| [May 09, 2018] |
 |
RingCentral Announces First Quarter 2018 Results
RingCentral,
Inc. (NYSE: RNG), a leading provider of global enterprise cloud
communications and collaboration solutions, today announced financial
results for the first quarter ended March 31, 2018.
First Quarter Financial Highlights
-
Total revenue increased 34% year over year to $150 million.
-
Software subscriptions revenue increased 32% year over year to $137
million.
-
Annualized Exit Monthly Recurring Subscriptions (ARR) increased 31%
year over year to $589 million.
-
RingCentral Office® ARR increased 37% year over year to $509 million.
-
GAAP software subscriptions gross margin was 82.1%, up 1.6 points year
over year, while non-GAAP software subscriptions gross margin was
82.8%, up 1.4 points year over year.
-
GAAP operating margin was (0.9%), up 1.1 points year over year, while
non-GAAP operating margin was 8.6%, up 2.2 points year over year.
-
Net monthly subscriptions dollar retention: RingCentral Office over
100% and overall subscriptions over 99%.
"Our first quarter was an excellent start to 2018 for RingCentral. Our
business strengthened, driven by our mid-market and enterprise
customers. Our enterprise business is now over $100 million, growing
triple digits," said Vlad Shmunis, RingCentral's chairman and CEO. "We
announced innovative new products and we continued to extend our
leadership position in the cloud communications industry. We believe we
are well positioned to benefit as the on-premise market transitions to
the cloud."
New Accounting Standard
The Company adopted the new standard related to revenue recognition
(Topic 606) effective January 1, 2018. The financial information in this
press release is prepared in accordance with Topic 606, and the
comparison period amounts used to calculate growth rates are based on
amounts that have been restated from previously reported amounts to
conform to the requirements of Topic 606.
Financial Results for the First Quarter 2018
-
Revenue and Gross Margin: Total revenue was $150 million for
the first quarter of 2018, up from $112 million in the first quarter
of 2017, representing 34% growth. Total GAAP gross margin was 76.3%
for the first quarter of 2018, up 0.6 points compared to 75.7% in the
first quarter of 2017.
-
Net Income (Loss) Per Share: GAAP net loss per share was
($0.03) for the first quarter of 2018 compared with ($0.03) for the
first quarter of 2017. Non-GAAP net income per diluted share was $0.16
for the first quarter of 2018, compared with $0.09 per diluted share
for the first quarter of 2017.
-
Balance Sheet: Total cash and cash equivalents at the end of
the first quarter of 2018 was $555 million, compared with $181 million
at the end of the fourth quarter of 2017.
Recent Business Highlights
-
Announced RingCentral Collaborative Contact Center™ solution, which
transforms the way organizations manage customer engagement. This new
solution combines contact center features with team messaging to
enable agents and supervisors to communicate and collaborate across
their organizations in real-time to resolve customer issues
efficiently.
-
Announced RingCentral Pulse™, an innovative solution which provides
intelligent bots that monitor critical call center metrics in real
time. It provides automated alerts and notifications to key
stakeholders directly within team messages via RingCentral Glip. This
empowers organizations to deliver superior quality service to their
customers.
-
Announced RingCentral Collaborative Meetings™ which provides
integrated team messaging, online meetings, video conferencing,
screen-sharing, and task management in a single solution to enable a
full meeting experience. Available stand-alone, the solution can be
easily upgraded to the full cloud communications capabilities of
RingCentral Office®.
-
Issued $460 million of 0% coupon Convertible Senior Notes due in 2023.
In conjunction with the issuance of the convertible notes, RingCentral
also entered into a capped call transaction to eliminate shareholder
dilution up to a $119 stock price, or 90% above the share price at
issuance.
-
Received a 5-star rating from CRN®, a brand of The Channel Company, in
its 2018 Partner Program Guide. The CRN 5-Star Partner Program Guide
rating recognizes an elite set of companies that offer the best
partnering elements in their channel programs.
Financial Outlook
Full Year 2018 Guidance:
-
Raising software subscriptions revenue range to $588 to $594 million,
representing annual growth of 26% to 28%. This is up from our prior
range of $581 to $589 million and annual growth of 25% to 27%.
