[August 02, 2017] |
|
RingCentral Announces Second Quarter 2017 Results
RingCentral,
Inc. (NYSE: RNG), a leading provider of global enterprise cloud
communications and collaboration solutions, today announced financial
results for the second quarter ended June 30, 2017.
Second Quarter Financial Highlights
-
Software subscriptions revenue grew 28% year-over-year to $110.4
million.
-
Total revenue grew 30% year-over-year to $119.4 million.
-
RingCentral Office® annualized exit recurring software subscriptions
(ARR) grew 37% year-over-year to $398.9 million.
-
Total annualized exit recurring software subscriptions (ARR) grew 31%
year-over-year to $478.0 million.
-
GAAP software subscriptions gross margin was 80.3%, up 1.4 points
year-over-year, while Non-GAAP software subscriptions gross margin was
81.3%, up 1.3 points year-over-year.
-
GAAP operating margin was (6.3%), up 0.6 points year-over-year, while
Non-GAAP operating margin was 2.9%, up 1.0 point year-over-year.
-
Net monthly subscriptions dollar retention: RingCentral Office over
100% and overall subscriptions over 99%.
"We delivered another great quarter of results driven by strength in our
mid-market and enterprise segments, as well as breakout growth from our
channel partners," said Vlad Shmunis, RingCentral's Chairman and CEO.
"The struggles of legacy on-premise system vendors are becoming well
documented. At the same time, cloud based solutions are gaining
acceptance and RingCentral is increasing its market share. Put simply,
cloud is winning and RingCentral is winning in the cloud."
Financial Results for the Second Quarter 2017
-
Revenue and Gross Margin: Total revenue was $119.4 million for
the second quarter of 2017, up from $91.8 million in the second
quarter of 2016, representing 30% growth. Total gross margin was 75.2%
for the second quarter of 2017, 0.5% lower compared to 75.7% in the
second 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 27% year over year and the total gross margin would have
been 1.4% higher year over year.
-
Net Income (Loss) Per Share: GAAP net loss per share was
($0.09) for the second quarter of 2017 compared with ($0.11) for the
second quarter of 2016. Non-GAAP net income per diluted share was
$0.04 for the second quarter of 2017, compared with $0.02 per diluted
share for the second quarter of 2016.
-
Balance Sheet: Total cash and cash equivalents at the end of
the second quarter of 2017 was $167.0 million, compared with $149.7
million at the end of the first quarter of 2017.
Recent Business Highlights
-
Recognized by Synergy Research Group, an independent market research
firm, as the #1 worldwide market share leader in both revenue and
subscriber seats for Unified Communications as a Service (UCaaS).
-
Recognized as a market leader by IHS Markit in the 2017 North American
UCaaS Scorecard.
-
Signed seven customer accounts which each have total contract value
(TCV) of seven digits, including ChenMed and ExtraSpace Storage.
-
Expanded TELUS' cloud communications portfolio for Canadian businesses
with the introduction of TELUS Business Connect Mobile which makes the
features of an enterprise-grade PBX phone system available on
smartphones and tablets.
-
Released RingCentral Live Reports which enables RingCentral Office
customers to monitor in real time the service quality being delivered
to their customers.
-
Launched Business Multimedia Messaging Service (MMS) capabilities
enabling customers to send and receive images and multimedia files
from their RingCentral business numbers. This capability is unique
among our largest competitors.
-
Expanded RingCentral ConnectTM open platform with new
integrations including Microsoft Dynamics and additional integrations
with G Suite.
Conference Call Details:
-
What: RingCentral financial results for the second quarter of
2017 and outlook for the third quarter and full year of 2017.
-
When: Wednesday, August 2, 2017 at 1:30PM PT (4:30PM 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, beginning two hours after 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 13666007.
