
RingCentral (RNG) Stock Forecast & Price Target
RingCentral (RNG) Analyst Ratings
Bulls say
RingCentral's financial performance in 4Q24 demonstrates strong operational efficiency, with cash generated from operations rising to $133 million, marking an increase from both the prior quarter and the same period last year. The company's total revenue reached $615 million, reflecting a year-over-year growth of 8% and exceeding guidance, while subscription revenue grew to $590 million, representing 96% of total revenue. Furthermore, RingCentral reported record operating margins of 21.3%, alongside customer growth in its RingCX and RingSense offerings, which are poised to contribute significantly to future revenue growth and margin expansion.
Bears say
RingCentral's stock is experiencing a negative outlook primarily due to a softer-than-expected FY25 revenue growth projection of only 4-6% year-over-year, alongside similarly disappointing forecasts for FQ1 at 5-6% year-over-year. The company's annual recurring revenue (ARR) growth has slowed to 6.9% year-over-year, indicating a meaningful decline in growth for its core UCaaS product as a result of a weakening total addressable market (TAM). Additionally, the competitive landscape within the UCaaS sector remains intense, with numerous market participants, including large legacy providers and cloud-based startups, posing a significant threat to RingCentral's market share and revenue potential.
This aggregate rating is based on analysts' research of RingCentral and is not a guaranteed prediction by Public.com or investment advice.
RingCentral (RNG) Analyst Forecast & Price Prediction
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