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RingCentral Inc Class A RNG

Rating as of

Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Narrow-Moat RingCentral Is Paving the Way for Cloud Communications; Maintaining $366 FVE

Nupur Balain Equity Analyst

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.

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Company Profile

Business Description

RingCentral is a unified-communication-as-a-service, or UCaaS, provider. RingCentral’s software provides an easy-to-use, integrated communication application that allows for a single user experience across mobile and desktop applications. The software lets businesses communicate and collaborate using voice, video, text, Internet messaging, and conference calls on a single platform. Ninety percent of RingCentral’s revenue comes from its RingCentral Office application, which is available in four tiers based on integration needs and the number of employees. The company was founded in 1999 and its headquarters are in Belmont, California.

Contact
20 Davis Drive
Belmont, CA, 94002
T +1 650 472-4100
Sector Technology
Industry Software - Application
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type Distressed
Employees 3,140