RingCentral Announces First Quarter 2024 Results
RingCentral, Inc. announced its first quarter 2024 financial results, exceeding revenue guidance with total revenue up 9% to $584 million and subscriptions revenue up 10% to $557 million. The company reported a solid performance, with a 40,000 seat deal with a Fortune 500 retailer and RingSense AI winning Best Overall Award at Enterprise Connect. The GAAP operating margin improved to (1.9%), and non-GAAP operating margin rose to 20.7%. RingCentral raised its 2024 revenue outlook and share repurchase authorization by $250 million.
Exceeded revenue guidance with total revenue up 9% to $584 million and subscriptions revenue up 10% to $557 million.
Reported a solid performance with a 40,000 seat deal with a Fortune 500 retailer and RingSense AI winning Best Overall Award at Enterprise Connect.
Improved GAAP operating margin to (1.9%) and increased non-GAAP operating margin to 20.7%.
Raised 2024 revenue outlook and share repurchase authorization by $250 million.
GAAP net loss per share was ($0.31) compared to ($0.57) in the same period last year.
Raising non-GAAP EPS guidance to $3.59 to $3.67 based on 97.0 to 96.0 million fully diluted shares, compared to $3.50 to $3.58 previously.
Maintaining share-based compensation range of $380 to $390 million.
Insights
Q1 2024 key metrics above high end of guidance
Raising 2024 revenue outlook
Share repurchase authorization increased by
First Quarter Financial Highlights
-
Total revenue increased
9% year-over-year to$584 million -
Subscriptions revenue increased
10% year-over-year to$557 million -
Annualized Exit Monthly Recurring Subscriptions (ARR) increased
10% year over year to$2.37 billion -
Mid-market and Enterprise ARR increased
11% year over year to$1.48 billion -
Enterprise ARR increased
13% year over year to$1.02 billion -
GAAP operating margin of (
1.9% ), compared to (10.2% ) in the prior year. -
Non-GAAP operating margin of
20.7% , up 350 basis points year-over-year.
“We had a solid start to the year, and exceeded the high end of our revenue and non-GAAP operating profit margin guidance," said Vlad Shmunis, RingCentral’s Founder and CEO. "We also landed a 40,000 seat deal with a Fortune 500 retailer, which is the largest UCaaS win in our history. And in another first, I am especially proud of RingSense AI winning the Best Overall Award at Enterprise Connect in March. This is a clear testament to the strength of our product portfolio and industry leading innovation.”
"While investing for growth, we remain laser focused on delivering increased profitability, reducing stock based compensation and creating shareholder value," said Sonalee Parekh, RingCentral's CFO. "We are raising our 2024 revenue and free cash flow outlook as we deliver on our growth and efficiency initiatives."
Financial Results for the First Quarter 2024
-
Revenue: Total revenue was
$584 million $534 million 9% growth. Adjusted for constant currency, total revenue rose9% . Subscriptions revenue of$557 million 10% year-over-year and accounted for95% of total revenue. Adjusted for constant currency, subscriptions revenue rose9% .
-
Operating Income (Loss): GAAP operating loss was
( , compared to$11) million ( in the same period last year. Non-GAAP operating income was$55) million $121 million 20.7% of total revenue, compared to$92 million 17.2% of total revenue, in the same period last year.
-
Adjusted EBITDA: Adjusted EBITDA was
$143 million 24.4% of total revenue, compared to$112 million 21.0% of total revenue, in the same period last year.
-
Net Income (Loss) Per Share: GAAP net loss per share was (
$0.31 $0.57 $0.87 $0.76 22.5% non-GAAP tax rate.
