eastunder
2 months ago
RingCentral Announces Fourth Quarter and Fiscal Year 2023 Results
Business Wire
Tue, February 20, 2024 at 2:05 PM MST·24 min read
https://finance.yahoo.com/news/ringcentral-announces-fourth-quarter-fiscal-210500724.html
Total ARR up 11% to $2.33 billion
Enterprise ARR up 13% to over $1 billion
Record quarterly net cash provided by operating activities of $114 million
BELMONT, Calif., February 20, 2024--(BUSINESS WIRE)--RingCentral, Inc. (NYSE:RNG), a leading provider of AI-driven cloud business communications, contact center, video and hybrid event solutions, today announced financial results for the fourth quarter and fiscal year ended December 31, 2023.
Fourth Quarter Financial Highlights
Total revenue increased 9% year over year to $571 million
Subscriptions revenue increased 9% year over year to $547 million
Annualized Exit Monthly Recurring Subscriptions (ARR) increased 11% year over year to $2.329 billion
Mid-market and Enterprise ARR increased 12% year over year to $1.458 billion
Enterprise ARR increased 13% year over year to $1.005 billion
GAAP operating margin of (7.9)%, compared to (48.7)% in the prior year
Non-GAAP operating margin of 20.5%, up 650 basis points year-over-year
"We ended the year on a strong note," said Vlad Shmunis, RingCentral's founder and CEO. "The solid traction we are seeing with our new products demonstrates the progress we are making in becoming an AI-first, multi-product company as we deliver on our strategy of delivering durable, profitable growth."
"We delivered another quarter of record operating margin and free cash flow, which were above our outlook," said Sonalee Parekh, RingCentral's CFO. "We are just beginning to realize the full cash flow potential of our business, with continuing efforts to improve our efficiency and productivity, while investing for growth."
Financial Results for the Fourth Quarter 2023
Revenue: Total revenue was $571 million for the fourth quarter of 2023, up from $525 million in the fourth quarter of 2022, representing 9% growth. Adjusted for constant currency, total revenue rose 8%. Subscriptions revenue of $547 million increased 9% year over year and accounted for 96% of total revenue. Adjusted for constant currency, subscriptions revenue rose 9%.
Operating Income (Loss): GAAP operating loss was ($45) million, compared to ($256) million in the same period last year. Non-GAAP operating income was $117 million, or 20.5% of total revenue, compared to $73 million, or 14.0% of total revenue, in the same period last year.
Adjusted EBITDA: Adjusted EBITDA was $138 million, or 24.2% of total revenue, compared to $93 million, or 17.7% of total revenue, in the same period last year.
Net Income (Loss) Per Share: GAAP net loss per share was ($0.50), compared to ($2.97) in the same period last year. Diluted non-GAAP net income per share was $0.86, compared to $0.60 per share in the same period last year. The fourth quarters of 2023 and 2022 reflected a 22.5% non-GAAP tax rate.
Cash Flow: Net cash provided by operating activities for the fourth quarter of 2023 was a record $114 million, or 19.9% of total revenue, compared to $39 million, or 7.5% of total revenue, for the fourth quarter of 2022. Adjusted, unlevered free cash flow for the fourth quarter of 2023 was a record $97 million, or 17.0% of total revenue, compared to $0.4 million, or 0.1% of total revenue, for the fourth quarter of 2022.
Cash and Cash Equivalents: Total cash and cash equivalents at the end of the fourth quarter of 2023 was $222 million. This compares to $432 million at the end of the third quarter of 2023. Our cash balance reflects approximately $240 million paid in the fourth quarter of 2023 to repurchase a portion of our 2025 convertible notes. The Company also repurchased over $60 million in shares during the fourth quarter of 2023 under the plans authorized in May and November of 2023.
Financial Results for the Full Year 2023
Revenue: Total revenue was $2.202 billion for 2023, up from $1.988 billion in 2022, representing 11% growth. Adjusted for constant currency, total revenue rose 11%. Subscriptions revenue of $2.100 billion increased 11% and accounted for over 95% of total revenue. Adjusted for constant currency, subscriptions revenue rose 11%.
Operating Income (Loss): GAAP operating loss was ($199) million, compared to ($649) million in 2022. Non-GAAP operating income was $420 million, or 19.1% of total revenue, compared to $246 million, or 12.4% of total revenue, in 2022.
