Why Is RingCentral (RNG) Stock Rocketing Higher Today

Kayode Omotosho /
2023/05/10 9:20 am EDT

What Happened:

Shares of office and call centre communications software provider RingCentral (NYSE:RNG) jumped 11.1% in the after-market session after the company reported an encouraging "beat and raise" quarter. First-quarter revenue, adjusted EBITDA, free cash flow, and earnings per share (EPS) all beat Consensus estimates. Revenue guidance for the next quarter and the full year came in roughly inline with Consensus. On a more positive note, EPS guidance for the next quarter exceeded expectations, and the company raised the full-year EPS guidance. Overall, it was a solid quarter for the company especially considering the mixed results of peers and macro uncertainty.

What is the market telling us:

RingCentral's shares are very volatile and over the last year have had 65 moves greater than 5%. But moves this big are very rare even for RingCentral and that is indicating to us that this news had a significant impact on the market's perception of the business.

RingCentral is down 14.1% since the beginning of the year, and at $29.55 per share it is trading 57.4% below its 52-week high of $69.30 from May 2022. Investors who bought $1,000 worth of RingCentral's shares 5 years ago would now be looking at an investment worth $384.74.

Is now the time to buy RingCentral? Access our full analysis of the earnings results here, it's free.