-
Cash Flow: Net cash provided by operating activities for the first quarter of 2024 was
$96 million 16.4% of total revenue, compared to$109 million 20.3% of total revenue, for the first quarter of 2023. Free cash flow for the first quarter of 2024 was$77 million $23 million $15 million $10 million $87 million $0.1 million $7 million $33 million
-
Cash and Cash Equivalents: Total cash and cash equivalents at the end of the first quarter of 2024 was
$203 million $222 million $80 million
-
Share Repurchase: Recently our board increased our repurchase authorization by
$250 million $375 million
Financial Outlook
Full Year 2024 Guidance:
-
Raising subscriptions revenue range to
$2.26 7$2.28 7 billion8% to9% . -
Raising total revenue range of
$2.37 9$2.39 9 billion8% to9% . -
Updating GAAP operating margin range to (
1.6% ) to (0.9% ). -
Maintaining non-GAAP operating margin of
21.0% . -
Maintaining non-GAAP tax rate assumption of
22.5% . No material cash taxes expected given net operating loss carryforwards. -
Raising non-GAAP EPS to
$3.59 $3.67 $3.50 $3.58 -
Maintaining share-based compensation range of
$380 $390 million -
Maintaining amortization of acquired intangibles of
$140 million -
Maintaining restructuring costs of
$5 $7 million -
We are now reporting and will guide to free cash flow, defined as net cash provided by operating activities less capitalized expenditures. On this basis, we expect free cash flow of
$385 $390 million $324 million $60 million $20 million $25 million $440 $445 million $415 $420 million
Second Quarter 2024 Guidance:
-
Subscriptions revenue range of
$558.0 $561.0 million 9% . -
Total revenue range of
$584.5 $587.5 million 8% to9% . -
GAAP operating margin range of (
2.7% ) to (1.9% ). -
Non-GAAP operating margin of
20.7% . -
Non-GAAP tax rate assumption of
22.5% . No material cash taxes expected given net operating loss carryforwards. -
Non-GAAP EPS of
$0.87 $0.88 -
Share-based compensation range of
$98 $100 million -
Amortization of acquired intangibles of
$35 million -
Restructuring costs of
$0 $2 million
Additional Highlights
- Announced new transformative AI for its rebranded flagship solution, RingEX. By infusing RingSense™ AI into RingEX, RingCentral is empowering its customers' employees with personalized and context-aware interactions that make every conversation smarter and everyday work more efficient.
- At Enterprise Connect in March, RingCentral won Best Overall Award for RingSense AI, a personal AI helper that provides real-time note-taking, enhances detail recall with GPT's semantic search, and unlocks insights from all conversations.
- Announced that its native, AI-powered contact center, RingCX™, now touts more than 1,000 features, has extended global availability, increased adoption, and added new CRM integrations.
- Announced new platform capabilities that re-envision how customers build workflows within their enterprises. These capabilities allow non-technical users and developers to embed RingSense AI, video, and social messaging into workflows, automate alerts and notifications, and develop intuitive customer experiences without writing a single line of code.
-
Announced it has added Optus,
Australia's second largest telecommunications provider, as a new Global Service Provider (GSP) partner. Optus now joins RingCentral's growing GSP family, which includes AT&T, BT, Charter Communications, Deutsche Telecom, Telus and Vodafone, amongst others.
For a reconciliation of our forecasted non-GAAP operating margin, see “Reconciliation of Forecasted Operating Margin GAAP Measures to Non-GAAP Measures.” We have not reconciled our forecasted non-GAAP EPS to its respective forecasted GAAP measure because we do not provide guidance on it. We do not provide guidance on forecasted GAAP EPS because of the inherent uncertainty and complexity involved in forecasting the intercompany remeasurement gain (loss), gain (loss) associated with investments, gain (loss) on early debt conversions, and provision (benefit) from income taxes, which could be significant reconciling items between the non-GAAP and respective GAAP measures. The intercompany remeasurement gain (loss) is affected by the movement in various exchange rates relative to the
Conference Call Details:
- What: RingCentral financial results for the first quarter of 2024 and outlook for the second quarter and full year of 2024.
- When: Tuesday, May 7, 2024 at 2:00PM PT (5:00PM ET).
-
Dial-in: 1-844-274-3686 from
the United States ; 1-412-317-5645 internationally - Webcast: RingCentral Q1 2024 Earnings Webcast (live and replay).
-
Replay: Following the completion of the call through 11:59 PM ET on May 14, 2024, a telephone replay will be available by dialing 1-844-512-2921 from
the United States or 1-412-317-6671 internationally with recording access code 10023429.
Investor Presentation Details
An investor presentation providing additional information and analysis can be found at https://ir.ringcentral.com.
About RingCentral
RingCentral is a leading provider of AI-driven cloud business communications, contact center, video and hybrid event solutions. RingCentral empowers businesses with conversation intelligence, and unlocks rich customer and employee interactions to provide insights and improved business outcomes. With decades of expertise in reliable and secure cloud communications, RingCentral has earned the trust of millions of customers and thousands of partners worldwide. Visit ringcentral.com to learn more.
