RTTNews | Nov 10, 2021 10:37AM EST

10:36 Wednesday, November 10, 2021 (RTTNews.com) - Shares of RingCentral, Inc. (RNG) surged over 25% on Wednesday morning driven by its third-quarter earnings results and partnership deal with Mitel.

RNG is currently trading at $295.31, up $61.67 or 26.39%, on the NYSE.

As part of the partnership deal with Mitel, RingCentral will become exclusive UCaaS partner to Mitel for its customer base of over 35 million users.

RingCentral will pay Mitel $650 million to acquire intellectual property rights and patents covering network and call management, security, and infrastructure. Meanwhile, Mitel investor group led by affiliates of Searchlight Capital Partners, L.P. will invest $200 million in RingCentral.

Separately, the company reported third-quarter net loss of $146.8 million or $1.60 per share, wider than last year's loss of $21.0 million or $0.24 per share last year. Adjusted profit for the quarter was $0.36 per share, compared to $0.26 per share last year. Third-quarter revenues increased 37% year over year to $414.6 million from $303.6 million last year.

Analysts polled by Thomson Reuters had expected earnings of $0.33 per share on revenues of $393.42 million.

Looking forward to full year, the company lifted its revenue range to $1.580 billion to $1.581 billion, representing annual growth of 33% to 34%. This is up from prior range of $1.539 billion to $1.545 billion and annual growth of 30% to 31%.

The company also lifted its adjusted earnings guidance to $1.32 per share, up from prior range of $1.28 to $1.30 per share.

Analysts currently estimate earnings of $1.29 per share on revenues of $1.55 billion for the year.

For the fourth quarter, the company expects revenues of $433.5 million to $434.5 million, representing annual growth of 30%, and adjusted earnings of $0.37 per share.

Analysts currently estimate earnings of $0.36 per share on revenues of $420.94 million.

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