NYSE$RNG

RingCentral Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported strong Q3 results, driven by momentum with new products and strength in the core UCaaS market, achieving GAAP operating profitability for the first time and raising the 2024 outlook.

RingCentral announced strong Q3 2024 results, with total revenue increasing by 9% year-over-year to $609 million and subscriptions revenue increasing by 10% year-over-year to $583 million. The company achieved GAAP operating profitability for the first time and raised its 2024 revenue, net cash provided by operating activities, and free cash flow outlook.

  • Total revenue increased 9% year-over-year to $609 million.
  • Subscriptions revenue increased 10% year-over-year to $583 million.
  • ARR increased 9% year over year to $2.48 billion.
  • GAAP operating margin of 0.5%, compared to (9.7%) in the prior year.

Headline financials

Total Revenue

$609M

Previous: $558M+9.1%
EPS

-$0.09

Previous: $0.78-111.5%
Non-GAAP Operating Margin

21.0%

No prior period
Adjusted EBITDA

$149M

No prior period
Adjusted EBITDA Margin

24.5%

No prior period
Free Cash Flow Margin

17.3%

No prior period
GAAP Operating Margin

0.5%

No prior period
Net Cash from Operating Activities

$127M

No prior period
Net Cash from Operating Activities Margin

20.9%

No prior period
Capital Expenditures

-$18.6M

Previous: -$17.5M-6.3%
Free Cash Flow

-$26.5M

Previous: -$59.6M+55.6%
Net Income

-$7.85M

Previous: -$42.1M+81.4%
Operating Income

$3.29M

Previous: -$54.2M+106.1%
Gross Profit

$429M

Previous: $389M+10.1%
Cash & Equivalents

$213M

Previous: $432M-50.8%
Total Assets

$1.82B

Previous: $2.18B-16.7%
R&D Expense

$82.4M

Previous: $83.7M-1.5%
Stock-Based Comp

$83.7M

Previous: $112M-25.1%

Revenue & EPS history

RingCentral · Revenue · Quarterly

$609M

Q3 2024+9.1%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

RingCentral · $531M total across 1 segment · Q3 2023

  • Subscriptions Revenue
    $531M+9.9%

Forward guidance

RingCentral provided financial outlook for the full year and fourth quarter of 2024.

Tailwinds

  • Raising subscriptions revenue range to $2.295 to $2.297 billion, representing annual growth of 9%.
  • Raising total revenue range to $2.397 to $2.399 billion, representing annual growth of 9%.
  • Raising GAAP operating margin range to (0.7%) to (0.5%) from (1.3%) to (0.8%).
  • Maintaining non-GAAP operating margin of 21.0%.
  • Raising non-GAAP EPS to $3.69 based on 94.5 million fully diluted shares.

Headwinds

  • Subscriptions revenue range of $587.0 to $589.0 million, representing year-over-year growth of 7% to 8% for Q4 2024.
  • Total revenue range of $611.0 to $613.0 million, representing year-over-year growth of 7% for Q4 2024.
  • GAAP operating margin range of (0.1%) to 0.8% for Q4 2024.
  • Share-based compensation range of $85 to $90 million for Q4 2024.
  • Restructuring costs of $5 million for Q4 2024.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+3.5%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+2.2%

Avg return

30 days after

68%

34 / 50 earnings

Positive

+34.4%

Q4 2025

Best reaction

-17.7%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.8%-14.7%-6.8%
Q4 2025+34.4%+17.3%+28.0%
Q3 2025-8.1%-10.1%-2.2%
Q1 2025+3.8%+4.5%+2.0%
Q4 2024-5.9%-6.7%-12.6%
Q3 2024+1.3%-3.3%+9.4%
Q2 2024+0.6%-3.6%-4.9%
Q1 2024+13.4%+16.8%+15.0%
Q4 2023+3.2%+1.6%+17.8%
Q3 2023+2.4%-2.7%+11.2%
Q2 2023-17.7%-21.1%-15.0%
Q1 2023+13.5%+2.7%+25.4%
Q4 2022-17.5%-17.8%-33.1%
Q3 2022+22.5%+28.3%+21.4%
Q2 2022+8.9%-2.0%-12.3%
Q1 2022-10.4%-9.3%-18.1%
Q4 2021-15.5%-13.1%-16.6%
Q3 2021+22.0%+19.7%-19.3%
Q2 2021-4.0%-8.5%-5.5%
Q1 2021-7.6%-18.3%-21.1%
Q4 2020-5.2%-3.6%-28.7%
Q3 2020-5.9%+0.9%+15.2%
Q2 2020+1.9%-7.3%+3.8%
Q1 2020+10.9%+17.4%+8.0%
Q4 2019+9.4%+16.8%-3.9%
Q3 2019+0.0%+4.9%+1.9%
Q2 2019+10.0%+10.1%+10.9%
Q1 2019-1.1%+2.7%+0.2%
Q4 2018+5.0%+3.7%+4.8%
Q3 2018-1.5%+8.7%+4.4%
Q2 2018+9.4%+10.1%+16.4%
Q1 2018+7.7%+4.3%+4.5%
Q4 2017+9.8%+21.2%+30.7%
Q3 2017+7.3%+3.8%+9.0%
Q2 2017-2.7%-1.1%+19.3%
Q1 2017+0.8%+5.8%+14.7%
Q4 2016+1.7%+7.2%+15.3%
Q3 2016-6.7%-12.6%-1.1%
Q2 2016+5.5%+1.1%-1.7%
Q1 2016+7.1%
Q4 2015-10.2%
Q3 2015+15.6%
Q2 2015+12.1%
Q1 2015+6.3%
Q4 2014+8.3%
Q3 2014+0.2%
Q2 2014+18.0%
Q1 2014+7.4%
Q4 2013+14.9%
Q3 2013-0.1%
Q1 2013
Q4 2012
Q3 2012

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