Replies to post #14571 on Keeping It Simple

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Will RingCentral (RNG) Beat Estimates Again in Its Next Earnings Report?

RNG reports 11-6 A



Will RingCentral (RNG) Beat Estimates Again in Its Next Earnings Report?
Zacks Equity Research
Tue, October 31, 2023 at 10:10 AM MDT·3 min read

https://finance.yahoo.com/news/ringcentral-rng-beat-estimates-again-161012436.html

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider RingCentral (RNG). This company, which is in the Zacks Internet - Software and Services industry, shows potential for another earnings beat.

This cloud-based phone system provider for small businesses has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 10.41%.

For the last reported quarter, RingCentral came out with earnings of $0.83 per share versus the Zacks Consensus Estimate of $0.75 per share, representing a surprise of 10.67%. For the previous quarter, the company was expected to post earnings of $0.69 per share and it actually produced earnings of $0.76 per share, delivering a surprise of 10.14%.

With this earnings history in mind, recent estimates have been moving higher for RingCentral. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

RingCentral has an Earnings ESP of +0.61% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on November 6, 2023.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

[eastunder]

RNG - MONDAY cpps 28.32

finish current build?

Reports after bell

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Implied Volatility Surging for RingCentral (RNG) Stock Options
November 27, 2023 — 08:36 am EST

Written by Zacks Equity Research for Zacks ->

Investors in RingCentral, Inc. RNG need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $240.00 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?

Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?

Clearly, options traders are pricing in a big move for RingCentral shares, but what is the fundamental picture for the company? Currently, RingCentral is a Zacks Rank #3 (Hold) in the Internet - Software and Services industry that ranks in the Top 12% of our Zacks Industry Rank. Over the last 60 days, five analysts have increased their earnings estimates for the current quarter, while three have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 81 cents per share to 82 cents in that period.

Given the way analysts feel about RingCentral right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

[eastunder]

RingCentral Announces Return of Vlad Shmunis as CEO
Reiterates Fourth Quarter and Full Year 2023 Guidance

December 11, 2023 08:00 AM Eastern Standard Time
BELMONT, Calif.--(BUSINESS WIRE)--RingCentral, Inc. (NYSE: RNG), a leading provider of AI-first global enterprise cloud communications, video, webinars, hybrid events, and contact center solutions, today announced that Tarek Robbiati and RingCentral mutually agreed that Robbiati would separate from the company and resign from the Board of Directors, effective December 8, 2023. Robbiati’s resignation is not a result of any disagreement with the Company or the Board, or any matter relating to the Company’s operations, policies, or practices. Vlad Shmunis, RingCentral’s founder and Executive Chairman of the Board, has returned to his full-time role as Chief Executive Officer. Shmunis will remain Chairman of the Board.

Rob Theis, Lead Independent Director of RingCentral, said, “RingCentral’s strategic product vision and operations are closely linked, and we determined it is best to have one leader with oversight for all aspects of the organization. As RingCentral’s founder and long-term CEO, Vlad has overseen the Company’s growth from inception to a leading SaaS provider with over $2.2 billion in revenue. We are confident that he will be effective in his return as CEO and will continue delivering for all our stakeholders. We appreciate Tarek’s contributions and wish him well.”

“We are at a tremendous inflection point in our industry and it is critical that our product and innovation strategy drives all that we do and is closely aligned with how we go to market,” Shmunis said. “We have a world-class team, battle-proven technology, and a clear roadmap with a large and untapped market opportunity ahead of us. I am fully committed to RingCentral and am confident in our ability to drive sustainable, profitable growth moving forward that is rooted in our core values of trust, innovation, and partnerships.”

Robbiati said, “I have the utmost respect for the RingCentral team. I wish the company and its people the very best. RingCentral has tremendous products and I believe the Company will continue to deliver for its customers and shareholders.”

