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RingCentral (RNG)

RingCentral, Inc. is a leading provider of business cloud communications and contact center solutions based on its powerful Message Video Phone™ (MVP™) platform. More flexible and cost effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral offers three key products in its portfolio including RingCentral Office®, a Unified Communications as a Service (UCaaS) platform including team messaging, video meetings, and a cloud phone system, Glip®  the company's free video meetings solution with team messaging that enables Smart Video Meetings™, and RingCentral cloud Contact Center solutions. RingCentral's open platform integrates with leading third party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

Company profile

Ticker
RNG
Exchange
CEO
Vladimir Shmunis
Employees
Incorporated
Location
Fiscal year end
Former names
RingCentral Inc
SEC CIK
Subsidiaries
RingCentral International, Inc. • RCLEC, Inc. • RCVA, Inc. • Connect First, Inc. • RingCentral Florida, LLC • RingCentral Canada Inc. • RingCentral Brasil Soluções em TI LTDA • RingCentral UK LTD • RingCentral CH GmbH • RingCentral B.V. ...

RNG stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

8 Aug 22
12 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 306.5M 306.5M 306.5M 306.5M 306.5M 306.5M
Cash burn (monthly) (no burn) 1.57M 52.82M 47.66M (no burn) (no burn)
Cash used (since last report) n/a 2.27M 76.65M 69.15M n/a n/a
Cash remaining n/a 304.22M 229.85M 237.34M n/a n/a
Runway (months of cash) n/a 194.2 4.4 5.0 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
25 Jul 22 Agarwal Vaibhav Class A Common Stock Grant Acquire A No No 0 35,175 0 109,957
14 Jun 22 Vladimir Shmunis Class A Common Stock Buy Acquire P No No 50.073 10,000 500.73K 299,379
2 Jun 22 Sonalee Elizabeth Parekh Class A Common Stock Sell Dispose S No No 62.69 15,360 962.92K 113,528
1 Jun 22 Duncan Arne Class A Common Stock Grant Acquire A No No 0 4,770 0 5,971
1 Jun 22 Clyburn Mignon L Class A Common Stock Grant Acquire A No No 0 4,770 0 6,248
13F holders Current Prev Q Change
Total holders 417 447 -6.7%
Opened positions 61 73 -16.4%
Closed positions 91 101 -9.9%
Increased positions 169 160 +5.6%
Reduced positions 130 162 -19.8%
13F shares Current Prev Q Change
Total value 12.01B 17.9B -32.9%
Total shares 85.71M 84.71M +1.2%
Total puts 1.87M 1.8M +3.5%
Total calls 2.47M 2.44M +0.9%
Total put/call ratio 0.8 0.7 +2.6%
Largest owners Shares Value Change
Capital World Investors 11.58M $1.36B +3.5%
Capital International Investors 8.84M $1.04B -0.7%
Vanguard 7.58M $888.96M +1.9%
Vladimir Shmunis 5.51M $1.03B 0.0%
BLK Blackrock 4.96M $581.04M +4.0%
Tiger Global Management 4.95M $580.31M 0.0%
Alkeon Capital Management 3.72M $435.45M -1.3%
Wellington Management 2.78M $326.03M -18.0%
GS Goldman Sachs 2.45M $287.24M +2.9%
STT State Street 1.96M $229.68M +4.5%
Largest transactions Shares Bought/sold Change
Bamco 21.83K -967.27K -97.8%
Aaron Wealth Advisors 957.61K +957.61K NEW
UBS UBS Group AG - Registered Shares 877.75K +720.57K +458.4%
Renaissance Technologies 712.4K +712.4K NEW
IVZ Invesco 180.29K -623.34K -77.6%
Wellington Management 2.78M -611.4K -18.0%
Millennium Management 558.51K +470.03K +531.2%
Point72 Asset Management 229.6K -442.7K -65.8%
Citadel Advisors 604.65K +405.99K +204.4%
Capital World Investors 11.58M +388.3K +3.5%

