According to a recent Fortune Business Insights report, the global Unified Communication-as-a-Service (UCaaS) market is projected to grow to $36.45 billion by 2026, growing at 10.5% CAGR from $16.73 billion in 2018. Earlier last month, RingCentral (NYSE:RNG), announced its second quarter results that outpaced market expectations.

RingCentral’s Financials

RingCentral’s second quarter revenues grew 29.2% over the year to $278 million, significantly ahead of the market’s forecast of $236.8 million. Non-GAAP net income per diluted share was $0.24, ahead of the Street’s estimates of $0.20.

By segment, Software Subscriptions revenue increased 32% to $275 million. Other revenues grew 2.9% to $20.9 million.

Among key metrics, Annualized Exit Monthly Recurring Subscriptions (ARR) grew 33% to$1.1 billion. RingCentral Office ARR grew 36% to $1 billion. Mid-market and Enterprise ARR, defined as customers with $25,000 or more in ARR, increased 50% to $581 million. Enterprise ARR, defined as customers with $100,000 or more in ARR, increased 58% to $363 million. Channel ARR grew 60% to $375 million.

For the third quarter, RingCentral expects revenues of $283.5-$289.5 million, representing an annual growth of 21% to 24%. It raised its guidance for subscription revenues to $263-$265 million, representing annual growth of 25% to 26%. Non-GAAP EPS is expected to be $0.24.

RingCentral’s New Offerings

During the quarter, RingCentral expanded their partnership with Atos, by becoming the sole UCaaS provider to Atos Unify, formerly known as Siemens Enterprise Communications. As part of the agreement, RingCentral will now become the exclusive UCaaS solution for 40 million users of the Atos Unify family of products.

The company also continued to release several product upgrades. It announced the release of RingCentral Rooms, which extends the power of RingCentral Video to allow users to create conference rooms and meeting spaces that have dedicated video conferencing equipment, such as monitors, speakers, microphones, and cameras.

The company continued to announce several new integrations. It recently released RingCentral PBX for Microsoft Teams with Direct Routing integration that will allow Microsoft Teams users access to cloud PBX capabilities without having to leave the Teams interface on mobile, web, and desktop. The integration is an important one given the continued adoption of collaboration tools such as Microsoft Teams. Additionally, RingCentral also saw the integration of its APIs and mobile-first enterprise communications platform by major institutions as these organizations worked together in rapidly deploying solutions for contact tracing to help reduce the impact of COVID-19.

Its stock is currently trading at $262.06 with a market capitalization of $22.6 billion. Earlier this month, it touched a 52-week high of $317.84. It was trading at a 52-week low of $120.03 in June last year.