US listed RingCentral shares slide a few points despite reporting Q4 beats and issuing upside Q1 and annual forecasts.
Revenue was up 32% on the year to $334.5m. Software subscription revenue increased 34% to $306.5m.
GAAP operating loss was $29m, compared to a GAAP operating loss of ($20) million in the same period last year, primarily driven by higher share-based compensation and amortization of acquisition intangibles, partially offset by lower costs for acquisition related matters.
Adjusted gross margin was 76.6%, in-line with consensus. Operating margin was 10.1% versus the 9.6% in last year's quarter.
“Fourth quarter was outstanding, driven by robust growth across the business with strong contributions from the channel and our key partners led by Avaya, AT&T, and Atos,” says CEO Vlad Shmunis. “We are also excited to add Vodafone Business as a key partner as we continue to expand our global distribution network to meet the rising worldwide demand for cloud-based communication solutions."
For Q1, RingCentral expects revenue of $337-340m and EPS of $0.24-0.25, above the $320.18m and $0.23 consensus estimates, respectively.
The FY21 view includes $1.475-1.49bn in revenue (consensus: $1.33B) and EPS of $1.20-1.24 (consensus: $1.17). Subscription revenue should hit $1.365-1.375bn, up 26-27% on the prior year. Non-GAAP operating margin is expected between 10% and 10.1%.
