RingCentral Q4 Revenue Hits $644M with 5.5% Subscription Growth, EPS $1.18 Beat
RingCentral posted Q4 revenue of $644.03 million, up 4.8% year-over-year and 0.27% above estimates, driven by subscription sales rising 5.5% to $622.22 million. Non-GAAP EPS of $1.18 beat forecasts by 3.69%, despite subscription gross margin slipping to 80.4% from the 80.6% consensus.
1. Q4 Results Overview
RingCentral delivered $644.03 million in Q4 revenue, marking a 4.8% increase from a year ago and topping consensus by 0.27%. Non-GAAP EPS reached $1.18, up from $0.98 a year earlier and exceeding the $1.14 estimate by 3.69%.
2. Margin and Revenue Segments
Subscription revenue rose 5.5% to $622.22 million, slightly above the $621.84 million forecast, while other revenue declined 12.2% to $21.82 million versus the $20.44 million estimate. Subscription gross margin slipped to 80.4% against an 80.6% consensus and non-GAAP other margin worsened to -10.6% versus -9.5% expected.
3. Stock Performance and Outlook
Shares have climbed 14.1% over the past month compared with a 0.8% drop for the S&P 500 composite. The company holds a Zacks Rank #4 (Sell), suggesting potential underperformance in the near term.