RNG is down 15% over the last month.
Their flagship service, RingCentral Office, allows businesses to maintain multiple telephone numbers and/or extensions without purchasing or maintaining any equipment or hiring additional staff. RingCentral’s services are sold on a subscription basis, which makes their revenues “sticky.” Once a business establishes service, acquires phone numbers – which are then distributed to their own customers – and sets up a hierarchy for call management, they tend to continue using RingCentral indefinitely because the cost of changing everything would tend to drastically outweigh the continued cost of the subscription.
Subscription revenues in Q2 increased 32% year over year to $146 million.
Earning are being released Nov 5. RingCentral has exceeded analyst earnings estimates for the past 13 quarters with an average surprise over the past year of 32%. The shares are up 69% in 2018 and they have had 10 upward revisions in the past 60 days Zacks ranks RNG a Strong Buy.