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RingCentral shares rise as Q4 results, forecast top expectations - Best Business Review Site 2024

RingCentral shares rise as Q4 results, forecast top expectations

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Unified communications pioneer RingCentral this afternoon reported Q4 revenue and profit that both topped Wall Street’s expectations, and an outlook for the quarter, and the full year, that were higher as well. 

The report sent RingCentral shares up slightly in late trading

CEO and founder Vlad Shmunis remarked called the results, “outstanding,” adding that they were “driven by continued momentum with upmarket customers and ramping contributions from our key partners.” 

Added Shmunis, “Our commitment to innovation is driving a rapid pace of new, business-oriented capabilities across our RingCentral Message Video Phone and integrated cloud contact center solutions, and we’ve meaningfully expanded our differentiated market access with our newest exclusive strategic partner, Mitel. 

“With a well-seasoned, proven team in place, we are uniquely positioned to lead this generational transformation to cloud-based communications in 2022 and beyond.”

Revenue in the three months ended in December rose 34%, year over year, to $448 million, yielding a net profit of 39 cents a share, excluding some costs.

Analysts had been modeling $436 million and 37 cents per share.

Among quarterly financial metrics, RingCentral said its subscription revenue rose 37%, year over year, to $420 million, its “Annualized Exit Monthly Recurring Subscriptions,” or ARR, rose by 39% to $1.8 billion.

For the current quarter, the company sees revenue of $455 million to $459 million, and EPS 34 cents. That compares to consensus for $448 million and a 33-cent profit per share.

For the full year, the company sees revenue in a range of $1.99 billion to $2.015 billion, and EPS of $1.69 to $1.72. That compares to consensus of $1.974 billion and a $1.66 profit per share.

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