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RNG 34.44 : Monday

+ in 6: see list ✔️cash

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RNG reports 2/10 A cpps 34.28

RNG
449.00 H on 2/16/21
50% drop = 224.50
25.32 L on 5/4/23 (-94.36% off of High)

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RNG - Reports 2-20 A
PG's/ CP/ RB later

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RingCentral Announces Fourth Quarter and Fiscal Year 2023 Results
Business Wire
Tue, February 20, 2024 at 2:05 PM MST·24 min read

https://finance.yahoo.com/news/ringcentral-announces-fourth-quarter-fiscal-210500724.html

Total ARR up 11% to $2.33 billion
Enterprise ARR up 13% to over $1 billion
Record quarterly net cash provided by operating activities of $114 million

BELMONT, Calif., February 20, 2024--(BUSINESS WIRE)--RingCentral, Inc. (NYSE:RNG), a leading provider of AI-driven cloud business communications, contact center, video and hybrid event solutions, today announced financial results for the fourth quarter and fiscal year ended December 31, 2023.

Fourth Quarter Financial Highlights

Total revenue increased 9% year over year to $571 million

Subscriptions revenue increased 9% year over year to $547 million

Annualized Exit Monthly Recurring Subscriptions (ARR) increased 11% year over year to $2.329 billion

Mid-market and Enterprise ARR increased 12% year over year to $1.458 billion

Enterprise ARR increased 13% year over year to $1.005 billion

GAAP operating margin of (7.9)%, compared to (48.7)% in the prior year

Non-GAAP operating margin of 20.5%, up 650 basis points year-over-year

"We ended the year on a strong note," said Vlad Shmunis, RingCentral's founder and CEO. "The solid traction we are seeing with our new products demonstrates the progress we are making in becoming an AI-first, multi-product company as we deliver on our strategy of delivering durable, profitable growth."

"We delivered another quarter of record operating margin and free cash flow, which were above our outlook," said Sonalee Parekh, RingCentral's CFO. "We are just beginning to realize the full cash flow potential of our business, with continuing efforts to improve our efficiency and productivity, while investing for growth."

Financial Results for the Fourth Quarter 2023

Revenue: Total revenue was $571 million for the fourth quarter of 2023, up from $525 million in the fourth quarter of 2022, representing 9% growth. Adjusted for constant currency, total revenue rose 8%. Subscriptions revenue of $547 million increased 9% year over year and accounted for 96% of total revenue. Adjusted for constant currency, subscriptions revenue rose 9%.

Operating Income (Loss): GAAP operating loss was ($45) million, compared to ($256) million in the same period last year. Non-GAAP operating income was $117 million, or 20.5% of total revenue, compared to $73 million, or 14.0% of total revenue, in the same period last year.

Adjusted EBITDA: Adjusted EBITDA was $138 million, or 24.2% of total revenue, compared to $93 million, or 17.7% of total revenue, in the same period last year.

Net Income (Loss) Per Share: GAAP net loss per share was ($0.50), compared to ($2.97) in the same period last year. Diluted non-GAAP net income per share was $0.86, compared to $0.60 per share in the same period last year. The fourth quarters of 2023 and 2022 reflected a 22.5% non-GAAP tax rate.

Cash Flow: Net cash provided by operating activities for the fourth quarter of 2023 was a record $114 million, or 19.9% of total revenue, compared to $39 million, or 7.5% of total revenue, for the fourth quarter of 2022. Adjusted, unlevered free cash flow for the fourth quarter of 2023 was a record $97 million, or 17.0% of total revenue, compared to $0.4 million, or 0.1% of total revenue, for the fourth quarter of 2022.

Cash and Cash Equivalents: Total cash and cash equivalents at the end of the fourth quarter of 2023 was $222 million. This compares to $432 million at the end of the third quarter of 2023. Our cash balance reflects approximately $240 million paid in the fourth quarter of 2023 to repurchase a portion of our 2025 convertible notes. The Company also repurchased over $60 million in shares during the fourth quarter of 2023 under the plans authorized in May and November of 2023.

