[November 08, 2017] |
|
RingCentral Announces Third Quarter 2017 Results
RingCentral,
Inc. (NYSE: RNG), a leading provider of global enterprise cloud
communications and collaboration solutions, today announced financial
results for the third quarter ended September 30, 2017.
Third Quarter Financial Highlights
-
Total revenue grew 34% year-over-year to $129.8 million.
-
Software subscriptions revenue grew 30% year-over-year to $119.4
million.
-
Total annualized exit recurring software subscriptions (ARR) grew 32%
year-over-year to $513.7 million.
-
RingCentral Office® annualized exit recurring software subscriptions
(ARR) grew 37% year-over-year to $433.7 million.
-
GAAP software subscriptions gross margin was 80.8%, up 1.7 points
year-over-year, while Non-GAAP software subscriptions gross margin was
81.8%, up 1.7 points year-over-year.
-
GAAP operating margin was (4.8%), up 2.5 points year-over-year, while
Non-GAAP operating margin was 3.7%, up 1.4 points year-over-year.
-
Net monthly subscriptions dollar retention: RingCentral Office over
100% and overall subscriptions over 99%.
"We had an outstanding quarter led again by growth in our mid-market and
enterprise business, as well as strong growth from our channel
partners," said Vlad Shmunis, RingCentral's Chairman and CEO. "We are
excited to cross the $500 million mark in Software Subscriptions ARR as
we reach toward our $1 billion target. RingCentral is the clear market
share leader in UCaaS and we continue to extend our lead."
Financial Results for the Third Quarter 2017
-
Revenue and Gross Margin: Total revenue was $129.8 million for
the third quarter of 2017, up from $96.8 million in the third quarter
of 2016, representing 34% growth. Total gross margin was 76.3% for the
third quarter of 2017, up 0.5% points compared to 75.8% in the third
quarter of 2016.
As of January 1, 2017, RingCentral
transitioned from an agency model to a direct phone sales model, under
which RingCentral will be recognizing the full sale price and cost of
the product instead of receiving a commission for phone sales.
Adjusting for the new direct model on a comparable basis, total
revenue grew 31% year over year and the total gross margin would have
been 2.2% higher year over year.
-
Net Income (Loss) Per Share: GAAP net loss per share was
($0.07) for the third quarter of 2017 compared with ($0.11) for the
third quarter of 2016. Non-GAAP net income per diluted share was $0.06
for the third quarter of 2017, compared with $0.03 per diluted share
for the third quarter of 2016.
-
Balance Sheet: Total cash and cash equivalents at the end of
the third quarter of 2017 was $172.3 million, compared with $167.0
million at the end of the second quarter of 2017.
Recent Business Highlights
Industry Awards
-
For the third consecutive year, Gartner recognized RingCentral as a
Leader in the Magic Quadrant for Unified Communications as a Service
(UCaaS), Worldwide. In this year's Magic Quadrant, RingCentral
continues to be positioned furthest to the right on completeness of
vision.
-
Frost & Sullivan again named RingCentral 2017 Company of the Year in
Hosted IP Telephony and UCaaS North America for its complete
communications and collaboration capabilities and keen insight into
the customer experience.
-
Aragon Research named RingCentral a leader in The Aragon Research
Globe for Unified Communications and Collaboration, 2017, recognizing
our flagship UCaaS solutions as well as our team messaging and
collaboration platform, RingCentral Glip™.
Innovation Highlights
-
In October, RingCentral hosted our second annual user conference,
ConnectCentral 2017. With triple the attendance of our first user
conference, we brought together customers, prospects, channel partners
and our open platform developers. At the conference, we showcased the
latest RingCentral innovations highlighted below.
-
Introduced Quality of Services Analytics: new real-time analytics
capabilities that empower administrators to gain deeper insight into
the end-user experience and achieve faster time to resolution. With
the new Quality of Service Analytics, administrators can measure
quality of every leg of every call on a global basis, and access a
comprehensive reporting dashboard that allows them to anticipate and
diagnose voice quality of service in real time.
-
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.
-
Expansion of RingCentral's Global Office™ solution in Latin America to
include Peru, Brazil, and Argentina. By the end of 2017, the
RingCentral Global Office footprint will extend to 37 countries and
virtual numbers in over 80 countries.
Conference Call Details:
-
What: RingCentral financial results for the third quarter of
2017 and outlook for the fourth quarter and full year of 2017.
