RingCentral Q1 beats guidance; raises FY revenue, margin, EPS outlook

Financial Results for the First Quarter 2023 • Revenue: Total revenue was $534 million for the first quarter of 2023, up from $468 million in the first quarter of 2022, representing 14% growth. Adjusted for constant currency, total revenue rose 15%. Subscriptions revenue of $508 million increased 16% year over year and accounted for 95% of total revenue. Adjusted for constant currency, subscriptions revenue rose 17%. • Operating Income (Loss): GAAP operating loss was ($55) million, compared to ($104) million in the same period last year. Non-GAAP operating income was $92 million, or 17.2% of total revenue, compared to $49 million, or 10.4% of total revenue, for the first quarter of 2022. • Adjusted EBITDA: Adjusted EBITDA for the first quarter of 2023 was $112 million, or 21.0% of total revenue, compared to $66 million, or 14.0% of total revenue, for the first quarter of 2022. • Net Income (Loss) Per Share: GAAP net loss per share was ($0.57), compared to ($1.60) in the same period las

Financial Outlook Full Year 2023 Guidance: • Raising subscriptions revenue range to $2.086 to $2.104 billion, representing annual growth of 11%. • Raising total revenue range to $2.187 to $2.205 billion, representing annual growth of 10% to 11%. • Raising GAAP operating margin range to (7.9%) to (6.6%), compared to the prior range of (8.3%) to (6.9%). • Raising non-GAAP operating margin to at least 18.5%, compared to at least 18.0% previously. • Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards. • Raising non-GAAP EPS to $3.19 to $3.25 based on 98.0 to 99.0 million fully diluted shares. This is up from our prior range of $3.04 to $3.10 based on 99.0 to 100.0 million fully diluted shares. Outlook does not include interest income (expense). • Share-based compensation range of $395 to $415 million. • Amortization of acquired intangibles of $149 million. • Third-party relocation and other costs, net, of $3 million. • Restructuring

Second Quarter 2023 Guidance: • Subscriptions revenue range of $511 to $513 million, representing year-over-year growth of 10% to 11%. • Total revenue range of $535 to $537 million, representing year-over-year growth of 10%. • GAAP operating margin range of (10.0%) to (8.9%). • Non-GAAP operating margin of 17.5%. • Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards. • Non-GAAP EPS of $0.74 to $0.76 based on 96.5 to 97.5 million fully diluted shares. Outlook does not include interest income (expense). • Share-based compensation range of $102 to $107 million. • Amortization of acquired intangibles of $38 million. • Restructuring costs of $3 million.