RingCentral RNG reported third-quarter 2021 non-GAAP earnings of 36 cents per share, which surpassed the Zacks Consensus Estimate by 9.1% and surged 38.5% year over year.Net revenues of $414.6 million also beat the consensus mark by 5.4% and jumped 36.6% year over year. The results reflect solid demand for RingCentral’s cloud-communication solutions.Quarter DetailsSoftware-subscription (93% of total revenues) revenues surged 37.8% year over year to $385.4 million.Annualized Exit Monthly Recurring Subscriptions (“ARR”) increased 39% year over year to $1.64 billion.RingCentral Office ARR (UCaaS + CCaaS) soared 42% year over year to $1.55 billion. Mid-market and Enterprise ARR increased 53% year over year to $971 million Ringcentral, Inc. Price, Consensus and EPS Surprise Ringcentral, Inc. price-consensus-eps-surprise-chart | Ringcentral, Inc. Quote Channel ARR soared 50% year over year to $626 million. Direct and Partners Office ARR increased 37% year over year to $925 million.Other revenues (7% of total revenues) climbed 21.7% year over year to $29.2 million, reflecting higher adoption of RingCentral apps in the prevailing work-from-home wave.Third-quarter 2021 non-GAAP gross margin expanded 150 basis points (bps) from the year-ago quarter to 78.1%.On a non-GAAP basis, research & development (R&D) expenses increased 54.3% year over year to $58.3 million. Sales and marketing expenses were up 36.2% to $183.2 million. General and administrative expenses rose 31.3% to $38.9 million in the reported quarter.On a non-GAAP basis, operating income was $43.5 million, up 41.1% year over year. Non-GAAP operating margin expanded 30 bps from the year-ago quarter to 10.5%.Balance SheetAs of Sep 30, 2021 cash and cash equivalents were $345.2 million compared with $325.3 million as of Jun 30, 2021.Key Q3 DevelopmentsRingCentral introduced RingCentral Rise, a new platform designed exclusively for service providers around the world. The solution helps service providers offer their own unique, cobranded unified cloud communications solutions that includes team messaging, video meetings, cloud phone system and contact center solutions to businesses around the world.During the reported quarter, RingCentral announced that MCM Telecom will offer a co-branded solution called RingCentral for Symphony, which will be the lead MCM Unified Communications as a Service offering to all business customers.RingCentral also announced new partnerships with three leading healthcare Independent Software Vendors (ISVs) — Ascom, ChronicCareIQ and ELLKAY — to bring new capabilities to RingCentral MVP and RingCentral Contact Center.Post Quarter DevelopmentOn Nov 10, RingCentral announced a strategic partnership with Mitel that makes it the exclusive UCaaS partner for the latter. RingCentral will pay Mitel $650 million to acquire intellectual property rights and patents covering network and call management, security, and infrastructure. Mitel’s owner Searchlight will invest $200 million in equity in RingCentral as part of the transaction.GuidanceFor the fourth quarter of 2021, RingCentral expects revenues between $433.5 million and $434.5 million, indicating year-over-year growth of 30%.Software-subscription revenues for the quarter are expected between $404.5 million and $405.5 million, indicating year-over-year growth of 32%.Non-GAAP operating margin is expected between 10.4% and 10.5% for the third quarter. Earnings are expected to be 37 cents per share.For 2021, RingCentral now expects revenues between $1.580 billion to $1.581 billion (up from previous guidance of $1.539-$1.545 billion), indicating year-over-year growth of 33% to 34%.Software-subscription revenues for the year are expected between $1.466 billion and $1.467 billion, implying year-over-year growth of 35%.Non-GAAP operating margin is expected to be 10.1% for full-year 2021.Earnings are expected to be $1.32 per share compared with previous guidance of $1.28-$1.30 per share.Zacks Rank & Stocks to ConsiderCurrently, RingCentral has a Zacks Rank #3 (Hold).Better-ranked stocks in the broader technology sector include Cisco Systems CSCO, Applied Materials AMAT and Box BOX. All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Cisco, Applied Materials and Box are set to report their earnings results on Nov 17, 18 and 30, respectively. 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