© 2024 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Contact Center and the RingCentral logo are trademarks of RingCentral, Inc.
Forward-Looking Statements
This press release contains “forward-looking statements,” including but not limited to, statements regarding our future financial results, our GAAP and non-GAAP guidance, the results of the pace of our innovation and our partner networks, our expectations regarding our profitability and our non-GAAP free cash flow, our expectations around the contribution of our new products, our estimates and expectations regarding third parties, and our ability to execute and lead in the UCaaS digital transformation market, our expectations around the demand for our products and the growth of the markets in which we compete. Forward-looking statements are subject to known and unknown risks and uncertainties, and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those in any forward-looking statements are: our ability to realize the anticipated benefits of our strategic relationships; our expectations regarding our strategic acquisitions, including acquisition of select assets from Hopin; our ability to grow at our expected rate of growth; our ability to add and retain larger and enterprise customers and enter new geographies and markets; our ability to continue to release, and gain customer acceptance of, new and improved versions of our services, including RingEX (formerly RingCentral MVP™), and RingCentral Video®; our ability to compete successfully against existing and new competitors; our ability to enter into and maintain relationships with resellers, carriers, channel partners and strategic partners; our ability to successfully and timely integrate, and realize the benefits of any significant acquisition we may make; our ability to manage our expenses and growth; and general market, political, economic, and business conditions, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our most recent Form 10-K filed with the Securities and Exchange Commission, and in other filings we make with the Securities and Exchange Commission from time to time.
All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.
Non-GAAP Financial Measures
Our reported financial results and financial outlook include certain Non-GAAP financial measures, including Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP free cash flow, Non-GAAP free cash flow margin, and constant currency revenue. Non-GAAP subscriptions gross margin is defined as Non-GAAP subscriptions gross profit divided by GAAP subscriptions revenue. Non-GAAP other gross margin is defined as Non-GAAP other gross profit divided by GAAP other revenue. Non-GAAP income (loss) from operations is defined as GAAP income (loss) from operations excluding share-based compensation which includes related employer payroll taxes, amortization of acquisition intangibles, third-party relocation costs tied to the conflict between
Non-GAAP diluted shares outstanding include the impact on shares used in per share calculations of our outstanding capped call transactions. Our outstanding capped call transactions are anti-dilutive in GAAP earnings per share but are expected to mitigate the dilutive effect of our convertible notes and therefore are included in the calculations of non-GAAP diluted shares outstanding.
Non-GAAP free cash flow is defined as GAAP net cash provided by (used in) operating activities adjusted for capital expenditures including purchases of property and equipment and capitalized internal-use software. We believe information regarding Non-GAAP free cash flow provides useful information to investors in understanding and evaluating the strength of liquidity and available cash. Non-GAAP free cash flow margin is defined as Non-GAAP free cash flow divided by total GAAP revenues.
We have included Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP free cash flow, Non-GAAP free cash flow margin, and constant currency revenue in this press release because they are key measures used by us to understand and evaluate our operating performance and trends, to prepare and approve our annual budget, and to develop short and long-term operational plans. In particular, the exclusion of certain expenses and cash flow items in calculating Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP free cash flow, and Non-GAAP free cash flow margin provide useful measure for period-to-period comparisons of our business.
The Company has provided certain revenue-related information adjusted for constant currency to provide a framework for assessing how the Company's underlying business performed excluding the effect of foreign currency rate fluctuations. To present this information, current period results in currencies other than
Although Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP free cash flow, Non-GAAP free cash flow margin, and constant currency revenue are frequently used by investors in their evaluations of companies, these non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered alongside other financial performance measures.
Reconciliations of the Company’s non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release.
