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RingCentral Inc Class A RNG

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

RingCentral Continues to Ring Up Strong Results; Raising FVE to $293

Dan Romanoff, CPA Equity Analyst

Analyst Note

| Dan Romanoff, CPA |

Narrow-moat RingCentral delivered strong third-quarter results, as revenue and profitability both exceeded our and CapIQ consensus estimates, and provided better-than-expected guidance for the fourth quarter. As companies continue to navigate the remote work environment across the globe, we believe RingCentral will be able to leverage its position in the unified communications-as-a-service, or UCaaS, market and capitalize on digital transformation trends by offering an enhanced communications platform. After filtering our model for results and guidance, we are raising our fair value estimate to $293 from $288 per share, and continue to view RingCentral as well positioned to drive UCaaS adoption over the next decade even as COVID-19 lockdowns ease. With shares closing at $267 today, we view shares as increasingly attractive.

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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 is headquartered in Belmont, California.

Contact
20 Davis Drive
Belmont, CA, 94002
T +1 888 528-7464
Sector Technology
Industry Software - Application
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type Speculative Growth
Employees 2,363