RingCentral(US:RNG)2024-11-07 21:36Financial Performance - Total revenue for Q3 2024 was $609 million, a 9% increase year-over-year from $558 million in Q3 2023[2] - Subscriptions revenue reached $583 million, up 10% year-over-year, accounting for 96% of total revenue[3] - Annualized Exit Monthly Recurring Subscriptions (ARR) increased 9% year-over-year to $2.48 billion, with Enterprise ARR up 11% to $1.07 billion[2] - GAAP operating income was $3 million, a significant improvement from a loss of $54 million in the same period last year[4] - Non-GAAP operating margin improved to 21.0%, up 190 basis points year-over-year, with non-GAAP operating income at $128 million[4] - Net cash provided by operating activities was $127 million, a 47% increase year-over-year, while free cash flow rose 51% to $105 million[2] - Full year 2024 revenue guidance raised to a range of $2.397 to $2.399 billion, representing annual growth of 9%[8] - Fourth quarter 2024 total revenue guidance set at $611.0 to $613.0 million, indicating year-over-year growth of 7%[9] Innovations and Partnerships - New innovations announced for RingCX include an AI-powered assistant and advanced coaching insights, enhancing customer experience[12] - Strategic partnership with Verint aims to provide enhanced workforce engagement management and customer experience automation for RingCX customers[13] Revenue and Profitability Metrics - Non-GAAP subscriptions revenue for Q3 2024 reached $582.97 million, up from $531.03 million in Q3 2023, representing a growth of 9.0%[34] - Total revenues for Q3 2024 were $608.77 million, compared to $558.16 million in Q3 2023, marking an increase of 9.0%[34] - Gross profit for Q3 2024 was $428.58 million, an increase from $389.19 million in Q3 2023, reflecting a growth of 10.1%[34] - Operating expenses decreased to $425.29 million in Q3 2024 from $443.37 million in Q3 2023, a reduction of 4.1%[34] - The company reported a net loss of $7.85 million in Q3 2024, an improvement compared to a net loss of $42.12 million in Q3 2023[34] - Non-GAAP net income for Q3 2024 was $88.9 million, compared to $76.1 million in Q3 2023, reflecting a 17.8% increase[37] - Non-GAAP operating margin improved to 21.0% in Q3 2024, up from 19.1% in Q3 2023[36] Cash Flow and Liquidity - Net cash provided by operating activities increased to $350.4 million in Q3 2024, compared to $285.8 million in Q3 2023, reflecting a growth of about 22.6%[35] - Total depreciation and amortization expenses were $167.6 million in Q3 2024, slightly down from $174.7 million in Q3 2023[35] - Cash used in investing activities rose to $88.3 million in Q3 2024, compared to $70.5 million in Q3 2023, indicating an increase of approximately 25.3%[35] - Net cash used in financing activities was $273.1 million in Q3 2024, a significant increase from $51.8 million in Q3 2023[35] - The company reported a decrease in cash, cash equivalents, and restricted cash to $212.7 million at the end of Q3 2024, down from $432.4 million at the end of Q3 2023[35] - Non-GAAP free cash flow for Q3 2024 was $105.4 million, representing a margin of 17.3%, compared to 12.5% in Q3 2023[39] Balance Sheet Highlights - Total assets as of September 30, 2024, were $1.82 billion, down from $1.94 billion as of December 31, 2023[33] - Current liabilities increased to $764.75 million as of September 30, 2024, compared to $632.55 million at the end of 2023, reflecting a rise of 20.9%[33] - The company’s cash and cash equivalents decreased to $212.65 million from $222.20 million, a decline of 4.7%[33] - Accounts receivable decreased by $36.2 million in Q3 2024, compared to a decrease of $39.6 million in Q3 2023[35] Future Projections - GAAP revenues for Q4 2024 are forecasted to be between $611.0 million and $613.0 million, with FY 2024 revenues expected to range from $2,396.9 million to $2,398.9 million[40] - GAAP loss from operations for Q4 2024 is projected to be between $(0.5) million and $5.0 million, while FY 2024 loss is estimated at $(17.0) million[40] - Non-GAAP income from operations for Q4 2024 is expected to be between $129.5 million and $130.0 million, with FY 2024 non-GAAP income projected at $502.6 million to $503.0 million[40] - Non-GAAP free cash flow for FY 2024 is anticipated to be between $400.0 million and $405.0 million[41] - Share-based compensation for Q4 2024 is estimated to be between $85.0 million and $90.0 million, with FY 2024 expected to total $350.0 million to $355.0 million[40] - Amortization of acquired intangibles for Q4 2024 is projected at $35.0 million, consistent with FY 2024's estimate of $137.8 million[40] - Restructuring costs for Q4 2024 are expected to be $5.0 million, with FY 2024 costs projected at $16.0 million[40] - GAAP net cash provided by operating activities for FY 2024 is forecasted to be between $485.0 million and $490.0 million[41] - Capitalized expenditures for FY 2024 are expected to be $(85.0) million[41]