-
Raising total revenue range to $638 to $647 million, representing
annual growth of 27% to 28%. This is up from our prior range of $629
to $639 million and annual growth of 25% to 27%.
-
Raising GAAP operating margin range to (4.0%) to (3.4%), up from the
prior range of (4.5%) to (3.5%). Raising non-GAAP operating margin
range to 8.1% to 8.3%, up from the prior range of 7.8% to 8.2%.
-
Raising non-GAAP EPS range to $0.61 to $0.65 based on 86.0 million
fully diluted shares. This is up from our prior range of $0.56 to
$0.60.
Second Quarter 2018 Guidance:
-
Software subscriptions revenue range of $142.5 to $143.5 million,
representing annual growth of 28% to 29%
-
Total revenue range of $154.5 to $156.5 million, representing annual
growth of 29% to 31%
-
GAAP operating margin range of (5.3%) and (4.3%), and Non-GAAP
operating margin range of 7.5% and 8.0%
-
Non-GAAP EPS range of $0.14 to $0.16 based on 85.0 million fully
diluted shares
For a reconciliation of our forecasted non-GAAP operating margin, see
"Reconciliation of Forecasted Operating Margin GAAP Measures to Non-GAAP
Measures." We have not reconciled our forecasted non-GAAP EPS to GAAP
EPS because we do not provide guidance on it. We do not provide guidance
on forecasted GAAP EPS because of the inherent uncertainty and
complexity involved in forecasting the intercompany remeasurement gain
(loss), which could be a significant reconciling item between the
non-GAAP and respective GAAP measure. The intercompany remeasurement
gain (loss) is affected by the movement in various exchange rates
relative to the USD, which is difficult to predict and subject to
constant change. Accordingly, a reconciliation of the non-GAAP financial
measure guidance to the corresponding GAAP measure is not available
without unreasonable effort.
Conference Call Details:
-
What: RingCentral financial results for the first quarter of
2018 and outlook for the second quarter and full year of 2018.
-
When: Wednesday, May 9, 2018 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 13678764.
Investor Presentation Details
An investor presentation providing additional information and analysis
can be found at http://ir.ringcentral.com/.
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.
©2018 RingCentral, Inc. All rights reserved. RingCentral, RingCentral
Office, RingCentral Meetings, RingCentral Contact Center, RingCentral
Glip, RingCentral Pulse 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 financial results, our
GAAP and non-GAAP guidance, our strength in the mid-market and
enterprise segments, our leadership in the UCaaS market, our market
opportunity, and the anticipated transition of the on-premise market to
the cloud. 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-K for the year ended December 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 and financial outlook include certain
Non-GAAP financial measures, including Non-GAAP software subscriptions
gross margin, Non-GAAP other gross margin, Non-GAAP operating margin,
Non-GAAP operating income (loss), Non-GAAP net income (loss) and
Non-GAAP net income (loss) per diluted share. Non-GAAP software
subscriptions gross margin is defined as Non-GAAP subscriptions gross
profit divided by GAAP subscriptions revenue. Non-GAAP other gross
margin is defined as Non-GAAP other gross profit divided by GAAP other
revenue. 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 net income (loss) is defined as GAAP net income (loss)
excluding share-based compensation, intercompany remeasurement gains or
losses, acquisition related matters, amortization of acquisition
intangibles, non-cash interest expense associated with amortization of
debt discount and issuance costs related to our convertible senior notes
and the related income tax effect of these adjustments.
Non-GAAP diluted shares outstanding include the impact on shares used in
per share calculations of our outstanding capped call transactions. Our
outstanding capped call transactions are anti-dilutive in GAAP earnings
per share but are expected to mitigate the dilutive effect of our
convertible notes and therefore will be included in the calculations of
non-GAAP diluted shares outstanding.
We have included Non-GAAP software subscriptions gross margin, Non-GAAP
other gross margin, Non-GAAP operating 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 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
software subscriptions gross margin, Non-GAAP other gross margin,
Non-GAAP operating margin, Non-GAAP net income (loss), and Non-GAAP net
income (loss) per diluted share provide useful measure for
period-to-period comparisons of our business.