Adjusted EBITDA: Adjusted EBITDA for 2023 was $503 million, or 22.8% of total revenue, compared to $318 million, or 16.0% of total revenue, for 2022.
Net Income (Loss) Per Share: GAAP net loss per share was ($1.74), compared to ($9.23) in 2022. Diluted non-GAAP net income per share was $3.23, compared to $1.99 per share in 2022. Both fiscal year 2023 and 2022 reflected a 22.5% non-GAAP tax rate.
Cash Flow: Net cash provided by operating activities for 2023 was a record $400 million, or 18.1% of total revenue, compared to $191 million, or 9.6% of total revenue, for 2022. Adjusted, unlevered free cash flow for 2023 was a record $325 million, or 14.8% of total revenue, compared to $103 million, or 5.2% of total revenue, for 2022.
Additional Highlights
Named a leader in the 2023 Gartner® Magic Quadrant™ for Unified Communications as a Service, Worldwide Report for ninth year in a row. The 2023 Gartner Critical Capabilities for UCaaS report, which accompanies the Magic Quadrant report, also ranked RingCentral #1 in three out of the six product or service use case categories ranking: #1 for UC with Integrated Contact Center Use Case; #1 for Midsize Enterprise Use Case; and #1 for Telephony Centric/Heavy Organizations Use Case.
Announced the general availability of RingCX™, a native, AI-first contact center with new capabilities powered by its RingSense™ AI platform. Integrated with RingCentral MVP™, RingCX offers a disruptive combination of product, packaging, and pricing.
Announced the global availability of RingCentral Events™, an all-in-one solution for virtual, onsite, and hybrid event needs. Formerly Hopin Events, RingCentral Events is designed to be immersive and personalized, enabling businesses to provide engaging experiences that take events to the next level.
Announced a unified patient care solution for healthcare organizations worldwide. New integrations with Electronic Health Record (EHR) providers, including industry titans Epic, Cerner, and AllScripts, combined with RingCentral’s AI-powered communications suite bridge gaps in the patient engagement journey and simplify workflows. Powered by a new partnership with patient engagement software platform SpinSci, these EHR integrations ensure optimal and secure patient experiences, improved documentation, and reduced administrative burden.
Highlighted that healthcare organizations are adopting RingCentral for Healthcare solution for its trusted reputation in delivering consistent 99.999% reliability, innovative products, and an industry-leading open platform with rich APIs, plus security and privacy by design standards, and various certifications such as HIPAA and HITRUST. Over the past 18 months, RingCentral has added more than 500 new healthcare customers across small, midsize, and large enterprise segments.
Announced that Ned Segal has been elected to the Company’s Board of Directors, effective as of the Company’s 2023 Annual Meeting of Shareholders which was held on December 29, 2023. Segal has also been named a member of both the audit committee and nominating and corporate governance committee of the Company’s Board of Directors. Ned is a seasoned executive with more than 25 years of technology, finance and capital markets experience including at Twitter, Intuit and Goldman Sachs.
Announced that Prat Bhatt has been appointed to the Company’s Board of Directors, effective March 1, 2024. Bhatt has been named a member of the Board’s audit committee. Prat is an accomplished technology industry veteran and financial expert, having served as the Chief Accounting Officer at Cisco Systems for over twenty years. Additionally, Allan Thygesen, who has served on the Board for nine years, will be transitioning off in the second quarter of 2024 to focus on his other commitments.
Announced that it paid approximately $240 million to repurchase approximately $253 million aggregate principal amount of the 2025 Convertible Notes, using the proceeds received from the Company’s previously announced issuance of its 8.500% Senior Notes due 2030 (the "2030 Notes"). Following the closing of the Note Repurchases, approximately $161 million aggregate principal amount of the 2025 Convertible Notes remains outstanding.
Financial Outlook
Full Year 2024 Guidance:
Subscriptions revenue range of $2.260 to $2.285 billion, representing annual growth of 8% to 9%.
Total revenue range of $2.370 to $2.395 billion, representing annual growth of 8% to 9%.
GAAP operating margin range of (1.7%) to (0.9%).
Non-GAAP operating margin of 21.0%.
Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
Non-GAAP EPS range of $3.50 to $3.58 based on 99.0 to 98.0 million fully diluted shares.