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 Connect 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, 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 March 31, 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)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
167,015
|
|
|
$
|
160,355
|
|
Accounts receivable, net
|
|
|
33,264
|
|
|
|
30,243
|
|
Prepaid expenses and other current assets
|
|
|
17,936
|
|
|
|
15,313
|
|
Total current assets
|
|
|
218,215
|
|
|
|
205,911
|
|
Property and equipment, net
|
|
|
36,613
|
|
|
|
31,994
|
|
Goodwill
|
|
|
9,393
|
|
|
|
9,393
|
|
Acquired intangibles, net
|
|
|
1,763
|
|
|
|
2,244
|
|
Other assets
|
|
|
2,633
|
|
|
|
3,087
|
|
Total assets
|
|
$
|
268,617
|
|
|
$
|
252,629
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
5,556
|
|
|
$
|
7,810
|
|
Accrued liabilities
|
|
|
49,720
|
|
|
|
48,322
|
|
Current portion of capital lease obligation
|
|
|
-
|
|
|
|
181
|
|
Current portion of long-term debt
|
|
|
-
|
|
|
|
14,528
|
|
Deferred revenue
|
|
|
53,367
|
|
|
|
45,159
|
|
Total current liabilities
|
|
|
108,643
|
|
|
|
116,000
|
|
Long-term debt
|
|
|
-
|
|
|
|
312
|
|
Sales tax liability
|
|
|
3,077
|
|
|
|
3,077
|
|
Other long-term liabilities
|
|
|
3,175
|
|
|
|
3,199
|
|
Total liabilities
|
|
|
114,895
|
|
|
|
122,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
8
|
|
|
|
7
|
|
Additional paid-in capital
|
|
|
404,742
|
|
|
|
366,800
|
|
Accumulated other comprehensive income
|
|
|
2,815
|
|
|
|
2,737
|
|
Accumulated deficit
|
|
|
(253,843
|
)
|
|
|
(239,503
|
)
|
Total stockholders' equity
|
|
|
153,722
|
|
|
|
130,041
|
|
Total liabilities and stockholders' equity
|
|
$
|
268,617
|
|
|
$
|
252,629
|
|
TABLE 2
RINGCENTRAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software subscriptions
|
|
$
|
110,413
|
|
|
$
|
86,067
|
|
|
$
|
214,100
|
|
|
$
|
166,045
|
|
Other
|
|
|
9,023
|
|
|
|
5,777
|
|
|
|
17,127
|
|
|
|
12,337
|
|
Total revenues
|
|
|
119,436
|
|
|
|
91,844
|
|
|
|
231,227
|
|
|
|
178,382
|
|
Cost of revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software subscriptions
|
|
|
21,795
|
|
|
|
18,173
|
|
|
|
42,058
|
|
|
|
34,896
|
|
Other
|
|
|
7,766
|
|
|
|
4,191
|
|
|
|
14,809
|
|
|
|
9,208
|
|
Total cost of revenues
|
|
|
29,561
|
|
|
|
22,364
|
|
|
|
56,867
|
|
|
|
44,104
|
|
Gross profit
|
|
|
89,875
|
|
|
|
69,480
|
|
|
|
174,360
|
|
|
|
134,278
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
18,617
|
|
|
|
16,681
|
|
|
|
35,704
|
|
|
|
31,607
|
|
Sales and marketing
|
|
|
60,794
|
|
|
|
45,662
|
|
|
|
119,688
|
|
|
|
87,490
|
|
General and administrative
|
|
|
18,007
|
|
|
|
13,441
|
|
|
|
33,812
|
|
|
|
27,465
|
|
Total operating expenses
|
|
|
97,418
|
|
|
|
75,784
|
|
|
|
189,204
|
|
|
|
146,562
|
|
Loss from operations
|
|
|
(7,543
|
)
|
|
|
(6,304
|
)
|
|
|
(14,844
|
)
|
|
|
(12,284
|
)
|
Other income (expense), net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(9
|
)
|
|
|
(193
|
)
|
|
|
(88
|
)
|
|
|
(409
|
)
|
Other income (expense), net
|
|
|
578
|
|
|
|
(1,217
|
)
|
|
|
700
|
|
|
|
(1,584
|
)
|
Other income (expense), net
|
|
|
569
|
|
|
|
(1,410
|
)
|
|
|
612
|
|
|
|
(1,993
|
)
|
Loss before income taxes
|
|
|
(6,974
|
)
|
|
|
(7,714
|
)
|
|
|
(14,232
|
)
|
|
|
(14,277
|
)
|
Provision for income taxes
|
|
|
57
|
|
|
|
57
|
|
|
|
108
|
|
|
|
107
|
|
Net loss
|
|
$
|
(7,031
|
)
|
|
$
|
(7,771
|
)
|
|
$
|
(14,340
|
)
|
|
$
|
(14,384
|
)
|
Net loss per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
$
|
(0.09
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.19
|
)
|
|
$
|
(0.20
|
)
|
Weighted-average number of shares used in computing net loss per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
