Q2 2024 RingCentral Inc Earnings Call Transcript
Key Points
- Total revenue rose 10% to $593 million, exceeding guidance.
- Operating margin improved to 20.9%, above guidance.
- Strong traction with new products, particularly RingCX.
- Record levered free cash flow of $109 million.
- Enterprise business showed double-digit year-over-year growth.
- Continued challenging macro environment impacting small businesses.
- Stock-based compensation remains high at 15% of total revenue.
- Overall upsell continues to be impacted by macroeconomic factors.
- Subscription revenue growth is slowing, projected at 8% for Q3.
- Significant reliance on large enterprise deals, which may not be sustainable long-term.
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Good day and welcome to the RingCentral second quarter 20, all part of the system installed base station. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Will Wong, Vice President of Investor Relations. Please go ahead.
Thank you. Good afternoon, and welcome to RingCentral's Second Quarter 2024 earnings conference call. Joining me today are Vlad Shmunis, Founder, Chairman and CEO; and Sonalee Parekh, CFO. Our format today will include prepared remarks by Vlad and certainly followed by Q&A today. We also had a slide presentation available on our Investor Relations website and will coincide with today's call, which you can find another financial results section at ir dot ringcentral.com.
Some of my discussion and responses to your questions will contain forward-looking statements regarding the Company's business operations, financial performance and
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