RingCentral Inc. RNG, +1.23% shares rallied 20% in the extended session Tuesday after the cloud-based communications company reported adjusted third-quarter profit and sales above Wall Street expectations, calling the results “outstanding,” and raised guidance for the year.
RingCentral said it lost $147 million, or $1.60 a share, in the third quarter, compared with a loss of $21 million, or 24 cents a share, in the year-ago quarter. Adjusted for one-time items, the company earned 36 cents a share. Revenue rose 37% to $415 million, the company said. Analysts polled by FactSet expected RingCentral to report adjusted EPS of 33 cents a share on sales of $393 million. RingCentral raised its 2021 revenue guidance to a range between $1.580 billion and $1.581 billion, which would represent annual growth between 33% and 34%. That’s up from a prior range of revenue between $1.539 billion and $1.545 billion. RingCentral also announced that Chief Financial Officer Mitesh Dhruv will be stepping down, remaining as CFO through the end of the year. The company will consider internal and external candidates to replace Dhruv, it said.