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RingCentral (RNG) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates

Zacks Equity Research
·2-min read

For the quarter ended March 2024, RingCentral (RNG) reported revenue of $584.21 million, up 9.5% over the same period last year. EPS came in at $0.87, compared to $0.76 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $577.81 million, representing a surprise of +1.11%. The company delivered an EPS surprise of +8.75%, with the consensus EPS estimate being $0.80.

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.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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Here is how RingCentral performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Gross Margin- Subscriptions: 81.5% versus 81.9% estimated by eight analysts on average.

  • Gross Margin- Other: 8.6% versus the seven-analyst average estimate of 7%.

  • Annualized Exit Monthly Recurring Subscriptions (ARR): $2.37 billion versus $2.38 billion estimated by two analysts on average.

  • Revenues- Subscriptions: $557.49 million compared to the $552.52 million average estimate based on nine analysts. The reported number represents a change of +9.7% year over year.

  • Revenues- Other: $26.72 million compared to the $25.31 million average estimate based on nine analysts. The reported number represents a change of +5.2% year over year.

View all Key Company Metrics for RingCentral here>>>

Shares of RingCentral have returned -8.1% over the past month versus the Zacks S&P 500 composite's -0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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