RingCentral reported strong financial performance and strategic progress with significant growth in revenue and profitability. The company showcased leadership in the UCaaS market and promising early traction in CCaaS with RingCX. However, slight gross margin decline and macroeconomic challenges in the SMB segment present some challenges, balanced by the overall positive trajectory driven by new product offerings and strategic partnerships.

Company Guidance

During RingCentral's Q3 2024 earnings call, the company provided several key metrics that highlight its financial performance and strategic priorities. The revenue for the third quarter exceeded the guidance range, driven by the core UCaaS market and new products like RingCX. The company achieved GAAP operating profitability, with a 56% year-over-year increase in free cash flow per share. Subscription revenue reached $583 million, up 10% year-over-year, and ARR was $2.48 billion, marking a 9% increase. RingCentral's operating margin rose to 21%, and free cash flow was $105 million, up 51% from the previous year. The company also reported a reduction in stock-based compensation to 14% of total revenue. For Q4 2024, RingCentral expects subscription revenue growth of 7%-8% and total revenue growth of 7%. For the full year, the company raised its subscription revenue outlook to $2.295-$2.297 billion, reflecting 9% growth. The company continues to focus on expanding its UCaaS leadership, introducing AI-powered products, and broadening its partner network, aiming for long-term profitable growth.

Record Revenue and Profitability

RingCentral reported a 10% year-over-year increase in subscription revenue, totaling $583 million, exceeding the high end of their guidance range. The company achieved a GAAP operating profitability and a 56% year-over-year increase in free cash flow per share.

UCaaS Market Leadership

RingCentral was named a leader in the Gartner Magic Quadrant for UCaaS for the tenth consecutive year, emphasizing their strong position in the voice and business communications market.

Significant CCaaS Growth

The new RingCX product saw over 45% sequential customer growth and a nearly 50% attach rate to new bookings. The company also formed a strategic partnership with Verint to enhance their CCaaS offering.

Strategic Partnership Success

RingCentral renewed a 10-year partnership with AT&T and expanded internationally with partners like Optus in Australia, Vodafone, British Telecom, and TELUS.

AI-driven Product Expansion

RingCentral launched AI-powered products like RingCentral AI Assistant and RingSense, contributing to ARPU expansion and providing unique value propositions.

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RingCentral (RNG) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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RNG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 06, 2018	2018 (Q2)	- / 0.19	0.04	375.00% (+0.15)	―	―
Nov 05, 2018	2018 (Q3)	- / 0.19	0.06	216.67% (+0.13)	―	―
Feb 11, 2019	2018 (Q4)	- / 0.23	0.07	228.57% (+0.16)	―	―
May 06, 2019	2019 (Q1)	- / 0.17	0.16	6.25% (+0.01)	―	―
Jul 29, 2019	2019 (Q2)	- / 0.21	0.19	10.53% (+0.02)	―	―
Nov 04, 2019	2019 (Q3)	- / 0.22	0.19	15.79% (+0.03)	―	―
Feb 10, 2020	2019 (Q4)	- / 0.22	0.23	-4.35% (-0.01)	―	―
May 06, 2020	2020 (Q1)	- / 0.19	0.17	11.76% (+0.02)	―	―
Aug 03, 2020	2020 (Q2)	- / 0.24	0.21	14.29% (+0.03)	―	―
Nov 09, 2020	2020 (Q3)	- / 0.26	0.22	18.18% (+0.04)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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RNG Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 07, 2024	$38.80	$37.97	-2.14%
Aug 01, 2024	$33.45	$35.26	+5.41%
May 07, 2024	$29.99	$34.38	+14.64%
Feb 20, 2024	$30.86	$31.63	+2.50%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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