-
When: Wednesday, November 8, 2017 at 2:00PM PT (5:00PM ET).
-
Dial in: To access the call in the United States, please dial
(877) 705-6003, and for international callers dial (201) 493-6725.
Callers are encouraged to dial into the call 10 to 15 minutes prior to
the start to prevent any delay in joining.
-
Webcast: http://ir.ringcentral.com/
(live and replay).
-
Replay: A replay of the call will be available via telephone
for seven days, following the completion of the call. To listen to the
telephone replay in the U.S., please dial (844) 512-2921 from the
United States or (412) 317-6671 internationally with recording access
code 13672126.
About RingCentral
RingCentral, Inc. (NYSE:RNG) is a leading provider of global enterprise
cloud communications and collaboration solutions. More flexible and
cost-effective than legacy on-premises systems, RingCentral empowers
today's mobile and distributed workforce to communicate, collaborate,
and connect from anywhere, on any device. RingCentral unifies voice,
video, team messaging and collaboration, conferencing, online meetings,
and integrated contact center solutions. RingCentral's open platform
integrates with leading business apps and enables customers to easily
customize business workflows. RingCentral is headquartered in Belmont,
California, and has offices around the world.
©2017 RingCentral, Inc. All rights reserved. RingCentral, RingCentral
Office, RingCentral Global Office, RingCentral Glip and the RingCentral
logo are trademarks of RingCentral, Inc.
Forward-Looking Statements
This press release contains "forward-looking statements," including but
not limited to, statements regarding our future, our GAAP and non-GAAP
guidance, our strength in our mid-market and enterprise segments, our
growth from our channel partners, our increasing market share, the
expected demand for and benefits of our new product capabilities, the
expansion of RingCentral Global Office and our anticipated success in
the cloud communications and collaboration market. Forward-looking
statements are subject to known and unknown risks and uncertainties and
are based on assumptions that may prove to be incorrect, which could
cause actual results to differ materially from those expected or implied
by the forward-looking statements. Among the important factors that
could cause actual results to differ materially from those in any
forward-looking statements are: our ability to grow at our expected rate
of growth; our ability to add and retain larger and enterprise customers
and enter new geographies and markets; our ability to continue to
release, and gain customer acceptance of, new and improved versions of
our services; our ability to compete successfully against existing and
new competitors; our ability to enter into and maintain relationships
with carriers and other resellers; our ability to manage our expenses
and growth; and general market, political, economic, and business
conditions, as well as those risks and uncertainties included under the
captions "Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations," in our Form 10-Q for the
quarter ended June 30, 2017, filed with the Securities and Exchange
Commission; and in other filings we make with the Securities and
Exchange Commission from time to time.
All forward-looking statements in this press release are based on
information available to RingCentral as of the date hereof, and we
undertake no obligation to update these forward-looking statements, to
review or confirm analysts' expectations, or to provide interim reports
or updates on the progress of the current financial quarter.
Non-GAAP Financial Measures
Our reported financial results include certain Non-GAAP financial
measures, including Non-GAAP operating income (loss), Non-GAAP operating
margin, Non-GAAP software subscriptions gross margin, Non-GAAP net
income (loss), and Non-GAAP net income (loss) per diluted share.
Non-GAAP operating income (loss) is defined as operating income (loss)
excluding share-based compensation, amortization of acquisition
intangibles, and acquisition related matters. Non-GAAP operating margin
is defined as Non-GAAP operating income (loss) divided by total GAAP
revenue. Non-GAAP software subscriptions gross margin is defined as
Non-GAAP subscriptions gross profit divided by GAAP subscription
revenue. Non-GAAP net income (loss) is defined as net income (loss)
excluding stock-based compensation, intercompany remeasurement gains or
losses, acquisition related matters, amortization of acquisition
intangibles, and the related income tax effect of these adjustments.
We have included Non-GAAP operating income (loss), Non-GAAP operating
margin, Non-GAAP software subscriptions gross margin, Non-GAAP net
income (loss), and Non-GAAP net income (loss) per diluted share in this
press release because they are key measures used by us to understand and
evaluate our core operating performance and trends, to prepare and
approve our annual budget, and to develop short and long-term
operational plans. In particular, the exclusion of certain expenses in
calculating Non-GAAP operating income (loss), Non-GAAP operating margin,
Non-GAAP software subscriptions gross margin, Non-GAAP net income
(loss), and Non-GAAP net income (loss) per diluted share can provide a
useful measure for period-to-period comparisons of our core business.
