Shares of RingCentral (RNG) - Get RingCentral, Inc. Class A Report soared in after hours trading as the provider of enterprise cloud-based communications and collaboration services for businesses reported third-quarter sales and adjusted earnings that exceeded analysts' expectations.
Shares of the Belmont, Calif., company jumped 23.52% to $288.60 in after hours trading. RingCentral shares closed 1.23% higher at $233.64 a share Tuesday.
For the quarter ended Sept. 30, RingCentral's net loss widened to $1476.7 million, or $1.60 a share from $20.9 million, or 24 cents a share in the year-ago quarter.
Non-GAAP net income rose to 36 cents a share from 26 cents in the previous year, ahead of Wall Street estimates.
Revenue rose 36.5% to $414.6 million from $303.6 million in the same period a year ago.
Analysts surveyed by FactSet estimated earnings of 33 cents a share on revenue of $393.42 million.
"Third quarter results were outstanding, with accelerating growth driven by ramping contributions from our key partners and momentum from our upmarket customers,” said Chairman and Chief Executive Vlad Shmunis in a statement.
RingCentral also announced new partnerships with software vendors in the healthcare sector including Ascom, ChronicCareIQ, and Ellkay, to enhance patient engagement with data-driven interactions, the company said.
RingCentral has partnered with telecom provider MCM Telecom to offer services in hybrid work using a single app for video conferencing, mobile collaboration, and advanced business phone capabilities, the company said.
The company also received a license to offer its cloud communications software and voice solutions in India.
RingCentral raised its full year revenue guidance to up to $1.581 billion in sales reflecting annual growth between 33% to 34% higher from previously estimated growth range of 30% to 31%.
RingCentral also raised non-GAAP earnings per share estimates for the full year to $1.32 a share from its prior range of $1.28 a share to $1.30 a share.