RingCentral’s Number of Subscribers (2016-2023)

This statistics highlights RingCentral’s Number of Subscribers, reported on a quarterly basis from Q1 2016 onwards.

RingCentral’s Number of Subscribers

(All figures in millions)

RingCentral ’s total number of subscribers increased to $1,516.30 from $1,407.40 in Q2 2021 to $1,635.60 in Q3 2021, marking a 7% increase in number of subscribers from quarter to quarter basis. It grew by 14% from Q1 to Q3 2021. 

The Annualized Exit Monthly Recurring Subscription details are:

RingCentral’s Annualized exit monthly recurring subscriptions is equal to the monthly recurring subscriptions multiplied by twelve. That is the monthly value of all customer recurring charges at the end of any given month. This trend is used by the company in order to depict the business health and formulate financial projections to make various strategic decisions. The ARR or the Annual exit monthly recurring subscriptions is the indicator of their anticipated subscriptions revenue. 

In annualized format, customer subscriptions from the RingCentral office and RingCentral customer engagement solutions are included in the calculation. 

The revenue of the company is derived primarily from subscriptions, the sale of products, and professional services. Revenues are recognized once only when the control over these products and services is transferred directly to the customers. The typical term of subscription ranges from 1 year to 5 years. Contract revenue as of September 30, 2021, was approximately $1.7 billion. This figure actually excludes contracts from what was originally expected to be less than one year. Out of these remaining performance obligations, a revenue of 51% of this balance over the next 12 months and 49% thereafter is recognized by the company. 

Net Monthly Subscription Dollar Retention Rate

The company’s Net Monthly Subscription Dollar Retention Rate provides further insight into their ability of retention and growth of subscriptions revenue, as well as their customers’ potential long-term value. Their ability to retain the customers and expand their use of their solutions over time is an indicator of the stability of their revenue base and these trends are further used by them in order to formulate financial projections and make strategic business decisions. 

RingCentral’s Net Monthly Subscription Dollar Retention Rate is formulated as 

(i) 1 +

(ii) The dollar net fluctuation quotient divided by the monthly average subscription.

The Dollar Net Change is defined as the quotient of 

(i) the difference of the Monthly Recurring Subscriptions at the end of a period and their Monthly Recurring Subscriptions at the beginning of a period minus Monthly Recurring Subscriptions at the end of the period from new customers that have been added during the period, all divided by

(ii) the number of months in that particular year

The Average Monthly Recurring Subscription is defined as the average of the Monthly Recurring Subscriptions at the beginning and at end of the measurement period.

About the Company

RingCentral is a leading provider of software-as-a-service (“SaaS”) solutions, video meetings, and global enterprise cloud communications. Their innovative cloud-based communication with contact center solutions provides flexible and cost-effective solutions which further supports mobile as well as distributed workforces. These cloud-based solutions are easy to use and enable single user identity across various devices, like phones, computers, laptops, etc, therefore resulting in convenient and effective communication across all locations of organizations and their employees. This results in increased productivity and responsiveness to customers. These flexible communication means of employees enhance productivity as compared to the traditional on-premise systems which were rigid, hard to manage, and configure.

RingCentral enables the third-party developers as well as their customers, the integration of their solution with leading business applications in order to customize a different workflow. The cloud communications as well as the contact center solutions are completely based on Message Video Phone, abbreviated as MVP. This platform is designed keeping in mind today’s mobile and distributed workforce. RingCentral’s open platform Application Programming Interfaces, abbreviated as APIs provides proper integration with custom as well as third-party software applications, improving business workflows. This further enables better customer service and employee productivity.

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