RingCentral shares rose 5% on Friday after the communications software provider raised its full-year free cash flow forecast. Third-quarter revenue grew 5.9% year over year to $676 million, and CEO Vlad Shmunis said AI represents an even larger opportunity than the shift to the cloud. Customers using at least one AI product now account for about 15% of annual recurring revenue, or over $400 million, with AI-based ARR doubling from a year earlier. Adjusted operating margin rose 1.9 percentage points to 24.7%, adjusted earnings jumped 18% to $1.33 per share, and free cash flow rose 21% to $157 million. For the full year, RingCentral expects revenue of more than $2.65 billion, EPS of $5.07 to $5.12, and free cash flow of roughly $625 million, which it plans to use to pay down debt and return capital to shareholders.
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