AI-powered customer engagement firm RingCentral Q3 revenue beats on subscription growth
RNG•RingCentral’s third-quarter revenue rose 5.9% year over year to $676.04 million, beating analyst expectations of $667.04 million. The company raised its full-year revenue and non-GAAP EPS outlook and repurchased $18 million in shares during the quarter.
1. Quarterly results
RingCentral reported third-quarter revenue of $676.04 million, up 5.9% year over year and above analyst expectations of $667.04 million. Subscription revenue rose 6%, and non-GAAP earnings per share increased year over year.
2. Raised outlook
The company raised its full-year revenue outlook to $2.650 billion-$2.657 billion and its full-year non-GAAP EPS outlook to $5.07-$5.12. It expects fourth-quarter revenue of $673 million-$680 million.
3. AI adoption and shares
RingCentral said annual recurring revenue from customers using paid AI products nearly doubled year over year. It repurchased $18 million in shares during the quarter.
