RingCentral late Tuesday posted better-than-expected fourth-quarter financial results, along with guidance for the first quarter and full year that topped Street estimates, but the results aren’t providing any lift to the company’s shares.
The stock is bouncing around the flat line in late trading. RingCentral (ticker: RNG
), a provider of cloud-based communications services, saw its shares spike during the heart of the pandemic period, but the company’s stock price has since fallen precipitously. At the close of Tuesday’s regular session, at $147.64, the stock was off about 63% from its 52-week peak. The stock has been hurt by a combination of compressed margins for high multiple cloud software providers, competitive concerns and a perception that the need for cloud-based video services in particular will moderate as the economy reopens and more people return to offices.
For the December quarter, the provider of cloud-based communications services posted revenue of $448 million, up 34% from a year ago, and ahead of both the company‘s guidance range of $433.5 million to $434.5 million and the Street consensus at $435 million. RingCentral posted adjusted profits for the quarter of 39 cents a share, two pennies better than the company’s forecast and the Street consensus.
The company said subscription revenue was $420 million, up 37%, and well above the guidance range of $404.5 to $405.5 million. Under generally accepted accounting principles, the company had a loss in the quarter of $1.27 a share.
“Fourth-quarter results were outstanding, driven by continued momentum with upmarket customers and ramping contributions from our key partners,” RingCentral CEO Vlad Shmunis said in a statement.
For the March quarter, Ring is projecting revenue of $455 million to $459 million, up 29% to 30%, with subscription revenue of $426 million to $428 million, up 31% to 32%. Ring sees non-GAAP profits in the quarter of 34 cents a share. Street consensus had called for $450.6 million and 33 cents a share.
For all of 2022, Ring sees revenue of $1.99 billion to $2.015 billion, up 25% to 26%, with non-GAAP profits of $1.69 to $1.72 a share. The old Street consensus for the year had been $1.98 billion and $1.65 a share.
Write to Eric J. Savitz at [email protected]
