RingCentral, Poly and 8×8 Post Strong Q2 Earnings at Height of Pandemic


Shifting remote meant elevated demands for headsets and an increased appetite for video conferencing solutions. Check out how the leading cloud communications vendors RingCentral, 8×8 and headset maker Poly worked their way through the crisis, posting solid performance and growth. 

RingCentral, 8×8 and Poly recorded better-than-expected quarterly earnings. The results reflect how these businesses are holding up amid the height of the crisis. Check out how three prominent cloud communications vendors have risen above the storm and posted strong earnings despite the shakeup and uncertainty of the pandemic. 

RingCentral Chalks Up Strong Earnings via Partnerships

RingCentral, one of the global leaders in enterprise-grade collaboration and cloud communications solutions posted its Q2 2020 results. 

Vlad Shmunis, Founder, Chairman and CEO for RingCentral Founder saidOpens a new window , “We are seeing a high level of adoption and engagement with our Message Video Phone (MVP) solution as businesses adapt to a work from anywhere environment. The ongoing global pandemic has elevated digital transformation of enterprise communications platforms to a top IT priority.”

During the financial quarter, RingCentral expanded its widely used Message Video Phone suite of solutions through the addition of RingCentral Video to improve its video-meeting experience. 

RingCentral also extended its strategic partnership with Atos SE through an all-new Unify Office offered as an exclusive UcaaS solution aimed at their 40 million users base as a part of the Atos Unify suite of products.  

Further, Avaya Cloud Office offered by RingCentral was officially launched in the United Kingdom, Canada, and Australia as a part of its growth strategy.  

It also rolled out Cloud PBX for Microsoft Teams allowing Direct Routing Integration aimed at helping users of Microsoft Teams enjoy access to robust PBX capabilities.   

It also doubled down on Video capabilities for conference rooms that run on dedicated video conferencing peripherals such as cameras, microphones, speakers, and monitors.

“We are a partner-oriented company. Our growth is tied to our success with our partners,” Shmunis told CNBCOpens a new window . 

See Also: RingCentral Reinvents Unified Communications with Integration of Message-Video-Phone on a Single App

8×8 Beats Pandemic Blues With Growth From Small Businesses 

8×8Opens a new window , another prominent cloud communications vendor posted strong figuresOpens a new window attributing to a staggering spike in remote working during the ongoing COVID-19 pandemic. 

The company signed 38 new deals accounting for 43% of the new bookings for Q1 2020, which implies a straight 27.9% jump from the previous year.

  • Contact centers contributed to 32% of the total bookings indicating a splendid growth of 194% year-over-year.
  • Further, 62% contributed to channel bookings hinting at 47% growth year-over-year. 
  • Service revenue jumped to 27.1% year-over-year amounting to $114.2 million.

“Our strategy remains focused on profitability, execution and maximizing growth. ​The results of last quarter clearly reflect steady improvements in operational efficiency,” said Vik VermaOpens a new window , Chief Executive Officer for 8×8.

Growth contributions from SMBs tops the chart with 55% in the total ARR. Further, the contributions from mid-market and enterprise customers were recorded at 26% and 19% respectively. 

The annual service revenue figures tend to be inclined towards enterprise customers, accounting for $167,000 per customer. 

See Also: 8×8 Partners With Jabra to Enhance Productivity and Support Remote Working

The company launched 8×8 Open Communications Platform, that is an enterprise communications platform that combines team chat, voice, and contact center solutions with intelligent AI-driven routing and analytics. 

In addition, they also unveiled 8×8 Voice for Microsoft Teams, which is an enterprise-level cloud telephony solution aimed at delivering improved, voice quality, smooth integration with third-party enterprise apps and native contact center support.

8×8 partnered with Aryaka as its growth plan to resell managed SD-WAN service along with its CCaaS and UCaaS offerings. Announced the expansion of 8×8 Open Channel Program in Asia Pacific Region, North America and Europe with more than 1,000 partners worldwide.

Poly Rushes to Meet Soaring Demands for Headsets 

Poly, aka Plantronics, Inc., a leading provider of collaboration solutions and tools posted strong figures for the financial period ending June 2020 amidst the global COVID-19 turmoil. 

The headset-maker reported an impressive $356 million in GAAP net earnings and ended the fiscal Q1 with $263 million in short-term investments and cash. 

Poly reported elevated demand for headsets and voice solutions, as an increasing number of customers continue to work from remote locations. 

The company’s manufacturing unit in Tijuana, Mexico kicked off production in May hinting at a full-scale production capacity to meet the burgeoning demands. 

Further, Poly rolled out a new suite of Microsoft Teams Rooms (MTR) solutions and successfully completed Teams certification of the Studio X30 and X50 video bars. 

The company also achieved Teams re-certification for six of its flagship headsets, and offers one of the largest numbers of Teams certified endpoints today. 

Poly also hopped on to Zoom’s newly-launched Hardware-as-a-Service offering featuring exclusive Poly phones and bars.  

Read also: LogMeIn, Zoom Expand Hardware Solutions, UiPath & AWS Partner to Scale Enterprise Automation

Business Outlook

Poly has successfully overcome COVID-19 challenges in the last quarter.  Further, Poly’s successful pursuit of Microsoft Teams and Zoom certification and LogMeIn’s GoToRoom’s HaaS partnership reflects the company’s understanding of where it positions itself in the WFH ecosystem.

Poly is moving in the right direction by leveraging these strategic partnerships and taking optimum advantage of the unparalleled growth seen by Microsoft Teams and Zoom.

Got something to add to this story? Feel free to share it in the comments below. Let us know if you liked this news on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . We would love to hear from you!