RingCentral stock surges 9% on Q1 beat & raised outlook

RingCentral, Inc. (RNG) shares soared more than 9% after-hours following the company’s reported Q1 earnings, with EPS of $0.76 coming in better than the consensus estimate of $0.69.

Revenue grew 14% year-over-year to $534 million, beating the consensus estimate of $527.98M. Subscriptions revenue increased 16% year-over-year to $508M, accounting for 95% of total revenue. Annualized exit monthly recurring subscriptions (ARR) rose 14% year-over-year to $2.16 billion. Mid-market and Enterprise ARR grew 15% year-over-year to $1.33B.

For Q2/23, the company expects EPS in the range of $0.74-$0.76, compared to the consensus of $0.73, and revenue of $535-537M, compared to the consensus of $535.9M.

For the full year, the company expects EPS in the range of $3.19-$3.25, compared to the consensus of $3.08, and revenue of $2.187-2.205B, compared to the consensus of $2.19B.

By Davit Kirakosyan