What factors drove the changes in RingCentral's revenue and profit?

What is RingCentral's latest dividend and current dividend yield?

What does RingCentral do and what are its main business segments?

What is the market's earnings forecast for RingCentral next quarter?

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Did RingCentral beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for RingCentral year over year?

- **Revenue & AI Growth**: Q3 revenue $639M (+5% YoY), AI products on track for $100M ARR by year-end. AIR adoption up 80% QoQ, ACE used by 4,300 customers.
- **Agentic AI Leadership**: Launch of AVA and WFM integration completes end-to-end AI suite. Televero Health saw 20% revenue uplift using AIR.
- **Financial Strength**: Operating margin 22.8%, free cash flow $130M (23% YoY). Free cash flow per share $5.71, best-in-class growth.
- **Strategic Moves**: $200M shares repurchased, debt reduced by $275M. Target $1B gross debt by 2026. GSP partnerships drive >10% revenue growth.

**【CEO Summary Section】**
- **Q3 Revenue Growth**: Total revenue of $639 million, up 5% YoY, with subscription revenue at $616 million (6% YoY). AI-led products contribute strongly, on track to exceed $100 million ARR by year-end.
- **RingCentral 3.0 Strategy**: Transitioning to agentic voice AI with AIR, AVA, and ACE. AIR adoption grew 80% QoQ, ACE now used by 4,300 customers. Core voice platform remains mission-critical, processing 100 million call minutes daily.
- **Market Expansion**: 1/3 of inbound traffic now uses informal contact center features. RingCX grows double-digit sequentially, integrated with AI modules for seamless customer engagement.

**【COO Summary Section】**
- **AI Product Adoption**: AIR now serves 5,800 paying customers, ACE adoption up 19% QoQ. AVA launched to enhance real-time agent support. CommunityWFM integration completes WEM suite, offering end-to-end workforce management.
- **Internal AI Efficiency**: RingCentral on RingCentral reduces handle time by 15%, ACE improves sales performance by 10%. AI-driven cost savings and scalability drive margin expansion.
- **Customer Success**: Examples include Televero Health (20% revenue uplift) and Modisoft (enhanced customer sentiment analysis).

**【CFO Financial Commentary】**
- **Profitability**: Operating margin 22.8% (up 180bps YoY), non-GAAP EPS $1.30 (19% YoY growth). Subscription gross margin 81%, SBC as % of revenue down 350bps YoY to 11%.
- **Cash Flow**: Q3 free cash flow $130 million (23% YoY), full-year guidance raised to $525-530 million (30% YoY growth). Free cash flow per share $5.71, best-in-class.
- **Capital Allocation**: $275 million debt paid down YTD, $200 million shares repurchased. Share count to 92 million in 2025, down from 2020 levels. Target $1 billion gross debt by end-2026.

**【Q&A Highlights】**
- **RingCentral 3.0 Benefits**: Fortune 500 customers gain AI-driven efficiency across pre-call, during, and post-call workflows. AIR/AVA/ACE integration enhances customer experience and operational efficiency.
- **GSP Momentum**: GSPs contribute >10% of revenue, growing double-digit. AT&T deploying AIR, expanding reach via 200,000+ resellers.
- **Free Cash Flow Sustainability**: Driven by SBC reduction, offshoring, and AI adoption. Free cash flow per share up 35% YoY, targeting further expansion.
- **Contact Center Growth**: RingCX double-digit QoQ growth, 50% of $1M+ deals include AI modules. WFM acquisition accelerates land-and-expand strategy.
- **Market Position**: Unique combination of scale, voice expertise, and AI innovation positions RingCentral to capture $100 billion+ TAM in AI communications.

RingCentral, Inc. (RNG) Q3 2025 Earnings Call Transcript

- **Revenue Beats Expectations**: $620M total revenue (+5% YoY), driven by UCaaS core and AI products.
- **AI Product Surge**: New AI products on track for $100M ARR, with AIR adoption tripling and RingCX winning 1,200+ customers.
- **Financial Strength**: Record $144M free cash flow (+33% YoY), first positive GAAP net income, and $500M buyback authorization.
- **Strategic Wins**: AT&T expands partnership to include RingSense and RingCX; Ryanair and top European bank wins highlight enterprise traction.

**【CEO Summary Section】**
- **Revenue Growth**: Total revenue reached $620 million, up 5% YoY, with subscription revenue at $600 million (+6% YoY). ARR increased 7% to $2.6 billion.
- **AI Product Momentum**: New AI products (AIR, RingSense, RingCX) contributed meaningfully to ARR, with $100 million ARR target for 2025. AIR adoption tripled to 3,000+ customers, RingCX won 1,200+ customers, and RingSense grew to 3,600+ customers.
- **Strategic Partnerships**: Extended partnership with NiCE for RingCentral Contact Center and expanded collaboration with AT&T to include RingSense and RingCX in their portfolio.
- **Financial Milestones**: Achieved first-time positive GAAP operating and net income. Free cash flow rose 33% YoY to $144 million, with FCF per share at $1.57 (+37% YoY).
- **AI Investment**: Annually investing $250 million in innovation, with growing share dedicated to AI. Free cash flow guidance raised to $515-520 million for 2025 (+20.5% margin).

**【CFO Financial Commentary】**
- **Profitability**: Subscription gross margin >80.5%, operating margin 22.6% (up 160bps YoY). Non-GAAP EPS grew 16% to $1.06.
- **Cost Discipline**: S&M expenses as % of revenue declined 170bps to 37.8%. SBC reduced 450bps YoY, with net new grants down 45% YTD.
- **Balance Sheet**: Repaid $105 million debt, reducing gross debt to $1.27 billion. Net leverage improved to 1.8x. Board approved $500 million share buyback.
- **Guidance**: Full-year free cash flow raised to $515-520 million. Q3 revenue expected $611-619 million (+5-6% YoY).

