Company Reports

We are discontinuing analyst coverage of RingCentral.

RingCentral is a leading provider of unified communications as a service, or UCaaS, software that combines voice, video, and messaging in one simple cloud-based application. This approach to communications provides greater flexibility to the firm, its employees, and the customers it communicates with on a daily basis. We think the core importance of communication, combined with the company’s leadership position, provides RingCentral with a long-tailed growth opportunity. However, intense competition has led to uneven returns and informs our no-moat rating.

RingCentral reported second-quarter revenue growth of 6% year over year to $657 million and a non-GAAP operating margin of 23.8%, compared with the midpoint of guidance at $651 million and 23.1%, respectively. Guidance for 2026 was raised slightly more than the quarterly upside.

RingCentral reported first-quarter revenue growth of 5% year over year to $644 million, and non-GAAP operating margin of 22.9%, compared with the midpoint of guidance at $643 million and 22.9%, respectively. 2026 guidance was raised slightly.

RingCentral is a leading provider of unified communications as a service, or UCaaS, software that combines voice, video, and messaging in one simple cloud-based application. This approach to communications provides greater flexibility to the firm, its employees, and the customers it communicates with on a daily basis. We think the core importance of communication, combined with the company’s leadership position, provides RingCentral with a long-tailed growth opportunity. However, intense competition has led to uneven returns and informs our no-moat rating.

RingCentral is a leading provider of unified communications as a service, or UCaaS, software that combines voice, video, and messaging in one simple cloud-based application. This approach to communications provides greater flexibility to the firm, its employees, and the customers it communicates with on a daily basis. We think the core importance of communication, combined with the company’s leadership position, provides RingCentral with a long-tailed growth opportunity. However, intense competition has led to uneven returns and informs our no-moat rating.

RingCentral posted fourth-quarter revenue growth of 5% year over year to $644 million, and non-GAAP operating margin of 22.8% against the midpoint of guidance at $642 million and 22.8%, respectively. 2026 guidance was better on revenue and in line on operating profit versus FactSet consensus.

RingCentral hosted a product innovation event for investors during which it showcased recent product and feature introductions.

RingCentral posted third-quarter revenue growth of 5% year over year to $639 million, and non-GAAP operating margin of 22.8%, versus the midpoint of guidance at $635 million and 22.6%, respectively. Its fourth-quarter revenue outlook fell just short of FactSet consensus.

RingCentral is a leading provider of unified communications as a service, or UCaaS, software that combines voice, video, and messaging communication modalities in one simple cloud-based application. This approach to communications provides greater flexibility to the company, its employees, and the customers it communicates with daily. We think the core importance of communication, combined with the company’s leadership position, provides RingCentral with a significant growth opportunity. However, uneven returns and intense competition inform our no-moat rating.

RingCentral reported second-quarter results that included revenue growth of 5% year over year to $620 million and non-GAAP operating margin of 22.6%, compared with the midpoints of guidance at $617 million and 22.3%, respectively.

No-moat RingCentral reported first-quarter earnings that topped our expectations on the top and bottom lines, while second-quarter guidance was largely in line with our model and full-year guidance remains unchanged. The firm continues to expand its product portfolio while integrating its solutions with artificial intelligence. The new AI Receptionist solution has already shown solid early signs of success and is expected to support greater product attachment. Our estimates are largely unchanged, so we therefore maintain our fair value estimate of $55 per share. While we acknowledge the market view that pricing will come under pressure, we believe our assumptions already reflect that. For context, we have to assume some combination of both revenue and margin contraction within our explicit forecast to arrive at the current share price, for which we do not see support at present. Although we view shares as attractive, we continue to prefer moatier names in our coverage.

RingCentral is a leading provider of unified communications as a service, or UCaaS, software that combines voice, video, and messaging communication modalities in one simple cloud-based application. This approach to communications provides greater flexibility to the company, its employees, and the customers it communicates with daily. We think the core importance of communication, combined with the company’s leadership position, provides RingCentral with a significant growth opportunity. However, uneven returns and intense competition inform our no-moat rating.

