RingCentral Inc

Latest Results (03.01.2025):

Revenue Growth

RingCentral Inc. reported a total revenue of $609 million for the third quarter of 2024, marking a 9% increase compared to the same period in 2023. Subscriptions revenue, which constitutes 96% of the total revenue, rose by 10% year-over-year to $583 million. This growth reflects the company's strong performance in its core UCaaS market and the successful introduction of new products like RingCX.

Operating Income

For the third quarter of 2024, RingCentral Inc. achieved a GAAP operating income of $3 million, a significant improvement from a loss of $54 million in the previous year. The non-GAAP operating income was $128 million, representing 21.0% of total revenue, up from $107 million or 19.1% of total revenue in the third quarter of 2023. This marks a notable expansion in the company's operating margins.

Net Income Per Share

RingCentral Inc. reported a GAAP net loss per share of $0.09 for the third quarter of 2024, compared to a loss of $0.45 per share in the same period last year. On a non-GAAP basis, the diluted net income per share was $0.95, up from $0.78 per share in the third quarter of 2023. This improvement reflects the company's enhanced profitability and operational efficiency.

Cash Flow

In the third quarter of 2024, RingCentral Inc. generated $127 million in net cash from operating activities, representing 20.9% of total revenue, a 47% increase from the $87 million reported in the same quarter of 2023. The company's free cash flow also saw a significant rise, reaching $105 million, up 51% year-over-year, highlighting its strong cash generation capabilities.

Financial Outlook

RingCentral Inc. has raised its full-year 2024 guidance, projecting subscriptions revenue to be between $2.295 and $2.297 billion, reflecting a 9% annual growth. The company also increased its total revenue outlook to a range of $2.397 to $2.399 billion. Additionally, RingCentral expects to achieve a non-GAAP EPS of $3.69, with a free cash flow forecasted to be between $400 and $405 million, underscoring its positive financial trajectory.