Share-based compensation range of $380 to $390 million.
Amortization of acquisition intangibles of $140 million.
Restructuring costs range of $5 to $7 million.
Adjusted, unlevered free cash flow margin of 17.5%, or an implied range of approximately $415 to $420 million.
First Quarter 2024 Guidance:
Subscriptions revenue range of $550 to $555 million, representing annual growth of 8% to 9%.
Total revenue range of $575 to $580 million, representing annual growth of 8% to 9%.
GAAP operating margin range of (5.2%) to (4.3%).
Non-GAAP operating margin of 19.5%.
Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
Non-GAAP EPS of $0.79 to $0.80 based on 97.0 to 96.5 million fully diluted shares.
Share-based compensation range of $98 to $100 million.
Amortization of acquisition intangibles of $35 million.
Restructuring costs range of $5 to $7 million.
eastunder
6 months ago
RingCentral Announces Third Quarter 2023 Results
Q3 2023 revenue above high end of guidance
https://www.businesswire.com/news/home/20231106929479/en/
Q3 2023 GAAP and non-GAAP operating margin up strongly
Raising midpoint of 2023 revenue outlook
November 06, 2023 04:03 PM Eastern Standard Time
BELMONT, Calif.--(BUSINESS WIRE)--RingCentral, Inc. (NYSE: RNG), a leading provider of AI-powered global enterprise cloud communications, video meetings, collaboration, and contact center solutions, today announced financial results for the third quarter ended September 30, 2023.
“Reconciliation of Forecasted Operating Margin GAAP Measures to Non-GAAP Measures.”
Third Quarter Financial Highlights
-Total revenue increased 10% year over year to $558 million.
-Subscriptions revenue increased 10% year over year to $531 million.
-Annualized Exit Monthly Recurring Subscriptions (ARR) increased 11% year over year to $2.26 billion.
-Mid-market and Enterprise ARR increased 13% year over year to $1.41 billion.
-GAAP operating margin of (9.7%), compared to (35.9%) in the prior year.
-Non-GAAP operating margin of 19.1%, up 560 basis points year-over-year.
-“RingCentral is leveraging its leading position in Unified Communications to transform into an AI-first, multi-product company with proprietary offerings across UCaaS, CCaaS, Conversation and Revenue Intelligence, and Events, Webinars and Meetings,” said Tarek Robbiati, RingCentral’s CEO. “Our solid third quarter results demonstrate our ability to drive long-term durable, profitable growth.”
Financial Results for the Third Quarter 2023
Revenue: Total revenue was $558 million for the third quarter of 2023, up from $509 million in the third quarter of 2022, representing 10% growth. Adjusted for constant currency, total revenue rose 9%. Subscriptions revenue of $531 million increased 10% year over year and accounted for 95% of total revenue. Adjusted for constant currency, subscriptions revenue rose 10%.
Operating Income (Loss): GAAP operating loss was ($54) million, compared to ($183) million in the same period last year. Non-GAAP operating income was $107 million, or 19.1% of total revenue, compared to $69 million, or 13.5% of total revenue, for the third quarter of 2022.
Adjusted EBITDA: Adjusted EBITDA for the third quarter of 2023 was $128 million, or 22.9% of total revenue, compared to $87 million, or 17.1% of total revenue, for the third quarter of 2022.
Net Income (Loss) Per Share: GAAP net loss per share was ($0.45), compared to ($2.98) in the same period last year. Diluted non-GAAP net income per share was $0.78, compared to $0.55 per share in the same period last year. The third quarters of 2023 and 2022 reflected an approximately 22.5% non-GAAP tax rate. There were no material cash taxes given our net operating loss carryforwards.
Cash and Cash Equivalents: Total cash and cash equivalents at the end of the third quarter of 2023 was $432 million. This compares to $225 million at the end of the second quarter of 2023. Our cash balance reflects the August 2023 issuance of $400 million of senior notes due 2030, with $154 million of the proceeds from this issuance subsequently used during the third quarter of 2023 to repurchase a portion of our 2025 and 2026 convertible notes. The Company also repurchased $75 million in shares during the third quarter of 2023 under the plans announced in February and May of 2023. On November 1, 2023, the company's Board of Directors authorized an incremental $100 million for the repurchase of shares.
