RingCentral
shares are down sharply in late trading Monday after the cloud-based telecommunications provider announced that founder Vlad Shmunis is stepping down as CEO later this month and transitioning to executive chairman.
“My plan is to stay engaged in the company, while dedicating most of my time to innovation, product development, and long-term strategy,” Shmunis said in a statement.
RingCentral (ticker: RNG) said its board named Tarek Robbiati, who has been the chief financial officer at
Hewlett Packard Enterprise
(HPE), as its new CEO. Robbiati has been on the RingCentral board since December 2022. Before joining HP Enterprise in 2018, Robbiati had served as CFO of Sprint.
The company also said that President and COO Mo Katibeh is stepping down, but will remain a “special advisor.” Katibeh had joined the company in January 2022 from
AT&T,
where he had been chief product officer and chief marketing officer for AT&T Business.
RingCentral released its June quarter financial results, as well, on Monday. For the quarter, the company posted revenue of $539 million, up 11%, and ahead of its guidance range of $535 million to $537 million. Subscription revenue was $514 million, up 11%, above the high end of the company’s guidance range of $511 million to $513 million. The company reported non-GAAP profits of 83 cents a share, above the Wall Street consensus forecast of 75 cents.
The company reiterated its full-year revenue guidance of $2.187 billion to $2.205 billion, while widening its non-GAAP earnings per share forecast to between $3.11 and $3.25, up from a previous range of $3.19 to $3.25 a share, reflecting higher-than-expected interest expense.
RingCentral shares were down 11% in after-hours trading.
Write to Eric J. Savitz at eric.savitz@barrons.com
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