Shares of RingCentral (NYSE:RNG) gained 14.7% in February 2020, according to data from S&P Global Market Intelligence. The provider of cloud-based solutions for communications and collaboration achieved this in a month when the S&P 500 market index fell 8.4%, and the big jump hinged on RingCentral's impressive fourth-quarter earnings report.
RingCentral's adjusted fourth-quarter earnings fell 4% year over year to $0.22 per share. Revenue rose by 34%, landing at $253 million. Your average analyst would have settled for earnings near $0.21 per share on sales of approximately $239 million. Looking ahead, management also set their guidance for the next quarter and for fiscal year 2020 slightly ahead of current analyst projections.
This company is grabbing bucketloads of revenue growth in the mid-market and enterprise sectors. A recently signed partnership with business communications giant Avaya (NYSE:AVYA) should keep that momentum going as RingCentral's cloud services eventually will become supported by every Avaya endpoint. The rollout is starting soon and should begin to contribute to RingCentral's financial results toward the end of 2020.