RingCentral Inc (NYSE: RNG) stock had a blockbuster 2019 generating over 72.2% in this year to date (as of August 1st, 2019; Source: finviz.com)
The firm came out with good better than expected results for the second quarter of FY 19. Total cash and cash equivalents at the end of the second quarter of 2019 was $568 million. This compares with $549 million at the end of the first quarter of 2019. During the quarter, RNG has closed a record number of 30 TCV wins of over $1 million, which is up over 60% year-over-year. This included a full enterprise-wide footprint win with a Fortune 1000 multi-national software company.
RNG in the second quarter of FY 19 has reported the adjusted earnings per share of 21 cents, beating the analysts’ estimates for the adjusted earnings per share of 16 cents. The company had reported the adjusted revenue growth of 34 percent to $215.2 million in the second quarter of FY 19, beating the analysts’ estimates for revenue of $204.6 million. Subscription revenue grew 33% to $195 million. Subscription non-GAAP gross margin was 82%.
Moreover, the total ARR were $831 million, up 32% year-over-year and ARR for RingCentral office grew $749 million, up 37% year-over-year. Key drivers continue to be mid-market and enterprise with strong contribution from channel partners. Mid-market and enterprise ARR grew to $386 million, up 66% year-over-year.
For the third quarter ending in October, RNG expects its per-share earnings to range from 18 cents to 20 cents. The company expects the revenue to be in the range of $220 million to $222 million for the fiscal third quarter. Software subscriptions revenue for the third quarter is expected to be in the range of $200 to $202 million, representing annual growth of 27% to 28%. Q3 Non-GAAP operating margin is expected to be in the range of 9.2% to 9.4%
RingCentral expects full-year 2019 earnings to be in the range of 77 cents to 79 cents per share, and the revenue is expected to be in the range of $874 million to $877 million. The company has raised 2019 software subscriptions revenue range to $795 to $797 million, representing annual growth of 30%. This is up from the prior range of $786 to $790 million and annual growth of 28% to 29%. Non-GAAP operating margin is expected to be between 9.1% and 9.2%. The company has raised the non-GAAP EPS range to $0.77 to $0.79 based on 88.5 million fully diluted shares. This is up from the prior range of $0.71 to $0.75.