RingCentral earnings and revenue for the December quarter topped analyst estimates amid strong demand for cloud-based communications software during the coronavirus pandemic. RingCentral stock fell during extended trading on Tuesday as investors digested 2021 guidance.
Belmont, Calif.-based RingCentral (RNG) said adjusted earnings rose 31% to 29 cents a share from a year earlier. Revenue climbed 32% to $335 million, the maker of communications software said.
Analysts expected RingCentral earnings of 27 cents a share on sales of $317.4 million for the period ended Dec. 31. A year earlier, RingCentral earned 22 cents a share on sales of $233.4 million.
RingCentral stock fell 2.7% to near 425 in extended trading on the stock market today.
For the March quarter, the RingCentral earnings report calls for profit of $1.22 per share vs. estimates of $1.17. RingCentral says it expects revenue in a range of $1.475 billion to $1.49 billion vs. estimates of $1.436 billion. As Covid-19 vaccinations gain traction, more workers are expected to return to offices.
RingCentral Stock Traded Just Above Buy Zone
RingCentral stock traded just above a buy zone with an entry point of 405.56 before the earnings release.
The company sells cloud-based business communications software for workplace collaboration and customer support. The platform provides voice, chat, conferencing and application integration. While RingCentral has partnered with Zoom Video Communications (ZM), the two companies are also becoming rivals, analysts say.
The enterprise software stock has a Relative Strength Rating of 78 out of a possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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