RingCentral (RNG) Reports Q2 Earnings: What Key Metrics Have to Say

For the quarter ended June 2024, RingCentral (RNG) reported revenue of $592.91 million, up 9.9% over the same period last year. EPS came in at $0.91, compared to $0.83 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $586.28 million, representing a surprise of +1.13%. The company delivered an EPS surprise of +3.41%, with the consensus EPS estimate being $0.88.

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:

• Gross Margin- Subscriptions

  : 80.9% versus 81.8% estimated by seven analysts on average.

• Gross Margin- Other

  : -2.5% versus the six-analyst average estimate of 5.3%.

• Annualized Exit Monthly Recurring Subscriptions (ARR)

  : $2.43 billion versus $2.41 billion estimated by two analysts on average.

• Revenues- Other

  : $25.85 million versus the seven-analyst average estimate of $26.38 million. The reported number represents a year-over-year change of +0.7%.

• Revenues- Subscriptions

  : $567.06 million versus the seven-analyst average estimate of $559.92 million. The reported number represents a year-over-year change of +10.4%.

View all Key Company Metrics for RingCentral here>>>

Shares of RingCentral have returned +22.7% over the past month versus the Zacks S&P 500 composite's +1.1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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