2023-08-07 16:05:58 ET
- RingCentral press release ( NYSE: RNG ): Q2 Non-GAAP EPS of $0.83 beats by $0.08 .
- Revenue of $539M (+10.7% Y/Y) beats by $2.65M .
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Financial Outlook
Full Year 2023 Guidance:
- Maintaining subscriptions revenue range of $2.086 to $2.104 billion, representing annual growth of 11%.
- Maintaining total revenue range of $2.187 to $2.205 billion, vs. consensus of $2.20B, representing annual growth of 10% to 11%.
- GAAP operating margin range of (8.0%) to (6.3%) versus (7.9%) to (6.6%) previously.
- Raising non-GAAP operating margin range to 18.5% to 19.0%, up from at least 18.5% previously.
- Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
- Non-GAAP EPS of $3.11 to $3.25, vs. consensus of $3.23, based on 99.0 million to 98.0 fully diluted shares. This outlook includes our estimate for interest expense, net, as we drew on our term loan facility in May 2023. This compares to $3.19 to $3.25 based on 99.0 million to 98.0 fully diluted shares, which did not include estimated interest expense, net.
- Share-based compensation range of $395 to $415 million.
- Amortization of acquired intangibles of $149 million.
- Third-party relocation and other costs, net, of $5 million.
- Restructuring costs of $9 to $10 million.
Third Quarter 2023 Guidance:
- Subscriptions revenue range of $526 to $530 million, representing year-over-year growth of 9% to 10%.
- Total revenue range of $552 to $556 million, vs. consensus of $553.89M, representing year-over-year growth of 8% to 9%.
- GAAP operating margin range of (9.1%) to (7.3%).
- Non-GAAP operating margin of 18.0% to 18.5%.
- Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
- Non-GAAP EPS of $0.75 to $0.78,vs. consensus of $0.82, based on 98.5 to 97.5 million fully diluted shares.
- Share-based compensation range of $105 to $110 million.
- Amortization of acquired intangibles of $38 million.
- Restructuring costs of $1 to $2 million.
CEO Succession
RingCentral separately announced a CEO succession under which Tarek Robbiati, a member of the RingCentral Board of Directors since December 2022 and Chief Financial Officer and EVP of Finance and Strategy of Hewlett Packard Enterprise, will succeed Shmunis as CEO, effective August 28, 2023.
For further details see:
RingCentral Non-GAAP EPS of $0.83 beats by $0.08, revenue of $539M beats by $2.65M