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This statistic highlights RingCentral’s Revenue Breakdown Worldwide, split between North America and Others, reported on a quarterly basis from Q1 2017 onwards.
|Revenue by Geography||Q3 2020||Q2 2021||Q3 2021||Contribution in Q3 2021|
(All figures in millions, except percentages)
The company bifurcates its revenue by geographic area on the basis of the billing address of the customer. The company derived over 88% of its total revenue from its RingCentral Office in North America. RingCentral’s revenue kept on increasing with each passing quarter. The company’s total revenue grew from $303.62 million in Q3 2020 to $414.63 million in Q3 2021, indicating an incline of 36.5% on a yearly basis. Furthermore, it also grew by 9.3% on a quarterly basis, from $379.27 million in Q2 2021 to $414.63 million in Q3 2021.
Revenue growth has mainly been driven by the flagship RingCentral MVP and RingCentral customer engagement solutions product offering, which has resulted in an increased number of customers, increased average subscription revenue per customer, and increased retention of existing customers base. The increase in revenue for the latest quarter was primarily a combination of the acquisition of new customers and upsells of seats and additional offerings to the existing customer base. This growth was primarily driven by an increase in sales to mid-market and enterprise customers as the company continues to move upmarket and increases sales through direct and indirect sales channels.
In order to acquire new customers with a focus on larger customers, and to establish brand recognition to achieve greater penetration into the North American and international markets, the increases in sales and marketing headcount and other expense categories were necessary to support this growth strategy.
RingCentral’s total revenue is divided into the following geographical markets:
The company currently supplies North American customers from geographically disparate data center hosting facilities in North America, where they lease place from Equinix, Inc., and other providers.
North America contributed the maximum to the company’s total revenue, i.e., 88% during the period Q3 2021, amounting to $363.87 million. RingCentral’s revenue from the North American market rose from $279.33 million in Q3 2020 to $364.87 million in Q3 2021, marking an increase of 30.6% on a year-on-year basis. It also grew from $333.76 million in Q2 2021 to $364.87 million in Q3 2021, which was a 9.3% increase on a quarterly basis.
The company serves its European customers from third-party data center hosting facilities in Europe. They also use third-party co-location facilities located in various international regions to serve customers in these regions.
The other regions comprise only 12% of the company’s total revenue in Q3 2021, amounting to $49.76 million. Revenue from the other regions increased from $24.29 million in Q3 2020 to $49.76 million in Q3 2021, marking a tremendous growth of 104.8% on a yearly basis. Additionally, it also rose by 9.3% as compared to $45.51 million in Q2 2021, on a quarterly basis.
Founded in 1999, RingCentral is a leading provider of global enterprise cloud communications, video meetings, collaboration, and contact center software-as-a-service (SaaS) solutions. The company offers three key products in the portfolio, including RingCentral MVP, RingCentral customer engagement solutions and RingCentral Video. RingCentral MVP (formerly RingCentral Office) is a Unified Communications as a Service (UCaaS) platform which includes video meetings, team messaging, and a cloud phone system. RingCentral customer engagement solutions, comprise of the RingCentral cloud Contact Center as a Service (CCaaS), RingCentral Engage Digital, and Voice. RingCentral Video (formerly Glip), launched in 2020, is a branded video meeting solution alongside team messaging that includes smart video meetings.
The company has a portfolio of cloud-based offerings that are subscription-based, made available at different rates varying by the specific functionalities, services, and the number of users. It primarily generates revenues from the sale of subscriptions to offerings, which account for 90% or more of total revenue. It believes that innovative, cloud-based communication and contact center solutions disrupt the large market for business communications and collaboration by providing flexible and cost-effective solutions that support mobile and distributed workforces. The stock of RingCentral is publicly traded on the NYSE under the ticker RNG.
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