RingCentral (RNG) Expands Portfolio With RingCentral Events
RingCentral RNG recently announced the global availability of RingCentral Events, a solution that is suitable for virtual, onsite and hybrid events.
RingCentral Events aims to provide customers with a seamless experience and the opportunity to host a single or multi-track event and advanced customization choices.
It offers a variety of features and functionality, including personalization and customization capability.
RingCentral Events expands RingCentral's extensive corporate communications portfolio, which also includes RingCentral MVP, RingCX, RingCentral Video, RingCentral Rooms and RingCentral Webinar.
Ringcentral, Inc. Price and Consensus
Ringcentral, Inc. price-consensus-chart | Ringcentral, Inc. Quote
The company plans to include AI-infused capabilities soon to provide smarter event experiences for organizers and attendees.
RingCentral’s Robust Portfolio Aids Prospects
RingCentral shares have lost 21.4% year to date against the Zacks Internet Software industry’s rise of 24%. The underperformance can be attributed to challenging macroeconomic conditions, unfavorable forex and stiff competition from Zoom, Cisco and Microsoft.
Nevertheless, it reported strong third-quarter 2023 revenues of $558.2 million, which increased 9.7% year over year, thanks to a strong portfolio. Software subscription (95.1% of total revenues) revenues increased 9.9% year over year to $531 million.
RingCentral is utilizing its Unified Communications expertise to grow into an AI-first, multi-product company with proprietary offerings in Unified Communications as a service (UCaaS), Contact Center as a service (CCaaS), conversation and revenue Intelligence, and events, webinars, and meetings
The company recently introduced RingCX, a solution that integrates its distinctive unified communications (message, video, phone, SMS, and fax) with a contact center, and has as generative AI capabilities.
RingSense, an advanced AI platform for increased corporate interactions, was announced in March 2023. By leveraging generative AI, RingSense enables enterprises to transform their conversation data into meaningful insights that unlock productivity and generate better business outcomes.
RingCentral continues to invest in AI across its portfolio. It aims to extend its opportunities and boost its top line through constant innovation, robust partnerships, and a broad client base. These factors are expected to drive growth.
For 2023, RingCentral maintains its revenue guidance in the range of $2.198 billion to $2.205 billion, indicating year-over-year growth of 11%.
Subscription revenues for the year are expected to be between $2.095 billion and $2.101 billion, suggesting year-over-year growth of 11%.
The Zacks Consensus Estimate for 2023 revenues is pegged at $2.2 billion, indicating 10.66% year-over-year growth.
The consensus mark for 2023 earnings has increased 1% to $3.18 per share over the past 30 days.
Zacks Rank & Stocks to Consider
RingCentral currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer & Technology sector are NVIDIA NVDA, DoorDash DASH and Arista Networks ANET. While NVIDIA sports a Zacks Rank #1 (Strong Buy), DoorDash and Arista Networks carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA shares have gained 233% in the year-to-date period. NVIDIA's long-term earnings growth rate is currently projected at 13.50%.
DoorDash’s shares have gained 94.9% in the year-to-date period. DoorDash’s long-term earnings growth rate is currently projected at 42.13%.
Arista Networks’ shares have gained 77.3% in the year-to-date period. Arista Networks’ long-term earnings growth rate is currently projected at 19.77%.
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