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This statistic highlights RingCentral’s Annualized Recurring Revenue (ARR), reported on a quarterly basis from Q1 2016 onwards.
RingCentral Inc. is a US publicly traded provider of cloud-based communications and collaboration products and services for enterprises.
What is Annualized Recurring Revenue?
The Annual Recurring Revenue (ARR) is a subscription economic indicator that shows the amount of money you receive each year for the life of your subscription (or contract). More specifically, ARR is the value of recurring revenue from a company’s subscription, normalized to a single calendar year. For example, if a corporate subscriber purchases a two-year subscription for $12,000, the ARR will be $6,000 each year.
ARR is a predictable revenue that can be counted each year. The ARR is a good indicator of the health of any company’s subscription business. ARR is a level of revenue that a company can repeat, so it can measure a company’s progress and predict future growth. It’s also a useful indicator of momentum in areas such as new sales, renewals, and upgrades, as well as loss of momentum due to downgrades and customer losses. It’s also a useful metric for measuring momentum in areas such as new sales, renewals, and upgrades and lost momentum in downgrades and lost customers.
|Category||Q1 2020||Q2 2020||Q3 2020||Q4 2020||Q1 2021||Q2 2021||Q3 2021|
|RingCentral’s Annualized Recurring Revenue||$0.94||$1.02||$1.09||$1.21||$1.32||$1.43||$1.55|
(All figures in billions, except percentages)
RingCentral’s Annualized Recurring Revenue (ARR) rose from $1.09 billion in Q3 2020 to $1.55 billion in Q3 2021, marking a huge growth of 42.20% on a year-on-year basis. It rose by 8.39% on a quarterly basis, from $1.43 billion earned in Q2 2021 to $1.55 billion in Q3 2021. On a closer look at the graph, it can be seen that there is a constant rise in the slope of the graph. It increases as the speed increases.
In 2020, RingCentral’s Annualized Recurring Revenue (ARR) has shown a slight increase from $0.94 billion in Q1 2020 to $1.02 billion in Q2 2020, marking an increase of 8.16%. This incline further continued as RingCentral’s annualized recurring revenue (ARR) inclined to $1.09 billion in Q3 2020 from $1.02 billion in Q2 2020 accounting for an increase of 6.86%. This incline further continued as Annualized Recurring Revenue (ARR) increased to $1.22 billion in the last quarter of 2020, marking a sharp incline of 11.92%.
In 2021, RingCentral’s Annualized Recurring Revenue (ARR) showed a slight increase from $1.32 billion in Q1 2021 to $1.43 billion in Q2 2021, marking an increase of 8.33%. This incline further continued as Annualized Recurring Revenue (ARR) inclined to $1.55 billion in Q3 2020 from $1.43 billion in Q2 2020 accounting for an increase of 8.39%.
On an overall analysis of the past six years, it can be seen that the RingCentral’s Annualized Recurring Revenue (ARR) has reflected the continuous increase. On a closer look at the graph, it can be concluded that there is a continuous and clear incline in RingCentral’s Annualized Recurring Revenue (ARR) from Q1 2016 to Q4 2021. It is evident from the fact as the graph of RingCentral’s Annualized Recurring Revenue (ARR) is constantly increasing. As a result, the graph is upward sloping from 2016 to 2021. Annualized Recurring Revenue (ARR) has sharply inclined from $269.30 million in Q1 2016 to $1.55 billion in Q4 2021 projecting a tremendous increase of 455.56%.
Ringcentral is a leading provider of global enterprise cloud communications, video conferencing, collaboration, and contact centre service software (“SaaS”) solutions. Their innovative cloud-based communications and contact centre solutions are revolutionizing the vast enterprise communications and collaboration markets by providing flexible and cost-effective solutions that support mobile and distributed workforce. RingCentral, Inc. is a provider of cloud-based communications and Collaboration products and services.
Ringcentral cloud-based solution is easy to use and gives a global user identity on all devices, including smartphones, tablets, PCs, and desk phones. The solution can be deployed quickly and easily configured and managed. Their cloud-based solutions are location and device-agnostic and better suited to meet the workforce needs of today’s mobile and global enterprises than traditional on-premises systems. Through the Open API (Application Programming Interface) platform, third-party developers and customers can integrate their solutions with key business applications and customize their own business processes. The common stock of the company is publicly traded as RNG on the NYSE.
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