RingCentral partners with Zayo for AI-driven UCaaS solutions, expands internationally, and shows promising growth.

From Nasdaq: 2024-09-10 11:04:00

RingCentral (RNG) shares have declined 18.3% year to date compared to the Computer & Technology sector’s rise of 12.6%. Despite the underperformance, RingCentral recently partnered with Zayo to launch Zayo UC+ with RingCentral, integrating AI-driven UCaaS solutions with network infrastructure for enhanced communication.

RingCentral’s strong focus on adding AI-supported features to its platforms is driving solid demand for UCaaS and contact center SaaS solutions. The company closed 20 deals with over $1 million in TCV in Q2 2024, with enterprise business growing double-digit YoY. A strategic partnership with Vodafone Business aims to extend services to 30 markets by early 2025.

RingCentral’s expanding international presence and focus on AI-powered solutions like RingCX are driving its growth prospects. Q3 2024 revenue guidance expects 8% growth, with the stock currently undervalued based on its Price/Sales ratio. With a Zacks Rank #2 (Buy), RingCentral is positioned for further growth with a Growth Score of A.

Investors looking for growth opportunities should consider RingCentral, with a forward 12-month Price/Sales ratio well below the industry average. The company’s partnership expansions, strong financial performance, and positive Q3 guidance indicate a promising outlook for the future.

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Read more at Nasdaq: RingCentral Expands Client Base: Should Investors Buy the Stock?