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:
Active-Investors.com is currently working on the research report for Aware, Inc. (NASDAQ: AWRE), which also belongs to the Technology sector as the Company RingCentral. Do not miss out and become a member today for free to access this upcoming report at:
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.
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email email@example.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.