BELMONT, Calif.--(BUSINESS WIRE)--RingCentral, Inc. (NYSE: RNG), a leading provider of AI-driven cloud business communications, contact center, video and hybrid event solutions, today announced that RingCX™, a native, AI-first contact center with capabilities powered by its RingSense™ AI platform, has been identified as a Leader in the Aragon Research Globe for the Intelligent Contact Center, SMB, amid increasing momentum in customer adoption. In the Aragon Research report published today, RingCX was nam ...

Wall Street analysts forecast that RingCentral (RNG) will report quarterly earnings of $0.83 per share in its upcoming release, pointing to a year-over-year increase of 38.3%. It is anticipated that revenues will amount to $569.65 million, exhibiting an increase of 8.6% compared to the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial pr ...

BELMONT, Calif.--(BUSINESS WIRE)--RingCentral, Inc. (NYSE: RNG), a leading provider of AI-first global enterprise cloud communications, video, webinars, hybrid events, and contact center solutions, today 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 ...

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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? RingCentral (RNG) , which belongs to the Zacks Internet - Software and Services industry, could be a great candidate to consider.This cloud-based phone system provider for small businesses has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.It also includes access to the Zacks Style Scores.What are the Zacks Style Scores?The Zacks Style Sco ...

BELMONT, Calif.--(BUSINESS WIRE)--RingCentral, Inc. (NYSE: RNG), a leading provider of AI-first global enterprise cloud communications, video, webinars, hybrid events, and contact center solutions, today 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 Compan ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Q3 2023 revenues reached $558.2 million, with a net loss of $42.1 million, positive operating cash flow, and debt restructuring Condensed Consolidated Balance Sheets (in thousands) | | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | $1,052,319 | $796,016 | | Total assets | $2,182,494 | $2,073,662 | | **Liabilities and Stockholders' Deficit** | | | | Total current liabilities | $605,310 | $652,559 | | Long-term debt, net | $1,781,252 | $1,638,411 | | Total liabilities | $2,467,501 | $2,357,000 | | Total stockholders' deficit | $(484,456) | $(482,787) | | **Total liabilities, temporary equity and stockholders' deficit** | $2,182,494 | $2,073,662 | Condensed Consolidated Statements of Operations (in thousands) | | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $558,164 | $509,032 | $1,631,158 | $1,463,584 | | Gross profit | $389,190 | $341,558 | $1,137,091 | $982,446 | | Loss from operations | $(54,175) | $(182,559) | $(153,768) | $(393,865) | | Net loss | $(42,116) | $(284,616) | $(117,997) | $(595,103) | | Net loss per share, basic and diluted | $(0.45) | $(2.98) | $(1.24) | $(6.26) | Condensed Consolidated Statements of Cash Flows (in thousands) | | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $285,818 | $151,933 | | Net cash used by investing activities | $(70,465) | $(64,233) | | Net cash used by financing activities | $(51,798) | $(44,780) | | Net increase in cash, cash equivalents, and restricted cash | $162,368 | $38,221 | | Cash, cash equivalents, and restricted cash, end of period | $432,352 | $305,383 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue growth and operational efficiencies reduced net loss, with active debt management supporting liquidity for the next 12 months - The company is a leading provider of **AI-powered global enterprise cloud communications solutions (UCaaS)**, including RingCentral MVP, customer engagement solutions, RingCentral Video, and the new AI platform, RingSense[135](index=135&type=chunk)[138](index=138&type=chunk) Key Business Metrics (dollars in millions) | | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Monthly Subscription Dollar Retention Rate | >99% | >99% | >99% | >99% | >99% | | Annualized Exit Monthly Recurring Subscriptions | $2,264.9 | $2,218.7 | $2,161.0 | $2,099.7 | $2,046.9 | Revenue Comparison (in thousands) | Revenue Type | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Subscriptions | $531,030 | $483,229 | $47,801 | 10% | | Other | $27,134 | $25,803 | $1,331 | 5% | | **Total revenues** | **$558,164** | **$509,032** | **$49,132** | **10%** | - Net loss decreased by **$242.5 million** for Q3 2023 compared to Q3 2022, driven by a **$128.4 million reduction in loss from operations** (due to operational efficiencies and a **$103.2 million asset write-down** in Q3 2022) and a **$109.5 million decrease in other expenses, net**[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) - The company actively managed its debt, using proceeds from a new **$400.0 million Term Loan** and **$400.0 million in 2030 Senior Notes** to repurchase **$627.0 million** of its outstanding 2025 and 2026 Convertible Notes during the first nine months of 2023[186](index=186&type=chunk) Non-GAAP Adjusted, Unlevered Free Cash Flow Reconciliation (in thousands) | | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $285,818 | $151,933 | | Less: Capitalized expenditures | $(55,756) | $(63,466) | | Less: Strategic partnerships | $(33,250) | — | | Add: Restructuring and other payments | $21,460 | $14,118 | | Add: Cash paid for interest, net of interest rate swap | $10,166 | $272 | | **Non-GAAP adjusted, unlevered free cash flow** | **$228,438** | **$102,857** | [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency and interest rates, mitigating the latter with a floating-to-fixed interest rate swap - The majority of sales are denominated in U.S. dollars, but international operations expose the company to foreign currency risk, though a hypothetical **10% change** in exchange rates would not have had a material impact[214](index=214&type=chunk) - The company has fixed-rate Convertible Notes and Senior Notes, whose fair values are exposed to interest rate changes, and also has a **variable-rate Term Loan**[216](index=216&type=chunk)[217](index=217&type=chunk)[219](index=219&type=chunk) - To manage interest rate risk on its **$395.0 million Term Loan**, the company entered into a five-year floating-to-fixed interest rate swap agreement, effectively paying a fixed rate of **3.79%** plus a margin of **2% to 3%**[218](index=218&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of September 30, 2023, with no significant changes to internal control over financial reporting - As of September 30, 2023, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective at the reasonable assurance level**[221](index=221&type=chunk) - There were **no changes** during the quarter that have significantly affected, or are reasonably likely to significantly affect, the company's internal control over financial reporting[222](index=222&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including patent infringement, class action, and contractual disputes, which it intends to vigorously defend - The company is subject to various legal proceedings and claims, with losses accrued for contingencies deemed probable and reasonably estimable[99](index=99&type=chunk)[100](index=100&type=chunk) - Key legal matters include a patent infringement case filed by Uniloc in 2017, a putative class action lawsuit regarding the California Invasion of Privacy Act (CIPA) filed in 2020, and a dispute with Bright Pattern, Inc. over a potential acquisition[101](index=101&type=chunk)[102](index=102&type=chunk)[104](index=104&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including historical losses, intense competition, reliance on third parties, cybersecurity threats, substantial debt, and concentrated voting control - A summary of key risk factors includes: - History of **significant losses** and uncertainty of future profitability[229](index=229&type=chunk) - Reliance on **third parties** for software development, operations, and customer support, particularly in Georgia and the Philippines[231](index=231&type=chunk) - **Intense competition** from companies with greater resources, such as Microsoft and Cisco[231](index=231&type=chunk) - Dependence on **strategic partners** like Avaya, Amazon, and Mitel for sales, which may not be successful[231](index=231&type=chunk) - Risks associated with servicing **significant debt obligations** and restrictive covenants in debt agreements[231](index=231&type=chunk) - **Cybersecurity incidents** could interrupt service and harm the business[231](index=231&type=chunk) - Concentration of **voting control** with holders of Class B common stock[231](index=231&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=89&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q3 2023, the company repurchased **2.5 million shares** for **$75.3 million**, with **$50.6 million** remaining for future repurchases Issuer Purchases of Equity Securities (Q3 2023) | Period | Total Shares Purchased (thousands) | Average Price Paid Per Share | | :--- | :--- | :--- | | August 2023 | 1,269.7 | $29.18 | | September 2023 | 1,219.2 | $31.24 | | **Total Q3 2023** | **2,488.9** | N/A | - As of September 30, 2023, approximately **$50.6 million** remained available for repurchase under the company's share repurchase programs, with an additional **$100 million** authorized on November 1, 2023[432](index=432&type=chunk)[433](index=433&type=chunk) [Other Information](index=89&type=section&id=Item%205.%20Other%20Information) Key events include a CFO trading plan update, a **$75 million** Term Loan increase, a Q4 2023 reduction-in-force plan, and an incremental **$100 million** share repurchase authorization - On November 2, 2023, the company amended its Credit Agreement, increasing the Term Loan by **$75.0 million** to an aggregate principal amount of **$475.0 million**[438](index=438&type=chunk) - In Q4 2023, the Board of Directors approved a reduction-in-force plan with estimated aggregate incremental restructuring costs of approximately **$10.0 million to $15.0 million**, to be incurred in Q4 2023 and Q1 2024[442](index=442&type=chunk) - On November 1, 2023, the board authorized an incremental **$100.0 million** for its share repurchase programs, bringing the total available amount to approximately **$150.6 million**[443](index=443&type=chunk)

RingCentral, Inc. (NYSE:RNG) Q3 2023 Earnings Conference Call November 6, 2023 5:00 PM ET Company Participants Will Wong - VP, IR Vlad Shmunis - Founder, Chairman and CEO Tarek Robbiati - Incoming CEO Sonalee Parekh - CFO Conference Call Participants Matthew Niknam - Deutsche Bank Michael Funk - Bank of America Ryan MacWilliams - Barclays Kash Rangan - Goldman Sachs Brian Peterson - Raymond James Meta Marshall - Morgan Stanley Siti Panigrahi - Mizuho Securities Matt VanVliet - BTIG Robert Dee - Truist Secur ...

This presentation includes forward-looking statements within the meaning of the federal securities laws. These statements relate to, among other things, our business strategy and goals, growth of the market for our services, our future financial and operating results, including our GAAP and nonGAAP guidance, the assumptions underlying our guidance, as well as macroeconomic factors, including Russia's ongoing invasion of Ukraine and the armed conflict involving Israel. In this presentation, we provide certai ...