RingCentral RNG reported third-quarter 2020 non-GAAP earnings of 26 cents per share, which surpassed the Zacks Consensus Estimate by 8.3%. The figure increased 18.2% on a year-over-year basis.Net revenues of $303.6 million also beat the consensus mark by 5.8% and jumped 30.1% from the year-ago quarter. The results reflect solid demand for RingCentral’s cloud-communication solutions.Ringcentral, Inc. Price, Consensus and EPS Surprise Ringcentral, Inc. price-consensus-eps-surprise-chart | Ringcentral, Inc. QuoteQuarter DetailsSoftware-subscription (92.1% of total revenues) revenues surged 32.6% year over year to $279.6 million.Annualized Exit Monthly Recurring Subscriptions (“ARR”) increased 34% year over year to $1.2 billion.RingCentral Office ARR soared 36% year over year to $1.1 billion. Mid-market and Enterprise ARR jumped 49% to $633 million.Moreover, enterprise ARR surged 55% year over year to $401 million. Channel ARR soared 59% year over year to $419 million.Other revenues (7.9% of total revenues) climbed 6.9% year over year to $24 million, reflecting higher adoption of RingCentral apps in the current work from home environment.On Aug 4, RingCentral announced RingCentral Rooms for Poly, bringing the power and ease-of-use of RingCentral Video to every work space. Designed for a flexible and hybrid workforce, the RingCentral Rooms service will be built into the simple Poly Studio X all-in-one video bars.Meanwhile, third-quarter 2020 non-GAAP gross margin expanded 70 basis points (bps) from the year-ago quarter to 76.7%.On a non-GAAP basis, research & development (R&D) expenses increased 30.1% year over year to $37.8 million. Sales and marketing expenses were up 36.8% to $134.5 million. General and administrative expenses rose 4.4% to $29.6 million in the reported quarter.On a non-GAAP basis, operating income was $30.9 million, up 42.4% year over year. Non-GAAP operating margin expanded 90 bps from the year-ago quarter to 10.2%.Key Q3 DevelopmentsDuring the quarter, RingCentral launched Unify Office by RingCentral in Germany in collaboration with Atos SE. Unify Office by RingCentral combines the latest UCaaS technology with the knowledge and insights of Germany’s communications market from Atos and its strong partner community of 800 partners.Additionally, RingCentral announced the first release of Unify Office (UO) by RingCentral in France in collaboration with Atos SE. It will also be available in Austria, Belgium, Ireland, Italy, Spain and The Netherlands.Moreover, RingCentral announced the launch of RingCentral Video (RCV), a reimagined video meetings experience for businesses in Europe.On Aug 11, RingCentral announced a strategic partnership with Alcatel-Lucent Enterprise to introduce a co-branded cloud solution — Rainbow Office powered by RingCentral — making it unique and exclusive for Alcatel-Lucent Enterprise. RingCentral and Alcatel-Lucent Enterprise will jointly develop programs, enabling both companies to lead the cloud communications services for the enterprise market.GuidanceFor the fourth quarter of 2020, RingCentral expects revenues between $315 million and $318 million, indicating year-over-year growth of 25-26%.Moreover, software-subscription revenues for the quarter are expected between $290.5 million and $292.5 million, indicating year-over-year growth of 27-28%.Operating margin is expected to be in the 9.2-9.8% range for the fourth quarter. Earnings are expected between 26 cents to 27 cents per share.For 2020, RingCentral expects revenues between $1.164 billion and $1.167 billion, rising from the previous guidance of $1.135-$1.143 billion and indicating year-over-year growth of 29%.Further, software-subscription revenues for the year are expected between $1.07 billion and $1.072 billion, implying year-over-year growth of 31%.Operating margin is expected between 9.8% and 9.9% for full-year 2020.Earnings are expected to be 96 cents per share, up from the previous guidance of 92-94 cents.Zacks Rank & Stocks to ConsiderCurrently, RingCentral has a Zacks Rank #4 (Sell).Himax Technologies HIMX, NVIDIA NVDA and Pure Storage PSTG are some better-ranked stocks in the broader computer and technology sector. Each carries a Zacks Rank #2 (Buy). 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Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Himax Technologies, Inc. (HIMX): Free Stock Analysis Report Ringcentral, Inc. (RNG): Free Stock Analysis Report Pure Storage, Inc. (PSTG): Free Stock Analysis Report To read this article on Zacks.com click here.