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RingCentral Inc Class A RNG

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Morningstar’s Analysis

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RingCentral Poised for Success as UCaaS Becomes the Business Communication Standard; $275 FVE

Analyst Note

| Victoria Radke |

RingCentral is a unified communications as a service, or UCaaS, provider that deploys a global UC platform that integrates messaging, video, phone, and other cloud-based communication solutions. We believe RingCentral offers a compelling value proposition for investors looking to capitalize on the migration of legacy PBX phone systems to the cloud. Our fair value estimate for RingCentral is $275 per share, down from $391, as we model more muted long-term growth and higher reinvestment needs. However, with shares trading around $175, we view the narrow-moat, stable moat trend company as an attractive buying opportunity.

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Company Profile

Business Description

RingCentral is a unified communications as a service, or UCaaS, provider. RingCentral’s unified communications platform foremost replaces on-premises private branch exchange (PBX) phone systems, which support voice-only desktop phones, with its cloud phone system. Beyond its flagship voice product, the company’s platform enables cloud-based integrated omnichannel communications, including voice, messaging, SMS, video meetings, conferencing, and contact center software solutions, among others. The software allows businesses to communicate and collaborate all on one platform across various device-types.

Contact
20 Davis Drive
Belmont, CA, 94002
T +1 650 472-4100
Sector Technology
Industry Software - Application
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Distressed
Employees 3,140