Although Non-GAAP software subscriptions gross margin, Non-GAAP other
gross margin, Non-GAAP operating 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 non-GAAP financial measures 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 annualized exit monthly recurring
subscriptions, RingCentral Office® annualized exit monthly recurring
subscriptions, enterprise annualized exit monthly recurring
subscriptions and net monthly subscriptions dollar retention. We define
our annualized exit monthly recurring subscriptions as our monthly
recurring subscriptions multiplied by 12. Our monthly recurring
subscriptions equal the monthly value of all recurring charges 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 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)
|
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
December 31,
2017
*As Adjusted
|
|
Assets
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
554,963
|
|
|
$
|
181,192
|
|
|
Accounts receivable, net
|
|
|
55,379
|
|
|
|
46,690
|
|
|
Deferred sales commission costs
|
|
$
|
16,649
|
|
|
$
|
15,424
|
|
|
Prepaid expenses and other current assets
|
|
|
24,118
|
|
|
|
21,512
|
|
|
Total current assets
|
|
|
651,109
|
|
|
|
264,818
|
|
|
Property and equipment, net
|
|
|
50,131
|
|
|
|
43,298
|
|
|
Deferred sales commission costs, noncurrent
|
|
|
40,140
|
|
|
|
37,871
|
|
|
Goodwill
|
|
|
9,393
|
|
|
|
9,393
|
|
|
Acquired intangibles, net
|
|
|
22,377
|
|
|
|
1,462
|
|
|
Other assets
|
|
|
2,328
|
|
|
|
2,972
|
|
|
Total assets
|
|
$
|
775,478
|
|
|
$
|
359,814
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Accounts payable
|
|
$
|
4,256
|
|
|
$
|
7,322
|
|
|
Accrued liabilities
|
|
|
64,562
|
|
|
|
54,977
|
|
|
Current portion of capital lease obligation
|
|
|
1,252
|
|
|
|
-
|
|
|
Deferred revenue
|
|
|
68,037
|
|
|
|
62,917
|
|
|
Total current liabilities
|
|
|
138,107
|
|
|
|
125,216
|
|
|
Convertible senior notes, net
|
|
|
352,004
|
|
|
|
-
|
|
|
Capital lease obligation
|
|
|
3,261
|
|
|
|
-
|
|
|
Other long-term liabilities
|
|
|
6,240
|
|
|
|
6,252
|
|
|
Total liabilities
|
|
|
499,612
|
|
|
|
131,468
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock
|
|
|
8
|
|
|
|
8
|
|
|
Additional paid-in capital
|
|
|
484,854
|
|
|
|
434,840
|
|
|
Accumulated other comprehensive income
|
|
|
3,220
|
|
|
|
2,998
|
|
|
Accumulated deficit
|
|
|
(212,216
|
)
|
|
|
(209,500
|
)
|
|
Total stockholders' equity
|
|
$
|
275,866
|
|
|
$
|
228,346
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
775,478
|
|
|
$
|
359,814
|
|
|
* Prior-period information has been restated for the adoption of
ASU 2014-09, Revenue from Contracts with Customers (Topic 606),
which we adopted on January 1, 2018.
|
|
|
|
|
|
TABLE 2
RINGCENTRAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2018
|
|
2017
*As Adjusted
|
|
Revenues
|
|
|
|
|
|
Software subscriptions
|
|
$
|
136,960
|
|
|
$
|
104,130
|
|
|
Other
|
|
|
13,383
|
|
|
|
8,104
|
|
|
Total revenues
|
|
|
150,343
|
|
|
|
112,234
|
|
|
Cost of revenues
|
|
|
|
|
|
Software subscriptions
|
|
|
24,526
|
|
|
|
20,263
|
|
|
Other
|
|
|
11,148
|
|
|
|
7,043
|
|
|
Total cost of revenues
|
|
|
35,674
|
|
|
|
27,306
|
|
|
Gross profit
|
|
|
114,669
|
|
|
|
84,928
|
|
|
Operating expenses
|
|
|
|
|
|
Research and development
|
|
|
22,651
|
|
|
|
17,087
|
|
|
Sales and marketing
|
|
|
71,920
|
|
|
|
54,265
|
|
|
General and administrative
|
|
|
21,449
|
|
|
|
15,805
|
|
|
Total operating expenses
|
|
|
116,020
|
|
|
|
87,157
|
|
|
Loss from operations
|
|
|
(1,351
|
)
|
|
|
(2,229
|
)
|
|
Other income (expense), net
|
|
|
|
|
|
Interest expense
|
|
|
(1,411
|
)
|
|
|
(79
|
)
|
|
Other income, net
|
|
|
73
|
|
|
|
122
|
|
|
Other income (expense), net
|
|
|
(1,338
|
)
|
|
|
43
|
|
|
Loss before income taxes
|
|
|
(2,689
|
)
|
|
|
(2,186
|
)
|
|
Provision for income taxes
|
|
|
27
|
|
|
|
51
|
|
|
Net loss
|
|
$
|
(2,716
|
)
|
|
$
|
(2,237
|
)
|
|
Net loss per common share
|
|
|
|
|
|
Basic and diluted
|
|
$
|
(0.03
|
)
|
|
$
|
(0.03
|
)
|
|
Weighted-average number of shares used in computing net loss per
share
|
|
|
|
|
|
Basic and diluted
|
|
|
78,341
|
|
|
|
74,682
|
|
|
* Prior-period information has been restated for the adoption of ASU
2014-09, Revenue from Contracts with Customers (Topic 606),
which we adopted on January 1, 2018.
