Financial Data and Key Metrics Changes - Q4 total revenue reached $615 million, with operating margins at 21.3%, both exceeding guidance [10] - Full year total revenue increased by 9% to $2.4 billion, with operating margins improving to 21% from 19.1% in 2023 [12][50] - Free cash flow for Q4 was a record $112 million, contributing to a total of $403 million for the year, up 24% year-over-year [11][50] - Stock-based compensation (SBC) as a percentage of revenue declined to 14% from 20% in 2023, with a 40% reduction in the value of net new shares granted [13][51] Business Line Data and Key Metrics Changes - The new product RingCX has over 700 customers, up from approximately 500 in the previous quarter, indicating strong adoption [17] - RingSense, the conversation intelligence platform, has over 2,000 customers, reflecting a 65% sequential increase [21] - RingCentral Events accounts increased to 700, up from about 600 in Q3 2024 [22] Market Data and Key Metrics Changes - Approximately 85% of the company's business is UCaaS, maintaining a market share of about 20% [53] - The CCaaS market is expected to see strong adoption of RingCX, which is projected to more than double in revenue in 2025 [53] Company Strategy and Development Direction - The company aims to empower businesses with an AI-first platform, focusing on integrating AI across its product portfolio [14] - Key priorities include building upon UCaaS leadership, expanding total addressable market (TAM) through multiproduct offerings, and driving profitable growth [25] - The introduction of AI Receptionist (AIR) is a significant step in the company's AI strategy, enhancing customer interactions [15][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the strong financial profile and culture of innovation [12][23] - The company anticipates generating $500 million in free cash flow in 2025, which will support debt reduction and share repurchases [59] - Management acknowledged macroeconomic uncertainties but emphasized strong margin expansion and free cash flow generation [127][128] Other Important Information - The company has repurchased approximately 9.7 million shares for $322 million during the year, with an additional $100 million approved for share repurchases [51] - The company is committed to reducing gross debt to $1 billion by the end of 2026 [55] Q&A Session Summary Question: Market share stability and future gains - Management clarified that RingCentral has maintained a market share of around 20% and is not losing ground to competitors like Microsoft and Zoom [66][67] Question: Insights on new CFO's contributions - The new CFO highlighted the importance of innovation and efficiency improvements in driving profitable growth [78] Question: Sales and positioning of RingCX - Management noted that RingCX is performing well in both down-market and up-market segments, with significant traction in large deals [84][86] Question: CCaaS ARR disclosure - Management indicated that CCaaS ARR grew in low double digits, with RingCX being the primary driver of new product ARR [91] Question: Impact of GSP partnerships - Management emphasized the unique position of GSP partnerships in expanding the reach of their multiproduct strategy [106][107] Question: Guidance context and market growth - Management acknowledged macroeconomic factors but expressed confidence in their guidance and ability to manage costs effectively [126][128]

Core Insights - RingCentral reported revenue of $614.51 million for Q4 2024, a year-over-year increase of 7.6% [1] - The company's EPS for the same period was $0.98, up from $0.86 a year ago, exceeding the consensus estimate of $0.96 [1] - The revenue surpassed the Zacks Consensus Estimate of $612.24 million, resulting in a surprise of +0.37% [1] Financial Performance Metrics - Mid-Market and Enterprise ARR was reported at $1.07 billion, below the average estimate of $1.59 billion [4] - Annualized Exit Monthly Recurring Subscriptions (ARR) stood at $2.49 billion, slightly below the average estimate of $2.54 billion [4] - Subscription revenues reached $589.68 million, compared to the estimated $588.18 million, reflecting a year-over-year increase of 7.7% [4] - Other revenues were reported at $24.84 million, exceeding the estimated $24.12 million, with a year-over-year increase of 3.9% [4] Stock Performance - Over the past month, RingCentral's shares have returned -6.9%, contrasting with the Zacks S&P 500 composite's +2.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Corporate Overview and Q4'24 Financial Results ©2025 RingCentral Safe Harbor and Non-GAAP Measures Vlad Shmunis Founder, Chairman & CEO Kira Makagon President & COO 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 non-GAAP guidance, the assumptions underlying our guida ...

RingCentral (RNG) came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.96 per share. This compares to earnings of $0.86 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.08%. A quarter ago, it was expected that this cloud-based phone system provider for small businesses would post earnings of $0.92 per share when it actually produced earnings of $0.95, delivering a surprise of 3.26%.O ...

