RingCentral Inc Class A

RNG: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$79.00	Vbsw	Yjry

RingCentral Earnings: New Products and Growing Enterprise Sales Drive Solid Results

Dan Romanoff ,

Aug 2, 2024

No-moat RingCentral reported second-quarter results that beat our aggressive top-line expectations and were just shy of our aggressive profitability expectations. The firm continues to build a multiproduct portfolio as new products like RingCX gain momentum, while driving cost efficiencies to improve margins. Guidance for the third quarter narrowly missed our estimates for revenue and adjusted operating margin. Given the results and guidance, our model changes were trivial, and we maintain our $51 fair value estimate. Shares remain undervalued in our view, but we continue to point investors to moatier names in our coverage.

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