RingCentral ( NYSE: RNG ) has slipped 10% postmarket following a fourth-quarter earnings report where it narrowly missed revenue forecasts and guided to the light side for the current quarter.
The stock had risen 7.7% during Wednesday's regular trading; in the morning, it entered a strategic collaboration with Amazon Web Services .
Revenues did grow 17% to $525M, just short of Street consensus for $528M; subscriptions revenue rose 19% year-over-year, to $502M.
Annualized exit monthly recurring subscriptions rose by a similar 17%, to $2.1B; mid-market and enterprise ARR rose by 20% to $1.3B.
It swung to an operating loss of $256M, vs. a year-ago loss of $103M, mainly due to a noncash charge tied to its Avaya prepaid commissions balance. On a non-GAAP basis, operating income rose to $73M from $47M, at a margin of 14%.
RingCentral also announced it's entered a five-year, $600M credit facility (including a $400M delayed draw term loan A and a $200M revolver).
Cash and equivalents at quarter-end came to $270M, down from Q3's $305M; the difference came largely through $55M in cash paid for share buybacks in Q4.
For Q1, it's guiding to revenue of $526M-$530M (light of consensus for $545M), and operating margin of 16.5%. For the full year, it sees total revenues of $2.18B-$2.2B (annual growth of 10-11%), short of expectations for $2.33B.
Conference call to come at 5 p.m. ET .
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RingCentral falls 10% as revenues, forecast miss outlooks