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RingCentral Inc Class A RNG

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Narrow-Moat RingCentral Sees Strong Momentum in UCaaS Solutions; Raising FVE to $370

Nupur Balain Equity Analyst

Analyst Note

| Nupur Balain |

Narrow-moat RingCentral reported strong first-quarter results that surpassed our expectations as favorable macroeconomic trends continued to propel demand for Unified Communications-as-a-Service, or UCaaS, solutions. We are raising our fair value estimate for RingCentral to $370 from $366 on the back of healthier-than-expected near-term demand. The COVID-19 pandemic has accelerated businesses' cloud-based digital transformations, enabling RingCentral to capitalize on such trends. We believe that secular tailwinds, alongside RingCentral's powerful go-to-market partner network, should allow the firm to gain higher market share and deliver decent long-term growth. With shares trading at a discount to our fair value, we currently see an attractive buying opportunity for investors. 

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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 Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Distressed
Employees 3,140

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