|
|
|
|
|
|
TABLE 3
RINGCENTRAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
|
|
2018
|
|
2017
*As Adjusted
|
|
Cash flows from operating activities
|
|
|
|
|
|
Net loss
|
|
$
|
(2,716
|
)
|
|
$
|
(2,237
|
)
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities
|
|
|
|
|
|
Depreciation and amortization
|
|
|
5,542
|
|
|
|
3,785
|
|
|
Share-based compensation
|
|
|
13,267
|
|
|
|
8,935
|
|
|
Amortization of deferred sales commission costs
|
|
|
3,984
|
|
|
|
2,597
|
|
|
Amortization of debt discount and issuance costs
|
|
|
1,370
|
|
|
|
-
|
|
|
Foreign currency remeasurement (gain) loss
|
|
|
267
|
|
|
|
(44
|
)
|
|
Provision for bad debt
|
|
|
554
|
|
|
|
289
|
|
|
Deferred income taxes
|
|
|
(6
|
)
|
|
|
(2
|
)
|
|
Other
|
|
|
206
|
|
|
|
98
|
|
|
Changes in assets and liabilities
|
|
|
|
|
|
Accounts receivable
|
|
|
(9,243
|
)
|
|
|
(1,594
|
)
|
|
Deferred sales commission costs
|
|
|
(7,478
|
)
|
|
|
(7,226
|
)
|
|
Prepaid expenses and other current assets
|
|
|
(2,270
|
)
|
|
|
(2,038
|
)
|
|
Other assets
|
|
|
337
|
|
|
|
45
|
|
|
Accounts payable
|
|
|
(2,816
|
)
|
|
|
(2,224
|
)
|
|
Accrued liabilities
|
|
|
6,079
|
|
|
|
4,159
|
|
|
Deferred revenue
|
|
|
5,120
|
|
|
|
3,989
|
|
|
Other liabilities
|
|
|
(12
|
)
|
|
|
178
|
|
|
Net cash provided by operating activities
|
|
|
12,185
|
|
|
|
8,710
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(4,587
|
)
|
|
|
(5,155
|
)
|
|
Capitalized internal-use software
|
|
|
(2,759
|
)
|
|
|
(1,640
|
)
|
|
Cash paid for acquisition of intangible assets
|
|
|
(18,470
|
)
|
|
|
-
|
|
|
Net cash used in investing activities
|
|
|
(25,816
|
)
|
|
|
(6,795
|
)
|
|
Cash flows from financing activities
|
|
|
|
|
|
Proceeds from issuance of convertible senior notes, net of issuance
costs
|
|
|
449,457
|
|
|
|
-
|
|
|
Payments for capped call transactions and costs
|
|
|
(49,910
|
)
|
|
|
-
|
|
|
Repurchase of common stock
|
|
|
(15,000
|
)
|
|
|
-
|
|
|
Proceeds from issuance of stock in connection with stock plans
|
|
|
3,688
|
|
|
|
2,679
|
|
|
Taxes paid related to net share settlement of equity awards
|
|
|
(1,014
|
)
|
|
|
(221
|
)
|
|
Repayment of debt
|
|
|
-
|
|
|
|
(14,840
|
)
|
|
Repayment of capital lease obligations
|
|
|
-
|
|
|
|
(181
|
)
|
|
Net cash (used in) provided by financing activities
|
|
|
387,221
|
|
|
|
(12,563
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
181
|
|
|
|
(17
|
)
|
|
Net increase (decrease) in cash, cash equivalents and restricted cash
|
|
|
373,771
|
|
|
|
(10,665
|
)
|
|
Cash, cash equivalents and restricted cash
|
|
|
|
|
|
Beginning of period
|
|
|
181,192
|
|
|
|
160,355
|
|
|
End of period
|
|
$
|
554,963
|
|
|
$
|
149,690
|
|
|
* Prior-period information has been restated for the adoption of ASU
2014-09, Revenue from Contracts with Customers (Topic 606),
which we adopted on January 1, 2018.
