RingCentral (RNG) Levelling up its AI-Powered Capabilities

RingCentral RNG is riding on a strong product portfolio providing UCaaS and CCaaS solutions, including RingCentral MVP, RingCentral Video, customer service and support.

The adoption of AI-powered business solutions has been strong in recent times. To further benefit from the trend, RingCentral rolled out its new AI-powered platforms, namely RingSense and next-gen frontline workforce solutions.

RingSense uses generative AI to bring intelligence into business communications. It enables organizations to extract productive insights, thereby opening new possibilities.

The first offering in the RingSense AI portfolio is for salespersons, which analyzes their interactions to extract key insights and aid performance measurement.

RingSense for sales can perform automated follow-ups, AI-generated summary scoring, third-party integrations and the ability to track keywords and phrases.

The next-gen communication solution for frontline workers enhances mobile devices with walkie-talkie, voice calls, AI-powered video capabilities, team messaging and file sharing.

It offers a new push-to-talk feature where frontline workers across industries like healthcare, retail and manufacturing can use a single device to seamlessly connect with the rest of the organization, thereby bridging departmental gaps.

The solution encompasses benefits like driving ROI with fewer devices and apps, enabling next-gen walkie talkies with AI-powered capabilities and connecting frontline and back-office workers.

Ringcentral, Inc. Price and Consensus


Ringcentral, Inc. Price and Consensus
Ringcentral, Inc. Price and Consensus

Ringcentral, Inc. price-consensus-chart | Ringcentral, Inc. Quote


Evolving Partnership’s to Aid RingCentral’s Prospects

RingCentral continues to invest in AI across its portfolio. With the launch of its new AI-powered solutions it expects to secure its leadership position in AI.

RingCentral is riding on an expanding partner base with notable brands and enterprises. Its strategic partnerships with Amazon AMZN, AT&T T and Vodafone Group VOD have been driving its revenue growth and benefit from its product market fit.

RNG’s partnership with Amazon’s cloud arm Amazon Web Services transforms latter’s business communications. This collaboration offers RingCentral MVP and contact center solutions providing greater choice and support to customers for their call center and business communications needs.

Its partnership with AT&T and Vodafone has played an important role in boosting the customer base for RingCentral solutions, driving the former’s top-line growth.
Integration of RingCentral’s cloud-based solutions with AT&T and Vodafone helped boost customer engagement, greater employee productivity and streamlined operations.

What awaits RingCentral’s Shares in 2023?

RingCentral’s shares have lost 77.7% in the past year, primarily due to challenging macroeconomic conditions and raging inflation. The reversal of pandemic trends has also hurt RNG’s prospects.

RingCentral has underperformed the Zacks Computer and Technology sector, declining 18.7% over the same time frame.

The underperformance can be attributed to elongated cycles times and smaller initial deployment sizes versus last year. Environment timing and deal size continue to remain major headwinds.

However, RingCentral has reported a 17% year-over-year revenue increase to $525 million in fourth-quarter 2022. Subscription revenues increased 19% year over year to $502 million.

This Zacks Rank #3 (Hold) company’s earnings of 60 cents per share increased 54% year over year. The earnings beat the Zacks consensus estimate by 1.69%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $527.66 million, indicating 12.83% growth from the year-ago quarter’s reported figure.

The consensus mark for first-quarter 2023 earnings moved up 1.5% to 69 cents per share over the past 30 days.

For the first quarter of 2023, RingCentral expects revenues between $526 million and $530 million. Earnings are pegged in the range of 69-70 cents per share.

RingCentral raised its guidance for 2023. It expects total revenues between $2.18 billion and $2.2 billion, representing 10% to 11% growth over 2022. Earnings are pegged in the $3.04-$3.1 per share range.

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