RingCentral Inc. (NYSE:RNG) shares are soaring on Friday. The communications software company delivered second-quarter earnings beat across every key metric and raised its full-year outlook.
- RingCentral stock is among today’s top performers. Why is RNG stock up today?
RingCentral Beats on Every Line and Raises the Bar for the Rest of the Year
The company posted non-GAAP earnings of $1.22 per share for the second quarter, clearing the analyst consensus of $1.16 by more than 5% and marking a 15% improvement from the $1.06 delivered in the same period a year ago.
Total revenue reached $657 million, ahead of the $650.5 million estimate and representing 5.9% growth from the $620 million generated in the prior year quarter. Subscription revenue, which accounted for 96% of the total, climbed 5.8% to $634 million.
The company also raised its quarterly dividend by approximately 67% to $0.125 per share, payable Aug. 20 to shareholders of record as of Aug. 6.
Guidance Moves Higher Across the Board
For the third quarter, RingCentral guided for non-GAAP EPS of $1.25 to $1.30, bracketing the $1.25 analyst estimate, on total revenue of $664 million to $670 million, slightly above the $663 million consensus.
For the full year, the company raised its non-GAAP EPS outlook to $4.96 to $5.10 from a prior range of $4.85 to $5.01, lifted its total revenue guidance to $2.635 billion to $2.646 billion from $2.620 billion to $2.640 billion and increased its free cash flow forecast to $615 million to $625 million.
A Company-Wide AI Challenge Produced 2,500 Projects in Under 30 Days
Beyond the financial results, RingCentral shared the outcome of its AI-Native Challenge, a company-wide program in which employees across every discipline, not just engineering, built complete software projects from the ground up using ChatGPT Work and OpenAI’s Codex.
More than 2,500 projects were completed in under 30 days, with participants working through the entire delivery process from planning and architecture through testing, documentation and deployment. President and COO Kira Makagon said the initiative demonstrated that AI-native development is about compressing the entire product lifecycle rather than simply automating code generation, making product development accessible to people regardless of their technical background.
OpenAI Chief Revenue Officer Denise Dresser said RingCentral demonstrated what becomes possible when AI development tools are placed in the hands of an entire organization rather than confined to engineering teams alone.
RingCentral and NiCE Expand Partnership to Offer Integrated Communications Platform
RingCentral also announced an expanded partnership with NiCE Ltd. (NASDAQ:NICE) that makes the relationship fully bidirectional for the first time. Under a new multi-year arrangement, NiCE will begin reselling RingCentral’s unified communications platform RingEX while the two companies simultaneously extended their existing contact center agreement for another year.
The deal builds on more than a decade of collaboration and gives enterprise customers a single integrated path to modernizing both their employee communications and customer experience operations.
RNG Shares Are Skyrocketing
RNG Price Action: RingCentral shares were up 24.34% at $48.02 at the time of publication on Friday, according to Benzinga Pro.
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