Ringcentral, Inc. (RNG) Tops Q4 EPS by 2c, Revenues Beat; Offers 1Q & FY21 EPS/Revenue Guidance Above Consensus

February 16, 2021 4:07 PM EST

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Ringcentral, Inc. (NYSE: RNG) reported Q4 EPS of $0.29, $0.02 better than the analyst estimate of $0.27. Revenue for the quarter came in at $335 million versus the consensus estimate of $317.42 million.

Fourth Quarter Financial Highlights

  • Total revenue increased 32% year over year to $335 million.
  • Subscriptions revenue increased 34% year over year to over $306 million.
  • Annualized Exit Monthly Recurring Subscriptions (ARR) increased 35% year over year to $1.3 billion.
  • RingCentral Office® ARR increased 39% year over year to $1.2 billion.
  • Mid-market and Enterprise ARR increased 49% year over year to $713 million.
  • Enterprise ARR increased 55% year over year to $454 million.
  • Channel ARR increased 55% year over year to $465 million.
  • TCV deals over $1 million were a new record, up over 50% sequentially, including two over $10 million.

“Fourth quarter was outstanding, driven by robust growth across the business with strong contributions from the channel and our key partners led by Avaya, AT&T, and Atos,” said Vlad Shmunis, RingCentral’s founder, chairman and CEO. “We are also excited to add Vodafone Business as a key partner as we continue to expand our global distribution network to meet the rising worldwide demand for cloud-based communication solutions. We believe RingCentral is uniquely positioned to address business communication needs in the new work from anywhere environment with a well-differentiated Message Video Phone™ (MVP™) cloud solution. With the recent addition of our Smart Video Meetings solution, RingCentral Glip™, we can now address our customers’ needs even better to communicate via any mode, on any device, anywhere as they continue on their digital transformation journey.”

GUIDANCE:

Ringcentral, Inc. sees Q1 2021 EPS of $0.24-$0.25, versus the consensus of $0.23. Ringcentral, Inc. sees Q1 2021 revenue of $337-340 million, versus the consensus of $329.67 million.

Ringcentral, Inc. sees FY2021 EPS of $1.20-$1.24, versus the consensus of $1.17. Ringcentral, Inc. sees FY2021 revenue of $1.475-1.49 million, versus the consensus of $1.44 million.

First Quarter 2021 Guidance:

  • Total revenue range of $337 to $340 million, representing annual growth of 26% to 27%.
  • Subscriptions revenue range of $311.5 to $313.5 million, representing annual growth of 28% to 29%.
  • GAAP operating margin range of (15.1%) to (13.8%).
  • Non-GAAP operating margin range of 8.6% to 8.8%.
  • Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
  • Non-GAAP EPS range of $0.24 to $0.25 based on 93.5 million fully diluted shares.
  • Share-based compensation range of $66 to $68 million, amortization of debt discount and issuance costs of $16 million, and amortization of acquisition intangibles range of $11 to $12 million.

Full Year 2021 Guidance:

  • Total revenue range of $1.475 to $1.490 billion, representing annual growth of 25% to 26%.
  • Subscriptions revenue range of $1.365 to $1.375 billion, representing annual growth of 26% to 27%.
  • GAAP operating margin range of (21.7%) to (20.4%).
  • Non-GAAP operating margin range of 10.0% to 10.1%.
  • Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
  • Non-GAAP EPS range of $1.20 to $1.24 based on 94.0 to 94.5 million fully diluted shares.
  • Share-based compensation range of $410 to $420 million, amortization of debt discount and issuance costs of $65 million, and amortization of acquisition intangibles range of $45 to $48 million.

For earnings history and earnings-related data on Ringcentral, Inc. (RNG) click here.



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