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published in Blogs
Nov 10, 2021

RingCentral (RNG, $234.47) beats Q3 earnings expectations; boost guidance

Shares of RingCentral  jumped in after hours trading, following the company’s third quarter results that crushed analysts’ expectations.

 For the quarter ended Sept. 30, the enterprise cloud-based services company’s non-GAAP net income rose to 36 cents a share from 26 cents in the previous year, exceeding the 33 cents a share expected by analysts polled by FactSet.

Revenue climbed +36.5% from the year-ago quarter to $414.6 million, vs. $393.42 million anticipated by analysts polled by FactSet.

Looking ahead, RingCentral boosted its full year revenue projection to up to $1.581 billion in sales implying annual growth between 33% to 34%,   vs. prior forecast of 30% to 31%.

The company also raised full-year non-GAAP earnings per share estimates to $1.32 a share, from its prior projected range of $1.28 a share to $1.30 a share.

RingCentral announced new partnerships with software vendors in the healthcare sector including Ascom, ChronicCareIQ, and Ellkay.

The company has also collaborated with telecom provider MCM Telecom to offer hybrid work using a single app for video conferencing, mobile collaboration, and advanced business phone capabilities.

It has received a license to provide its cloud communications software and voice solutions in India.

Related Ticker: RNG

RNG in upward trend: 10-day moving average crossed above 50-day moving average on May 08, 2025

The 10-day moving average for RNG crossed bullishly above the 50-day moving average on May 08, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on June 05, 2025. You may want to consider a long position or call options on RNG as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

RNG moved above its 50-day moving average on May 06, 2025 date and that indicates a change from a downward trend to an upward trend.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where RNG advanced for three days, in of 259 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 139 cases where RNG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Bearish Trend Analysis

The 10-day RSI Indicator for RNG moved out of overbought territory on May 19, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 17 similar instances where the indicator moved out of overbought territory. In of the 17 cases, the stock moved lower in the following days. This puts the odds of a move lower at .

The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.

The Moving Average Convergence Divergence Histogram (MACD) for RNG turned negative on May 22, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where RNG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

RNG broke above its upper Bollinger Band on May 09, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. RNG’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (97.087) is normal, around the industry mean (31.709). P/E Ratio (0.000) is within average values for comparable stocks, (163.752). Projected Growth (PEG Ratio) (0.443) is also within normal values, averaging (2.724). Dividend Yield (0.000) settles around the average of (0.030) among similar stocks. P/S Ratio (1.454) is also within normal values, averaging (61.572).

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. RNG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock worse than average.

Notable companies

The most notable companies in this group are Microsoft Corp (NASDAQ:MSFT), Oracle Corp (NYSE:ORCL), Salesforce (NYSE:CRM), Adobe (NASDAQ:ADBE), Intuit (NASDAQ:INTU), Uber Technologies (NYSE:UBER), SERVICENOW (NYSE:NOW), Shopify Inc (NASDAQ:SHOP), Palo Alto Networks Inc (NASDAQ:PANW), CrowdStrike Holdings (NASDAQ:CRWD).

Industry description

Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.

Market Cap

The average market capitalization across the Packaged Software Industry is 12.72B. The market cap for tickers in the group ranges from 291 to 3.15T. MSFT holds the highest valuation in this group at 3.15T. The lowest valued company is BLGI at 291.

High and low price notable news

The average weekly price growth across all stocks in the Packaged Software Industry was 2%. For the same Industry, the average monthly price growth was 9%, and the average quarterly price growth was 26%. MDTC experienced the highest price growth at 140%, while SGN experienced the biggest fall at -56%.

Volume

The average weekly volume growth across all stocks in the Packaged Software Industry was 30%. For the same stocks of the Industry, the average monthly volume growth was 19% and the average quarterly volume growth was 18%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 53
P/E Growth Rating: 68
Price Growth Rating: 56
SMR Rating: 76
Profit Risk Rating: 87
Seasonality Score: 11 (-100 ... +100)
Related Portfolios: APPLICATION SOFTWARE
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General Information

a provider of software-as-a-service solutions for business communications

Industry PackagedSoftware

Profile
Fundamentals
Details
Industry
Packaged Software
Address
20 Davis Drive
Phone
+1 650 472-4100
Employees
4084
Web
https://www.ringcentral.com