RingCentral, Inc. (RNG) saw its loss widen to $7.31 million, or $0.10 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $6.61 million, or $0.09 a share. On the other hand, adjusted net income for the quarter stood at $2.10 million, or $0.03 a share compared with $0.97 million or $0.01 a share, a year ago. Revenue during the quarter grew 29.18 percent to $111.79 million from $86.54 million in the previous year period. Gross margin for the quarter expanded 70 basis points over the previous year period to 75.57 percent. Operating margin for the quarter stood at negative 6.53 percent as compared to a negative 6.91 percent for the previous year period.
Operating loss for the quarter was $7.30 million, compared with an operating loss of $5.98 million in the previous year period.
However, the adjusted operating income for the quarter stood at $2.15 million compared to $1.27 million in the prior year period. At the same time, adjusted operating margin improved 46 basis points in the quarter to 1.93 percent from 1.46 percent in the last year period.
"The first quarter was a great start to the year." said Vlad Shmunis, RingCentral’s chairman and chief executive officer. “Our solid results were primarily driven by the momentum we are seeing with mid-market and enterprise customers and with our enterprise reseller partners. The mid-market and enterprise customer segments are now an over $115 million business, growing at over 85% year over year. We continue to put distance between us and the competition as the largest and fastest growing pure-play cloud collaborative communications solutions leader. With this momentum and the very large underpenetrated market, we continue to believe that we will be a $1 billion revenue company by the end of 2020."
Operating cash flow improves significantly
RingCentral, Inc. has generated cash of $8.71 million from operating activities during the quarter, up 81.12 percent or $3.90 million, when compared with the last year period. The company has spent $6.80 million cash to meet investing activities during the quarter as against cash outgo of $2.46 million in the last year period.
The company has spent $12.56 million cash to carry out financing activities during the quarter as against cash outgo of $0.74 million in the last year period.
Cash and cash equivalents stood at $149.69 million as on Mar. 31, 2017, up 7.63 percent or $10.62 million from $139.07 million on Mar. 31, 2016.
Working capital increases marginally
RingCentral, Inc. has recorded an increase in the working capital over the last year. It stood at $92.37 million as at Mar. 31, 2017, up 1.37 percent or $1.25 million from $91.12 million on Mar. 31, 2016. Current ratio was at 1.87 as on Mar. 31, 2017, down from 2.04 on Mar. 31, 2016.
Days sales outstanding went down to 20 days for the quarter compared with 24 days for the same period last year.
At the same time, days payable outstanding was almost stable at 16 days for the quarter, when compared with the previous year period.
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