Office and call centre communications software provider RingCentral (NYSE: RNG) will be reporting results this Tuesday afternoon. Here’s what investors should know.
RingCentral met analysts’ revenue expectations last quarter, reporting revenues of $612.1 million, up 4.8% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.
Is RingCentral a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting RingCentral’s revenue to grow 4.2% year on year to $617.7 million, slowing from the 9.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.02 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RingCentral has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.6% on average.
Looking at RingCentral’s peers in the productivity software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Five9 delivered year-on-year revenue growth of 12.4%, beating analysts’ expectations by 2.9%, and ServiceNow reported revenues up 22.4%, topping estimates by 2.9%. Five9 traded down 6.1% following the results while ServiceNow was up 4.3%.
Read our full analysis of Five9’s results here and ServiceNow’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the productivity software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. RingCentral is down 19.7% during the same time and is heading into earnings with an average analyst price target of $33.29 (compared to the current share price of $23.75).
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