RingCentral Inc(NYSE: RNG) stock surged over 9.2% in the after-hours session on Feb 12th, 2018. The stock generated over 10.2% in this year to date and rose over 127% in the last one year.
The group grew twice as fast as the number two company in their target space last year. The group has over a 1,000 standard and custom applications integrated with their open platform and is the fast growing firm with over 10,000 developers building efficient enterprise workflows using our platform.
The group currently has over $0.5 billion recurring Revenue Company with industry-leading growth. They continued to extend their lead in the market especially mid-market and enterprise. The group is aiming to surpass the $1 billion mark in 2020.
Meanwhile, for the fourth quarter, the total revenues rose 34% yoy to $141 million while the overall revenues for the full year 2017 surged 32% yoy to $502 million. Their core subscription business revenue surged 36% on a yoy basis to $115 million as compared to the rise of 28% in Q4 of prior corresponding period. The group’s mid-market and enterprise is currently over $178 million annualized business, which rose 76% on a year-over-year basis and contributed over 55% to their new office business in the quarter, up from 50% in the previous quarter.
During the fourth quarter, the group witnessed a solid performance in new bookings from their current customers. Up sales represented over 40% of the new business mix in the quarter. Second, production and churn rate. The rising mix of up market customers in their base, as well as annual gross churn rate for office enhanced by 1 full percentage point to 10% in 2017. The combination of strong upsell as well as lower gross churn led to a rise in overall net retention. The annualized net retention for mid-market and enterprise business was about 130%.
The group has closed a record of 15 deals with over $1 million in total contract value as of the fourth quarter which is a rise from 10 deals in the previous quarter and five deals a year ago. The on-premise solutions to the cloud, channel partners are rising towards cloud providers.
For the first quarter of 2018, the group expects their overall ARR to rise in the range of 6% to 7% sequentially. Major driver would be the ongoing expansion to mid-market and enterprise customers, supported by momentum and channel.