Here's What Key Metrics Tell Us About RingCentral (RNG) Q3 Earnings

Core Insights - RingCentral reported revenue of $608.77 million for Q3 2024, a year-over-year increase of 9.1% and a surprise of +1.14% over the Zacks Consensus Estimate of $601.91 million [1] - The company achieved an EPS of $0.95, compared to $0.78 a year ago, with an EPS surprise of +3.26% over the consensus estimate of $0.92 [1] Financial Performance Metrics - Mid-Market and Enterprise ARR was reported at $1.07 billion, below the average estimate of $1.55 billion from two analysts [3] - Annualized Exit Monthly Recurring Subscriptions (ARR) reached $2.48 billion, slightly above the average estimate of $2.47 billion from two analysts [3] - Subscription revenues totaled $582.97 million, exceeding the average estimate of $573.77 million from seven analysts, reflecting a year-over-year change of +9.8% [3] - Other revenues were reported at $25.80 million, below the average estimate of $28.01 million from seven analysts, indicating a year-over-year decline of -4.9% [3] Stock Performance - Over the past month, RingCentral shares have returned +23.3%, significantly outperforming the Zacks S&P 500 composite's +3.2% change [4] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [4]