|
|
|
|
|
|
TABLE 4
RINGCENTRAL, INC.
RECONCILIATION OF OPERATING INCOME (LOSS)
GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2018
|
|
2017
*As Adjusted
|
|
Revenues
|
|
|
|
|
|
Software subscriptions
|
|
$
|
136,960
|
|
|
$
|
104,130
|
|
|
Other
|
|
|
13,383
|
|
|
|
8,104
|
|
|
Total revenues
|
|
|
150,343
|
|
|
|
112,234
|
|
|
Cost of revenues reconciliation
|
|
|
|
|
|
GAAP Software subscriptions cost of revenues
|
|
|
24,526
|
|
|
|
20,263
|
|
|
Stock-based compensation
|
|
|
(876
|
)
|
|
|
(725
|
)
|
|
Amortization of acquisition intangibles
|
|
|
(151
|
)
|
|
|
(151
|
)
|
|
Non-GAAP Software subscriptions cost of revenues
|
|
|
23,499
|
|
|
|
19,387
|
|
|
|
|
|
|
|
|
GAAP Other cost of revenues
|
|
|
11,148
|
|
|
|
7,043
|
|
|
Stock-based compensation
|
|
|
(134
|
)
|
|
|
(32
|
)
|
|
Non-GAAP Other cost of revenues
|
|
|
11,014
|
|
|
|
7,011
|
|
|
Gross profit and gross margin reconciliation
|
|
|
|
|
|
Non-GAAP Subscriptions
|
|
|
82.8
|
%
|
|
|
81.4
|
%
|
|
Non-GAAP Other
|
|
|
17.7
|
%
|
|
|
13.5
|
%
|
|
Non-GAAP Gross profit
|
|
|
77.0
|
%
|
|
|
76.5
|
%
|
|
Operating expenses reconciliation
|
|
|
|
|
|
GAAP Research and development
|
|
|
22,651
|
|
|
|
17,087
|
|
|
Stock-based compensation
|
|
|
(3,094
|
)
|
|
|
(1,859
|
)
|
|
Acquisition related matters
|
|
|
-
|
|
|
|
(265
|
)
|
|
Non-GAAP Research and development
|
|
|
19,557
|
|
|
|
14,963
|
|
|
As a % of total revenues non-GAAP
|
|
|
13.0
|
%
|
|
|
13.3
|
%
|
|
|
|
|
|
|
|
GAAP Sales and marketing
|
|
|
71,920
|
|
|
|
54,265
|
|
|
Stock-based compensation
|
|
|
(5,041
|
)
|
|
|
(3,525
|
)
|
|
Amortization of acquisition intangibles
|
|
|
(916
|
)
|
|
|
(104
|
)
|
|
Non-GAAP Sales and marketing
|
|
|
65,963
|
|
|
|
50,636
|
|
|
As a % of total revenues non-GAAP
|
|
|
43.9
|
%
|
|
|
45.1
|
%
|
|
|
|
|
|
|
|
GAAP General and administrative
|
|
|
21,449
|
|
|
|
15,805
|
|
|
Stock-based compensation
|
|
|
(4,122
|
)
|
|
|
(2,794
|
)
|
|
Non-GAAP General and administrative
|
|
|
17,327
|
|
|
|
13,011
|
|
|
As a % of total revenues non-GAAP
|
|
|
11.5
|
%
|
|
|
11.6
|
%
|
|
Income (loss) from operations reconciliation
|
|
|
|
|
|
GAAP loss from operations
|
|
|
(1,351
|
)
|
|
|
(2,229
|
)
|
|
Stock-based compensation
|
|
|
13,267
|
|
|
|
8,935
|
|
|
Amortization of acquisition intangibles
|
|
|
1,067
|
|
|
|
255
|
|
|
Acquisition related matters
|
|
|
-
|
|
|
|
265
|
|
|
Non-GAAP Income from operations
|
|
|
12,983
|
|
|
|
7,226
|
|
|
Non-GAAP Operating margin
|
|
|
8.6
|
%
|
|
|
6.4
|
%
|
|
* Prior-period information has been restated for the adoption of
ASU 2014-09, Revenue from Contracts with Customers (Topic 606),
which we adopted on January 1, 2018.
