RingCentral to report Q1 earnings with expected revenue and earnings growth, facing competitive pressures

From Nasdaq: 2025-05-06 12:36:00

RingCentral (RNG) will report first-quarter 2025 results on May 8, expecting revenues between $607 million and $612 million with non-GAAP earnings of 93-97 cents per share. Analysts predict revenues at $610.74 million and earnings at 96 cents per share, indicating 4.54% and 10.34% growth year-over-year, respectively. Despite competition from Microsoft and Zoom, RingCentral holds a 20% share in the UCaaS market and remains a key player.

Factors like competitive pressures, sluggish IT spending, and aggressive pricing strategies may have impacted RingCentral’s first-quarter 2025 performance. However, the company’s multi-product approach, including offerings like RingCentral CX and RingCentral Events, is expected to have driven customer engagement and business expansion. The company’s gross and operating margins may have been influenced by increased investments in AI and product development, limiting short-term margin expansion.

RingCentral’s earnings history shows an average surprise of 4.38% in the last four quarters. However, for the upcoming report, the company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). For those looking for potential stocks, StoneCo (STNE) with an Earnings ESP of +6.25% and a Zacks Rank #1 could be a consideration for its upcoming first-quarter 2025 results on May 8.

Zacks Research Chief highlights a stock set to potentially double in the coming months, pointing to an innovative financial firm with significant growth potential. The stock is noted for its expanding customer base and cutting-edge solutions. Interested investors can access more information on this top pick and other potential runners-up for investment opportunities.



Read more at Nasdaq: RNG Set to Report Q1 Earnings: What’s in the Cards for the Stock?