RingCentral stock popped Tuesday after the enterprise software provider reported second-quarter revenue and profit that topped expectations as the company hauled in more large contracts.
XRingCentral (RNG) said revenue jumped 34% to $161 million, topping consensus estimates of $155.7 million. Profit jumped 90% to 19 cents a shares. Analysts had predicted earnings of 15 cents a share.
"RingCentral signed more than 15 deals in the quarter with total contract value of over $1 million, including the largest deal in the company's history," Jefferies analyst John DiFucci said in a note to clients.
RingCentral stock popped 6.9% to 87 on the stock market today. The company's cloud communications platform offers customers voice, chat, conferencing and application integration.
RingCentral Stock Moves Up
"The core business (subscription revenue excluding AT&T (T)) accelerated to 37% growth from 32% growth last year, driven in large part by the company's progression upmarket," William Blair analyst Bhavan Suri said in his report to clients.
In the September quarter, RingCentral forecast revenue in a range of $165 million to $168 million. Analysts had estimated $163.2 million.
Belmont, Calif.-based RingCentral said it expects earnings of 16 cents a share, a penny above estimates.
RingCentral competes with 8x8 (EGHT) and Five9 (FIVN). Microsoft (MSFT) and Alphabet's (GOOGL) Google offer similar products.
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The post RingCentral Stock Pops As Revenue Beats On Large Contract Growth appeared first on Investor's Business Daily.
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