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BELMONT, Calif. - RingCentral, Inc. (NYSE:RNG) reported fourth-quarter earnings and revenue that topped analyst estimates, but shares fell 2.5% in after-hours trading as the company’s first-quarter guidance came in below expectations.
The cloud communications provider posted adjusted earnings per share of $0.98, beating the consensus estimate of $0.97. Revenue rose 8% year-over-year to $615 million, surpassing analysts’ projections of $612.36 million.
However, RingCentral’s outlook for the current quarter disappointed investors. The company forecast first-quarter adjusted EPS of $0.93-$0.97, below the $1.01 consensus. Revenue guidance of $607-612 million also fell short of the $627.4 million analysts were expecting.
"We had a good fourth quarter, capping a strong year," said Vlad Shmunis, RingCentral’s founder and CEO. He highlighted that the company’s new AI-powered products are "gaining steam," including the newly unveiled RingCentral AI Receptionist.
For the full year 2024, RingCentral achieved GAAP operating profitability for the first time. The company generated record operating cash flow of $483 million, or 20.1% of total revenue.
Looking ahead to fiscal 2025, RingCentral expects subscription revenue growth of 5-7% and total revenue growth of 4-6%. The company projects full-year adjusted EPS of $4.13-$4.27, compared to the $4.22 consensus estimate.
RingCentral also announced the promotion of Kira Makagon to President and Chief Operating Officer, effective immediately.
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