Office and call centre communications software provider RingCentral (NYSE:RNG) will be reporting earnings tomorrow after the bell. Here's what investors should know.
Last quarter RingCentral reported revenues of $414.6 million, up 36.5% year on year, beating analyst revenue expectations by 5.38%. It was a very strong quarter for the company, with an exceptional revenue growth and a solid beat of analyst estimates.
Is RingCentral buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting RingCentral's revenue to grow 29.9% year on year to $434.8 million, in line with the 32.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5.1%.
Looking at RingCentral's peers in the productivity software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. 8x8 (NYSE:EGHT) delivered top-line growth of 14.7% year on year, beating analyst estimates by 2.07% and ServiceNow (NYSE:NOW) reported revenues up 29% year on year, exceeding estimates by 0.6%. 8x8 traded down 7.05% on results, ServiceNow was up 9.6%. Read our full analysis of 8x8's results here and ServiceNow's results here.
Tech stocks have had a rocky start in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 5.78% over the last month. RingCentral is down 16.5% during the same time, and is heading into the earnings with analyst price target of $321.6, compared to share price of $144.77.
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The author has no position in any of the stocks mentioned.