RingCentral Inc.’s stock jumped about 10% in after-hours trading Monday after it reported a narrowing quarterly loss, results that beat analysts’ forecasts on the top- and bottom-lines, and sales projections that were raised.
The cloud-based communications company
RNG,
posted a third-quarter net loss of $42.1 million, or 45 cents a share, compared with a net loss of $284.6 million, or $2.98 a share, in the same quarter a year ago. Adjusted earnings were 78 cents a share.
Total revenue improved nearly 10% to $558.2 million from $509 million a year ago. Subscription sales were $531 million, or about 95% of total
revenue.
Analysts polled by FactSet had forecast on average adjusted earnings of 75 cents a share and revenue of $554 million.
“The results speak for themselves: Our solid third-quarter results demonstrate our ability to drive long-term durable, profitable growth,” RingCentral Chief Executive Tarek Robbiati said in an interview. This marks his first quarter as company CEO after five years as chief financial officer at Hewlett Packard Enterprise Co.
HPE,
Robbiati credited his predecessor for the quarterly performance and vowed to “infuse AI into everything we do.”
“We are leveraging AI into our core of products,” he added. “AI is a massive trend in turbo-charging productivity.”
At the same time, RingCentral raised its annual total revenue guidance to between $2.198 billion and $2.205 billion. FactSet analysts are projecting $2.198 billion.
The company’s board last week also authorized an incremental $100 million stock-repurchase plan.
Shares of RingCentral are down 20% in 2023; the broader S&P 500 index
SPX
is up 14%.
