RingCentral (NYSE:RNG) shares surged more than 7% after-hours following the company’s reported Q3 results, with EPS of $0.78 coming in better than the consensus estimate of $0.75.
Revenue grew 10% year-over-year to $558 million, beating the consensus estimate of $554.22M. Subscriptions revenue came in at $531M, up 10% year-over-year. Annualized exit monthly recurring subscriptions (ARR) rose 11% year-over-year to $2.26B, with mid-market and enterprise ARR growing 13% to $1.41B.
"We are seeing early traction with our new products such as RingCX, RingSense and RingCentral Events. Our efficiency initiatives also continue to drive improved non-GAAP operating margins, which we are raising to 19.0%, at the high end of our prior range of 18.5% to 19.0%. We are also raising our free cash flow outlook, and now expect to generate $290 to $300 million of adjusted, unlevered free cash flow in 2023, up from our prior outlook of $270 to $290 million,” said CFO Sonalee Parekh.
Full 2023-year EPS is expected to be in the range of $3.19-$3.20, compared to the consensus of $3.15, Revenue is now seen at $2.198-$2.205 billion, compared to the consensus of $2.2B.
For Q4, the company anticipates EPS in the range of $0.82-$0.83, compared to the consensus estimate of $0.82, and revenue in the range of $566.5-$573.5M, compared to the consensus of $570.95M.