RingCentral Inc. (NYSE: RNG) is the industry leader in cloud communications products, competing only with Microsoft. This week, the firm revealed its third-quarter results, and it expects a 30% growth in the fourth quarter.
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RingCentral’s overall third-quarter revenue jumped by 37% to $415 million, while adjusted profits per share improved by 38% to $0.36. Despite the fall in the pandemic factor, communication services remain in high demand.
When compared to traditional communication services, RingCentral’s cloud-based solutions enable enterprises to operate remotely while saving money. Voice and video communication tools, group chats, remote client services, productivity tools, and workflow optimization are all available on the company’s platform.
All of this is in high demand throughout the economy’s digital revolution, and businesses developing related technology are vying for a larger piece of the fast expanding market.
RingCentral Inc. (RNG) is now the market leader in unified communications as a service (UCaaS), with only Microsoft contesting for the top place in Gartner’s rankings of major UCaaS providers.
RingCentral anticipates fourth-quarter sales to increase by another 30% year on year to over $434 million. Adjusted operating profit margins of roughly 10.5 percent, which is low for the software business, which generally generates margins of 20 percent and more. RNG spends a lot of money on sales and marketing.
RNG’s shares fell -4.35 percent to end at $269.40 on Thursday. The stock has risen 6.58 percent in the last three months but has lost 12.25 percent in the last six months. Furthermore, the business has a current market capitalization of $25.35 billion and 91.18 million outstanding shares.