|
|
|
|
|
|
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
March 31,
|
|
|
|
2018
|
|
2017
*As Adjusted
|
|
Net Income (loss) reconciliation
|
|
|
|
|
|
GAAP net loss
|
|
$
|
(2,716
|
)
|
|
$
|
(2,237
|
)
|
|
Stock-based compensation
|
|
|
13,267
|
|
|
|
8,935
|
|
|
Amortization of acquisition intangibles
|
|
|
1,067
|
|
|
|
255
|
|
|
Acquisition related matters
|
|
|
-
|
|
|
|
265
|
|
|
Amortization of debt discount and issuance costs
|
|
|
1,370
|
|
|
|
-
|
|
|
Intercompany remeasurement loss (gain)
|
|
|
274
|
|
|
|
(43
|
)
|
|
Income tax expense effects **
|
|
|
-
|
|
|
|
-
|
|
|
Non-GAAP net income
|
|
$
|
13,262
|
|
|
$
|
7,175
|
|
|
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
|
|
|
78,341
|
|
|
|
74,682
|
|
|
Effect of dilutive securities
|
|
|
6,629
|
|
|
|
4,973
|
|
|
Non-GAAP weighted average shares used in computing non-GAAP net
income per share
|
|
|
84,970
|
|
|
|
79,655
|
|
|
GAAP Net loss per share
|
|
$
|
(0.03
|
)
|
|
$
|
(0.03
|
)
|
|
Non-GAAP Net income per share
|
|
$
|
0.16
|
|
|
$
|
0.09
|
|
|
* Prior-period information has been restated for the adoption of ASU
2014-09, Revenue from Contracts with Customers (Topic 606),
which we adopted on January 1, 2018.
|
|
** 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.
|
|
|
|
|
|
|
|
TABLE 6
RINGCENTRAL, INC.
RECONCILIATION OF FORECASTED OPERATING MARGIN
GAAP MEASURES TO NON-GAAP MEASURES
(In millions, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Q2 2018
|
|
FY 2018
|
|
|
|
Low Range
|
|
High Range
|
|
Low Range
|
|
High Range
|
|
GAAP revenues
|
|
|
154.5
|
|
|
|
156.5
|
|
|
|
638.0
|
|
|
|
647.0
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from operations
|
|
|
(8.2
|
)
|
|
|
(6.8
|
)
|
|
|
(25.7
|
)
|
|
|
(21.7
|
)
|
|
GAAP operating margin
|
|
|
(5.3
|
%)
|
|
|
(4.3
|
%)
|
|
|
(4.0
|
%)
|
|
|
(3.4
|
%)
|
|
Stock-based compensation
|
|
|
18.5
|
|
|
|
18.0
|
|
|
|
72.6
|
|
|
|
70.6
|
|
|
Amortization of acquisition intangibles
|
|
|
1.3
|
|
|
|
1.3
|
|
|
|
4.8
|
|
|
|
4.8
|
|
|
Non-GAAP income from operations
|
|
$
|
11.6
|
|
|
$
|
12.5
|
|
|
$
|
51.7
|
|
|
$
|
53.7
|
|
|
Non-GAAP operating margin
|
|
|
7.5
|
%
|
|
|
8.0
|
%
|
|
|
8.1
|
%
|
|
|
8.3
|
%
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180509006383/en/
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