75,867
|
|
|
|
72,649
|
|
|
|
75,278
|
|
|
|
72,380
|
|
TABLE 3
RINGCENTRAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
2017
|
|
|
2016
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(14,340
|
)
|
|
$
|
(14,384
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
7,842
|
|
|
|
6,953
|
|
Share-based compensation
|
|
|
19,562
|
|
|
|
14,214
|
|
Foreign currency remeasurement (gain) loss
|
|
|
(463
|
)
|
|
|
1,708
|
|
Provision for bad debt
|
|
|
1,003
|
|
|
|
388
|
|
Deferred income taxes
|
|
|
(12
|
)
|
|
|
(4
|
)
|
Other
|
|
|
113
|
|
|
|
113
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(4,024
|
)
|
|
|
(5,395
|
)
|
Prepaid expenses and other current assets
|
|
|
(2,623
|
)
|
|
|
(452
|
)
|
Other assets
|
|
|
501
|
|
|
|
131
|
|
Accounts payable
|
|
|
(1,427
|
)
|
|
|
(3,911
|
)
|
Accrued liabilities
|
|
|
3,136
|
|
|
|
11,492
|
|
Deferred revenue
|
|
|
8,208
|
|
|
|
5,448
|
|
Other liabilities
|
|
|
(24
|
)
|
|
|
(1,620
|
)
|
Net cash provided by operating activities
|
|
|
17,452
|
|
|
|
14,681
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(8,814
|
)
|
|
|
(6,056
|
)
|
Capitalized internal-use software
|
|
|
(3,488
|
)
|
|
|
(961
|
)
|
Restricted investments
|
|
|
530
|
|
|
|
-
|
|
Net cash used in investing activities
|
|
|
(11,772
|
)
|
|
|
(7,017
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
Proceeds from issuance of stock in connection with stock plans
|
|
|
17,449
|
|
|
|
6,168
|
|
Payment of holdback from Glip acquisition
|
|
|
-
|
|
|
|
(1,500
|
)
|
Taxes paid related to net share settlement of equity awards
|
|
|
(1,118
|
)
|
|
|
-
|
|
Repayment of debt
|
|
|
(14,840
|
)
|
|
|
(1,875
|
)
|
Repayment of capital lease obligations
|
|
|
(181
|
)
|
|
|
(177
|
)
|
Net cash provided by financing activities
|
|
|
1,310
|
|
|
|
2,616
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(330
|
)
|
|
|
(77
|
)
|
Net increase in cash and cash equivalents
|
|
|
6,660
|
|
|
|
10,203
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
160,355
|
|
|
|
137,588
|
|
End of period
|
|
$
|
167,015
|
|
|
$
|
147,791
|
|
TABLE 4
RINGCENTRAL, INC.
RECONCILIATION OF OPERATING INCOME (LOSS)
GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software subscriptions
|
|
$
|
110,413
|
|
|
$
|
86,067
|
|
|
$
|
214,100
|
|
|
$
|
166,045
|
|
Other
|
|
|
9,023
|
|
|
|
5,777
|
|
|
|
17,127
|
|
|
|
12,337
|
|
Total revenues
|
|
|
119,436
|
|
|
|
91,844
|
|
|
|
231,227
|
|
|
|
178,382
|
|
Cost of revenues reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Software subscriptions cost of revenues
|
|
|
21,795
|
|
|
|
18,173
|
|
|
|
42,058
|
|
|
|
34,896
|
|
Stock-based compensation
|
|
|
(997
|
)
|
|
|
(780
|
)
|
|
|
(1,722
|
)
|
|
|
(1,414
|
)
|
Amortization of acquisition intangibles
|
|
|
(150
|
)
|
|
|
(151
|
)
|
|
|
(301
|
)
|
|
|
(301
|
)
|
Non-GAAP Software subscriptions cost of revenues
|
|
|
20,648
|
|
|
|
17,242
|
|
|
|
40,035
|
|
|
|
33,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Other cost of revenues
|
|
|
7,766
|
|
|
|
4,191
|
|
|
|
14,809
|
|
|
|
9,208
|
|
Stock-based compensation
|
|
|
(41
|
)
|
|
|
(32
|
)
|
|
|
(73
|
)
|
|
|
(51
|
)
|
Non-GAAP Other cost of revenues
|
|
|
7,725
|
|
|
|
4,159
|
|
|
|
14,736
|
|
|
|
9,157
|
|
Gross profit and gross margin reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Subscriptions
|
|
|
81.3
|
%
|
|
|
80.0
|
%
|
|
|
81.3
|
%
|
|
|
80.0
|
%
|
Non-GAAP Other
|
|
|
14.4
|
%
|
|
|
28.0
|
%
|
|
|
14.0
|
%
|
|
|
25.8
|
%
|
Non-GAAP Gross profit
|
|
|
76.2
|
%
|
|
|
76.7
|
%
|
|
|
76.3
|
%
|
|
|
76.3
|
%
|
Operating expenses reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Research and development
|
|
|
18,617
|
|
|
|
16,681
|
|
|
|
35,704
|
