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RingCentral (RNG) Expands With Cloud Phone Launch in India
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RingCentral (RNG - Free Report) recently announced that it has passed the regulatory verifications by the Indian telecom authorities, enabling multinational organizations in India to use cloud phone capabilities for better communication with customers, partners and employees.
India is the fastest-growing major economy in the world, with a huge demand for IT communications services. Per an article by Gartner, the IT communications spending in India is expected to reach $24.7 billion in 2023.
To ensure seamless communications, global corporations in India need fully compliant enterprise-grade solutions. RingCentral is the first cloud UC vendor to possess the license and authorization from the Department of Telecommunications (DOT) India and the Telecom Regulatory Authority of India (TRAI).
The offering aims to drive modern cloud communications for businesses of all sizes, across every industry and employee type for India.
With this expansion, RingCentral MVP is available in over 46 countries and supports 18 languages, providing global reach and flexibility for multinational enterprises.
Strong Product Portfolio to Aid RingCentral’s Prospects
RingCentral 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 cloud communications and business solutions has been strong recently.
In March 2023, RingCentral rolled out its new AI-powered platform, RingSense, and next-gen frontline workforce solutions. These solutions leverage on generative AI to enhance business communications.
RingCentral continues to invest in AI across its portfolio. With its continuous innovation, strong partnerships and large customer base, it expects to expand its opportunities and boost the top line.
This Zacks Rank #3 (Hold) expects second-quarter 2023 revenues between $535 million and $537 million, indicating a year-over-year growth of 10%. Non-GAAP earnings are expected to be between 74-76 cents per share.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $536.04 million, indicating a 10.09% growth from the year-ago quarter’s reported figure.
The consensus mark for second-quarter earnings remained unchanged at 75 cents per share in the past 30 days.
RingCentral Faces Stiff Competition
RingCentral operates in the software segment, which is expected to see double-digit growth in 2023 as enterprises prioritize spending to capture competitive advantages through increased productivity, automation and other software-driven transformation initiatives.
However, RingCentral’s shares have lost 6.6% year to date, primarily due to challenging macroeconomic conditions and elongated cycle times versus last year. Stiff competition and less upsell within existing base continue to remain major headwinds.
It also faces stiff competition in the cloud communications segment from players like Microsoft (MSFT - Free Report) , Zoom Video (ZM - Free Report) and Alphabet (GOOGL - Free Report) . These firms provide cloud-based platform offering chat, voice, audio conferencing and collaboration tools.
Shares of Microsoft, Zoom Video and Alphabet have increased 39.5%, 0.4% and 34.1% year to date, respectively.
Microsoft provides a unified communications as a service through Microsoft Teams and has a large user base across various industries.
Zoom provides high-quality video and audio communications and has gained popularity during the pandemic whereas Alphabet provides cloud communications service through Google Meet, which is integrated with Google Workspace.
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RingCentral (RNG) Expands With Cloud Phone Launch in India
RingCentral (RNG - Free Report) recently announced that it has passed the regulatory verifications by the Indian telecom authorities, enabling multinational organizations in India to use cloud phone capabilities for better communication with customers, partners and employees.
India is the fastest-growing major economy in the world, with a huge demand for IT communications services. Per an article by Gartner, the IT communications spending in India is expected to reach $24.7 billion in 2023.
To ensure seamless communications, global corporations in India need fully compliant enterprise-grade solutions. RingCentral is the first cloud UC vendor to possess the license and authorization from the Department of Telecommunications (DOT) India and the Telecom Regulatory Authority of India (TRAI).
The offering aims to drive modern cloud communications for businesses of all sizes, across every industry and employee type for India.
Ringcentral, Inc. Price and Consensus
Ringcentral, Inc. price-consensus-chart | Ringcentral, Inc. Quote
With this expansion, RingCentral MVP is available in over 46 countries and supports 18 languages, providing global reach and flexibility for multinational enterprises.
Strong Product Portfolio to Aid RingCentral’s Prospects
RingCentral 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 cloud communications and business solutions has been strong recently.
In March 2023, RingCentral rolled out its new AI-powered platform, RingSense, and next-gen frontline workforce solutions. These solutions leverage on generative AI to enhance business communications.
RingCentral continues to invest in AI across its portfolio. With its continuous innovation, strong partnerships and large customer base, it expects to expand its opportunities and boost the top line.
This Zacks Rank #3 (Hold) expects second-quarter 2023 revenues between $535 million and $537 million, indicating a year-over-year growth of 10%. Non-GAAP earnings are expected to be between 74-76 cents per share.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $536.04 million, indicating a 10.09% growth from the year-ago quarter’s reported figure.
The consensus mark for second-quarter earnings remained unchanged at 75 cents per share in the past 30 days.
RingCentral Faces Stiff Competition
RingCentral operates in the software segment, which is expected to see double-digit growth in 2023 as enterprises prioritize spending to capture competitive advantages through increased productivity, automation and other software-driven transformation initiatives.
However, RingCentral’s shares have lost 6.6% year to date, primarily due to challenging macroeconomic conditions and elongated cycle times versus last year. Stiff competition and less upsell within existing base continue to remain major headwinds.
RingCentral has underperformed the Zacks Internet – Software and Services Industry and the Zacks Computer and Technology sector, increasing 33% and 14.5% year to date, respectively.
It also faces stiff competition in the cloud communications segment from players like Microsoft (MSFT - Free Report) , Zoom Video (ZM - Free Report) and Alphabet (GOOGL - Free Report) . These firms provide cloud-based platform offering chat, voice, audio conferencing and collaboration tools.
Shares of Microsoft, Zoom Video and Alphabet have increased 39.5%, 0.4% and 34.1% year to date, respectively.
Microsoft provides a unified communications as a service through Microsoft Teams and has a large user base across various industries.
Zoom provides high-quality video and audio communications and has gained popularity during the pandemic whereas Alphabet provides cloud communications service through Google Meet, which is integrated with Google Workspace.