RingCentral (RNG) Reports Q2 Earnings: What Key Metrics Have to Say

Core Insights - RingCentral reported revenue of $592.91 million for the quarter ended June 2024, reflecting a year-over-year increase of 9.9% and surpassing the Zacks Consensus Estimate of $586.28 million by 1.13% [1] - The company's EPS for the quarter was $0.91, up from $0.83 in the same quarter last year, exceeding the consensus EPS estimate of $0.88 by 3.41% [1] Financial Performance Metrics - Gross Margin for Subscriptions was reported at 80.9%, slightly below the estimated 81.8% by analysts [3] - Gross Margin for Other revenues was -2.5%, significantly lower than the average estimate of 5.3% [4] - Annualized Exit Monthly Recurring Subscriptions (ARR) reached $2.43 billion, exceeding the estimated $2.41 billion [5] - Revenues from Other sources were $25.85 million, below the estimated $26.38 million, with a year-over-year change of 0.7% [6] - Subscription Revenues amounted to $567.06 million, surpassing the estimated $559.92 million, marking a year-over-year increase of 10.4% [7] Stock Performance - Over the past month, RingCentral's shares have returned +22.7%, significantly outperforming the Zacks S&P 500 composite's +1.1% change [7] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [7]