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Sep 30, 2024
RingCentral Q3 2024 Earnings Report
Reported strong Q3 results, driven by momentum with new products and strength in the core UCaaS market, achieving GAAP operating profitability for the first time and raising the 2024 outlook.
Key Takeaways
RingCentral announced strong Q3 2024 results, with total revenue increasing by 9% year-over-year to $609 million and subscriptions revenue increasing by 10% year-over-year to $583 million. The company achieved GAAP operating profitability for the first time and raised its 2024 revenue, net cash provided by operating activities, and free cash flow outlook.
Total revenue increased 9% year-over-year to $609 million.
Subscriptions revenue increased 10% year-over-year to $583 million.
ARR increased 9% year over year to $2.48 billion.
GAAP operating margin of 0.5%, compared to (9.7%) in the prior year.
Revenue by Segment
Forward Guidance
RingCentral provided financial outlook for the full year and fourth quarter of 2024.
Positive Outlook
- Raising subscriptions revenue range to $2.295 to $2.297 billion, representing annual growth of 9%.
- Raising total revenue range to $2.397 to $2.399 billion, representing annual growth of 9%.
- Raising GAAP operating margin range to (0.7%) to (0.5%) from (1.3%) to (0.8%).
- Maintaining non-GAAP operating margin of 21.0%.
- Raising non-GAAP EPS to $3.69 based on 94.5 million fully diluted shares.
Challenges Ahead
- Subscriptions revenue range of $587.0 to $589.0 million, representing year-over-year growth of 7% to 8% for Q4 2024.
- Total revenue range of $611.0 to $613.0 million, representing year-over-year growth of 7% for Q4 2024.
- GAAP operating margin range of (0.1%) to 0.8% for Q4 2024.
- Share-based compensation range of $85 to $90 million for Q4 2024.
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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