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RingCentral (RNG) Q2 EPS Jumps 17%
The Motley Fool· 2025-08-06 06:17
Core Insights - RingCentral reported Q2 2025 results that exceeded analyst expectations, with GAAP revenue of $620 million and non-GAAP EPS of $1.06, reflecting a year-over-year revenue growth of 4.6% and EPS growth of 16.5% [1][2] Financial Performance - GAAP revenue for Q2 2025 was $620 million, surpassing the estimate of $617.78 million, and up from $593 million in Q2 2024 [2] - Non-GAAP EPS was reported at $1.06, compared to the consensus estimate of $1.02 and $0.91 in Q2 2024 [2] - Operating margin improved to 22.6%, up from 20.9% in the previous year [2] - Net cash from operating activities reached $167 million, a 31.5% increase year-over-year, while free cash flow was $144 million, up 32.1% [2][6] Revenue Composition - Subscription revenue increased by 6%, contributing to nearly all of the company's revenue, which now accounts for 97% of total revenue [5] - The annualized exit monthly recurring subscriptions reached $2.59 billion, reflecting a 7% year-over-year growth [5] AI and Product Development - The adoption of AI-focused product features significantly increased, with the AI Receptionist (AIR) tripling its customer count to 3,000 [7] - RingSense, a conversation intelligence tool, expanded its customer base from over 2,800 to over 3,600, indicating successful international expansion efforts [7] Strategic Partnerships - The company extended its partnership with NICE Ltd. and expanded its collaboration with AT&T, which will now offer RingCX and RingSense to its business clients [8] - Six global service providers are now reselling RingCX, enhancing international distribution [8] Future Guidance - Management provided updated guidance for fiscal 2025, expecting total revenue growth in the range of 4–6% and non-GAAP EPS guidance raised to $4.20–$4.32 [11] - Projected total revenue for Q3 2025 is estimated to be between $631–$639 million, with a non-GAAP operating margin of approximately 22.6% [11]
RingCentral(RNG) - 2025 Q2 - Earnings Call Presentation
2025-08-05 21:00
Financial Performance - Total revenue for Q2 2025 was $620 million, at the high end of guidance[16] - Non-GAAP operating margin was 22.6%, above the high end of guidance[16] - Non-GAAP EPS was $1.06, up 16% year-over-year[16] - Free cash flow was $144 million, up 33% year-over-year[16] - The company has $500 million buy back authorization[16] - The company expects approximately $515 million to $520 million free cash flow for FY2025[98] - The company expects Non-GAAP EPS between $4.20 to $4.32 for FY2025[98] - Total ARR reached $2.59 million[14] Strategic Partnerships and Products - The company has extended its partnership with NiCE to power RingCentral Contact Center with CXOne[17] - The company has expanded its partnership with AT&T to include Office@Hand Contact Center and RingSense[20] - The company is on track to achieve $100 million+ ARR from new products by the end of 2025[35] Market Opportunity and Leadership - The company estimates a large market opportunity of approximately $150 billion[23] - The company is the 1 market share leader in UCaaS by Synergy Research Group[14, 29]
RingCentral(RNG) - 2025 Q1 - Earnings Call Presentation
2025-05-09 07:57
Q1 2025 Financial Performance - Total revenue reached $612.1 million, a 5% year-over-year increase[8] - Subscription revenue was $590.1 million, up 6% year-over-year[73] - Operating margin was 21.8%, exceeding guidance[8] - Free cash flow was $130 million[8] - Debt paydown was $166 million[8] - Annualized Recurring Revenue (ARR) reached $2.532 billion, a 7% year-over-year increase[8,73] Strategic Growth & Innovation - The company is on track to achieve $100 million+ ARR from new products by the end of 2025[16] - GSPs represent >10% of ARR with double-digit growth[21] - There was a >30% year-over-year increase in MS Teams integration MAU[27] - Over 1000 customers are using AI Receptionist (AIR) as of May 7, 2025[39] FY2025 Guidance - The company projects total revenue growth of 4% to 6% year-over-year[74] - The company projects subscription revenue growth of 5% to 7% year-over-year[74] - Non-GAAP operating margin is expected to be approximately 22.5%[74] - Non-GAAP EPS is projected to be between $4.13 and $4.27[74] - Free cash flow is expected to be between $500 million and $510 million[74]