Other Measures
Our reported results also include our annualized exit monthly recurring subscriptions, mid-market and enterprise annualized exit monthly recurring subscriptions, enterprise annualized exit monthly recurring subscriptions and net monthly subscriptions dollar retention rate. We define our annualized exit monthly recurring subscriptions as our monthly recurring subscriptions multiplied by 12. Our monthly recurring subscriptions equal the monthly value of all customer recurring charges contracted at the end of a given month. We believe this metric is a leading indicator of our anticipated subscriptions revenue. We calculate mid-market and enterprise annualized exit monthly recurring subscriptions in the same manner as we calculate our annualized exit monthly recurring subscriptions, except that only customer subscriptions from customers generating
TABLE 1 RINGCENTRAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands) |
|||||||
|
March 31, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
203,130 |
|
|
$ |
222,195 |
|
Accounts receivable, net |
|
371,357 |
|
|
|
364,438 |
|
Deferred and prepaid sales commission costs |
|
184,816 |
|
|
|
184,620 |
|
Prepaid expenses and other current assets |
|
71,728 |
|
|
|
77,396 |
|
Total current assets |
|
831,031 |
|
|
|
848,649 |
|
Property and equipment, net |
|
182,736 |
|
|
|
184,390 |
|
Operating lease right-of-use assets |
|
39,615 |
|
|
|
42,989 |
|
Deferred and prepaid sales commission costs, non-current |
|
381,175 |
|
|
|
395,724 |
|
Goodwill |
|
66,903 |
|
|
|
67,370 |
|
Acquired intangibles, net |
|
358,850 |
|
|
|
393,767 |
|
Other assets |
|
12,793 |
|
|
|
12,024 |
|
Total assets |
$ |
1,873,103 |
|
|
$ |
1,944,913 |
|
Liabilities, Temporary Equity, and Stockholders’ Deficit |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
24,030 |
|
|
$ |
53,295 |
|
Accrued liabilities |
|
312,405 |
|
|
|
325,632 |
|
Current portion of long-term debt, net |
|
180,923 |
|
|
|
20,000 |
|
Deferred revenue |
|
246,690 |
|
|
|
233,619 |
|
Total current liabilities |
|
764,048 |
|
|
|
632,546 |
|
Long-term debt, net |
|
1,360,457 |
|
|
|
1,525,482 |
|
Operating lease liabilities |
|
25,616 |
|
|
|
28,178 |
|
Other long-term liabilities |
|
45,901 |
|
|
|
61,827 |
|
Total liabilities |
|
2,196,022 |
|
|
|
2,248,033 |
|
|
|
|
|
||||
Temporary equity |
|
|
|
||||
Series A convertible preferred stock |
|
199,449 |
|
|
|
199,449 |
|
|
|
|
|
||||
Stockholders’ deficit |
|
|
|
||||
Common stock |
|
9 |
|
|
|
9 |
|
Additional paid-in capital |
|
1,210,366 |
|
|
|
1,204,781 |
|
Accumulated other comprehensive loss |
|
(5,113 |
) |
|
|
(8,223 |
) |
Accumulated deficit |
|
(1,727,630 |
) |
|
|
(1,699,136 |
) |
Total stockholders’ deficit |
$ |
(522,368 |
) |
|
$ |
(502,569 |
) |
Total liabilities, temporary equity and stockholders’ deficit |
$ |
1,873,103 |
|
|
$ |
1,944,913 |
|
TABLE 2 RINGCENTRAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except per share data) |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Revenues |
|
|
|
||||
Subscriptions |
$ |
557,487 |
|
|
$ |
508,294 |
|
Other |
|
26,724 |
|
|
|
25,395 |
|
Total revenues |
|
584,211 |
|
|
|
533,689 |
|
Cost of revenues |
|
|
|
||||
Subscriptions |
|
143,650 |
|
|
|
136,425 |
|
Other |
|
26,829 |
|
|
|
24,251 |
|
Total cost of revenues |
|
170,479 |
|
|
|
160,676 |
|
Gross profit |
|
413,732 |
|
|
|
373,013 |
|
Operating expenses |