Although Non-GAAP operating income (loss), Non-GAAP operating margin,
Non-GAAP software subscriptions gross margin, Non-GAAP net income
(loss), and Non-GAAP net income (loss) per diluted share are frequently
used by investors in their evaluations of companies, these non-GAAP
financial measures have limitations as analytical tools and should not
be considered in isolation or as a substitute for financial information
presented in accordance with GAAP. Because of these limitations, these
non-GAAP financial measures should be considered alongside other
financial performance measures. Reconciliations of the Company's
historical non-GAAP financial measures and key metrics to their most
directly comparable GAAP measures has been provided in the financial
statement tables included in this press release.
Other Measures
Our reported results also include our total annualized exit monthly
recurring subscriptions, RingCentral Office® annualized exit monthly
recurring subscriptions, and net monthly subscriptions dollar retention.
We define our total annualized exit monthly recurring subscriptions as
our total monthly recurring subscriptions multiplied by 12. Our total
monthly recurring subscriptions equal the monthly value of all customer
subscriptions in effect at the end of a given month. We believe this
metric is a leading indicator of our anticipated subscriptions revenue.
We calculate our RingCentral Office® annualized exit monthly recurring
subscriptions in the same manner as we calculate our total annualized
exit monthly recurring subscriptions, except that only customer
subscriptions from RingCentral Office® customers are included when
determining monthly recurring subscriptions for the purposes of
calculating this key business metric. We define Dollar Net Change as the
quotient of (i) the difference of our Monthly Recurring Subscriptions at
the end of a period minus our Monthly Recurring Subscriptions at the
beginning of a period minus our Monthly Recurring Subscriptions at the
end of the period from new customers we added during the period, (ii)
all divided by the number of months in the period. We define our Average
Monthly Recurring Subscriptions as the average of the Monthly Recurring
Subscriptions at the beginning and end of the measurement period.
|
TABLE 1
RINGCENTRAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
172,306
|
|
|
$
|
160,355
|
|
Accounts receivable, net
|
|
|
39,731
|
|
|
|
30,243
|
|
Prepaid expenses and other current assets
|
|
|
22,185
|
|
|
|
15,313
|
|
Total current assets
|
|
|
234,222
|
|
|
|
205,911
|
|
Property and equipment, net
|
|
|
41,638
|
|
|
|
31,994
|
|
Goodwill
|
|
|
9,393
|
|
|
|
9,393
|
|
Acquired intangibles, net
|
|
|
1,612
|
|
|
|
2,244
|
|
Other assets
|
|
|
2,575
|
|
|
|
3,087
|
|
Total assets
|
|
$
|
289,440
|
|
|
$
|
252,629
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
9,956
|
|
|
$
|
7,810
|
|
Accrued liabilities
|
|
|
53,668
|
|
|
|
48,322
|
|
Current portion of capital lease obligation
|
|
|
-
|
|
|
|
181
|
|
Current portion of long-term debt
|
|
|
-
|
|
|
|
14,528
|
|
Deferred revenue
|
|
|
57,696
|
|
|
|
45,159
|
|
Total current liabilities
|
|
|
121,320
|
|
|
|
116,000
|
|
Long-term debt
|
|
|
-
|
|
|
|
312
|
|
Sales tax liability
|
|
|
2,767
|
|
|
|
3,077
|
|
Other long-term liabilities
|
|
|
3,409
|
|
|
|
3,199
|
|
Total liabilities
|
|
|
127,496
|
|
|
|
122,588
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies (Note 8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
8
|
|
|
|
7
|
|
Additional paid-in capital
|
|
|
418,588
|
|
|
|
366,800
|
|
Accumulated other comprehensive income
|
|
|
2,903
|
|
|
|
2,737
|
|
Accumulated deficit
|
|
|
(259,555
|
)
|
|
|
(239,503
|
)
|
Total stockholders' equity
|
|
|
161,944
|
|
|
|
130,041
|
|
Total liabilities and stockholders' equity
|
|
$
|
289,440
|
|
|
$
|
252,629
|
|
|
|
|
|
|
|
|
|
|
TABLE 2
RINGCENTRAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software subscriptions
|
|
$
|
119,401