Revenue Performance - Total revenue for Q4 2024 was $615 million, an 8% increase from $571 million in Q4 2023[3] - Subscriptions revenue for Q4 2024 was $590 million, accounting for 96% of total revenue, also an 8% year-over-year growth[3] - Total revenues for Q4 2024 reached $614.5 million, a 7.6% increase from $571.3 million in Q4 2023[34] - Subscription revenues amounted to $589.7 million in Q4 2024, up from $547.4 million in Q4 2023, reflecting a growth of 7.7%[34] - For the year ended December 31, 2024, the company reported total revenues of $2,400,395,000, up 9.0% from $2,202,429,000 in 2023, driven primarily by subscription revenue growth[39] - Subscription revenues for the year ended December 31, 2024, reached $2,297,192,000, an increase of 9.4% compared to $2,100,329,000 in 2023[39] Profitability and Income - GAAP operating income for 2024 was $3 million, a significant improvement from a loss of $199 million in 2023[9] - The company reported a net loss of $7.2 million for Q4 2024, significantly improved from a net loss of $47.2 million in Q4 2023[34] - For the year ended December 31, 2024, the company reported a net loss of $58,288,000, a significant improvement from a net loss of $165,240,000 in 2023, representing a reduction of approximately 64.7%[37] - The company achieved a non-GAAP operating margin of 21.0% for the year ended December 31, 2024, compared to 19.1% in 2023, indicating improved operational efficiency[40] - Non-GAAP net income for the year ended December 31, 2024, was $349,886,000, up from $312,296,000 in 2023, reflecting a growth of approximately 12.0%[42] Cash Flow and Financial Health - Net cash provided by operating activities for 2024 reached a record $483 million, or 20.1% of total revenue[9] - Net cash provided by operating activities for Q4 2024 was $132.882 million, up from $113.844 million in Q4 2023, representing a 16.5% increase[44] - The company reported net cash provided by operating activities of $483,276,000 for the year ended December 31, 2024, compared to $399,662,000 in 2023, marking an increase of 20.9%[37] - Free cash flow for 2024 was $403 million, reflecting a 72% compound annual growth rate since 2021[9] - Non-GAAP free cash flow for Q4 2024 reached $111.829 million, compared to $93.860 million in Q4 2023, reflecting a 19.2% growth[44] - Non-GAAP free cash flow for FY 2025 is expected to be between $500 million and $510 million[45] Assets and Liabilities - Total assets decreased to $1.78 billion as of December 31, 2024, down from $1.94 billion a year earlier[33] - Total liabilities decreased to $2.13 billion as of December 31, 2024, compared to $2.25 billion as of December 31, 2023[33] - The company’s cash and cash equivalents increased to $242.8 million as of December 31, 2024, from $222.2 million a year earlier[33] - The company ended the year with cash, cash equivalents, and restricted cash totaling $242,811,000, an increase from $222,195,000 at the end of 2023[37] Research and Development - Research and development expenses for the year ended December 31, 2024, were $329.3 million, slightly down from $335.9 million in 2023[34] - The company plans to continue investing in research and development to enhance its product offerings and expand market presence[39] Future Projections - The company expects subscriptions revenue growth of 5% to 7% year-over-year for 2025[13] - For FY 2025, GAAP income from operations is forecasted to be between $112 million and $133 million, with a GAAP operating margin ranging from 4.5% to 5.2%[45] - Non-GAAP income from operations for FY 2025 is projected to be between $562 million and $573 million, with a non-GAAP operating margin of 22.5%[45] - Capitalized expenditures for FY 2025 are estimated at $85 million[45] - Share-based compensation for FY 2025 is anticipated to be between $300 million and $310 million[45] Management Changes - Kira Makagon has been promoted to President and Chief Operating Officer, responsible for product and technology[6] Key Metrics - Annualized Exit Monthly Recurring Subscriptions (ARR) increased 7% year-over-year to $2.489 billion[10] - The company’s net monthly subscription dollar retention rate is a critical metric for assessing customer retention and revenue growth[30] - Non-GAAP adjusted EBITDA for the year ended December 31, 2024, was $590,409,000, representing a 17.3% increase from $503,108,000 in 2023[40] - Non-GAAP free cash flow margin improved to 18.2% in Q4 2024, up from 16.4% in Q4 2023[44]

Core Insights - RingCentral (RNG) is set to report its fourth-quarter 2024 results on February 20, with expected earnings between 96-97 cents per share, reflecting an 11.63% year-over-year increase [1] - The company anticipates revenues in the range of $611 million to $613 million, indicating a year-over-year growth of 7% [2] Financial Performance Expectations - The Zacks Consensus Estimate for fourth-quarter 2024 earnings is 96 cents per share, unchanged over the past 30 days [1] - The Zacks Consensus Estimate for revenues is $612.24 million, suggesting a 7.17% increase from the previous year's quarter [2] Revenue and Subscription Growth - Subscription revenues for the fourth quarter are expected to be between $587 million and $589 million, indicating a year-over-year growth of 7% to 8% [4] - The company has consistently beaten the Zacks Consensus Estimate for earnings in the last four quarters, with an average surprise of 4.76% [2] Product and Service Innovations - RingCentral's AI-powered platforms, including RingCX and RingSense, are expected to drive revenue and Annual Recurring Revenue (ARR) growth in the upcoming quarter [5] - The introduction of the RingCentral AI Assistant is anticipated to enhance productivity through AI-driven insights [6] Market Demand and Targeted Industries - The company is focusing on industries such as healthcare, retail, and finance, which are showing strong demand for unified communication solutions [7] - The ongoing shift towards remote and hybrid work environments is expected to boost customer acquisition and retention [7] Partnerships and Strategic Alliances - Partnerships with global service providers like Vodafone and AT&T are expected to expand RingCentral's global footprint and drive growth [9][11] - An expanded partnership with Vodafone Business is set to offer enhanced services across 30 markets by early 2025 [10] Challenges and Competitive Landscape - The company faces challenges from macroeconomic conditions, unfavorable foreign exchange rates, and stiff competition, which may impact its top line [8]

