RingCentral, Inc. announced strong financial results for the fourth quarter and fiscal year ended December 31, 2024. Q4 2024 revenue and operating margin were above guidance, with total revenue reaching $614.5 million. For the full year 2024, total revenue was $2.41 billion, a 7% year-over-year increase, and the company achieved GAAP operating profitability for the first time.
The company reported a non-GAAP operating margin of 22.1% for Q4 2024, exceeding its guidance range, and a full-year non-GAAP operating margin of 20.9%, up 300 basis points year-over-year. RingCentral also generated record cash flow, with CFO Abhey Lamba stating expectations for almost $600 million of operating cash flow in 2025.
RingCentral unveiled its new AI Receptionist (AIR), a generative AI phone agent seamlessly integrated into the phone system, designed to act as a 'digital employee' to automate customer interactions. CEO Vlad Shmunis highlighted AIR as another growth vector building out the multi-product portfolio, with new AI-powered products exceeding $50 million in exit ARR by Q4 2024.
In a management update, Kira Makagon, previously Chief Innovation Officer and CMO, was promoted to President and Chief Operating Officer, effective immediately. She will now oversee product and technology, direct and channel sales, customer success, marketing, and operations organizations, leveraging her decade of leadership in product innovation.
For the full year 2025, RingCentral provided guidance forecasting subscription revenue growth of 5-7% and total revenue growth of 4-6%. Non-GAAP operating margin is expected to expand to approximately 22.5%, with non-GAAP EPS projected between $4.13 and $4.27, and free cash flow targeted at $500 million to $510 million.
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