RingCentral(US:RNG)2025-08-05 20:53Revenue Performance - Subscriptions revenue increased 6% year-over-year to $599 million, accounting for 97% of total revenue[5] - Total revenue for Q2 2025 was $620 million, up 5% from $593 million in Q2 2024[6] - Total revenues for Q2 2025 reached $620.4 million, a 4.3% increase from $592.9 million in Q2 2024[31] - Subscription revenues amounted to $598.7 million, up from $567.1 million year-over-year, reflecting a growth of 5.7%[31] - Total revenues for the six months ended June 30, 2025, reached $1.232 billion, compared to $1.177 billion for the same period in 2024, reflecting a year-over-year growth of approximately 4.7%[35] - Subscription revenues for the six months ended June 30, 2025, were $1.189 billion, up from $1.125 billion in 2024, indicating a growth of about 5.7%[35] Profitability Metrics - GAAP operating income was $37 million, compared to a loss of ($5) million in the same period last year[6] - Adjusted EBITDA was $162 million, or 26.0% of total revenue, compared to $146 million, or 24.6% of total revenue, in the same period last year[8] - The company reported a net income of $13.2 million for Q2 2025, a significant recovery from a net loss of $14.8 million in Q2 2024[31] - Non-GAAP net income for the six months ended June 30, 2025, was $190.071 million, compared to $169.929 million in 2024, representing an increase of approximately 11.9%[37] - Non-GAAP operating margin for the six months ended June 30, 2025, was 22.2%, compared to 20.8% in the same period of 2024, showing an improvement of 1.4 percentage points[35] Cash Flow and Financial Position - Free cash flow for Q2 2025 was $144 million, up 32.7% year-over-year[5] - Net cash provided by operating activities was $167 million, reflecting a 31.7% increase year-over-year[5] - Cash flows from operating activities for the six months ended June 30, 2025, amounted to $317.076 million, an increase from $223.175 million in 2024[33] - The company reported a net cash used in investing activities of $42.515 million for the six months ended June 30, 2025, compared to $63.992 million in 2024, indicating a reduction in cash outflow[33] - Cash and cash equivalents decreased to $168.1 million as of June 30, 2025, down from $242.8 million at the end of 2024[29] Liabilities and Assets - Total assets decreased to $1.6 billion from $1.8 billion at the end of 2024, primarily due to changes in cash and receivables[29] - The company’s total liabilities stood at $1.9 billion, a decrease from $2.1 billion at the end of 2024, indicating improved financial leverage[29] Future Projections - For Q3 2025, the GAAP operating margin is forecasted to be between 4.9% and 6.1%[40] - Non-GAAP operating margin for FY 2025 is projected to remain stable at 22.5%[40] - The company expects GAAP net cash provided by operating activities for FY 2025 to be between $600 million and $605 million[40] - Non-GAAP free cash flow for FY 2025 is anticipated to be in the range of $515 million to $520 million[40] - Share-based compensation for FY 2025 is estimated to be between $295 million and $285 million[40] - Capitalized expenditures for FY 2025 are projected to be $85 million[40] - Non-GAAP income from operations for FY 2025 is expected to be between $562 million and $573 million[40] Customer Metrics - AI Receptionist (AIR) customer base tripled to over 3,000 in the last quarter[3] - The annualized exit monthly recurring subscriptions (ARR) metric is a key indicator of anticipated subscription revenue, calculated as monthly recurring subscriptions multiplied by 12[26] - The Net Monthly Subscription Dollar Retention Rate is a critical metric for assessing customer retention and revenue stability[26] Stock-Based Compensation - The company reduced stock-based compensation expense as a percentage of revenue by 450 basis points year-over-year[5] - The company incurred share-based compensation expenses of $145.263 million for the six months ended June 30, 2025, down from $179.961 million in the same period of 2024[37]