Here's What Key Metrics Tell Us About RingCentral (RNG) Q3 Earnings
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RingCentral (RNG) reported $608.77 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 9.1%. EPS of $0.95 for the same period compares to $0.78 a year ago.
The reported revenue represents a surprise of +1.14% over the Zacks Consensus Estimate of $601.91 million. With the consensus EPS estimate being $0.92, the EPS surprise was +3.26%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how RingCentral performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
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Mid-Market and Enterprise ARR: $1.07 billion compared to the $1.55 billion average estimate based on two analysts.
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Annualized Exit Monthly Recurring Subscriptions (ARR): $2.48 billion versus $2.47 billion estimated by two analysts on average.
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Revenues- Subscriptions: $582.97 million compared to the $573.77 million average estimate based on seven analysts. The reported number represents a change of +9.8% year over year.
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Revenues- Other: $25.80 million versus the seven-analyst average estimate of $28.01 million. The reported number represents a year-over-year change of -4.9%.
View all Key Company Metrics for RingCentral here>>>
Shares of RingCentral have returned +23.3% over the past month versus the Zacks S&P 500 composite's +3.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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