RingCentral stock soars after layoffs, earnings beat

RingCentral Inc. RNG, -5.84% shares jumped more than 10% in after-hours trading Wednesday following an earnings beat and announcement of layoffs. The cloud-telephony company reported a third-quarter loss of $284.6 million, or $2.98 a share, while including a $125 million non-cash charge related to prepaid commissions. After removing that charge as well as costs related to stock-based compensation, investment losses and a host of others, RingCentral reported earnings of 55 cents a share, up from 36 cents a share a year ago. Revenue increased to $509 million from $414.6 million a year ago. Analysts on average were expecting adjusted earnings of 50 cents a share on sales of $502.7 million, according to FactSet. Executives also disclosed that they plan to lay off 10% of the company’s workforce, while increasing their full-year guidance for adjusted earnings. RingCentral shares declined 5.8% to $28.36 in the regular session Wednesday, then jumped more than 11% in the extended session following the release of the results.