RingCentral (RNG) Launches AI-Powered Video Capabilities
RingCentral RNG recently announced the availability of AI-powered video capabilities along with extended browser support for RingCentral MVP and Ring Central Video customers.
With the advent of a hybrid work environment, RingCentral has been benefiting from strong revenue growth on increased demand for RNG’s Unified Communications as a Service (UCaaS) solutions.
To further benefit from the megatrend, RingCentral rolled out its new AI-driven video-meeting capabilities.
The new advancements include AI features like advanced meeting insights and summaries, which help catch up with missed meetings by creating meeting summaries. Live transcription is another unique feature, which automatically transcribes conversations. It has other features like AI-powered noise reduction, participant reactions and remote desktop control.
Launching the latest AI-based video capabilities will further help increase customer engagement with RingCentral’s products as customers transition from on-premise platform to the cloud. Thus this enables companies to allow their employees to work from everywhere. Also, this will aid in top-line growth of RNG in the coming quarters.
Ringcentral, Inc. Price and Consensus
Ringcentral, Inc. price-consensus-chart | Ringcentral, Inc. Quote
RingCentral Drives Top Line With AI-Aided Solutions
The COVID-19 pandemic drove demand for cloud-based solutions. Evidently, RingCentral is addressing certain key megatrends, such as hybrid work environment and cloud computing, which boosted its top and bottom-line growth in the second quarter of 2022.
RingCentral reported second-quarter 2022 non-GAAP earnings of 39 cents per share, which surpassed the Zacks Consensus Estimate by 12.50% and improved 40.6% year over year.
Net revenues of $487 million beat the consensus mark by 1.65% and rose 28% year over year. The performance reflects solid demand for RingCentral’s cloud-based communication platform and Contact Center business that provides UCaas.
However, RingCentral is facing stiff competition from the likes of Zoom Video ZM against its’ UCaaS solutions, which is a major headwind.
Zoom also gained significant traction from the coronavirus-induced remote-working and strong demand for Zoom Phone. ZM’s expanding customer base contributed to winning a market share against its competitors. Notably, it is one of the primary competitors of RingCentral.
Shares of RingCentral have fallen 75.6% compared with the Zacks Internet - Software and Services industry decline of 36.2%. RingCentral currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
To further drive its revenue growth and bolster user growth for its new products, RingCentral built a strategic partner base with companies like Avaya AVYA and AT&T T.
Avaya has more than 100 million users and 4,700 partners in more than 180 countries. RingCentral is operating as Avaya’s Unified communications provider, which will drive the adoption of its new products and offerings internationally across a varied crowd.
RingCentral assembled a unique ecosystem for AT&T. Over the last few quarters, new AT&T bookings increased 15-20% sequentially, which is expected to have aided RNG’s top-line growth in the second quarter of 2022 and is expected to continue in the coming quarters.
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