By Davit Kirakosyan
RingCentral, Inc. (NYSE:RNG) shares rose nearly 10% after-hours following the company’s reported Q3 results, with EPS of $0.55 coming in better than the consensus estimate of $0.50. Revenue grew 23% year-over-year (up 24% adjusted for constant currency) to $509 million, beating the consensus estimate of $502.79M.
Subscriptions revenue grew 25% year-over-year (up 27% adjusted for constant currency) to $483M. Annualized Exit Monthly Recurring Subscriptions (ARR) grew 25% year-over-year to $2.05 billion.
“Despite a difficult macro environment, we delivered a quarter that has exceeded our guidance across every key metric. Customers, partners and industry experts continue to recognize RingCentral as the leading cloud communications platform for business voice, messaging, video, and contact center,” said Vlad Shmunis, RingCentral’s founder, chairman and CEO.
The company expects Q4/22 EPS to be in the range of $0.59-$0.60, compared to the consensus of $0.59, and revenue in the range of $501.5-506.5M, compared to the consensus of $544.97M.
For the full 2022 year, the company expects EPS in the range of $1.97-$1.98, compared to the consensus of $1.93, and revenue in the range of $1.888-1.893B, compared to the consensus of $2B.