|
|
|
31,607
|
|
Stock-based compensation
|
|
|
(2,342
|
)
|
|
|
(1,857
|
)
|
|
|
(4,201
|
)
|
|
|
(3,495
|
)
|
Acquisition related matters
|
|
|
(178
|
)
|
|
|
(242
|
)
|
|
|
(443
|
)
|
|
|
(483
|
)
|
Non-GAAP Research and development
|
|
|
16,097
|
|
|
|
14,582
|
|
|
|
31,060
|
|
|
|
27,629
|
|
As a % of total revenues non-GAAP
|
|
|
13.5
|
%
|
|
|
15.9
|
%
|
|
|
13.4
|
%
|
|
|
15.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Sales and marketing
|
|
|
60,794
|
|
|
|
45,662
|
|
|
|
119,688
|
|
|
|
87,490
|
|
Stock-based compensation
|
|
|
(3,926
|
)
|
|
|
(2,578
|
)
|
|
|
(7,451
|
)
|
|
|
(4,768
|
)
|
Amortization of acquisition intangibles
|
|
|
(76
|
)
|
|
|
(105
|
)
|
|
|
(180
|
)
|
|
|
(210
|
)
|
Non-GAAP Sales and marketing
|
|
|
56,792
|
|
|
|
42,979
|
|
|
|
112,057
|
|
|
|
82,512
|
|
As a % of total revenues non-GAAP
|
|
|
47.6
|
%
|
|
|
46.8
|
%
|
|
|
48.5
|
%
|
|
|
46.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP General and administrative
|
|
|
18,007
|
|
|
|
13,441
|
|
|
|
33,812
|
|
|
|
27,465
|
|
Stock-based compensation
|
|
|
(3,321
|
)
|
|
|
(2,230
|
)
|
|
|
(6,115
|
)
|
|
|
(4,486
|
)
|
Acquisition related matters
|
|
|
-
|
|
|
|
(47
|
)
|
|
|
-
|
|
|
|
(59
|
)
|
Non-GAAP General and administrative
|
|
|
14,686
|
|
|
|
11,164
|
|
|
|
27,697
|
|
|
|
22,920
|
|
As a % of total revenues non-GAAP
|
|
|
12.3
|
%
|
|
|
12.2
|
%
|
|
|
12.0
|
%
|
|
|
12.8
|
%
|
Income (loss) from operations reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from operations
|
|
|
(7,543
|
)
|
|
|
(6,304
|
)
|
|
|
(14,844
|
)
|
|
|
(12,284
|
)
|
Stock-based compensation
|
|
|
10,627
|
|
|
|
7,477
|
|
|
|
19,562
|
|
|
|
14,214
|
|
Amortization of acquisition intangibles
|
|
|
226
|
|
|
|
256
|
|
|
|
481
|
|
|
|
511
|
|
Acquisition related matters
|
|
|
178
|
|
|
|
289
|
|
|
|
443
|
|
|
|
542
|
|
Non-GAAP Income from operations
|
|
$
|
3,488
|
|
|
$
|
1,718
|
|
|
$
|
5,642
|
|
|
$
|
2,983
|
|
Non-GAAP Operating margin
|
|
|
2.9
|
%
|
|
|
1.9
|
%
|
|
|
2.4
|
%
|
|
|
1.7
|
%
|
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
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Net Income (loss) reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net loss
|
|
|
$
|
(7,031
|
)
|
|
$
|
(7,771
|
)
|
|
$
|
(14,340
|
)
|
|
$
|
(14,384
|
)
|
Stock-based compensation
|
|
|
|
10,627
|
|
|
|
7,477
|
|
|
|
19,562
|
|
|
|
14,214
|
|
Amortization of acquisition intangibles
|
|
|
|
226
|
|
|
|
256
|
|
|
|
481
|
|
|
|
511
|
|
Acquisition related matters
|
|
|
|
178
|
|
|
|
289
|
|
|
|
443
|
|
|
|
542
|
|
Intercompany remeasurement loss (gain)
|
|
|
|
(435
|
)
|
|
|
1,258
|
|
|
|
(478
|
)
|
|
|
1,596
|
|
Income tax expense effects *
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Non-GAAP Net income
|
|
|
$
|
3,565
|
|
|
$
|
1,509
|
|
|
$
|
5,668
|
|
|
$
|
2,479
|
|
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
|
|
|
|
75,867
|
|
|
|
72,649
|
|
|
|
75,278
|
|
|
|
72,380
|
|
Effect of dilutive securities
|
|
|
|
6,192
|
|
|
|
3,148
|
|
|
|
5,579
|
|
|
|
3,128
|
|
Non-GAAP weighted average shares used in computing
non-GAAP net income per share
|
|
|
|
82,059
|
|
|
|
75,797
|
|
|
|
80,857
|
|
|
|
75,508
|
|
GAAP Net loss per share
|
|
|
$
|
(0.09
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.19
|
)
|
|
$
|
(0.20
|
)
|
Non-GAAP Net income per share
|
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
|
$
|
0.07
|
|
|
$
|
0.03
|
|
* The non-GAAP adjustments do not have an impact on our income tax
provision due to our history of non-GAAP losses and full valuation
allowance on our deferred taxes.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170802006316/en/
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