RingCentral tablet and phone

You don't have to use a traditional phone with RingCentral's systems, but it's still an option. Image source: RingCentral.

What: Shares of RingCentral (NYSE:RNG) jumped off the hook today, rising as much as 13.9% on a second-quarter report with enough oomph to inspire an immediate analyst upgrade.

So what: In the just-reported second quarter, analysts expected RingCentral to deliver a net loss of $0.08 per share on $68.7 million in sales. The company exceeded both targets, reporting an adjusted net loss of $0.05 per share and sales of $70.7 million. In the year-ago quarter, the maker of cloud-based phone systems for corporate clients reported a $0.14 loss per share and revenue of $52.8 million. Seeing these results, analyst firm Raymond James raised the stock from an "outperform" rating to a "strong buy," adding 28% to an already optimistic target price.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

Now what: Besides strong sales growth, RingCentral also widened its gross margins and reported increasing customer loyalty. During the quarter, RingData found a new distribution channel, integrated its calling solution with a market-leading office productivity platform, and picked up a small acquisition in the team messaging category.

There's a lot going on here, and it shows on RingCentral's rapidly rising revenue line. And, according to press statements by RingCentral CEO Vlad Shmunis, that will soon translate into bottom-line growth as well.

"Importantly, our path toward profitability improved significantly with subscription gross margins now within our target range, and we continue to drive to reach non-GAAP operating profit break-even in the fourth quarter," Shmunis said.

The stock has now gained a market-crushing 33% year-to-date, and this report did absolutely nothing to slow down that momentum. Today's spike set a fresh 52-week high for the young stock, which first hit the market in the fall of 2013.