RingCentral, Inc. (NYSE:RNG) Q3 2019 Earnings Conference Call Transcript

Nov 04, 2019 • 05:00 pm ET

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RingCentral, Inc. (NYSE:RNG) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings and welcome to the RingCentral Third Quarter 2019 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] It's now my pleasure to introduce your host, Ryan Goodman, Investor Relations for RingCentral.

Ryan, please go ahead.

Executive
Ryan Goodman

Thank you. Good afternoon and welcome to RingCentral's third quarter 2019 earnings conference call. I am Ryan Goodman, RingCentral's Head 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 GAAP to non-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. 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.

Executive
Vladimir Shmunis

Good afternoon and thank you for joining our third quarter earnings conference call. We delivered an outstanding quarter on multiple fronts. First, we're pleased to announce today that we have expanded our relationship with AT&T. Second, we announced the Avaya partnership in early October, and last week, we announced that necessary regulatory approvals were obtained on a timely basis as the deal gets closed.

On industry condition. For the third year -- for the fifth year in a row, Gartner positioned RingCentral as a leader in the Magic Quadrant for Unified Communications-as-a-Service, Worldwide report. On the business front, we had a record level of $1 million-plus TCV wins. This is especially good to see in Q3, which is typically slower and speaks well to enterprise readiness to embrace the cloud and our leadership position there. All these not only speak to RingCentral's consistent execution and innovation, but also validates the industry shift and momentum going to the cloud.

I will now review Q3 results. Revenue and non-GAAP EPS exceeded the high end of our guidance. Key drivers continue to be mid-market, enterprise, and channels. As we expand our market, we are also seeing positive results with our targeted vertical market initiatives