Financial Results for the Full Year 2023

Revenue: Total revenue was $2.202 billion for 2023, up from $1.988 billion in 2022, representing 11% growth. Adjusted for constant currency, total revenue rose 11%. Subscriptions revenue of $2.100 billion increased 11% and accounted for over 95% of total revenue. Adjusted for constant currency, subscriptions revenue rose 11%.

Operating Income (Loss): GAAP operating loss was ($199) million, compared to ($649) million in 2022. Non-GAAP operating income was $420 million, or 19.1% of total revenue, compared to $246 million, or 12.4% of total revenue, in 2022.

Adjusted EBITDA: Adjusted EBITDA for 2023 was $503 million, or 22.8% of total revenue, compared to $318 million, or 16.0% of total revenue, for 2022.

Net Income (Loss) Per Share: GAAP net loss per share was ($1.74), compared to ($9.23) in 2022. Diluted non-GAAP net income per share was $3.23, compared to $1.99 per share in 2022. Both fiscal year 2023 and 2022 reflected a 22.5% non-GAAP tax rate.

Cash Flow: Net cash provided by operating activities for 2023 was a record $400 million, or 18.1% of total revenue, compared to $191 million, or 9.6% of total revenue, for 2022. Adjusted, unlevered free cash flow for 2023 was a record $325 million, or 14.8% of total revenue, compared to $103 million, or 5.2% of total revenue, for 2022.

Additional Highlights

Named a leader in the 2023 Gartner® Magic Quadrant™ for Unified Communications as a Service, Worldwide Report for ninth year in a row. The 2023 Gartner Critical Capabilities for UCaaS report, which accompanies the Magic Quadrant report, also ranked RingCentral #1 in three out of the six product or service use case categories ranking: #1 for UC with Integrated Contact Center Use Case; #1 for Midsize Enterprise Use Case; and #1 for Telephony Centric/Heavy Organizations Use Case.

Announced the general availability of RingCX™, a native, AI-first contact center with new capabilities powered by its RingSense™ AI platform. Integrated with RingCentral MVP™, RingCX offers a disruptive combination of product, packaging, and pricing.

Announced the global availability of RingCentral Events™, an all-in-one solution for virtual, onsite, and hybrid event needs. Formerly Hopin Events, RingCentral Events is designed to be immersive and personalized, enabling businesses to provide engaging experiences that take events to the next level.

Announced a unified patient care solution for healthcare organizations worldwide. New integrations with Electronic Health Record (EHR) providers, including industry titans Epic, Cerner, and AllScripts, combined with RingCentral’s AI-powered communications suite bridge gaps in the patient engagement journey and simplify workflows. Powered by a new partnership with patient engagement software platform SpinSci, these EHR integrations ensure optimal and secure patient experiences, improved documentation, and reduced administrative burden.

Highlighted that healthcare organizations are adopting RingCentral for Healthcare solution for its trusted reputation in delivering consistent 99.999% reliability, innovative products, and an industry-leading open platform with rich APIs, plus security and privacy by design standards, and various certifications such as HIPAA and HITRUST. Over the past 18 months, RingCentral has added more than 500 new healthcare customers across small, midsize, and large enterprise segments.

Announced that Ned Segal has been elected to the Company’s Board of Directors, effective as of the Company’s 2023 Annual Meeting of Shareholders which was held on December 29, 2023. Segal has also been named a member of both the audit committee and nominating and corporate governance committee of the Company’s Board of Directors. Ned is a seasoned executive with more than 25 years of technology, finance and capital markets experience including at Twitter, Intuit and Goldman Sachs.

Announced that Prat Bhatt has been appointed to the Company’s Board of Directors, effective March 1, 2024. Bhatt has been named a member of the Board’s audit committee. Prat is an accomplished technology industry veteran and financial expert, having served as the Chief Accounting Officer at Cisco Systems for over twenty years. Additionally, Allan Thygesen, who has served on the Board for nine years, will be transitioning off in the second quarter of 2024 to focus on his other commitments.