Financial Outlook
"We are seeing early traction with our new products such as RingCX, RingSense and RingCentral Events," said Sonalee Parekh, RingCentral's CFO. "Our efficiency initiatives also continue to drive improved non-GAAP operating margins, which we are raising to 19.0%, at the high end of our prior range of 18.5% to 19.0%. We are also raising our free cash flow outlook, and now expect to generate $290 to $300 million of adjusted, unlevered free cash flow in 2023, up from our prior outlook of $270 to $290 million.”
Full Year 2023 Guidance:
Updating subscriptions revenue range to $2.095 to $2.101 billion, representing annual growth of 11%; raising midpoint to $2.098 billion.
Updating total revenue range to $2.198 to $2.205 billion, representing annual growth of 11%; raising midpoint to $2.201 billion.
GAAP operating margin range of (9.3%) to (8.7%) versus (8.0%) to (6.3%) previously, as we continue to streamline the organization and incur restructuring costs.
Raising non-GAAP operating margin range to 19.0%, up from 18.5% to 19.0% previously.
Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
Non-GAAP EPS of $3.19 to $3.20 based on 97.0 million fully diluted shares. This compares to $3.11 to $3.25 based on 99.0 million to 98.0 fully diluted shares.
Share-based compensation range of $426 to $431 million.
Amortization of acquired intangibles of $151 million.
Third-party relocation and other costs, net, of $10 million.
Restructuring costs of $23 to $28 million.
Raising adjusted, unlevered free cash flow to $290 to $300 million, up from $270 to $290 million.
Fourth Quarter 2023 Guidance:
Subscriptions revenue range of $542.0 to $548.0 million, representing year-over-year growth of 8% to 9%.
Total revenue range of $566.5 to $573.5 million, representing year-over-year growth of 8% to 9%.
GAAP operating margin range of (8.8%) to (6.7%).
Non-GAAP operating margin of 20.0%.
Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
Non-GAAP EPS of $0.82 to $0.83 based on 97.0 to 96.5 million fully diluted shares.
Share-based compensation range of $105 to $110 million.
Amortization of acquired intangibles of $38 million.
Restructuring costs of $10 million to $15 million.
Additional Highlights
Announced in August 2023 the issuance of $400 million aggregate principal amount of senior notes due 2030 (the “2030 Senior Notes”) in a private offering. The 2030 Senior Notes are senior unsecured and bear interest at a rate of 8.5% per annum. We intend to use the net proceeds from the 2030 Senior Notes to repurchase a portion of our outstanding convertible senior notes and the remainder of the net proceeds, if any, for general corporate purposes.
Announced in August 2023 we had entered into individual, privately negotiated repurchase transactions with certain holders of our 0% Convertible Senior Notes due 2025 (the “2025 Convertible Notes”) and 0% Convertible Senior Notes due 2026 (the “2026 Convertible Notes”). We paid $154 million in cash to repurchase approximately $166 million in aggregate principal of the 2025 and 2026 Convertible Notes. The transaction was funded with proceeds from the August 2023 issuance of the 2030 Senior Notes.
For a reconciliation of our forecasted non-GAAP operating margin, see “Reconciliation of Forecasted Operating Margin GAAP Measures to Non-GAAP Measures.” We have not reconciled our forecasted non-GAAP EPS to its respective forecasted GAAP measure because we do not provide guidance on it. We do not provide guidance on forecasted GAAP EPS because of the inherent uncertainty and complexity involved in forecasting the intercompany remeasurement gain (loss), gain (loss) associated with investments, gain (loss) on early debt conversions, and provision (benefit) from income taxes, which could be significant reconciling items between the non-GAAP and respective GAAP measures. The intercompany remeasurement gain (loss) is affected by the movement in various exchange rates relative to the U.S. Dollar, which is difficult to predict and subject to constant change. We do not provide guidance on gain (loss) associated with investments as it is based on future share prices, which are difficult to predict and subject to inherent uncertainties. We do not provide guidance on gain (loss) on debt early conversions as it is based on future conversion requests, future share prices, and interest rates, which are difficult to predict and are subject to inherent uncertainties. We do not provide guidance on forecasted GAAP tax rates as we do not forecast discrete tax items as they are difficult to predict. The provision (benefit) from income taxes, excluding discrete items, is expected to have an immaterial impact to our GAAP EPS. We utilized a projected long-term tax rate in our computation of the non-GAAP income tax provision. For fiscal 2023, we have determined the projected non-GAAP tax rate to be 22.5%. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.