Core Viewpoint - RingCentral is expected to report quarterly earnings of $0.96 per share, an 11.6% increase year-over-year, with revenues projected at $612.24 million, reflecting a 7.2% year-over-year growth [1] Group 1: Earnings and Revenue Estimates - Analysts predict that RingCentral's 'Revenues- Subscriptions' will reach $588.18 million, indicating a 7.5% increase from the prior-year quarter [4] - The 'Revenues- Other' is estimated to be $24.12 million, showing a 0.9% increase from the year-ago quarter [4] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' projections [1] Group 2: Annualized Metrics - The 'Annualized Exit Monthly Recurring Subscriptions (ARR)' is projected to be $2.54 billion, up from $2.33 billion reported in the same quarter last year [5] Group 3: Market Performance - Over the past month, RingCentral shares have recorded a return of -0.2%, while the Zacks S&P 500 composite has increased by 4.7% [6] - RingCentral holds a Zacks Rank 3 (Hold), suggesting that its performance is expected to align with the overall market in the near term [6]

I'm an Industrial Engineer Phd candidate. I read a lot of books and I'm very inspired by the quality investing branch. I look to buy and hold for the long term. Mainly focused on Tech stocksAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I ...

Performance and Market Position - RingCentral's shares have appreciated 20.2% in the past six months, outperforming the Zacks Computer & Technology sector's return of 2.9% and the Zacks Internet - Software and Services industry's growth of 6.2% [1] - The company has outperformed peers like Sabre (14.6% gain), NetEase (-2.2% loss), and Okta (-11.3% loss) during the same period [1] Growth Drivers - RingCentral's outperformance is driven by expanding AI initiatives, strong demand for its cloud phone system, a growing customer base, and a solid network of partners [2] - The company leverages AI to enhance product offerings such as RingCX, RingSense, and RingCentral Events, improving customer experience and streamlining business communications [3] - Strong demand for Unified Communications as a Service (UCaaS) and contact center Software-as-a-Service solutions continues to benefit the company [3] Financial Targets and Estimates - RingCentral aims to reach at least $100 million in exit annual recurring revenue from new products by the end of 2025 [4] - The Zacks Consensus Estimate for first-quarter fiscal 2025 earnings is $1 per share, indicating a 14.94% year-over-year growth [10] - First-quarter fiscal 2025 revenue estimates are $625.21 million, suggesting a 7.02% year-over-year increase [11] - Fiscal 2025 earnings are estimated at $4.19 per share, reflecting a 13.61% increase from fiscal 2024 [11] - Fiscal 2025 revenue is projected at $2.57 billion, indicating a 7.32% year-over-year growth [11] Partnerships and Global Expansion - RingCentral's partnerships with industry leaders like Verizon and AT&T enhance service accessibility and distribution [5] - The company has expanded its global presence, offering its AI-powered contact center, RingCX, in six countries: the United States, Canada, the U.K., France, Germany, and Australia [7][8] - RingCentral recently received a PAN-India license, allowing it to operate across all 22 telecommunications circles in India, making it the first cloud provider to offer fully compliant UCaaS and CCaaS solutions nationwide [9] Customer and Product Growth - RingCentral Events gained over 100 customers in Q3 2024, including Fortune 500 company Trimble [6] - Key customers such as Block, DHL, eBay, NYU, Rutgers, and TELUS renewed their relationships with RingCentral [6] - The company partnered with Verint to enhance RingCX, strengthening its presence in the Contact Center as a Service (CCaaS) market [7] Earnings Performance - RingCentral's earnings have beaten the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 4.76% [12]

Group 1 - RingCentral (NYSE: RNG) is expected to outperform in 2025, with the stock recently correcting about 17% down to $35 after reaching a 52-week high of $42 [1] - The stock is considered attractive as it is undervalued, with strong expected above-average revenue growth [1] - The focus is on growth and momentum stocks that are reasonably priced and likely to outperform the market over the long term [1] Group 2 - The article emphasizes the importance of investing in high-quality growth stocks, as demonstrated by past performance where the S&P 500 increased 367% and the Nasdaq increased 685% from 2009 through 2019 [1]