|
|
|
||||
Research and development |
|
80,528 |
|
|
|
85,241 |
|
Sales and marketing |
|
272,730 |
|
|
|
260,212 |
|
General and administrative |
|
71,373 |
|
|
|
82,091 |
|
Total operating expenses |
|
424,631 |
|
|
|
427,544 |
|
Loss from operations |
|
(10,899 |
) |
|
|
(54,531 |
) |
Other income (expense), net |
|
|
|
||||
Interest expense |
|
(16,254 |
) |
|
|
(2,212 |
) |
Other income |
|
1,944 |
|
|
|
5,429 |
|
Other income (expense), net |
|
(14,310 |
) |
|
|
3,217 |
|
Loss before income taxes |
|
(25,209 |
) |
|
|
(51,314 |
) |
Provision for income taxes |
|
3,285 |
|
|
|
3,085 |
|
Net loss |
$ |
(28,494 |
) |
|
$ |
(54,399 |
) |
Net loss per common share |
|
|
|
||||
Basic and diluted |
$ |
(0.31 |
) |
|
$ |
(0.57 |
) |
Weighted-average number of shares used in computing net loss per share |
|
|
|
||||
Basic and diluted |
|
93,142 |
|
|
|
95,720 |
|
TABLE 3 RINGCENTRAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands) |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities |
|
|
|
||||
Net loss |
$ |
(28,494 |
) |
|
$ |
(54,399 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
56,651 |
|
|
|
57,518 |
|
Share-based compensation |
|
88,168 |
|
|
|
98,191 |
|
Unrealized loss on investments |
|
— |
|
|
|
1,646 |
|
Amortization of deferred and prepaid sales commission costs |
|
38,599 |
|
|
|
32,211 |
|
Amortization of debt discount and issuance costs |
|
1,003 |
|
|
|
1,119 |
|
Reduction of operating lease right-of-use assets |
|
5,074 |
|
|
|
5,053 |
|
Provision for bad debt |
|
1,562 |
|
|
|
2,732 |
|
Other |
|
534 |
|
|
|
(175 |
) |
Changes in assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(8,481 |
) |
|
|
(6,749 |
) |
Deferred and prepaid sales commission costs |
|
(35,937 |
) |
|
|
(19,403 |
) |
Prepaid expenses and other assets |
|
6,397 |
|
|
|
(10,289 |
) |
Accounts payable |
|
(28,732 |
) |
|
|
(18,936 |
) |
Accrued and other liabilities |
|
(9,935 |
) |
|
|
15,013 |
|
Deferred revenue |
|
13,071 |
|
|
|
10,208 |
|
Operating lease liabilities |
|
(3,386 |
) |
|
|
(5,207 |
) |
Net cash provided by operating activities |
|
96,094 |
|
|
|
108,533 |
|
Cash flows from investing activities |
|
|
|
||||
Purchases of property and equipment |
|
(6,133 |
) |
|
|
(8,723 |
) |
Capitalized internal-use software |
|
(13,276 |
) |
|
|
(12,596 |
) |
Net cash used in investing activities |
|
(19,409 |
) |
|
|
(21,319 |
) |
Cash flows from financing activities |
|
|
|
||||
Proceeds from issuance of stock in connection with stock plans |
|
— |
|
|
|
95 |
|
Payments for taxes related to net share settlement of equity awards |
|
(2,020 |
) |
|
|
(1,736 |
) |
Payments for repurchases of common stock |
|
(80,468 |
) |
|
|
(74,501 |
) |
Payments for fees on long-term debt |
|
(1,867 |
) |
|
|
(5,191 |
) |
Repayments of principal on long-term debt |
|
(5,000 |
) |
|
|
— |
|
Repayments for financing obligations |
|
(1,224 |
) |
|
|
(1,393 |
) |
Payments for contingent consideration |
|
(4,086 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(94,665 |
) |
|
|
(82,726 |
) |
Effect of exchange rate changes |
|
(1,085 |
) |
|
|
332 |
|
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
(19,065 |
) |
|
|
4,820 |
|
Cash, cash equivalents, and restricted cash |
|
|
|
||||
Beginning of period |
|
222,195 |
|
|
|
269,984 |
|
End of period |
$ |
203,130 |
|
|
$ |
274,804 |
|
