Stock Monitor: Aware Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 19, 2018 / Active-Investors.com has just released a free earnings report on RingCentral, Inc. (NYSE: RNG). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=RNG. RingCentral reported its fourth quarter fiscal 2017 operating and financial results on February 12, 2018. The leading provider of global enterprise cloud communications and collaboration solutions blew past market expectations and provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, RingCentral most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
RingCentral's total revenue was $140.5 million for Q4 2017, up from $104.5 million in Q4 2016, representing 34% growth. The Company's total gross margin was 76.1% for the reported quarter, down 0.3% points versus 76.4% in the year ago comparable period. RingCentral's reported numbers beat analysts' estimates of $137.0 million.
As of January 01, 2017, RingCentral transitioned from an agency model to a direct phone sales model, under which the Company is recognizing the full sale price and cost of the product instead of receiving a commission for phone sales. Adjusting for the direct phone sales model on a comparable basis, total revenue in Q4 2017 increased 31% on a y-o-y basis and the total gross margin would have been 1.5% higher compared to the year ago same period.
During Q4 2017, RingCentral's GAAP operating margin was negative 4.4%, reflecting an improvement of 1.9 points from the year ago same period, while non-GAAP operating margin was 3.9%, up 1.8 points y-o-y.
For Q4 2017, RingCentral's GAAP net loss was $0.08 per share compared to net loss of $0.09 per share for Q4 2016. The Company's non-GAAP net income was $0.07 per diluted share for the reported quarter, up 133% compared to $0.03 per diluted share for the prior year's corresponding quarter. RingCentral's earnings surpassed Wall Street's estimates of $0.06 per share.
For full year (FY) 2017, RingCentral's total revenue surged 32% to $501.5 million, up from $379.7 million in FY16. Adjusting for the direct phone sales model on a comparable basis, total revenue grew 29% on a y-o-y basis for FY17.
For FY17, RingCentral's net income GAAP net loss was $0.34 per share compared to $0.40 per share for FY16. The Company's non-GAAP net income soared 122% to $0.20 per diluted share for FY17 compared to $0.09 per diluted share for FY16.
During Q4 2017, RingCentral's software subscriptions revenue grew 32% to $129.7 million on a y-o-y basis. The Company's Software subscriptions annualized exit recurring software subscriptions (ARR) grew 32% compared to the year ago same period to $546.4 million. In the reported quarter, RingCentral's GAAP software subscriptions gross margin was 81.3%, up 1.1 points y-o-y, while non-GAAP software subscriptions gross margin was 82.1%, up 0.9 points from the year earlier same quarter.
RingCentral capped off the year with a record 15 deals with total contract value (TCV) of more than $1 million in Q4 2017, up from 10 deals in the previous quarter.
RingCentral's total cash and cash equivalents at the end of Q4 2017 was $181.2 million compared to $172.3 million at the end of Q3 2016 and $160.4 million at the end of FY16.
For FY18, RingCentral is forecasting Software subscriptions revenue in the range of $581 million and $589 million, reflecting annual growth of 25% to 27%. The Company is estimating total revenue for FY18 between $629 million and $639 million, or an annual growth rate of 25% to 27% and non-GAAP earnings between $0.56 to $0.60 per share.
For Q1 2018, RingCentral is projecting Software subscriptions revenue in the band of $134 million and $135 million, representing annual growth of 29% to 30% and total revenue between $144.5 million and $146.5 million, or an annual growth of 29% to 31%. The Company is expecting non-GAAP earnings in the range of $0.11 and $0.13 per share.
Stock Performance Snapshot
March 16, 2018 - At Friday's closing bell, RingCentral's stock was slightly up 0.37%, ending the trading session at $68.35.
Volume traded for the day: 564.41 thousand shares.
Stock performance in the last month – up 18.15%; previous three-month period – up 42.10%; past twelve-month period – up 148.55%; and year-to-date – up 41.22%
After last Friday's close, RingCentral's market cap was at $5.27 billion.
The stock is part of the Technology sector, categorized under the Application Software industry.
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