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RingCentral (RNG)
NYSE:RNG
Earnings Data
Report Date
Aug 05, 2025TBA Not Confirmed
Period Ending
2025 (Q2)Consensus EPS Forecast
1.03Last Year’s EPS
0.91Same Quarter Last Year
Based on 13 Analysts Ratings
Earnings Call Summary
Earnings Call Date:May 08, 2025
|% Change Since: -1.69%
|Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment|Positive
The earnings call reflects a strong financial performance and successful execution of an AI-powered multi-product strategy. The highlights significantly outweigh the lowlights, with record free cash flow, strong revenue growth, and successful product launches. However, there are concerns about macroeconomic uncertainty and competitive challenges in the large enterprise segment.Company Guidance
In the RingCentral First Quarter 2025 Earnings Conference Call, several key metrics and forward-looking guidance were highlighted. The company reported total revenues of $612 million, marking a 5% year-over-year increase, and subscription revenues of $590 million, reflecting a 6% growth. The Annual Recurring Revenue (ARR) reached $2.53 billion, with a 7% year-over-year growth. The operating margin expanded to 21.8%, surpassing guidance, while the record quarterly free cash flow was reported at $130 million, up 70% from the previous year. RingCentral also reduced its debt by $166 million during the quarter, bringing the net leverage ratio down to 2x. The company is investing over $0.25 billion annually in innovation, with a strong focus on AI-powered products, and aims to achieve over $100 million in ARR from new products by the end of 2025. For the full year 2025, the company expects subscription revenue growth of 5% to 7%, total revenue growth of 4% to 6%, and a non-GAAP operating margin of approximately 22.5%. Free cash flow is projected to be between $500 million to $510 million, representing a growth of about 25% at the midpoint.Record-Breaking Free Cash Flow
RingCentral generated record quarterly free cash flow of $130 million, up 70% year-over-year, with a free cash flow margin of 21.3%, up 820 basis points from last year.
Strong Revenue and ARR Growth
Total revenue reached $612 million, up 5% year-over-year, at the high end of guidance. ARR increased to $2.53 billion, up 7% year-over-year, driven by the AI-powered multi-product portfolio.
Successful AI Product Launches
The launch of RingCentral AI Receptionist (AIR) was successful, with over 1,000 customers within weeks. RingSense and RingCX also saw strong adoption, contributing to growth in new product ARR.
Debt Reduction and Strong Balance Sheet
Paid down $161 million of convertible debt, reducing gross debt to $1.36 billion and achieving a net debt leverage ratio of 2x. The company aims to reduce gross debt to below $1 billion by the end of 2026.
UCaaS Market Leadership
RingCentral holds a steady 20% market share in the $30 billion UCaaS market, with leading integrations and a strong AI-powered multi-product portfolio.
RNG Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
RNG Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 08, 2025 | $26.67 | $27.72 | +3.94% |
Feb 20, 2025 | $30.77 | $28.95 | -5.91% |
Nov 07, 2024 | $38.80 | $37.97 | -2.14% |
Aug 01, 2024 | $33.45 | $35.26 | +5.41% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does RingCentral (RNG) report earnings?
RingCentral (RNG) is schdueled to report earning on Aug 05, 2025, TBA Not Confirmed.
What is RingCentral (RNG) earnings time?
RingCentral (RNG) earnings time is at Aug 05, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is RNG EPS forecast?
RNG EPS forecast for the fiscal quarter 2025 (Q2) is 1.03.
