RingCentral, Inc. (NYSE:RNG) Q4 2018 Earnings Conference Call Transcript
Feb 11, 2019 • 05:00 pm ET
Greetings, and welcome to RingCentral Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Ryan Goodman. Please proceed.
Thank you. Good afternoon, and welcome to RingCentral's fourth quarter 2018 earnings conference call. I'm Ryan Goodman, RingCentral's Director of Investor Relations. Joining me today are Vlad Shmunis, Founder, Chairman and CEO; David Sipes, Chief Operating Officer; and Mitesh Dhruv, Chief Financial Officer. Our format today will include prepared remarks by Vlad, David and Mitesh, followed by Q&A.
Some of our discussions and responses to your questions will contain forward-looking statements. These statements are subject to risks and uncertainties. Actual results may differ materially from our forward-looking statements. A discussion of the risks and uncertainties related to our business is contained in our filings with the Securities and Exchange Commission and is incorporated by reference into today's discussion. RingCentral assumes no obligation and does not intend to update or comment on forward-looking statements made on this call. I encourage you to visit our Investor Relations website at ir.ringcentral.com to access our earnings release, slide deck, our non-GAAP to GAAP reconciliations, our periodic SEC reports, a webcast replay of today's call and to learn more about RingCentral.
For certain forward-looking guidance, a reconciliation of the non-GAAP financial guidance to the corresponding GAAP measure is not available as discussed in detail in the slide deck posted on our Investor Relations website. We adopted ASC 606 as of January 1st, 2018 under the full retrospective method, we have provided comparative numbers for the respective periods of 2017 in this slide deck and press release. Unless otherwise indicated all measures that follow are non-GAAP with year-over-year comparisons. A reconciliation of all GAAP to non-GAAP results is provided with our earnings release and in the slide deck.
With that, let me turn the call over to, Vlad.
Good afternoon, and thank you for joining our fourth quarter earnings conference call. Fourth quarter was an outstanding finish to a great year for RingCentral. We saw no slowdown in momentum and we believe, we further distanced ourselves from our competition. Revenue, operating margin and non-GAAP EPS, all exceeded the high-end of our guidance.
The performance in the quarter was driven by strong execution in the mid-market and enterprise business combined with continued momentum with our channel partners. We closed a record number of seven-digit TCV deals in Q4, bringing the year's total to approximately 80 such deals. I'm also excited to announce that we secured our first ever eight-figure TCV deal in Q4. We are seeing enterprises of all sizes moving to the cloud.
Let me cover some of the key metrics for Q4. First, total revenue grew to $189 million. This is 34% increase year-over-year and above the high-end of our guidance range. Second, our core subscription revenue normalized for the legacy