|
|
|
$
|
91,853
|
|
|
$
|
333,501
|
|
|
$
|
257,898
|
|
Other
|
|
|
10,363
|
|
|
|
4,986
|
|
|
|
27,490
|
|
|
|
17,323
|
|
Total revenues
|
|
|
129,764
|
|
|
|
96,839
|
|
|
|
360,991
|
|
|
|
275,221
|
|
Cost of revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software subscriptions
|
|
|
22,912
|
|
|
|
19,211
|
|
|
|
64,970
|
|
|
|
54,107
|
|
Other
|
|
|
7,872
|
|
|
|
4,244
|
|
|
|
22,681
|
|
|
|
13,452
|
|
Total cost of revenues
|
|
|
30,784
|
|
|
|
23,455
|
|
|
|
87,651
|
|
|
|
67,559
|
|
Gross profit
|
|
|
98,980
|
|
|
|
73,384
|
|
|
|
273,340
|
|
|
|
207,662
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
19,082
|
|
|
|
16,490
|
|
|
|
54,786
|
|
|
|
48,097
|
|
Sales and marketing
|
|
|
67,071
|
|
|
|
50,306
|
|
|
|
186,759
|
|
|
|
137,796
|
|
General and administrative
|
|
|
19,073
|
|
|
|
13,649
|
|
|
|
52,885
|
|
|
|
41,114
|
|
Total operating expenses
|
|
|
105,226
|
|
|
|
80,445
|
|
|
|
294,430
|
|
|
|
227,007
|
|
Loss from operations
|
|
|
(6,246
|
)
|
|
|
(7,061
|
)
|
|
|
(21,090
|
)
|
|
|
(19,345
|
)
|
Other income (expense), net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(6
|
)
|
|
|
(176
|
)
|
|
|
(94
|
)
|
|
|
(585
|
)
|
Other income (expense), net
|
|
|
613
|
|
|
|
(696
|
)
|
|
|
1,313
|
|
|
|
(2,280
|
)
|
Other income (expense), net
|
|
|
607
|
|
|
|
(872
|
)
|
|
|
1,219
|
|
|
|
(2,865
|
)
|
Loss before income taxes
|
|
|
(5,639
|
)
|
|
|
(7,933
|
)
|
|
|
(19,871
|
)
|
|
|
(22,210
|
)
|
Provision for income taxes
|
|
|
73
|
|
|
|
46
|
|
|
|
181
|
|
|
|
153
|
|
Net loss
|
|
$
|
(5,712
|
)
|
|
$
|
(7,979
|
)
|
|
$
|
(20,052
|
)
|
|
$
|
(22,363
|
)
|
Net loss per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
$
|
(0.07
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.31
|
)
|
Weighted-average number of shares used in computing net loss per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
76,915
|
|
|
|
73,285
|
|
|
|
75,815
|
|
|
|
72,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 3
RINGCENTRAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(20,052
|
)
|
|
$
|
(22,363
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
11,929
|
|
|
|
10,749
|
|
Share-based compensation
|
|
|
30,504
|
|
|
|
22,603
|
|
Foreign currency remeasurement (gain) loss
|
|
|
(700
|
)
|
|
|
2,450
|
|
Provision for bad debt
|
|
|
1,508
|
|
|
|
458
|
|
Deferred income taxes
|
|
|
(18
|
)
|
|
|
(4
|
)
|
Other
|
|
|
123
|
|
|
|
464
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(10,996
|
)
|
|
|
(4,878
|
)
|
Prepaid expenses and other current assets
|
|
|
(6,872
|
)
|
|
|
(2,434
|
)
|
Other assets
|
|
|
1,419
|
|
|
|
201
|
|
Accounts payable
|
|
|
2,168
|
|
|
|
(2,470
|
)
|
Accrued liabilities
|
|
|
9,426
|
|
|
|
13,737
|
|
Deferred revenue
|
|
|
12,537
|
|
|
|
6,080
|
|
Other liabilities
|
|
|
(100
|
)
|
|
|
(2,157
|
)
|
Net cash provided by operating activities
|
|
|
30,876
|
|
|
|
22,436
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(15,886
|
)
|
|
|
(9,634
|
)
|
Capitalized internal-use software
|
|
|
(5,432
|
)
|
|
|
(1,515
|
)
|
Restricted investments
|
|
|
530
|
|
|
|
-
|
|
Net cash used in investing activities
|
|
|
(20,788
|
)
|
|
|
(11,149
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
Proceeds from issuance of stock in connection with stock plans
|
|
|
19,685
|
|
|
|
8,268
|
|
Payment of holdback from Glip acquisition
|
|
|
-
|
|
|
|
(1,500
|
)
|
Taxes paid related to net share settlement of equity awards
|
|
|
(2,125
|
)
|
|
|
(131
|
)
|
Repayment of debt
|
|
|
(14,840
|
)
|
|
|
(2,813
|
)
|
Repayment of capital lease obligations
|
|
|
(181
|
)
|
|
|
(269
|
)
|
Net cash provided by financing activities
|
|
|
2,539
|
|
|
|
3,555
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(676
|
)
|
|
|
(40
|
)
|
Net increase in cash and cash equivalents
|
|
|
11,951
|
|
|
|
14,802
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
160,355
|
|
|
|
137,588
|
|
End of period
|
|
$
|
172,306
|
|
|
$
|
152,390
|
|
|
|
|
|
|
|
|
|
|
TABLE 4
RINGCENTRAL, INC.
