RingCentral, Inc. (RNG) stock soared 22.41% in the after-hours trading session at the price of $286.00 following the strategic collaboration with Mitel to facilitate a seamless transition to cloud-based unified business communications. The company has also published its financial results for the third quarter of 2021.
RNG Announced Strategic Partnership with Mitel
On 9th November 2021, RNG published a strategic partnership with Mitel to provide a consumer base with a seamless transition to RNG’s Message Video Phone cloud-based communications program. As per the deal, RNG will present its clients with the first cloud-based communications program with high security and reliability, higher functionality, and fast business app integrations. Mitel will support clients on its MiCloud Connect platform and present a seamless path to RNG’s cloud-based MVP.
Financial Conditions
RingCentral will pay $650 million to Mitel to acquire patents covering network, call management, intellectual property rights, security, and infrastructure. As part of the transaction, Mitel will invest approximately $200 million in equity in RNG.
Management Comments
Chief executive officer of Mitel, Tarun Loomba, remarked that they are delighted to deliver the market-leading UCaaS solutions to their clients with exclusive partner, RingCentral. This partnership will facilitate their strategy of providing world-class communications to their clients and presenting them with a resilient path for the future, he added.
Chief executive officer of RNG, Vlad Shmunis, commented that with mutual cooperation, they are bringing the right communications solutions for the best needs of their customers. They are happy to provide the customers with a clear, flexible, and differentiated digital transformation platform, he added.
RNG Third Quarter 2021 Financial Results
On 9th November 2021, RNG announced financial results for the third quarter ended 30th September 2021 and provided corporate updates. For the third quarter of 2021, RNG reported revenue of $415 million. A gain of 37% from $304 million in the third quarter of the prior year. Subscription revenue totaled $385 million, up 38% from the same period of 2020. Net loss was ($1.60) per share for the third quarter of 2021. Net loss per share was ($0.24) in the third quarter last year. Cash and cash equivalents totaled $345 million on 30th September 2021.