TABLE 4 RINGCENTRAL, INC. RECONCILIATION OF OPERATING INCOME (LOSS) GAAP MEASURES TO NON-GAAP MEASURES (Unaudited, in thousands) |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Revenues |
|
|
|
||||
Subscriptions |
$ |
557,487 |
|
|
$ |
508,294 |
|
Other |
|
26,724 |
|
|
|
25,395 |
|
Total revenues |
|
584,211 |
|
|
|
533,689 |
|
Cost of revenues reconciliation |
|
|
|
||||
GAAP Subscriptions cost of revenues |
|
143,650 |
|
|
|
136,425 |
|
Share-based compensation |
|
(6,324 |
) |
|
|
(6,951 |
) |
Amortization of acquired intangibles |
|
(34,083 |
) |
|
|
(36,640 |
) |
Third-party relocation and other costs |
|
(39 |
) |
|
|
— |
|
Restructuring costs |
|
(235 |
) |
|
|
(405 |
) |
Non-GAAP Subscriptions cost of revenues |
|
102,969 |
|
|
|
92,429 |
|
|
|
|
|
||||
GAAP Other cost of revenues |
|
26,829 |
|
|
|
24,251 |
|
Share-based compensation |
|
(2,059 |
) |
|
|
(2,119 |
) |
Amortization of acquired intangibles |
|
(22 |
) |
|
|
(22 |
) |
Restructuring costs |
|
(326 |
) |
|
|
(13 |
) |
Non-GAAP Other cost of revenues |
|
24,422 |
|
|
|
22,097 |
|
Gross profit and gross margin reconciliation |
|
|
|
||||
Non-GAAP Subscriptions |
|
81.5 |
% |
|
|
81.8 |
% |
Non-GAAP Other |
|
8.6 |
% |
|
|
13.0 |
% |
Non-GAAP Gross profit |
|
78.2 |
% |
|
|
78.5 |
% |
Operating expenses reconciliation |
|
|
|
||||
GAAP Research and development |
|
80,528 |
|
|
|
85,241 |
|
Share-based compensation |
|
(19,993 |
) |
|
|
(23,930 |
) |
Third-party relocation and other costs |
|
(1,068 |
) |
|
|
(59 |
) |
Restructuring costs |
|
(1,450 |
) |
|
|
(1,434 |
) |
Non-GAAP Research and development |
|
58,017 |
|
|
|
59,818 |
|
As a % of total revenues non-GAAP |
|
9.9 |
% |
|
|
11.2 |
% |
|
|
|
|
||||
GAAP Sales and marketing |
|
272,730 |
|
|
|
260,212 |
|
Share-based compensation |
|
(34,847 |
) |
|
|
(38,042 |
) |
Amortization of acquired intangibles |
|
(812 |
) |
|
|
(561 |
) |
Third-party relocation and other costs |
|
(294 |
) |
|
|
— |
|
Restructuring costs |
|
(2,162 |
) |
|
|
(2,599 |
) |
Non-GAAP Sales and marketing |
|
234,615 |
|
|
|
219,010 |
|
As a % of total revenues non-GAAP |
|
40.2 |
% |
|
|
41.0 |
% |
|
|
|
|
||||
GAAP General and administrative |
|
71,373 |
|
|
|
82,091 |
|
Share-based compensation |
|
(27,793 |
) |
|
|
(30,253 |
) |
Third-party relocation and other costs |
|
(72 |
) |
|
|
(3,087 |
) |
Restructuring costs |
|
(409 |
) |
|
|
(424 |
) |
Non-GAAP General and administrative |
|
43,099 |
|
|
|
48,327 |
|
As a % of total revenues non-GAAP |
|
7.4 |
% |
|
|
9.1 |
% |
Income (loss) from operations reconciliation |
|
|
|
||||
GAAP loss from operations |
|
(10,899 |
) |
|
|
(54,531 |
) |
Share-based compensation |
|
91,016 |
|
|
|
101,295 |
|
Amortization of acquired intangibles |
|
34,917 |
|
|
|
37,223 |
|
Third-party relocation and other costs, net |
|
1,473 |
|
|
|
3,146 |
|
Restructuring costs |
|
4,582 |
|
|
|
4,875 |
|
Non-GAAP Income from operations |
|
121,089 |
|
|
|
92,008 |
|
Non-GAAP Operating margin |
|
20.7 |
% |
|
|
17.2 |
% |
|
|
|
|
||||
Depreciation and amortization |
|
21,734 |
|
|
|
20,294 |
|
Non-GAAP Adjusted EBITDA |
|
142,823 |
|
|
|
112,302 |
|
As a % of total revenues non-GAAP |
|
24.4 |
% |
|
|
21.0 |
% |
TABLE 5 RINGCENTRAL, INC. RECONCILIATION OF NET INCOME (LOSS) GAAP MEASURES TO NON-GAAP MEASURES (In thousands, except per share data) (Unaudited) |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) reconciliation |
|
|
|
||||
GAAP net loss |
$ |
(28,494 |
) |
