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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.
RingCentral
RingCentral
RingCentral Revenue by Segment
Revenue by Segment
Subscriptions Revenue
CapyFin.comOther Revenue
CapyFin.com 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.
- Restructuring costs updated to $6 to $7 million from $5 to $7 million.
- Capitalized expenditures continue to be included at $85 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income