RingCentral(RNG) - 2024 Q4 - Annual Results

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]