In This Article:
RingCentral RNG is scheduled to report fourth-quarter 2024 results on Feb. 20.
For fourth-quarter 2024, the company expects earnings in the range of 96-97 cents per share.
The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at 96 cents per share, unchanged in the past 30 days. The figure indicates an increase of 11.63% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Ringcentral, Inc. Price and EPS Surprise
Ringcentral, Inc. price-eps-surprise | Ringcentral, Inc. Quote
For the fourth quarter of 2024, RingCentral expects revenues between $611 million and $613 million, indicating year-over-year growth of 7%.
The Zacks Consensus Estimate for revenues is pegged at $612.24 million, suggesting an increase of 7.17% from the year-ago quarter’s reported number.
The company beat the Zacks Consensus Estimate for earnings in all the trailing four quarters the average surprise being 4.76%.
Let’s see how things have shaped up for RNG prior to this announcement.
Factors to Note
RingCentral’s fourth-quarter performance is expected to have benefited from its robust product portfolio and strong subscription revenue growth.
Subscription revenues for the fourth quarter are expected to be between $587 million and $589 million, indicating year-over-year growth of 7% to 8%.
RingCX, an AI-powered CCaaS (Contact Center as a Service) platform, along with RingSense (conversation intelligence) and RingCentral Events (virtual and hybrid events platform), are showing strong traction. These platforms performances are expected to have driven revenue and ARR (Annual Recurring Revenue) growth in the to-be-reported quarter.
The introduction of RingCentral AI Assistant is expected to enhance businesses' value proposition, particularly in improving productivity through AI-driven note-taking and insights. As AI becomes increasingly integral to businesses' offerings, it is expected to fuel growth.
RingCentral has been targeting specific industries, such as healthcare, retail, and finance, which are showing strong demand for unified communication solutions. This targeted approach is likely to have yielded positive results in the fourth quarter.
With the increasing shift toward remote and hybrid work environments, the demand for unified communications and collaboration solutions continues to rise. This trend is expected to have driven customer acquisition and retention in the to-be-reported quarter.
However, challenging macroeconomic conditions, unfavorable forex rates and stiff competition are expected to have hurt RNG’s top line in the to-be-reported quarter.