- UCaaS industry leader RingCentral continues to outperform during the pandemic with Q3’20 YoY revenue growth of 30%. Mid-Market and Enterprise ARR growth of 49% YoY as the company moves upmarket.
- RingCentral released more than 70 new features during Q3 and has announced new partnerships, setting the company up for continued success while conversion from on-premises PBX phone services.
- The company expects a strong Q4 with guidance for Q4’20 YoY revenue growth of 25%-26% and FY20 revenue growth of 29%.
- The company scores well on the ESE (forward looking Rule of 40) indicating a healthy balance between growth and profits.
- I am neutral on RingCentral based on falling free cash flow margin, frothy stock price, and high debt level.
For further details see:
RingCentral: 'Work From Anywhere'