Benzinga | Aug 3, 2021 04:13PM EDT

RingCentral Sees Q3 Adj. EPS $0.33-$0.34 vs $0.31 Est., Sales $390.5M-$393.5M vs $384.47M Est.; Sees FY21 Adj. EPS $1.28-$1.30 vs $1.26 Est., Sales $1.539B-$1.545B vs $1.51B Est.

Financial Outlook

Full Year 2021 Guidance:

* Raising total revenue range to $1.539 to $1.545 billion, representing annual growth of 30% to 31%. This is up from our prior range of $1.500 to $1.510 billion and annual growth of 27% to 28%.

* Raising subscriptions revenue range to $1.424 to $1.430 billion, representing annual growth of 31% to 32%. This is up from our prior range of $1.388 to $1.396 billion and annual growth of 28% to 29%.

* GAAP operating margin range of (19.2%) to (18.3%).

* 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.

* Raising non-GAAP EPS range to $1.28 to $1.30 based on 93.0 to 93.5 million fully diluted shares. This is up from our prior range of $1.24 to $1.27 based on 93.5 to 94.0 million fully diluted shares.

* Share-based compensation range of $390 to $400 million, amortization of debt discount and issuance costs of $64 million, amortization of acquisition intangibles of $48 million, and acquisition related and other matters of approximately $0.9 million.

Third Quarter 2021 Guidance:

* Total revenue range of $390.5 to $393.5 million, representing annual growth of 29% to 30%.

* Subscriptions revenue range of $363 to $365 million, representing annual growth of 30% to 31%.

* GAAP operating margin range of (22.1%) to (20.4%).

* Non-GAAP operating margin range of 10.2% to 10.3%.

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

* Non-GAAP EPS range of $0.33 to $0.34 based on 93.5 million fully diluted shares.

* Share-based compensation range of $109 to $114 million, amortization of debt discount and issuance costs of $16 million, and amortization of acquisition intangibles of $12 million.