RingCentral financial results for the first quarter of 2023, which ended March 31, proved solid as total revenue for the company increased 14% year over year, to $534 million. Additionally, subscription revenue increased 16% year over year, to $508 million, and accounted for 95% of total revenue.

RingCentral founder, chairman and CEO Vlad Shmunis said the quarter “exceeded the high end of guidance” when it came to key metrics.

RingCentral’s Vlad Shmunis

“Our open platform, deep integrations to top third-party applications, 99.999% reliability, global reach and integrated UCaaS and CCaaS platform continue to resonate with customers and distinguish RingCentral from competitors,” Shmunis said. “We also introduced several new products and features this quarter that we believe further differentiate our platform.”

RingCentral financial results for the first quarter also showed annualized exit monthly recurring subscriptions (ARR) increased 14% year over year, to nearly $2.2 billion. Midmarket and enterprise ARR increased 15% year over year, to more than $1.3 billion. GAAP operating margin was a little more than 10%, compared to just over 22% in the prior year. And non-GAAP operating margin of slightly more than 17% was a quarterly record, the company said.

RingCentral Product Releases

RingCentral financial results may have been driven by the company unveiling several key product lines. This year RingCentral introduced RingCentral for Teams 2.0, a solution that brings PBX capabilities into Microsoft Teams with a fully native experience, without requiring a second application. The company also released RingSense by RingCentral, an AI platform for enhanced business communications. It enables organizations to turn their conversation data into insights that will unlock productivity and drive business outcomes, the company said.

RingCentral for Frontline Workers combines push to talk capabilities with video and messaging so that frontline workers across all industries can use any smart mobile device can seamlessly and efficiently connect with their front and back-office teams. RingCentral Overlay, which is being used by Vodafone Business in their new offering for the Italian market, will be introduced to more markets soon. Called Vodafone Business UC with RingCentral, this integrated communications solution brings together RingCentral’s messaging and video capabilities with Vodafone Business’ existing fixed and mobile voice communications functionality.

Additional RingCentral Financial Results for Q1 2023

GAAP operating loss was $55 million, compared to $104 million in the same period last year. Non-GAAP operating income was $92 million, or 17.2% of total revenue, compared to $49 million, or 10.4% of total revenue, for the first quarter of 2022. Adjusted EBITDA for the first quarter of 2023 was $112 million, or 21% of total revenue, compared to $66 million, or 14% of total revenue, for the first quarter of 2022.

Total cash and cash equivalents at the end of the first quarter of 2023 was $275 million. This compares to $270 million at the end of the fourth quarter of 2022.