RingCentral ( RNG Quick Quote RNG - Free Report) recently announced the acquisition of DeepAffects, a speech analysis platform that provides AI-powered analysis of business conversations. The acquisition was completed in the fourth quarter of 2020. The integration enables RingCentral to deliver a smarter video meeting experience and real-time closed captioning with the help of DeepAffects’ conversational intelligence. DeepAffects’ key capabilities include multi-modal emotion recognition, multi-speaker recognition and voiceprints, speech recognition with accent detection, which provides a more engaging customer experience and delivers meaningful insights. Strong Unified Communications Platform Fuels Growth
RingCentral’s shares have soared 133.2% year to date compared with the Zacks
Internet - Software and Services industry’s growth of 55.3%.
This outperformance can be attributed to the strong enterprise demand for the company’s cloud-communications solutions due to the coronavirus-induced remote working wave. Notably, its Enterprise Annualized Exit Monthly Recurring Subscriptions (ARR) surged 55% year over year to $401 million in the third quarter of 2020.
Moreover, the growing traction of cloud-based Unified Communications as a Service (UCaaS) solution, owing to the ongoing migration of hardware on-premise-based communication systems to cloud-based software solutions, is a key growth driver. Additionally, the company expanded its international footprint by introducing unified communications platform capabilities such as team messaging, video meetings and a cloud phone system in Germany with its new data center in Frankfurt and a new office in Hamburg, Germany. Further, earlier this month, the company launched RingCentral Glip, a free solution that provides a smart video experience by facilitating high-quality video and audio conferencing in combination with team messaging, file sharing, contact, task and calendar management. Solid Partner Base: A Key Positive
RingCentral largely benefits from the significant contributions from its strong partnerships with global telecommunications companies like
AT&T ( T Quick Quote T - Free Report) , BT Group, TELUS Communications and Avaya. Moreover, in August, the company partnered with Alcatel-Lucent Enterprise to launch a new Rainbow Office solution, built on RingCentral Office. The deal aids customer acquisition for the company as it gains access to Alcatel's 830,000 customers, which bolsters RingCentral's international expansion given that Alcatel’s customer base is primarily in France. Also, the company launched Unify Office by RingCentral in Germany in collaboration with Atos SE. The solution integrates UCaaS technology with German market insights from Atos to deliver enhanced communications to German organizations. Moreover, RingCentral benefits from Atos’ strong partner base of 800 partners. Furthermore, earlier this month, RingCentral entered into a partnership with Vodafone ( VOD Quick Quote VOD - Free Report) to deliver its Contact Center as a Service (CCaaS) and UCaaS services to the latter’s installed base of 30 million customers. Notably, significant momentum in the RingCentral’s UCaaS platform, an expanding product portfolio and strong carrier partnerships along with the recent acquisition of DeepAffects are major growth drivers for the near term. Zacks Rank & A Stock to Consider
RingCentral currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Avnet ( AVT Quick Quote AVT - Free Report) . Avnet sports a Zacks Rank #1 (Strong Buy), at present. You can see . the complete list of today’s Zacks #1 Rank stocks here Long-term earnings growth rate for Avnet is currently pegged at 19%. Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time. See 8 breakthrough stocks now>>