We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RNG shares have been benefiting from its growing AI initiatives. It recently unveiled new features for its AI-based contact center solution, RingCX.
The new AI features include native, real-time AI-powered assistant support for both supervisors and agents. It offers AI-based coaching insights for managers and supervisors and a new Intelligent Virtual Agent (IVA) framework for customers and partners to swiftly integrate their preferred choice of IVA with RingCX. RingCX’s IVA ecosystem is already supported by Yellow.ai, Cognigy and Google DialogFlow.
The latest AI-based features will be available in the coming months in the United States. By early 2025, RingCentral expects to expand its availability internationally and to partners. This will boost demand for RingCX.
Launched in November 2023, RingCX has already been adopted by 350 customers, up more than 70% sequentially. RingCentral’s focus on adding frequent features to the platform (300 features only in the past quarter) is noteworthy. The RingSense AI has also gained traction with 50% of RingCX customers choosing the paid AI capability.
RNG’s focus on adding AI-supported features to its platforms is a key catalyst. It is constantly riding on solid demand for Unified Communications as a Service (UCaaS) and contact center software-as-a-service (SaaS) solutions.
Its expanding product portfolio with the launch of its AI platform RingSense, RingCX, RingSense for sales, and RingCentral Events over the past 12-months is helping RNG win customers.
RingCentral expects to achieve at least $100 million of exit Annual Recurring Revenue (ARR) from new products by the end of 2025 and is currently on track to achieve it.
Strong momentum across the enterprise segment is a plus. In the second quarter of 2024, RingCentral saw continued strength in its UCaaS business. Enterprise business grew double-digit on a year-over-year basis. RNG closed roughly 20 deals with more than $1 million total contract value (TCV). The average TCV of large deals grew 30% year over year.
RingCentral is benefiting from an expanding partner base that includes the likes of Cox Communications, Vodafone (VOD - Free Report) and Microsoft (MSFT - Free Report) .
In second-quarter 2024, half of the large deals involved RingCentral’s solution integrated with Microsoft Teams. Moreover, Vodafone is reselling RingCX to its global customer base.
RingCentral’s increasing international presence is noteworthy. Its solutions are getting adopted in the Europe and Asia Pacific region.
RNG’s Q3 Guidance Positive
For the third quarter of 2024, RingCentral expects revenues between $600.5 million and $603.5 million, indicating year-over-year growth of 8%.
Subscription revenues are expected to be between $572 million and $575 million, indicating year-over-year growth of 8%.
The Zacks Consensus Estimate for third-quarter 2024 revenues is currently pegged at $601.9 million suggesting 7.84% growth over the figure reported in the year-ago quarter.
The consensus mark for earnings is currently pegged at 92 cents, unchanged over the past 30 days, indicating 17.95% year-over-year growth.
Here’s What Investors Should Do With RNG Stock
RingCentral is an attractive stock for investors looking for growth due to its initiatives to leverage. It has a Growth Score of A.
Its Value Score of B suggests the stock is undervalued at this moment. In terms of forward 12-month Price/Sales ratio, RNG is trading at 1.23X lower than the industry’s multiple of 2.8X.
RingCentral currently carries Zacks Rank #2 (Buy).
Image: Bigstock
RNG Adds AI Features to RingCX: Should Investors Buy the Stock?
RingCentral (RNG - Free Report) shares have gained 1.9% in the past six months, outperforming the Zacks Internet - Software and Services industry’s decline of 13.4%.
RNG shares have been benefiting from its growing AI initiatives. It recently unveiled new features for its AI-based contact center solution, RingCX.
The new AI features include native, real-time AI-powered assistant support for both supervisors and agents. It offers AI-based coaching insights for managers and supervisors and a new Intelligent Virtual Agent (IVA) framework for customers and partners to swiftly integrate their preferred choice of IVA with RingCX. RingCX’s IVA ecosystem is already supported by Yellow.ai, Cognigy and Google DialogFlow.
The latest AI-based features will be available in the coming months in the United States. By early 2025, RingCentral expects to expand its availability internationally and to partners. This will boost demand for RingCX.
Launched in November 2023, RingCX has already been adopted by 350 customers, up more than 70% sequentially. RingCentral’s focus on adding frequent features to the platform (300 features only in the past quarter) is noteworthy. The RingSense AI has also gained traction with 50% of RingCX customers choosing the paid AI capability.
Ringcentral, Inc. Price and Consensus
Ringcentral, Inc. price-consensus-chart | Ringcentral, Inc. Quote
RNG Stock’s Prospect Rides on Strong AI Prowess
RNG’s focus on adding AI-supported features to its platforms is a key catalyst. It is constantly riding on solid demand for Unified Communications as a Service (UCaaS) and contact center software-as-a-service (SaaS) solutions.
Its expanding product portfolio with the launch of its AI platform RingSense, RingCX, RingSense for sales, and RingCentral Events over the past 12-months is helping RNG win customers.
RingCentral expects to achieve at least $100 million of exit Annual Recurring Revenue (ARR) from new products by the end of 2025 and is currently on track to achieve it.
Strong momentum across the enterprise segment is a plus. In the second quarter of 2024, RingCentral saw continued strength in its UCaaS business. Enterprise business grew double-digit on a year-over-year basis. RNG closed roughly 20 deals with more than $1 million total contract value (TCV). The average TCV of large deals grew 30% year over year.
RingCentral is benefiting from an expanding partner base that includes the likes of Cox Communications, Vodafone (VOD - Free Report) and Microsoft (MSFT - Free Report) .
In second-quarter 2024, half of the large deals involved RingCentral’s solution integrated with Microsoft Teams. Moreover, Vodafone is reselling RingCX to its global customer base.
RingCentral’s increasing international presence is noteworthy. Its solutions are getting adopted in the Europe and Asia Pacific region.
RNG’s Q3 Guidance Positive
For the third quarter of 2024, RingCentral expects revenues between $600.5 million and $603.5 million, indicating year-over-year growth of 8%.
Subscription revenues are expected to be between $572 million and $575 million, indicating year-over-year growth of 8%.
The Zacks Consensus Estimate for third-quarter 2024 revenues is currently pegged at $601.9 million suggesting 7.84% growth over the figure reported in the year-ago quarter.
The consensus mark for earnings is currently pegged at 92 cents, unchanged over the past 30 days, indicating 17.95% year-over-year growth.
Here’s What Investors Should Do With RNG Stock
RingCentral is an attractive stock for investors looking for growth due to its initiatives to leverage. It has a Growth Score of A.
Its Value Score of B suggests the stock is undervalued at this moment. In terms of forward 12-month Price/Sales ratio, RNG is trading at 1.23X lower than the industry’s multiple of 2.8X.
RingCentral currently carries Zacks Rank #2 (Buy).
AEYE Stock is A Better Pick
AudioEye (AEYE - Free Report) is another top-ranked stock in the broader sector, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AEYE has a Growth Score of A. Its long-term earnings growth rate is currently pegged at 25%.