARR rose 37% to $749m.Midmarket and Enterprise ARR rose 66% (to $386m), Enterprise ARR rose 88% (to $230m), and Channel ARR rose 69% (to $235m).
Revenue breakout: Software Subscriptions, $194.8m (up 33.4%); Other, $20.4m (up 36.9%).
“We had another strong quarter. Enterprise continues to drive our growth, benefiting from strong contributions from channel. We also reached a new milestone of 30 seven-digit TCV deals,” said Vlad Shmunis, RingCentral's founder, chairman, and CEO. “These achievements are a testament to the strength of our market-leading cloud communications solution that uniquely integrates voice, video, team messaging, and contact center with an open platform and unmatched global footprint. This enables enterprises worldwide to drive productivity enhancements and improve overall customer and employee engagement.”
For Q3, it's guiding to revenue of $200m-$220m (annual growth of 27-28%, vs. consensus for $219.7m), operating margin (non-GAAP) of 9.2%-9.4%, and EPS of $0.18-$0.20 (vs. expected $0.18).
For the full year, it's raising its revenue forecast to $874m-$877m (from a previous $862m-$866m, and vs. consensus for $864.2m). It also sees operating margin of 9.1-9.2% and EPS of $0.77-$0.79 (up from $0.71-$0.75 and vs. consensus for $0.73).