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RingCentral Gross Profit

: $1,077 Mil (TTM As of Sep. 2021)
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RingCentral's gross profit for the three months ended in Sep. 2021 was $304 Mil. RingCentral's gross profit for the trailing twelve months (TTM) ended in Sep. 2021 was $1,077 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. RingCentral's gross profit for the three months ended in Sep. 2021 was $304 Mil. RingCentral's Revenue for the three months ended in Sep. 2021 was $415 Mil. Therefore, RingCentral's Gross Margin % for the quarter that ended in Sep. 2021 was 73.36%.

RingCentral had a gross margin of 73.36% for the quarter that ended in Sep. 2021 => Durable competitive advantage

During the past 11 years, the highest Gross Margin % of RingCentral was 76.67%. The lowest was 58.17%. And the median was 71.60%.


RingCentral Gross Profit Historical Data

The historical data trend for RingCentral's Gross Profit can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

RingCentral Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Gross Profit
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 288.23 382.35 516.50 671.82 860.05

RingCentral Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 221.31 243.32 255.38 274.35 304.18

Competitive Comparison

For the Software - Application subindustry, RingCentral's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

RingCentral Gross Profit Distribution

For the Software industry and Technology sector, RingCentral's Gross Profit distribution charts can be found below:

* The bar in red indicates where RingCentral's Gross Profit falls into.



RingCentral Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

RingCentral's Gross Profit for the fiscal year that ended in Dec. 2020 is calculated as

Gross Profit (A: Dec. 2020 )=Revenue - Cost of Goods Sold
=1183.657 - 323.607
=860

RingCentral's Gross Profit for the quarter that ended in Sep. 2021 is calculated as

Gross Profit (Q: Sep. 2021 )=Revenue - Cost of Goods Sold
=414.629 - 110.449
=304

Gross Profit for the trailing twelve months (TTM) ended in Sep. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,077 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

RingCentral's Gross Margin % for the quarter that ended in Sep. 2021 is calculated as

Gross Margin % (Q: Sep. 2021 )=Gross Profit (Q: Sep. 2021 ) / Revenue (Q: Sep. 2021 )
=(Revenue - Cost of Goods Sold) / Revenue
=304 / 414.629
=73.36 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


RingCentral  (NYSE:RNG) Gross Profit Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

RingCentral had a gross margin of 73.36% for the quarter that ended in Sep. 2021 => Durable competitive advantage


RingCentral Gross Profit Related Terms

Thank you for viewing the detailed overview of RingCentral's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.


RingCentral Business Description

RingCentral logo
Industry
Technology » Software NAICS : 541519 SIC : 7379
Traded in Other Exchanges
Address
20 Davis Drive, Belmont, CA, USA, 94002
RingCentral is a unified-communication-as-a-service, or UCaaS, provider. RingCentral's software provides an easy-to-use, integrated communication application that allows for a single user experience across mobile and desktop applications. The software lets businesses communicate and collaborate using voice, video, text, Internet messaging, and conference calls on a single platform. Ninety percent of RingCentral's revenue comes from its RingCentral Office application, which is available in four tiers based on integration needs and the number of employees. The company was founded in 1999 and its headquarters are in Belmont, California.
Executives
Agarwal Vaibhav officer: Chief Accounting Officer 20 DAVIS DRIVE BELMONT CA 94002
Shah Praful officer: Chief Strategy Officer C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Marlow John H officer: SVP, CAO & General Counsel C/O RINGCENTRAL, INC 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Elca Fund Iii, Lp other: Controlled by Reporting Person C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Elca Fund Ii, Lp other: Controlled by Reporting Person C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Elca Fund I, Lp other: Controlled by Reporting Person C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Elca, Llc other: Controlled by Reporting Person C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Shmunis Sandra other: Wife of Reporting Person C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Shmunis Vladimir director, officer: CEO & Chairman C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Williams R Neil director C/O INTUIT INC. 2700 COAST AVENUE MOUNTAIN VIEW CA 94043
Dhruv Mitesh officer: Chief Financial Officer 34601 CASCADES CIRCLE UNION CITY CA 94587
Sullivan Godfrey director SPLUNK INC. 250 BRANNAN STREET SAN FRANCISCO CA 94107
Theis Robert I director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: THEIS ROBERT I a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Eswaran Anand officer: President & COO 20 DAVIS DRIVE BELMONT CA 94002
Goldman Kenneth A director C/O YAHOO! INC. 701 FIRST AVENUE SUNNYVALE CA 94089

RingCentral Headlines

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