Financial Data and Key Metrics Changes - In Q1 2024, total revenue rose 9% to $584 million, exceeding the high end of the outlook [40][133] - Subscription revenue was $557 million, up 10% year-over-year, with ARR increasing to $2.37 billion, also up 10% [40][66] - Free cash flow for Q1 was $77 million, representing over 70% growth compared to $61 million in Q1 2023 [42] - Non-GAAP operating margin rose to approximately 21%, significantly above the guidance for Q1 [50][93] - Stock-based compensation as a percentage of total revenue fell to 15.6%, down 340 basis points year-over-year [94] Business Line Data and Key Metrics Changes - RingCX customer count nearly doubled to over 200, with significant feature additions [33][34] - Enterprise ARR rose 13% year-over-year to $1.02 billion, driven by large customer traction [66] - The company signed its largest UCaaS seat deal ever, selling 40,000 seats to a Fortune 500 retailer [51][52] Market Data and Key Metrics Changes - The company reported strong traction in gold verticals, including healthcare and retail, which are key growth drivers [52][66] - The integration of AI technologies into products is expected to enhance customer experiences and operational efficiencies [30][32] Company Strategy and Development Direction - The company is focusing on innovation, particularly through AI integration across its product offerings [30][32] - A renewed emphasis on customer care is leading to improved gross retention and better NPS scores [55] - The company plans to work closely with Avaya to market and sell Avaya Cloud Office by RingCentral [39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the pipeline for the rest of the year, particularly in the Enterprise segment [114] - The macro environment is expected to remain stable, with no significant improvements or deteriorations anticipated [44] - The company raised its free cash flow guidance, reflecting better cash collections and lower commissions [46] Other Important Information - The company repurchased 2.4 million shares for $80 million during the quarter, with an additional $250 million authorized for repurchase [68] - The net leverage ratio declined year-over-year to 2.5 times, indicating improved financial health [69] Q&A Session Summary Question: What is driving the strength in Enterprise ARR? - Management highlighted the strength of their product, ongoing innovation, and the ability to address complex use cases as key factors [75][76] Question: How sustainable is the free cash flow growth rate? - Management indicated that free cash flow is expected to grow 34% this year, with margins expanding significantly [80][82] Question: What is the timeline for winning large deals? - Management noted that large deals typically have a cycle of one to two years, with the recent significant deal taking 18 months [85] Question: How does the pipeline look for the rest of the year? - Management stated that the pipeline is strong, particularly in the Enterprise segment, with a significant greenfield opportunity remaining [114][116] Question: Are there any discounting strategies for upfront billing? - Management clarified that the shift to upfront billing is a mix shift rather than discounting, common in Enterprise contracts [112]

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, expected contributions from new products, as well as macroeconomic factors, including Russia's ongoing invasion of Ukraine and the armed conflict involving Israe ...

For the quarter ended March 2024, RingCentral (RNG) reported revenue of $584.21 million, up 9.5% over the same period last year. EPS came in at $0.87, compared to $0.76 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $577.81 million, representing a surprise of +1.11%. The company delivered an EPS surprise of +8.75%, with the consensus EPS estimate being $0.80.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how t ...

RingCentral (RNG) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.80 per share. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.75%. A quarter ago, it was expected that this cloud-based phone system provider for small businesses would post earnings of $0.83 per share when it actually produced earnings of $0.86, delivering a surprise of 3.61%.O ...

```markdown PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents RingCentral, Inc.'s unaudited condensed consolidated financial statements as of March 31, 2024, including balance sheets, statements of operations, and cash flows, along with detailed notes Condensed Consolidated Financial Statements The core financial statements show a **9% increase in total revenues to $584.2 million** for Q1 2024, a **net loss of $28.5 million**, and **$96.1 million in net cash from operating activities**, with total assets at **$1.87 billion** Q1 2024 vs Q1 2023 Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Total Revenues** | $584,211 | $533,689 | | **Gross Profit** | $413,732 | $373,013 | | **Loss from Operations** | $(10,899) | $(54,531) | | **Net Loss** | $(28,494) | $(54,399) | | **Net Loss Per Share (Basic & Diluted)** | $(0.31) | $(0.57) | Balance Sheet Highlights (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $203,130 | $222,195 | | **Total Assets** | $1,873,103 | $1,944,913 | | **Total Liabilities** | $2,196,022 | $2,248,033 | | **Total Stockholders' Deficit** | $(522,368) | $(502,569) | Cash Flow Highlights (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $96,094 | $108,533 | | **Net cash used in investing activities** | $(19,409) | $(21,319) | | **Net cash used in financing activities** | $(94,665) | $(82,726) | | **Net (decrease) increase in cash** | $(19,065) | $4,820 | Notes to Condensed Consolidated Financial Statements The notes detail revenue recognition, with **90% from North America**, the **$1.56 billion long-term debt** composition, significant share repurchase authorizations, and legal matters including a patent settlement and privacy lawsuit - North America accounted for **90% of total revenues** in Q1 2024, down slightly from 91% in Q1 2023[42](index=42&type=chunk) - As of March 31, 2024, the company had approximately **$2.5 billion in remaining performance obligations**, with **52% expected to be recognized as revenue over the next 12 months**[44](index=44&type=chunk) Long-Term Debt Principal as of March 31, 2024 (in thousands) | Debt Instrument | Principal Amount | | :--- | :--- | | 2025 Convertible Notes | $161,326 | | 2026 Convertible Notes | $609,065 | | Term Loan under Credit Agreement | $385,000 | | 2030 Senior Notes | $400,000 | | **Total Principal Amount** | **$1,555,391** | - In February 2024, the Board authorized an additional **$150.0 million for share repurchases**, and on May 1, 2024, a further **$250 million was authorized**. In Q1 2024, the company repurchased **2.4 million shares for $80.3 million**[117](index=117&type=chunk)[121](index=121&type=chunk)[149](index=149&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial performance, noting a **9% revenue increase to $584.2 million**, a narrowed net loss, and **Annualized Recurring Revenue (ARR) growth to $2.37 billion**, emphasizing operational efficiency Overview and Key Business Metrics RingCentral provides AI-driven cloud communications solutions, with **Annualized Exit Monthly Recurring Subscriptions (ARR) reaching $2.37 billion** and Net Monthly Subscription Dollar Retention Rate remaining **above 99%** - The company's multi-product portfolio includes RingEX (UCaaS), Contact Center as a Service (CCaaS), RingCentral Video, RingCentral Events, and the RingSense AI platform[154](index=154&type=chunk) Key Business Metrics (Quarterly) | Metric | March 31, 2024 | Dec 31, 2023 | Sept 30, 2023 | June 30, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Monthly Subscription Dollar Retention Rate** | >99% | >99% | >99% | >99% | >99% | | **Annualized Exit Monthly Recurring Subscriptions** | $2.37B | $2.33B | $2.26B | $2.22B | $2.16B | Results of Operations For Q1 2024, total revenues grew **9% to $584.2 million**, driven by a **10% increase in subscription revenue**, with gross margin improving to **71%** and operating loss significantly reduced to **$10.9 million** Revenue Comparison (in thousands) | Revenue Type | Q1 2024 | Q1 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Subscriptions | $557,487 | $508,294 | $49,193 | 10% | | Other | $26,724 | $25,395 | $1,329 | 5% | | **Total Revenues** | **$584,211** | **$533,689** | **$50,522** | **9%** | - Research and development expenses decreased by **6% to $80.5 million**, primarily due to reduced personnel and contractor costs from headcount reductions[175](index=175&type=chunk) - Sales and marketing expenses increased **5% to $272.7 million**, driven by higher third-party commissions and amortization of deferred sales commissions, though partially offset by lower personnel costs[177](index=177&type=chunk) - General and administrative expenses decreased **13% to $71.4 million**, mainly due to a **$9.2 million reduction** in professional fees and lower personnel costs[179](index=179&type=chunk) Liquidity and Capital Resources As of March 31, 2024, the company held **$203.1 million in cash**, generated **$96.1 million in net cash from operating activities**, and reported **$76.7 million in Non-GAAP free cash flow** Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $96,094 | $108,533 | | Net cash used in investing activities | $(19,409) | $(21,319) | | Net cash used in financing activities | $(94,665) | $(82,726) | Reconciliation to Non-GAAP Free Cash Flow (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $96,094 | $108,533 | | Capitalized expenditures | $(19,409) | $(21,319) | | **Non-GAAP free cash flow** | **$76,685** | **$87,214** | [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include foreign currency, interest rates, and inflation, with foreign currency risk limited by U.S. dollar sales and interest rate risk mitigated by a swap agreement - The majority of sales contracts are denominated in U.S. dollars, limiting significant foreign currency risk to net revenue[213](index=213&type=chunk) - To manage interest rate risk on its **$385.0 million variable-rate Term Loan**, the company entered into a five-year floating-to-fixed interest rate swap, fixing the rate at **3.79% plus a margin**[217](index=217&type=chunk) - The company does not believe that inflation has had a material effect on its business, results of operations, or financial condition[219](index=219&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2024, management concluded the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the period[221](index=221&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the first quarter of 2024[222](index=222&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 9 of the financial statements for details on legal matters, including a patent infringement settlement and an ongoing privacy lawsuit - For details on legal proceedings, the report refers to Note 9, Commitments and Contingencies, in the financial statements[226](index=226&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) The company outlines significant business, regulatory, intellectual property, indebtedness, and stock-related risks, including a history of net losses, intense competition, and substantial debt Risks Related to Our Business and Our Industry This section details significant operational risks, including a history of substantial net losses, intense competition, reliance on third-party contractors and strategic partners, and cybersecurity threats - The company has a history of incurring significant losses and may not be able to achieve or sustain profitability in the future[233](index=233&type=chunk) - A significant portion of software development, quality assurance, operations, and customer support is outsourced to third parties in countries like Georgia and the Philippines, creating operational