Announced that it paid approximately $240 million to repurchase approximately $253 million aggregate principal amount of the 2025 Convertible Notes, using the proceeds received from the Company’s previously announced issuance of its 8.500% Senior Notes due 2030 (the "2030 Notes"). Following the closing of the Note Repurchases, approximately $161 million aggregate principal amount of the 2025 Convertible Notes remains outstanding.

Financial Outlook

Full Year 2024 Guidance:

Subscriptions revenue range of $2.260 to $2.285 billion, representing annual growth of 8% to 9%.

Total revenue range of $2.370 to $2.395 billion, representing annual growth of 8% to 9%.

GAAP operating margin range of (1.7%) to (0.9%).

Non-GAAP operating margin of 21.0%.

Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.

Non-GAAP EPS range of $3.50 to $3.58 based on 99.0 to 98.0 million fully diluted shares.

Share-based compensation range of $380 to $390 million.

Amortization of acquisition intangibles of $140 million.

Restructuring costs range of $5 to $7 million.

Adjusted, unlevered free cash flow margin of 17.5%, or an implied range of approximately $415 to $420 million.

First Quarter 2024 Guidance:

Subscriptions revenue range of $550 to $555 million, representing annual growth of 8% to 9%.

Total revenue range of $575 to $580 million, representing annual growth of 8% to 9%.

GAAP operating margin range of (5.2%) to (4.3%).

Non-GAAP operating margin of 19.5%.

Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.

Non-GAAP EPS of $0.79 to $0.80 based on 97.0 to 96.5 million fully diluted shares.

Share-based compensation range of $98 to $100 million.

Amortization of acquisition intangibles of $35 million.

Restructuring costs range of $5 to $7 million.

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RNG +2.54 +7.88% but on below ave volume

Trend Analysis
RNG appears to be consolidating within a longer term uptrend. Shares are presently above the 200-day moving average, which is rising along with the 10-day moving average. However, the Average Directional Index, or ADX, is below 20, indicating that shares have exhibited sideways movement recently. Comparative Relative Strength analysis shows that this issue is lagging the S&P 500.

Momentum
Momentum for RNG is strongly bullish. The 14-period Slow Stochastic Oscillator is rising, as investors pay higher prices for shares.

Volume
Today's volume is in-line with the norm for this point in the day, with 621,689 shares having traded so far. The On Balance Volume indicator (OBV) is bullish. The slope of the indicator is positive and suggests that buyers are presently more active than sellers.

Volatility
Volatility, measured using the width of the Bollinger Bands®, is low. Periods of low volatility tend to precede price breakouts, although they do not provide information as to which direction the breakout will take. Trend and momentum indicators can be helpful to measure future trends.

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RNG cpps 36.27

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RNG cpps 34.97

year/eps
2017 .47
2018 .77
2019 .82
2020 .98
2021 1.34
2022 1.99
2023 3.23
2024 est 3.55
2025 est 4.06

486 funds
11 p/e
5.71 cash flow

EPS last 8 q's: .39, .45, .55, .60, .76, .83, .78, .86
Sales last 8 q's: 467, 486, 509, 524, 533, 539, 558, 571



C&H 172 days
depth 42%
Handle 6%
Pivot 36.94

[eastunder]

RingCentral, Inc. (RNG) Tops Q1 EPS by 7c; raises guidance

RingCentral, Inc. (NYSE: RNG) reported Q1 EPS of $0.87, $0.07 better than the analyst estimate of $0.80. Revenue for the quarter came in at $584 million versus the consensus estimate of $578.15 million.

GUIDANCE:

RingCentral, Inc. sees Q2 2024 EPS of $0.87-$0.88, versus the consensus of $0.85. RingCentral, Inc. sees Q2 2024 revenue of $584.5-587.5 million, versus the consensus of $585.8 million.

RingCentral, Inc. sees FY2024 EPS of $3.59-$3.67, versus the consensus of $3.55. RingCentral, Inc. sees FY2024 revenue of $2.379-2.399 billion, versus the consensus of $2.384 billion.