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Jun 30, 2024
RingCentral Q2 2024 Earnings Report
Reported a revenue increase and raised the full year revenue and free cash flow outlook.
Key Takeaways
RingCentral announced strong Q2 2024 results, with total revenue up 10% year-over-year to $593 million and subscriptions revenue up 10% to $567 million. The company raised its full-year revenue and free cash flow outlook, driven by solid demand in its core UCaaS business and traction in new products.
Total revenue increased 10% year-over-year to $593 million.
Subscriptions revenue increased 10% year-over-year to $567 million.
ARR increased 9% year over year to $2.43 billion.
GAAP operating margin improved to (0.9%) from (8.4%) in the prior year.
Revenue by Segment
Forward Guidance
RingCentral is raising its full year 2024 guidance for subscriptions revenue to $2.282 to $2.288 billion and total revenue to $2.393 to $2.399 billion. They are also raising non-GAAP EPS to $3.62 to $3.67 and free cash flow to $395 to $400 million.
Positive Outlook
- Subscriptions revenue range raised to $2.282 to $2.288 billion, representing annual growth of 9%.
- Total revenue range raised to $2.393 to $2.399 billion, representing annual growth of 9%.
- Non-GAAP EPS raised to $3.62 to $3.67 based on 96.0 to 95.0 million fully diluted shares.
- Free cash flow raised to $395 to $400 million.
- Non-GAAP operating margin maintained at 21.0%.
Challenges Ahead
- GAAP operating margin range updated to (1.3%) to (0.8%) from (1.6%) to (0.9%).
- Share-based compensation range lowered to $370 to $380 million from $380 to $390 million.
- Amortization of acquired intangibles maintained at $140 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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