risks[239](index=239&type=chunk) - The business faces intense competition from traditional on-premises providers (Avaya, Cisco, Mitel) and cloud-based providers (Microsoft, Zoom, 8x8, etc.), many of whom have greater resources[252](index=252&type=chunk)[253](index=253&type=chunk)[254](index=254&type=chunk) - Cyber-attacks, security breaches, or denial of service events pose a significant risk, which could interrupt service, harm the company's reputation, and result in significant liability[275](index=275&type=chunk) Risks Related to Regulatory Matters The company's services are subject to complex U.S. and international regulations, including FCC rules for E-911 and Universal Service Fund contributions, and evolving data privacy laws like GDPR and CCPA - The business is subject to regulation by the FCC, including rules for E-911, Universal Service Fund (USF) contributions, and call authentication, with non-compliance potentially leading to fines and enforcement actions[327](index=327&type=chunk) - The company is subject to a variety of evolving international and domestic data privacy laws (e.g., GDPR, CCPA), which may increase costs, decrease adoption of services, and expose it to liability[336](index=336&type=chunk)[338](index=338&type=chunk)[348](index=348&type=chunk) - The requirement to provide E-911 services exposes the company to significant liability, particularly if calls are misrouted due to incorrect customer-provided location data[358](index=358&type=chunk)[360](index=360&type=chunk) Risks Related to Our Indebtedness The company's substantial debt, including convertible notes, senior notes, and a term loan, presents significant risks, with restrictive covenants and the need for substantial cash flow to service obligations - The Credit Agreement contains covenants that limit the company's ability to incur additional debt, make acquisitions, dispose of assets, and pay dividends, among other restrictions[380](index=380&type=chunk) - As of March 31, 2024, the company had approximately **$1.56 billion in aggregate principal amount of notes and term loans outstanding**[382](index=382&type=chunk) - The company may not have the ability to raise the funds necessary to settle conversions of its Convertible Notes in cash or to repurchase them upon a fundamental change, which could lead to a default[389](index=389&type=chunk) Risks Related to Our Class A Common Stock and Our Charter Provisions This section highlights risks for investors in Class A Common Stock, including stock price volatility, a dual-class stock structure concentrating voting control, and anti-takeover provisions - The company's dual-class stock structure concentrates approximately **54% of the voting power** with holders of Class B Common Stock, including founders, limiting the influence of Class A stockholders[402](index=402&type=chunk) - The Series A Convertible Preferred Stock has rights preferential to common stock, including liquidation preference and the right to approve certain corporate actions, which could adversely affect liquidity[407](index=407&type=chunk)[409](index=409&type=chunk) - Anti-takeover provisions in the company's charter and bylaws may delay or prevent a change of control or changes in management, potentially limiting the market price of the stock[411](index=411&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=82&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's repurchases of its Class A Common Stock during Q1 2024, totaling **2,361,202 shares**, with approximately **$154.7 million** remaining authorized for future repurchases Issuer Purchases of Equity Securities (Q1 2024) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2024 | 1,032,526 | $33.46 | | February 2024 | 183,170 | $32.74 | | March 2024 | 1,145,506 | $34.94 | | **Total Q1 2024** | **2,361,202** | | ```

Exhibit 99.1 RingCentral Announces First Quarter 2024 Results First Quarter Financial Highlights "We had a solid start to the year, and exceeded the high end of our revenue and non-GAAP operating profit margin guidance," said Vlad Shmunis, RingCentral's Founder and CEO. "We also landed a 40,000 seat deal with a Fortune 500 retailer, which is the largest UCaaS win in our history. And in another first, I am especially proud of RingSense AI winning the Overall Best Award at Enterprise Connect in March. This is ...

Wall Street analysts expect RingCentral (RNG) to post quarterly earnings of $0.80 per share in its upcoming report, which indicates a year-over-year increase of 5.3%. Revenues are expected to be $577.81 million, up 8.3% from the year-ago quarter.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Prior to a company's earnings announcement, ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The research service features 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, all of which will help you become a smarter, more confident investor.Zacks Premium also includes the Zacks Style Scores. ...

Ringcentral (RNG) is expanding its offerings in the realm of enterprise cloud communications through a multi-year partnership with the San Francisco Giants.As the newest enterprise cloud communication partner, RNG seeks to transform Giants’ business communication infrastructure to increase employee and fan engagement within the organization.Utilizing Ringcentral’s flagship solutions such as RingEX and Contact Center solution, the Giants anticipates enhanced collaboration among employees, substantial cost sa ...

Luis Alvarez/DigitalVision via Getty Images Overview My recommendation for RingCentral (NYSE:RNG) is a buy rating as the business continues to show signs of stabilization that I am looking out for. My view on the recent pullback in share price is that the market is wary about the soft FY24 guide, which I think is beatable based on historical trends plus an improving macro outlook. The upcoming catalyst that could improve stock sentiment is when RNG delivers positive growth inflection from its partnershi ...