Benzinga | Nov 9, 2020 04:07PM EST

RingCentral Sees Q4 Adj. EPS $0.26-$0.27 vs $0.26 Est., Sales $315M-$318M vs $307.56M Est.; Raises FY20 Adj. EPS Guidance From $0.92-$0.94 to $0.96 vs $0.93 Est., Raises Sales Guidance From $1.135B-$1.143B To $1.164B-$1.167B vs $1.14B Est.

* Raising subscriptions revenue range to $1.070 to $1.072 billion, representing annual growth of 31%. This is up from our prior range of $1.043 to $1.048 billion and annual growth of 28%.

* Raising total revenue range to $1.164 to $1.167 billion, representing annual growth of 29%. This is up from our prior range of $1.135 to $1.143 billion and annual growth of 26% to 27%.

* GAAP operating margin range of (9.9%) to (9.8%), up from our prior range of (10.8%) to (10.1%).

* Non-GAAP operating margin of 9.7%, up from our prior range of 9.6% to 9.7%.

* Non-GAAP tax rate for 2020 assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.

* Raising non-GAAP EPS to $0.96 based on 93 million fully diluted shares. This is up from our prior range of $0.92 to $0.94.

* Share-based compensation range of $190 to $191 million, amortization of debt discount and issuance costs of $49 million, amortization of acquisition intangibles of $34 million, and acquisition related matters of approximately $2.6 million.

Fourth Quarter 2020 Guidance:

* Subscriptions revenue range of $290.5 to $292.5 million, representing annual growth of 27% to 28%.

* Total revenue range of $315 to $318 million, representing annual growth of 25% to 26%.

* GAAP operating margin range of (9.8%) to (9.2%).

* Non-GAAP operating margin range of 10.0% to 10.1%.

* Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.

* Non-GAAP EPS range of $0.26 to $0.27 based on 93 million fully diluted shares.

* Share-based compensation range of $53 to $54 million, amortization of debt discount and issuance costs of $16 million, and amortization of acquisition intangibles of $8.5 million.