RingCentral reported fourth-quarter results that met our expectations on both the top and bottom lines, while the outlook for 2025 is slightly shy of our model. As with other software firms this cycle, increasing foreign-currency headwinds affected results and guidance. The firm continues to make progress on expanding its product portfolio while it races to infuse its solutions with AI, including the new AI Receptionist, and manage the business for profitable growth. We incrementally lowered our near-term estimates, while over the middle years of our forecast we cut our growth estimates and slightly increased our profitability estimates, which resulted in no change to our fair value estimate of $55 per share. While we acknowledge the market view that unified-communications-as-a-service pricing will come under pressure, we think our assumptions already reflect that, and we view shares as attractive, even if we prefer some moatier names within our coverage.

We are raising our fair value estimate to $55 per share, from $51 previously for no-moat RingCentral as the company continues to perform well on a quarterly basis. The company reported third-quarter results that beat our aggressive top-line expectations, while profitability came in as expected. The firm continues to make progress on expanding its product portfolio while it races to infuse its solutions with AI and manage the business for profitable growth. Guidance for the fourth quarter was in line, if not slightly better than our near-term model. The company also announced that Abhey Lamba will join the firm as CFO within the next several weeks. Lamba is a good choice with a strong background, including most recently at Amazon Web Services where he was the vice president of global infrastructure. While we acknowledge the market view that pricing will come under pressure, we think our assumptions already reflect that, and we view shares as attractive, even if we prefer some moatier names within our coverage.

RingCentral is a leading provider of unified communications as a service, or UCaaS, software that combines voice, video, and messaging communication modalities in one simple cloud-based application. This approach to communications provides greater flexibility to the company, its employees, and the customers it communicates with daily. We think the core importance of communication, combined with the company’s leadership position, provides RingCentral with a significant growth opportunity. However, uneven returns and intensifying competition inform our no-moat rating.

No-moat RingCentral reported second-quarter results that beat our aggressive top-line expectations and were just shy of our aggressive profitability expectations. The firm continues to build a multiproduct portfolio as new products like RingCX gain momentum, while driving cost efficiencies to improve margins. Guidance for the third quarter narrowly missed our estimates for revenue and adjusted operating margin. Given the results and guidance, our model changes were trivial, and we maintain our $51 fair value estimate. Shares remain undervalued in our view, but we continue to point investors to moatier names in our coverage.

No-moat RingCentral reported first-quarter results that bested our top-line expectations while meeting our profitability estimate. Management’s outlook was in line with or slightly better than our estimates for revenue and adjusted operating margin, while free cash flow was notably better. We see the company as progressing on its goal of becoming a multiproduct company, with RingCX off to a good start, while deleveraging and expanding margins. Given the results and guidance, our model changes are negligible, so we maintain our $51 fair value estimate. The shares remain undervalued, in our view, but we prefer wide-moat stocks in our coverage.

No-moat RingCentral reported fourth-quarter 2023 results that exceeded our profitability expectations and landed in line with our revenue assumption, while the outlook was slightly shy of our model. Vlad Shmunis made his return as CEO and emphasized his priorities for building a multiproduct business, expanding margins, and reducing stock-based compensation. The firm noted traction with new products, mainly RingCX, which it thinks can help drive $100 million in new annual recurring revenue by the end of 2025. The firm also detailed its improving balance sheet including continued repurchasing of convertible notes. Given results and guidance, our model changes are negligible, thus we maintain our fair value estimate of $51 per share. Shares remain undervalued in our view, but we prefer wide-moat stocks in our coverage.

RingCentral is a leading provider of unified communications as a service, or UCaaS, software that combines voice, video, and messaging communication modalities in one simple cloud-based application. This approach to communications provides greater flexibility to the company, its employees, and the customers it communicates with daily. We think the core importance of communication, combined with the company’s leadership position, provides RingCentral with a significant growth opportunity. However, uneven returns and intensifying competition inform our no-moat rating.