UPDATE: RingCentral stock falls despite beating earnings expectations
RingCentral Inc. (RNG) shares fell in the extended session Monday even though the enterprise cloud communications company reported results that beat expectations. The Belmont, Calif.-based company's shares fell 1.5% in after-hours trading, after a 5.4% gain in the regular session to close at $305.36. The company reported second-quarter net income of $509,000, or 1 cent a share, versus a loss of $9.2 million, or 11 cents a share, in the year-ago period. Adjusted earnings were 24 cents a share after adjusting for higher share-based compensation and amortization of intangibles. Revenue rose to $278 million from $215 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 20 cents a share on revenue of $264 million. Citing strength in its subscriptions business because the pandemic has driven "enterprise communications platforms to a top IT priority," the company issued guidance for third-quarter revenue of $283.5 to $289.5 million, which would mean annual growth of 21% to 24%. For the full year, the company raised its guidance revenue range to $1.135 to $1.143 billion, representing annual growth of 26% to 27%, up from its prior range of $1.116 to $1.125 billion and annual growth of 24% to 25%. RingCentral shares are up 81% year to date, while the S&P 500 Index is up 1.25% so far.
-Levi Sumagaysay; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 03, 2020 17:14 ET (21:14 GMT)
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