We have not reconciled adjusted, unlevered free cash flow guidance to net cash provided by (used in) operating activities because we do not provide guidance on the reconciling items between net cash provided by (used in) operating activities and adjusted, unlevered free cash flow due to the uncertainty regarding, and the potential variability of, these items. Accordingly, a reconciliation of net cash provided by (used in) operating activities to adjusted, unlevered free cash flow guidance is not available without unreasonable effort.
eastunder
6 months ago
RNG earnings 11/6 After close
RingCentral Announces Date of Third Quarter 2023 Financial Results Conference Call
October 11, 2023 04:15 PM Eastern Daylight Time
BELMONT, Calif.--(BUSINESS WIRE)--RingCentral, Inc. (NYSE: RNG), a leading provider of AI-powered global enterprise cloud communications, video meetings, collaboration, and contact center solutions, today announced that it will report financial results for the third quarter ended September 30, 2023 after market close on Monday, November 6, 2023. The company also announced that it will hold a conference call on the same day at 2:00 PM Pacific Time (5:00 PM Eastern Time) to discuss its quarterly financial results.
The conference call can be accessed by dialing 1-888-349-0093 from the United States or 1-412-317-5201 internationally with reference to the company name and conference title. Following the completion of the call through 11:59 PM Eastern Time on November 13, 2023, a telephone replay will also be available by dialing 1-844-512-2921 from the United States or 1-412-317-6671 internationally with recording access code 10183256. A live webcast and replay of the conference call can also be accessed from the company’s investor relations website at http://ir.ringcentral.com.
About RingCentral
RingCentral is a leading global provider of cloud-based business communications and collaboration solutions that seamlessly combine phone, messaging, video meetings, and contact center. RingCentral empowers customers with AI-powered conversation intelligence that unlocks insights from their interaction data to accelerate business outcomes. With decades of expertise in reliable and secure cloud communications, RingCentral has earned the trust of millions of customers and thousands of partners worldwide. Visit ringcentral.com to learn more.
©2023 RingCentral, Inc. All rights reserved. RingCentral, RingCentral MVP, and the RingCentral logo are trademarks of RingCentral, Inc.
Contacts
Investor Relations Contact:
Will Wong, RingCentral
650-450-4826
ir@ringcentral.com
Media Contact:
Mariana Leventis, RingCentral
650-562-6545
Mariana.Leventis@ringcentral.com
eastunder
9 months ago
RingCentral Announces Date of Second Quarter 2023 Financial Results Conference Call
4:15 PM ET, 07/13/2023 - Business Wire
BELMONT, Calif.--(BUSINESS WIRE)--Jul. 13, 2023--RingCentral, Inc. (NYSE: RNG), a leading provider of AI-powered global enterprise cloud communications, video meetings, collaboration, and contact center solutions, today announced that it will report financial results for the second quarter ended June 30, 2023 after market close on Monday, August 7, 2023. The company also announced that it will hold a conference call on the same day at 2:00 PM Pacific Time (5:00 PM Eastern Time) to discuss its quarterly financial results.
The conference call can be accessed by dialing 1-888-349-0093 from the United States or 1-412-317-5201 internationally with reference to the company name and conference title. Following the completion of the call through 11:59 PM Eastern Time on August 14, 2023, a telephone replay will also be available by dialing 1-844-512-2921 from the United States or 1-412-317-6671 internationally with recording access code 10180223. A live webcast and replay of the conference call can also be accessed from the company’s investor relations website at http://ir.ringcentral.com.
About RingCentral
RingCentral is a leading global provider of cloud-based business communications and collaboration solutions that seamlessly combine phone, messaging, video meetings, and contact center. RingCentral empowers customers with AI-powered conversation intelligence that unlocks insights from their interaction data to accelerate business outcomes. With decades of expertise in reliable and secure cloud communications, RingCentral has earned the trust of millions of customers and thousands of partners worldwide. Visit ringcentral.com to learn more.