|
$ |
(54,399 |
) |
Share-based compensation |
|
91,016 |
|
|
|
101,295 |
|
Amortization of acquired intangibles |
|
34,917 |
|
|
|
37,223 |
|
Third-party relocation and other costs, net |
|
1,473 |
|
|
|
(363 |
) |
Restructuring costs |
|
4,582 |
|
|
|
4,875 |
|
Amortization of debt discount and issuance costs |
|
1,003 |
|
|
|
1,119 |
|
Loss (gain) associated with investments |
|
— |
|
|
|
1,646 |
|
Intercompany remeasurement loss |
|
262 |
|
|
|
15 |
|
Income tax expense effects |
|
(21,025 |
) |
|
|
(18,177 |
) |
Non-GAAP net income |
$ |
83,734 |
|
|
$ |
73,234 |
|
Reconciliation between GAAP and non-GAAP weighted average shares used in computing basic and diluted net income (loss) per common share: |
|
|
|
||||
Weighted average number of shares used in computing basic net loss per share |
|
93,142 |
|
|
|
95,720 |
|
Effect of dilutive securities |
|
2,807 |
|
|
|
1,163 |
|
Non-GAAP weighted average shares used in computing non-GAAP diluted net (loss) income per share |
|
95,949 |
|
|
|
96,883 |
|
|
|
|
|
||||
Diluted net income (loss) per share |
|
|
|
||||
GAAP net loss per share |
$ |
(0.31 |
) |
|
$ |
(0.57 |
) |
Non-GAAP net (loss) income per share |
$ |
0.87 |
|
|
$ |
0.76 |
|
TABLE 6 RINGCENTRAL, INC. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES GAAP MEASURES TO NON-GAAP FREE CASH FLOW MEASURES (Unaudited, in thousands) |
|||||||
|
|
||||||
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
96,094 |
|
|
$ |
108,533 |
|
Capitalized expenditures |
|
(19,409 |
) |
|
|
(21,319 |
) |
Non-GAAP free cash flow |
$ |
76,685 |
|
|
$ |
87,214 |
|
Non-GAAP free cash flow margin |
|
13.1 |
% |
|
|
16.3 |
% |
TABLE 7 RINGCENTRAL, INC. RECONCILIATION OF FORECASTED OPERATING MARGIN AND FREE CASH FLOW GAAP MEASURES TO NON-GAAP MEASURES (Unaudited, in millions) |
|||||||||||
|
Q2 2024 |
|
FY 2024 |
||||||||
|
Low Range |
|
High Range |
|
Low Range |
|
High Range |
||||
GAAP revenues |
584.5 |
|
|
587.5 |
|
|
2,379.0 |
|
|
2,399.0 |
|
|
|
|
|
|
|
|
|
||||
GAAP loss from operations |
(16.0 |
) |
|
(11.4 |
) |
|
(37.4 |
) |
|
(21.2 |
) |
GAAP operating margin |
(2.7 |
%) |
|
(1.9 |
%) |
|
(1.6 |
%) |
|
(0.9 |
%) |
Share-based compensation |
100.0 |
|
|
98.0 |
|
|
390.0 |
|
|
380.0 |
|
Amortization of acquired intangibles |
35.0 |
|
|
35.0 |
|
|
140.0 |
|
|
140.0 |
|
Restructuring costs |
2.0 |
|
|
— |
|
|
7.0 |
|
|
5.0 |
|
Non-GAAP income from operations |
121.0 |
|
|
121.6 |
|
|
499.6 |
|
|
503.8 |
|
Non-GAAP operating margin |
20.7 |
% |
|
20.7 |
% |
|
21.0 |
% |
|
21.0 |
% |
|
FY 2024 |
||||||
|
Low Range |
|
High Range |
||||
GAAP net cash provided by operating activities |
$ |
470.0 |
|
|
$ |
475.0 |
|
Capitalized expenditures |
|
(85.0 |
) |
|
|
(85.0 |
) |
Non-GAAP free cash flow |
$ |
385.0 |
|
|
$ |
390.0 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240507869127/en/
Investor Relations Contact:
Will Wong, RingCentral
650-450-4826
ir@ringcentral.com
Media Contact:
Mariana Leventis, RingCentral
650-562-6545
Mariana.Leventis@ringcentral.com
Source: RingCentral, Inc.
FAQ
What were RingCentral's total revenue and subscriptions revenue for Q1 2024?
What was the GAAP operating margin for RingCentral in Q1 2024?
What is RingCentral's 2024 revenue outlook after the first quarter results?
What was the non-GAAP operating margin for RingCentral in Q1 2024?
What was the net cash provided by operating activities for RingCentral in Q1 2024?
