Thursday, March 23, 2023
HomeMarketRingCentral stock plunges 10% as sales forecast disappoints

RingCentral stock plunges 10% as sales forecast disappoints

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RingCentral Inc.
shares dove 10% in after-hours trading Wednesday, following a quarterly report that included disappointing sales guidance. The cloud-telephony company’s executives forecast 2023 revenue of $2.18 billion to $2.2 billion, while analysts on average were expecting $2.32 billion, according to FactSet. For the first quarter, RingCentral expects revenue of $526 million to $530 million, while analysts on average were projecting $544 million, according to FactSet. The company’s guidance for adjusted earnings — 69 to 70 cents a share in the first quarter and $3.04 to $3.10 a share for the year — did beat Wall Street’s expectations, though, as did fourth-quarter earnings. The company reported earnings of $284.1 million, or $2.97 a share, on sales of $524.7 million, up from $448.5 million a year ago. After adjusting for stock-based compensation, more than $10 million in restructuring costs from recent layoffs, an asset write-down charge of more than $180 million and other costs, RingCentral claimed earnings of 60 cents a share. Analysts on average expected adjusted earnings of 59 cents a share on sales of $527.4 million, according to FactSet. RingCentral stock has declined 72% in the past 12 months, as the S&P 500 index
has dropped 7.5%.


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