©2023 RingCentral, Inc. All rights reserved. RingCentral, RingCentral MVP, and the RingCentral logo are trademarks of RingCentral, Inc.
eastunder
12 months ago
RingCentral Announces First Quarter 2023 Results
4:03 PM ET, 05/09/2023 - Business Wire
Q1'23 results exceed high end of guidance across key metrics
Raises 2023 revenue and operating margin outlook
BELMONT, Calif.--(BUSINESS WIRE)--May 9, 2023--RingCentral, Inc. (NYSE: RNG), a leading provider of AI-powered global enterprise cloud communications, video meetings, collaboration, and contact center solutions, today announced financial results for the first quarter ended March 31, 2023.
First Quarter Financial Highlights
Total revenue increased 14% year over year to $534 million.
Subscriptions revenue increased 16% year over year to $508 million.
Annualized Exit Monthly Recurring Subscriptions (ARR) increased 14% year over year to $2.16 billion.
Mid-market and Enterprise ARR increased 15% year over year to $1.33 billion.
GAAP operating margin of (10.2%), compared to (22.1%) in the prior year.
Non-GAAP operating margin of 17.2%, up 680 basis points year-over-year and a quarterly record
“We had a good first quarter, as we exceeded the high end of guidance across key metrics,” said Vlad Shmunis, RingCentral’s founder, chairman and CEO. “Our open platform, deep integrations to top third party applications, 99.999% reliability, global reach and integrated UCaaS and CCaaS platform continue to resonate with customers and distinguish RingCentral from competitors. We also introduced several new products and features this quarter that we believe further differentiate our platform.”
“Innovation is the lifeblood of RingCentral,” said Sonalee Parekh, RingCentral's CFO. “We continue to invest in our product while demonstrating solid execution on our productivity initiatives.”
Financial Results for the First Quarter 2023
Revenue: Total revenue was $534 million for the first quarter of 2023, up from $468 million in the first quarter of 2022, representing 14% growth. Adjusted for constant currency, total revenue rose 15%. Subscriptions revenue of $508 million increased 16% year over year and accounted for 95% of total revenue. Adjusted for constant currency, subscriptions revenue rose 17%.
Operating Income (Loss): GAAP operating loss was ($55) million, compared to ($104) million in the same period last year. Non-GAAP operating income was $92 million, or 17.2% of total revenue, compared to $49 million, or 10.4% of total revenue, for the first quarter of 2022.
Adjusted EBITDA: Adjusted EBITDA for the first quarter of 2023 was $112 million, or 21.0% of total revenue, compared to $66 million, or 14.0% of total revenue, for the first quarter of 2022.
Net Income (Loss) Per Share: GAAP net loss per share was ($0.57), compared to ($1.60) in the same period last year. Diluted non-GAAP net income per share was $0.76, compared to $0.39 per share in the same period last year. The first quarters of 2023 and 2022 reflected an approximately 22.5% non-GAAP tax rate. There were no material cash taxes given our net operating loss carryforwards.
Cash and Cash Equivalents: Total cash and cash equivalents at the end of the first quarter of 2023 was $275 million. This compares to $270 million at the end of the fourth quarter of 2022. Our cash balance reflects approximately $75 million in cash paid during the first quarter of 2023 for the repurchase of shares under the plan announced in February 2023. At March 31, 2023, approximately $100 million remains available under the plan.
Financial Outlook
Full Year 2023 Guidance:
Raising subscriptions revenue range to $2.086 to $2.104 billion, representing annual growth of 11%.
Raising total revenue range to $2.187 to $2.205 billion, representing annual growth of 10% to 11%.
Raising GAAP operating margin range to (7.9%) to (6.6%), compared to the prior range of (8.3%) to (6.9%).
Raising non-GAAP operating margin to at least 18.5%, compared to at least 18.0% previously.
Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
Raising non-GAAP EPS to $3.19 to $3.25 based on 98.0 to 99.0 million fully diluted shares. This is up from our prior range of $3.04 to $3.10 based on 99.0 to 100.0 million fully diluted shares. Outlook does not include interest income (expense).
Share-based compensation range of $395 to $415 million.
Amortization of acquired intangibles of $149 million.
Third-party relocation and other costs, net, of $3 million.
Restructuring costs of $8 to $10 million.
Second Quarter 2023 Guidance:
Subscriptions revenue range of $511 to $513 million, representing year-over-year growth of 10% to 11%.
Total revenue range of $535 to $537 million, representing year-over-year growth of 10%.
