RingCentral is among the leaders when it comes to cloud-based contact centers and communications technologies. It provides a host of communication and collaboration solutions for small and large businesses. The company is based out of Belmont, California but has a global presence in more than 100 countries. If you are looking for software stocks to invest in now, then you may think of the usual names like Microsoft, Oracle, Hubspot, or Guidewire. However, there are niche-segment leaders like RingCentral that could be worth analyzing. You might discover the next growth story in some of the lesser-known names. Besides, cloud computing is picking up at a strong pace, and there are plenty of tech companies with a cloud offering that seems to be performing well. Staying with momentum is also important to grow a portfolio.
RingCentral Announces Q12021 Earnings Numbers
On 4th May 2021, RingCentral announced its first-quarter 2021 earnings results. Total revenue jumped substantially from $267 million in Q12020 to $352 million. However, RingCentral reported an operating loss of $42 million. In Q12020, the company had reported an operating loss of $25 million. However, the bottom line was more encouraging, with a net loss of just $186,000 as compared with a net loss of $60 million reported in Q12020. Subscription revenues improved substantially from $243 million in Q12020 to $325 million. Company CEO Vlad Shmunis said that the company’s annual recurring revenue experienced robust year-on-year growth of 40%. RingCentral Office is the company’s flagship solution. It grew 33% year on year, indicating robust performance. If you are looking for software stocks to invest in 2021, then RingCentral can be an interesting option to look at.
RingCentral’s stock closed at $273.79 on 16th July 2021, down close to 4% over the preceding month. The stock was some way off from its 52-week high point of $449. The 52-week low point was $229. However, the 5-year return is in excess of 1100%.