RingCentral, Inc. (RNG) Q2 2025 Earnings Call Transcript

- **Record Q1 Growth**: $612M revenue (+5% YoY), $2.5B ARR (+7% YoY), $130M free cash flow (70% YoY).
- **AI-Driven Expansion**: 1,000+ RingCX customers, 1,000+ AIR activations, 2,800+ RingSense users in 6 weeks.
- **Profitability & Efficiency**: 21.8% operating margin, 21.3% free cash flow margin, 20% R&D productivity boost via AI.
- **Strategic Focus**: Small businesses (30% ARR), GSPs (10% ARR), and AI-powered CCaaS (50%+ TCV attach rate).


**【CEO Key Highlights】**
- Q1 2025 revenue reached $612M, up 5% YoY, with ARR surpassing $2.5B (7% YoY growth). AI-powered products drove 1,000+ new RingCX customers and 400+ AIR activations within 6 weeks.
- Operating margin expanded to 21.8%, with GAAP operating profitability maintained for the 3rd consecutive quarter. Free cash flow hit $130M (70% YoY growth), reducing net debt to 2x.
- Focus on small businesses (30% ARR contribution) and GSP partnerships (10% ARR, 40M+ seats globally) as key growth engines.

**【COO Strategic Updates】**
- RingCX adoption doubled sequentially, with 50%+ of $1M+ TCV deals including AI Quality Management. AIR achieved 1,000+ customers in 6 weeks, saving businesses 50%+ on inbound calls.
- Internal AI adoption boosted efficiency: 20% R&D productivity, 10x content creation speed, and 10% reduction in customer support handle times.
- UCaaS leadership sustained with 20% market share, integrating 500+ third-party apps like Microsoft Teams for 30% YoY MAU growth.

**【CFO Financial Breakdown】**
- Subscription revenue: $590M (+6% YoY), with new products on track for >$100M ARR by end-2025.
- Margins: Subscription GM >80%, operating margin 22% (vs. 20.9% last year). Free cash flow margin 21.3% vs. 13.1% YoY.
- Capital returns: $50M share buybacks (3% YoY dilution reduction) and $166M debt repayment, targeting <$1B gross debt by 2026.

**【Q&A Key Takeaways】**
- AI pricing power: Replacing $2-5K/month human agents with $100s/month AI solutions, driving ARPU expansion.
- Macro resilience: No direct tariff impact seen; GSP partnerships (e.g., Cox, Vodafone) provide stable 18-month breakeven.
- Expansion opportunities: 400K+ customers primed for AI upsells; RingCX CCaaS adoption rate >50% in large deals.


RingCentral (RNG)-8 May 25-2025 Q1 Earnings call transcript

- **Revenue resilience**: Q4 2024 revenue of $615 million (+8% YoY), full-year $2.4 billion (+9%), despite macro challenges.
- **AI-driven growth**: New product ARR at $50 million (vs. $100M target by end-2025), led by RingCX (700+ customers) and RingSense (2,000+ customers).
- **Profitability improvement**: Operating margin 21.3% (vs. 19.1% in 2023), free cash flow $403 million (+24% YoY).
- **Share buyback focus**: $322 million in 2024, with $100 million incremental authorization to reduce debt to $1 billion by 2026.
- **AI Receptionist innovation**: RingCentral AIR reduces customer costs by 30%, with early adoption from 700+ businesses.


**【CEO Summary Section】**
- Q4 2024 total revenue of $615 million, exceeding guidance with 8% YoY growth. Full-year revenue rose 9% to $2.4 billion.
- Operating margin expanded to 21.3% (vs. 19.1% in 2023), with free cash flow of $112 million, a quarterly record.
- Multiproduct strategy gaining traction: RingCX now has 700+ customers, RingSense ARR exceeds $50 million, and new product ARR is halfway to $100 million target by end-2025.
- AI-first strategy: Launched RingCentral AI Receptionist (AIR), an AI phone agent integrated into the phone system, reducing costs for businesses like Southwire by 30%.
- Stock-based compensation as % of revenue declined to 14% (from 20% in 2023), driving free cash flow per share growth.

**【CFO Financial Commentary】**
- Q4 2024 non-GAAP EPS of $1.08, exceeding expectations. Full-year free cash flow of $403 million (+24% YoY).
- 2025 guidance: Subscription revenue growth 5-7%, total revenue 4-6%, operating margin 22.5%, free cash flow $500 million (+25% YoY).
- Share buybacks: $322 million in 2024, with $100 million incremental authorization. Target to reduce gross debt to $1 billion by end-2026.
- RingCX revenue expected to more than double in 2025, despite aggressive pricing, due to higher margins and ease of deployment.

**【Q&A Key Themes】**
- Market share stability: RingCentral maintains 20% UCaaS leadership, with no material share loss despite competition from Microsoft/Zoom.
- RingCX adoption: 700+ customers, 50%+ AI Quality Management attach rate, and large deals (>1,000 seats) with Genpact and Echo Global Logistics.
- AI monetization: AIR and other AI add-ons (e.g., AI Assistant for RingEX) show early traction, with ARR potential from installed base.
- FX impact: 1-2% YoY revenue headwind, but core business trends remain strong.
- GSP partnerships: BT, Vodafone, Cox, and Zayo now reselling RingCX, with more to follow.


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