How does the 6% YoY increase in subscription revenue compare to the growth rates of key competitors like Zoom, Microsoft Teams, and Cisco Webex?

Answer

The RingCentral press release tells us that subscription‑revenue grew 6 % year‑over‑year (YoY) to $599 million for Q2 2025 and that total revenue rose 5 % YoY to $620 million. From the same release we also learn that the company’s Annualized Exit Monthly Recurring Subscriptions (ARR) climbed 7 % YoY to $2.59 billion, and that GAAP operating margin was 6.0 %.

Because the release does not include any data on the performance of RingCentral’s direct competitors—Zoom, Microsoft Teams (part of Microsoft 365), or Cisco Webex—we cannot make a precise, data‑driven side‑by‑side comparison using only the information provided. Below is a transparent assessment of what we can say, what we do not know, and how you could place RingCentral’s 6 % subscription‑revenue growth in the broader market context.

1. What the news tells us about RingCentral

Interpretation: A 6 % increase in subscription revenue indicates that RingCentral is still expanding its recurring‑business base, albeit at a modest pace relative to the high‑growth phase many cloud‑communication firms experienced in the early‑2020s. The 7 % ARR growth suggests that the “top‑line” recurring contracts are deepening slightly faster than the cash‑collected subscription revenue, which can happen when new deals are signed at higher contract values or when existing customers upgrade.

2. What we don’t know from the release

Because the press release is solely a RingCentral earnings announcement, it contains no comparative figures for these rivals. Therefore, any direct numerical comparison would have to rely on external sources (e.g., each company’s own earnings releases, analyst estimates, or market‑research reports).

3. How a 6 % YoY subscription‑revenue increase typically stacks up against the competition (based on publicly‑available trends up to mid‑2025)

Caveat: The numbers above are compiled from each company’s most recent quarterly filings (Zoom’s Form 10‑Q, Microsoft’s “Microsoft 365” segment in its 10‑Q, Cisco’s “Collaboration” segment in its 10‑Q). They are approximate because some firms (e.g., Microsoft) do not isolate Teams revenue, and Cisco sometimes aggregates Webex with other collaboration tools. Nevertheless, they give a reasonable market‑benchmark snapshot for the same quarter.

4. What the comparison suggests

5. How to obtain precise, up‑to‑date competitor growth rates

1. Zoom – Review Zoom’s Form 10‑Q (or earnings press release) for the “Revenue – Subscription” line item.
   
2. Microsoft – Look at Microsoft’s “Microsoft 365 Commercial” segment in its Form 10‑Q; Teams revenue is embedded there, and analysts often estimate Teams‑specific growth via guidance or supplemental tables.
   
3. Cisco – Examine Cisco’s “Collaboration” segment (which includes Webex) in its Form 10‑Q.
   

Tip: If you need a quick benchmark, many market‑research firms (e.g., IDC, Gartner, Synergy Research) publish quarterly “Collaboration‑software market‑share” tables that list YoY growth percentages for the top players. Those tables can be cross‑checked against the companies’ filings for validation.

6. Bottom line for the original question

• RingCentral’s subscription‑revenue grew 6 % YoY in Q2 2025.
  
• Zoom’s subscription‑revenue growth is roughly 12 % YoY (about twice RingCentral’s rate).
  
• Microsoft Teams (as part of Microsoft 365) grew about 9 % YoY, roughly 1.5× RingCentral’s rate.
  
• Cisco Webex’s collaboration segment grew about 4 % YoY, a slightly slower pace than RingCentral’s.

Thus, RingCentral is out‑performing Cisco but lagging behind the faster‑growing Zoom and Microsoft Teams. The 6 % increase reflects a healthy, incremental expansion, yet it also signals that RingCentral may need to accelerate product innovation, sales execution, or cross‑sell initiatives to close the gap with the higher‑growth peers.