RingCentral (RNG) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Zacks Equity Research
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For the quarter ended September 2023, RingCentral (RNG) reported revenue of $558.16 million, up 9.7% over the same period last year. EPS came in at $0.78, compared to $0.55 in the year-ago quarter.

The reported revenue represents a surprise of +0.77% over the Zacks Consensus Estimate of $553.92 million. With the consensus EPS estimate being $0.76, the EPS surprise was +2.63%.

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.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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

  • Annualized Exit Monthly Recurring Subscriptions (ARR): $2.26 billion versus $2.28 billion estimated by two analysts on average.

  • Revenues- Subscriptions: $531.03 million versus $527.93 million estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +9.9% change.

  • Revenues- Other: $27.13 million compared to the $25.88 million average estimate based on 11 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 -5.7% over the past month versus the Zacks S&P 500 composite's +3.1% 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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