GAAP operating margin range of (10.0%) to (8.9%).
Non-GAAP operating margin of 17.5%.
Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
Non-GAAP EPS of $0.74 to $0.76 based on 96.5 to 97.5 million fully diluted shares. Outlook does not include interest income (expense).
Share-based compensation range of $102 to $107 million.
Amortization of acquired intangibles of $38 million.
Restructuring costs of $3 million.
Additional Highlights
Introduced RingCentral for Teams 2.0. This solution brings RingCentral’s world class cloud PBX capabilities into Microsoft Teams with a fully native experience, without requiring a second application. This means that end customers can now enjoy RingCentral’s renowned 99.999% reliability, global availability, advanced analytics, industry leading features and third party integration capabilities entirely within Teams’ single pane of glass.
Introduced RingSense by RingCentral, an AI platform for enhanced business communications. Leveraging generative AI, RingSense enables organizations to turn their conversation data into powerful insights that will unlock productivity and drive business outcomes. RingSense for Sales, the first offering in the RingSense AI portfolio, is available in beta today.
Introduced RingCentral for Frontline Workers. With this powerful solution, which combines push to talk capabilities with video and messaging, frontline workers across all industries can use any smart mobile device to seamlessly and efficiently connect with their front and back office teams. It is available in beta today as either a standalone solution or an add-on to RingCentral MVP. It will be available in open beta at the end of May and generally available this summer.
Introduced RingCentral Overlay, which is being used by Vodafone Business in their new offering for the Italian market, with more markets coming soon. Called Vodafone Business UC with RingCentral, this powerful, integrated communications solution brings together RingCentral’s messaging and video capabilities with Vodafone Business' existing fixed and mobile voice communications functionality.
eastunder
1 year ago
RingCentral, Inc. (RNG)
TipRanks
December 22, 2022
https://finance.yahoo.com/news/morgan-stanley-says-stock-market-024420052.html
RingCentral, is a communications tech company whose software packages offer solutions to the wide range of communications issues faced in the modern business office. At base, RingCentral’s products allow for users to route phone lines, video calling, screen sharing, call forwarding, and most other telecom features through the office’s centralized computer server, making it easier to manage business telecommunications. In addition, RingCentral’s packages are compatible numerous popular office applications, such as Outlook, Salesforce, and Google Docs, and are available on desktop computers as well as handheld tablet and smartphone devices.
RingCentral saw its shares surge during the pandemic and lockdown periods of 2020, when forced work-from-home put a premium value on business communication systems – and investors, seeking any silver lining at the time, pushed the stock prices up and up. Since then, however, the return to a more normal operating environment has shown that many of these companies are now facing the consequences of overinflated share prices and their recent overextended spending. RNG shares, in that context, are down 82% this year.
Even though the company’s shares are down, RingCentral has continued to see gains this year at both the top and bottom lines. In the last quarter reported, 3Q22, RNG had total revenues of $509 million, up 23% year-over-year. At the bottom line, the company’s non-GAAP diluted EPS was reported as 55 cents, up 52% from the 36 cents shown in the year-ago period. Both the revenue and earnings figures beat the forecasts. The wins were driven by a strong increase in ARR (annualized recurring revenue), which rose 25% y/y to reach $2.05 billion.
Morgan Stanley analyst Meta Marshall, in her coverage of RingCentral, is cognizant of the company’s long share price decline 2022, but sees 'near term upside.'
“We think the market is missing an opportunity as free cash flow from the company improves. RNG is currently trading at <2x24e Revenue and ~11x24e P/E, well below software peers. We appreciate the bear cases on RNG. However, at current levels we think RNG's valuation is reflecting more bear case scenarios on the top line and ignoring cash flow potential,” Marshall explained.
Quantifying RingCentral’s prospects, Marshall rates the stock an Overweight (i.e. Buy), with a $50 price target that indicates her confidence in a 47% upside by this time next year. (To watch Marshall’s track record, click here)
Tech-oriented companies are known for attracting plenty of Wall Street analyst attention, and RingCentral has no fewer than 21 recent analyst reviews on record. They break down 15 to 6 in favor of the Buys over Holds, for a Moderate Buy analyst consensus view. The shares boast an average price target of $51.47, which implies ~52% one-year gain from the current trading price of $33.96. (See RNG stock forecast on TipRanks)
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