RECONCILIATION OF OPERATING INCOME (LOSS)
GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited, in thousands)
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software subscriptions
|
|
$
|
119,401
|
|
|
$
|
91,853
|
|
|
$
|
333,501
|
|
|
$
|
257,898
|
|
Other
|
|
|
10,363
|
|
|
|
4,986
|
|
|
|
27,490
|
|
|
|
17,323
|
|
Total revenues
|
|
|
129,764
|
|
|
|
96,839
|
|
|
|
360,991
|
|
|
|
275,221
|
|
Cost of revenues reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Software subscriptions cost of revenues
|
|
|
22,912
|
|
|
|
19,211
|
|
|
|
64,970
|
|
|
|
54,107
|
|
Stock-based compensation
|
|
|
(981
|
)
|
|
|
(824
|
)
|
|
|
(2,703
|
)
|
|
|
(2,238
|
)
|
Amortization of acquisition intangibles
|
|
|
(151
|
)
|
|
|
(151
|
)
|
|
|
(452
|
)
|
|
|
(452
|
)
|
Non-GAAP Software subscriptions cost of revenues
|
|
|
21,780
|
|
|
|
18,236
|
|
|
|
61,815
|
|
|
|
51,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Other cost of revenues
|
|
|
7,872
|
|
|
|
4,244
|
|
|
|
22,681
|
|
|
|
13,452
|
|
Stock-based compensation
|
|
|
(45
|
)
|
|
|
(35
|
)
|
|
|
(118
|
)
|
|
|
(86
|
)
|
Non-GAAP Other cost of revenues
|
|
|
7,827
|
|
|
|
4,209
|
|
|
|
22,563
|
|
|
|
13,366
|
|
Gross profit and gross margin reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Subscriptions
|
|
|
81.8
|
%
|
|
|
80.1
|
%
|
|
|
81.5
|
%
|
|
|
80.1
|
%
|
Non-GAAP Other
|
|
|
24.5
|
%
|
|
|
15.6
|
%
|
|
|
17.9
|
%
|
|
|
22.8
|
%
|
Non-GAAP Gross profit
|
|
|
77.2
|
%
|
|
|
76.8
|
%
|
|
|
76.6
|
%
|
|
|
76.5
|
%
|
Operating expenses reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Research and development
|
|
|
19,082
|
|
|
|
16,490
|
|
|
|
54,786
|
|
|
|
48,097
|
|
Stock-based compensation
|
|
|
(2,598
|
)
|
|
|
(1,996
|
)
|
|
|
(6,799
|
)
|
|
|
(5,491
|
)
|
Acquisition related matters
|
|
|
-
|
|
|
|
(619
|
)
|
|
|
(443
|
)
|
|
|
(1,102
|
)
|
Non-GAAP Research and development
|
|
|
16,484
|
|
|
|
13,875
|
|
|
|
47,544
|
|
|
|
41,504
|
|
As a % of total revenues non-GAAP
|
|
|
12.7
|
%
|
|
|
14.3
|
%
|
|
|
13.2
|
%
|
|
|
15.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Sales and marketing
|
|
|
67,071
|
|
|
|
50,306
|
|
|
|
186,759
|
|
|
|
137,796
|
|
Stock-based compensation
|
|
|
(4,105
|
)
|
|
|
(3,023
|
)
|
|
|
(11,556
|
)
|
|
|
(7,791
|
)
|
Amortization of acquisition intangibles
|
|
|
-
|
|
|
|
(105
|
)
|
|
|
(180
|
)
|
|
|
(315
|
)
|
Non-GAAP Sales and marketing
|
|
|
62,966
|
|
|
|
47,178
|
|
|
|
175,023
|
|
|
|
129,690
|
|
As a % of total revenues non-GAAP
|
|
|
48.5
|
%
|
|
|
48.7
|
%
|
|
|
48.5
|
%
|
|
|
47.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP General and administrative
|
|
|
19,073
|
|
|
|
13,649
|
|
|
|
52,885
|
|
|
|
41,114
|
|
Stock-based compensation
|
|
|
(3,213
|
)
|
|
|
(2,511
|
)
|
|
|
(9,328
|
)
|
|
|
(6,997
|
)
|
Acquisition related matters
