RingCentral Q4 results, outlook top expectations, adds former U.S. education secretary Arne Duncan to Board
Cloud communications software vendor RingCentral this afternoon reported Q4 revenue and profit that topped analysts' expectations, and forecast the current quarter, and the full year, higher as well.
Despite the beat and upbeat view, the shares dipped by 1.7% in late trading.
Founder and CEO Vlad Shmunis, calling the quarter "outstanding," noted that the results were a consequence of "strong contributions from the channel and our key partners led by Avaya, AT&T, and Atos
Added Shmunis, "We are also excited to add Vodafone Business as a key partner as we continue to expand our global distribution network to meet the rising worldwide demand for cloud-based communication solutions."
Shmunis called out the company's recent addition of products Smart Video Meetings and RingCentral Glip, which he said would enhance customers' ability to "communicate via any mode, on any device, anywhere as they continue on their digital transformation journey."
In a separate release, RingCentral said it named Arne Duncan, formerly U.S. Secretary of Education in the Obama administration from 2009 to 2015, to its board of directors. Duncan is a managing partner at Emerson Collective, a non-profit established by Laurene Powell Jobs, widow of Apple co-founder Steve Jobs.
Said Shmunis, "Secretary Duncan brings a broad understanding and experience of the challenges that our communities will have to address over the next decade."
Revenue in the three months ended in December rose 32%, year over year, to $334.5 million, yielding EPS of 29 cents, excluding some costs.
Analysts had been modeling $292 million and 27 cents a share.
The company's subscription revenue rose by 34%, year over year, to $306 million, RingCentral said.
RingCentral said its annualized recurring revenue totaled $1.2 billion at quarter's end, up 39%.
For the current quarter, the company sees revenue of $337 million to $340 million, and EPS in a range of 24 cents to 25 cents. That compares to consensus for $329 million and 23 cents.
For the full year, the company sees revenue in a range of $1.475 billion to $1.490 billion, and EPS of $1.20 to $1.24. That compares to consensus of $1.33 billion and $1.17 per share.