RingCentral(US:RNG)2025-02-26 02:27Financial Performance - Total revenues for the year ended December 31, 2024, were $2,400.4 million, with $2,297.2 million attributed to subscriptions[350]. - Total revenues for 2024 reached $2,400,395, an increase of 9% from $2,202,429 in 2023[358]. - Subscription revenues grew to $2,297,192 in 2024, up 9% from $2,100,329 in 2023[358]. - Gross profit for 2024 was $1,694,888, representing a 10% increase from $1,538,138 in 2023[358]. - The net loss for 2024 was $58,288, a significant improvement compared to a net loss of $165,240 in 2023[358]. - The company reported a basic and diluted net loss per share of $0.63 for 2024, improving from $1.74 in 2023[358]. - The total net loss before provision for income taxes for the year ended December 31, 2024, was $47.225 million, compared to a loss of $156.845 million in 2023[507]. - The company reported a net loss of $58.288 million for the year ended December 31, 2024, compared to a net loss of $165.240 million in 2023, indicating an improvement of approximately 64.7%[520]. - Basic net loss per share for 2024 was $(0.63), a significant improvement from $(1.74) in 2023[520]. Cash and Liquidity - The company had cash and cash equivalents of $242.8 million as of December 31, 2024[332]. - Cash and cash equivalents increased to $242,811 in 2024, up from $222,195 in 2023, reflecting a growth of 9.3%[355]. - The company experienced a net increase in cash of $20.616 million in 2024, contrasting with a net decrease of $47.789 million in 2023, highlighting improved liquidity[364]. - Total cash, cash equivalents, and restricted cash at the end of 2024 was $242.811 million, up from $222.195 million at the end of 2023[364]. Debt and Liabilities - Outstanding amounts included $161.3 million from 2025 Convertible Notes and $609.1 million from 2026 Convertible Notes[333]. - The company had $370.0 million principal outstanding under its Term Loan as of December 31, 2024[334]. - Total liabilities decreased to $2,131,343 in 2024 from $2,248,033 in 2023, a reduction of about 5.2%[355]. - The fair value of the 0% convertible senior notes due 2026 was approximately $557.4 million as of December 31, 2024[434]. - As of December 31, 2024, the net carrying amount of long-term debt was $1,347.9 million, down from $1,525.5 million in 2023[443]. - The total interest expense related to long-term debt for the year ended December 31, 2024, was $63.4 million, compared to $33.9 million in 2023[457]. Investments and Expenses - Research and development expenses were $329,323 in 2024, slightly down from $335,851 in 2023[358]. - The company capitalized $59.3 million in internal-use software development costs in 2024, compared to $56.0 million in 2023, showing continued investment in technology[377]. - The company incurred restructuring costs of $12.6 million in 2024 as part of efforts to optimize its cost structure[524]. - Advertising costs for the years ended December 31 were $96.0 million in 2024, $97.0 million in 2023, and $125.6 million in 2022[411]. Stock and Shareholder Information - The company repurchased 9,600 thousand shares of Class A Common Stock for a total amount of $316.9 million during the year ended December 31, 2024, compared to 10,066 thousand shares for $315.0 million in 2023[483]. - The total share-based compensation expense for the year ended December 31, 2024, was $339.1 million, a decrease of 20.5% from $426.7 million in 2023[490]. - The Company has 138,445 thousand shares of Class A Common Stock reserved for future issuance as of December 31, 2024[481]. - The Company has authorized 1,000,000,000 shares of Class A Common Stock and 250,000,000 shares of Class B Common Stock for issuance[479]. Tax and Regulatory Matters - The total income tax provision for 2024 was $11.063 million, an increase from $8.395 million in 2023[510]. - As of December 31, 2024, the Company had federal net operating loss carryforwards of approximately $1.4 billion, which do not expire[512]. - Unrecognized tax benefits at the end of 2024 totaled $30.193 million, a decrease from $31.976 million in 2023, reflecting a reduction of approximately 5.6%[515]. - The company has a full valuation allowance as of December 31, 2024, meaning current adjustments to unrecognized tax benefits will not impact the effective income tax rate[517]. Acquisitions and Goodwill - The Company acquired customer relationships and intellectual property assets for Mitel's offerings for a cash consideration of $26.3 million, with goodwill recognized at $7.7 million attributed primarily to assembled workforce and synergies[461]. - The acquisition of Hopin, Inc. was completed for a total purchase price of $22.2 million, including $14.7 million in cash and $7.5 million in contingent consideration, with goodwill recognized at $12.8 million[463]. - The carrying value of goodwill increased to $82.99 million as of December 31, 2024, from $67.37 million in 2023[426]. Accounting and Auditing - The company has adopted a new accounting method for convertible debt as of January 1, 2022[342]. - The company has been audited by KPMG LLP since 2010, with the latest audit report dated February 24, 2025[353].