Revenue during the quarter grew 25.24 percent to $104.50 million from $83.44 million in the previous year period. Gross margin for the quarter expanded 381 basis points over the previous year period to 76.41 percent. Operating margin for the quarter stood at negative 6.32 percent as compared to a negative 7.19 percent for the previous year period.

Operating loss for the quarter was $6.61 million, compared with an operating loss of $6 million in the previous year period.

However, the adjusted operating income for the quarter stood at $2.20 million compared to $0.84 million in the prior year period. At the same time, adjusted operating margin improved 109 basis points in the quarter to 2.10 percent from 1.01 percent in the last year period.

"The fourth quarter was a strong finish to a great year driven by our success with midmarket and enterprise customers. Our technology leadership and strategy of delivering integrated communications and collaboration solutions are paying off handsomely," said Vlad Shmunis, RingCentral's chairman and chief executive officer. "Additionally, the reseller channels are now increasingly switching their focus to cloud solutions and it has enabled us to scale our midmarket and enterprise go-to-market efforts rapidly. These larger customer segments are now an over $100 million business, growing at over 90% year over year. With this momentum and the very large underpenetrated market, I feel confident that we will be a $1 billion revenue company by the end of 2020."

The company has spent $16.40 million cash to meet investing activities during the year as against cash inflow of $6.37 million in the last year.

Cash flow from financing activities was $9.33 million for the year, down 26.17 percent or $3.31 million, when compared with the last year.

Cash and cash equivalents stood at $160.36 million as on Dec. 31, 2016, up 16.55 percent or $22.77 million from $137.59 million on Dec. 31, 2015.

Working capital remains almost stable
RingCentral, Inc. has witnessed a decline in the working capital over the last year. It stood at $89.91 million as at Dec. 31, 2016, down 0.62 percent or $0.56 million from $90.47 million on Dec. 31, 2015. Current ratio was at 1.78 as on Dec. 31, 2016, down from 2.12 on Dec. 31, 2015.

Debt comes down
RingCentral, Inc. has recorded a decline in total debt over the last one year. It stood at $15.02 million as on Dec. 31, 2016, down 21.11 percent or $4.02 million from $19.04 million on Dec. 31, 2015. Total debt was 5.95 percent of total assets as on Dec. 31, 2016, compared with 8.86 percent on Dec. 31, 2015. Debt to equity ratio was at 0.12 as on Dec. 31, 2016, down from 0.17 as on Dec. 31, 2015.