Office and call centre communications software provider RingCentral (NYSE:RNG) will be announcing earnings results tomorrow after market hours. Here's what to expect.

RingCentral met analysts' revenue expectations last quarter, reporting revenues of $571.3 million, up 8.9% year on year. It was a weaker quarter for the company, with full-year revenue guidance missing analysts' expectations and management forecasting growth to slow.

Is RingCentral a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting RingCentral's revenue to grow 8.3% year on year to $578.2 million, slowing from the 14.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.80 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RingCentral has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average.

Looking at RingCentral's peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Five9 delivered year-on-year revenue growth of 13.1%, beating analysts' expectations by 2.9%, and ServiceNow reported revenues up 24.2%, in line with consensus estimates. Five9 traded up 2.1% following the results while ServiceNow was down 4.1%.

Read our full analysis of Five9's results here and ServiceNow's results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the productivity software stocks have fared somewhat better, they have not been spared, with share prices down 3.1% on average over the last month. RingCentral is down 7.5% during the same time and is heading into earnings with an average analyst price target of $39.8 (compared to the current share price of $30.49).

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