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(59
|
)
|
Non-GAAP General and administrative
|
|
|
15,860
|
|
|
|
11,138
|
|
|
|
43,557
|
|
|
|
34,058
|
|
As a % of total revenues non-GAAP
|
|
|
12.2
|
%
|
|
|
11.5
|
%
|
|
|
12.1
|
%
|
|
|
12.4
|
%
|
Income (loss) from operations reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from operations
|
|
|
(6,246
|
)
|
|
|
(7,061
|
)
|
|
|
(21,090
|
)
|
|
|
(19,345
|
)
|
Stock-based compensation
|
|
|
10,942
|
|
|
|
8,389
|
|
|
|
30,504
|
|
|
|
22,603
|
|
Amortization of acquisition intangibles
|
|
|
151
|
|
|
|
256
|
|
|
|
632
|
|
|
|
767
|
|
Acquisition related matters
|
|
|
-
|
|
|
|
619
|
|
|
|
443
|
|
|
|
1,161
|
|
Non-GAAP Income from operations
|
|
$
|
4,847
|
|
|
$
|
2,203
|
|
|
$
|
10,489
|
|
|
$
|
5,186
|
|
Non-GAAP Operating margin
|
|
|
3.7
|
%
|
|
|
2.3
|
%
|
|
|
2.9
|
%
|
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 5
RINGCENTRAL, INC.
RECONCILIATION OF NET INCOME (LOSS)
GAAP MEASURES TO NON-GAAP MEASURES
(In thousands, except per share data)
(Unaudited)
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Net Income (loss) reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net loss
|
|
$
|
(5,712
|
)
|
|
$
|
(7,979
|
)
|
|
$
|
(20,052
|
)
|
|
$
|
(22,363
|
)
|
Stock-based compensation
|
|
|
10,942
|
|
|
|
8,389
|
|
|
|
30,504
|
|
|
|
22,603
|
|
Amortization of acquisition intangibles
|
|
|
151
|
|
|
|
256
|
|
|
|
632
|
|
|
|
767
|
|
Acquisition related matters
|
|
|
-
|
|
|
|
619
|
|
|
|
443
|
|
|
|
1,161
|
|
Intercompany remeasurement loss (gain)
|
|
|
(392
|
)
|
|
|
745
|
|
|
|
(870
|
)
|
|
|
2,341
|
|
Income tax expense effects *
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Non-GAAP Net income
|
|
$
|
4,989
|
|
|
$
|
2,030
|
|
|
$
|
10,657
|
|
|
$
|
4,509
|
|
Basic and diluted net income (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP and non-GAAP weighted average shares
used in computing basic and diluted net income / (loss) per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computing net loss per
share
|
|
|
76,915
|
|
|
|
73,285
|
|
|
|
75,815
|
|
|
|
72,669
|
|
Effect of dilutive securities
|
|
|
6,194
|
|
|
|
3,838
|
|
|
|
5,784
|
|
|
|
3,355
|
|
Non-GAAP weighted average shares used in computing non-GAAP net
income per share
|
|
|
83,109
|
|
|
|
77,123
|
|
|
|
81,599
|
|
|
|
76,024
|
|
GAAP Net loss per share
|
|
$
|
(0.07
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.31
|
)
|
Non-GAAP Net income per share
|
|
$
|
0.06
|
|
|
$
|
0.03
|
|
|
$
|
0.13
|
|
|
$
|
0.06
|
|
* The non-GAAP adjustments do not have an impact on our income tax
provision due to our continued history of non-GAAP losses and full
valuation allowance.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171108006406/en/
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