Analyst Note
| Nupur Balain |Narrow-moat RingCentral provides a leading Unified Communications-as-a-Service, or UCaaS, platform that facilitates cloud-based business communication and collaboration via one application and enables a single user experience. RingCentral earns more than 90% of its subscription revenue from its flagship product, RingCentral Office, which offers an integrated communications platform that allows users to engage with each other using a variety of mediums such as messaging, voice-calling, video chats, conferencing, and more. RingCentral’s UCaaS offering paves the way for businesses to replace their on-premise PBX phone systems and adopt a flexible, cloud-based communications platform that improves the user experience. We believe that as RingCentral expands its user base and becomes increasingly entrenched within enterprises, the firm’s offerings will become increasingly critical to day-to-day business operations and support long-term growth. We are maintaining our fair value estimate for RingCentral of $366 as this dynamic is priced into our valuation. We are also maintaining RingCentral’s narrow moat, stable trend, and high uncertainty ratings. We view shares as fairly valued at the moment given the recent pullback in some of our high-growth technology names.