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RingCentral(RNG) - 2024 Q4 - Annual Results
RNGRingCentral(RNG)2025-02-20 21:57

Revenue Performance - Total revenue for Q4 2024 was 615million,an8615 million, an 8% increase from 571 million in Q4 2023[3] - Subscriptions revenue for Q4 2024 was 590million,accountingfor96590 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 571.3millioninQ42023[34]−Subscriptionrevenuesamountedto571.3 million in Q4 2023[34] - Subscription revenues amounted to 589.7 million in Q4 2024, up from 547.4millioninQ42023,reflectingagrowthof7.7547.4 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 2,202,429,000in2023,drivenprimarilybysubscriptionrevenuegrowth[39]−SubscriptionrevenuesfortheyearendedDecember31,2024,reached2,202,429,000 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 2,100,329,000in2023[39]ProfitabilityandIncome−GAAPoperatingincomefor2024was2,100,329,000 in 2023[39] Profitability and Income - GAAP operating income for 2024 was 3 million, a significant improvement from a loss of 199millionin2023[9]−Thecompanyreportedanetlossof199 million in 2023[9] - The company reported a net loss of 7.2 million for Q4 2024, significantly improved from a net loss of 47.2millioninQ42023[34]−FortheyearendedDecember31,2024,thecompanyreportedanetlossof47.2 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 165,240,000in2023,representingareductionofapproximately64.7165,240,000 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 312,296,000in2023,reflectingagrowthofapproximately12.0312,296,000 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 132.882million,upfrom132.882 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 483,276,000fortheyearendedDecember31,2024,comparedto483,276,000 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 403million,reflectinga72403 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 93.860millioninQ42023,reflectinga19.293.860 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 510million[45]AssetsandLiabilities−Totalassetsdecreasedto510 million[45] Assets and Liabilities - Total assets decreased to 1.78 billion as of December 31, 2024, down from 1.94billionayearearlier[33]−Totalliabilitiesdecreasedto1.94 billion a year earlier[33] - Total liabilities decreased to 2.13 billion as of December 31, 2024, compared to 2.25billionasofDecember31,2023[33]−Thecompany’scashandcashequivalentsincreasedto2.25 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 222.2millionayearearlier[33]−Thecompanyendedtheyearwithcash,cashequivalents,andrestrictedcashtotaling222.2 million a year earlier[33] - The company ended the year with cash, cash equivalents, and restricted cash totaling 242,811,000, an increase from 222,195,000attheendof2023[37]ResearchandDevelopment−ResearchanddevelopmentexpensesfortheyearendedDecember31,2024,were222,195,000 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 335.9millionin2023[34]−Thecompanyplanstocontinueinvestinginresearchanddevelopmenttoenhanceitsproductofferingsandexpandmarketpresence[39]FutureProjections−Thecompanyexpectssubscriptionsrevenuegrowthof5335.9 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 133million,withaGAAPoperatingmarginrangingfrom4.5133 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 573million,withanon−GAAPoperatingmarginof22.5573 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 300millionand300 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 2.489billion[10]−Thecompany’snetmonthlysubscriptiondollarretentionrateisacriticalmetricforassessingcustomerretentionandrevenuegrowth[30]−Non−GAAPadjustedEBITDAfortheyearendedDecember31,2024,was2.489 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]