Financial report summary

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Risks
  • We have incurred significant losses and negative cash flows in the past and anticipate continuing to incur losses for at least the foreseeable future, and we may therefore not be able to achieve or sustain profitability in the future.
  • Our quarterly and annual results of operations have fluctuated in the past and may continue to do so in the future. As a result, we may fail to meet or to exceed the expectations of research analysts or investors, which could cause our stock price to fluctuate.
  • The global COVID-19 pandemic could harm our business, financial condition and results of operations.
  • Global economic conditions may harm our industry, business and results of operations.
  • Our rapid growth and the quickly changing markets in which we operate make it difficult to evaluate our current business and future prospects, which may increase the risk of investing in our stock.
  • Growth may place significant demands on our management and our infrastructure.
  • Our future operating results will rely in part upon the successful execution of our strategic partnerships with Avaya, Atos/Unify, ALE, Mitel, Vodafone, Deutsche, Verizon and others, which may not be successful.
  • We face intense competition in our markets and may lack sufficient financial or other resources to compete successfully.
  • We rely and may in the future rely significantly on our strategic partners, resellers, and carriers to sell our subscriptions; our failure to effectively develop, manage, and maintain our indirect sales channels could materially and adversely affect our revenues.
  • To deliver our subscriptions, we rely on third parties for our network connectivity and for certain of the features in our subscriptions.
  • We rely on third-party software that may be difficult to replace or which could cause errors or failures of our subscriptions.
  • Interruptions or delays in service from our third-party data center hosting facilities and co-location facilities could impair the delivery of our subscriptions, require us to issue credits or pay penalties and harm our business.
  • Failures in Internet infrastructure or interference with broadband access could cause current or potential users to believe that our systems are unreliable, possibly leading our customers to switch to our competitors or to avoid using our subscriptions.
  • Interruptions in our services caused by undetected errors, failures, or bugs in our subscriptions could harm our reputation, result in significant costs to us, and impair our ability to sell our subscriptions.
  • A security incident, such as a cyber-attack, information security breach or denial of service event could delay or interrupt service to our customers, harm our reputation or business, impact our subscriptions, and subject us to significant liability.
  • Potential problems with our information systems could interfere with our business and operations.
  • We depend largely on the continued services of our senior management and other highly-skilled employees, and if we are unable to hire, retain, manage and motivate our employees, we may not be able to grow effectively and our business, results of operations and financial condition could be adversely affected.
  • Increased customer turnover, or costs we incur to retain and upsell our customers, could materially and adversely affect our financial performance.
  • If we are unable to attract new customers to our subscriptions or upsell to those customers on a cost-effective basis, our business will be materially and adversely affected.
  • A significant portion of our revenues today come from small and medium-sized businesses, which may have fewer financial resources to weather an economic downturn.
  • We face significant risks in our strategy to target medium-sized and larger businesses for sales of our subscriptions and, if we do not manage these efforts effectively, our business and results of operations could be materially and adversely affected.
  • Support for smartphones and tablets are an integral part of our solutions. If we are unable to develop robust mobile applications that operate on mobile platforms that our customers use, our business and results of operations could be materially and adversely affected.
  • If we are unable to develop, license, or acquire new services or applications on a timely and cost-effective basis, our business, financial condition, and results of operations may be materially and adversely affected.
  • If we fail to continue to develop our brand or our reputation is harmed, our business may suffer.
  • If we experience excessive fraudulent activity or cannot meet evolving credit card association merchant standards, we could incur substantial costs and lose the right to accept credit cards for payment, which could cause our customer base to decline significantly.
  • We are in the process of expanding our international operations, which exposes us to significant risks.
  • We may expand through acquisitions of, investments in, or strategic partnerships or other strategic transactions with other companies, each of which may divert our management’s attention, result in additional dilution to our stockholders, increase expenses, disrupt our operations, and harm our results of operations.
  • We may be subject to liabilities on past sales for taxes, surcharges, and fees and our operating results may be harmed if we are required to collect such amounts in jurisdictions where we have not historically done so.
  • We may be unable to use some or all of our net operating loss carryforwards, which could materially and adversely affect our reported financial condition and results of operations.
  • If we are unable to effectively process local number and toll-free number portability provisioning in a timely manner, our growth may be negatively affected.
  • Our business could suffer if we cannot obtain or retain direct inward dialing numbers or are prohibited from obtaining local or toll-free numbers or if we are limited to distributing local or toll-free numbers to only certain customers.
  • We may not be able to manage our inventory levels effectively, which may lead to inventory obsolescence that would force us to incur inventory write-downs.
  • We currently depend on three phone device suppliers and two fulfillment agents to configure and deliver the phones that we sell and any delay or interruption in manufacturing, configuring and delivering by these third parties would result in delayed or reduced shipments to our customers and may harm our business.
  • If our vendor-supplied phones are not able to interoperate effectively with our own back-end servers and systems, our customers may not be able to use our subscriptions, which could harm our business, financial condition and results of operations.
  • We may require additional capital to pursue our business objectives and to respond to business opportunities, challenges or unforeseen circumstances. If capital is not available to us, our business, results of operations, and financial condition may be adversely affected.
  • Our subscriptions are subject to regulation, and future legislative or regulatory actions could adversely affect our business and expose us to liability in the U.S. and internationally.
  • We process, store, and use personal information and other data, which subjects us and our customers to a variety of evolving international statutes, governmental regulation, industry standards and self-regulatory schemes, contractual obligations, and other legal obligations related to privacy and data protection, which may increase our costs, decrease adoption and use of our solutions and subscriptions, and expose us to liability.
  • Our emergency and E-911 calling services may expose us to significant liability.
  • We rely on third parties to provide the majority of our customer service and support representatives and to fulfill various aspects of our E-911 service. If these third parties do not provide our customers with reliable, high-quality service, our reputation will be harmed, and we may lose customers.
  • Accusations of infringement of third-party intellectual property rights could materially and adversely affect our business.
  • Our limited ability to protect our intellectual property rights could materially and adversely affect our business.
  • Our use of open source technology could impose limitations on our ability to commercialize our subscriptions.
  • The market price of our Class A Common Stock is likely to be volatile and could decline.
  • The dual class structure of our common stock as contained in our charter documents has the effect of concentrating voting control with a limited number of stockholders that held our stock prior to our initial public offering, including our founders and our executive officers, employees and directors and their affiliates, and limiting other stockholders’ ability to influence corporate matters.
  • We have never paid cash dividends and do not anticipate paying any cash dividends on our common stock.
  • We may not have the ability to raise the funds necessary to settle conversions of the Notes in cash or to repurchase the Notes upon a fundamental change or pay the principal amount of the Notes at maturity, and our future debt may contain limitations on our ability to pay cash upon conversion or repurchase of the Notes.
  • The conditional conversion feature of each series of Notes, if triggered, may adversely affect our financial condition and operating results.
  • The capped call transactions may affect the value of the Notes and our Class A Common Stock and we are subject to counterparty risk.
  • The holders of Series A Convertible Preferred Stock are entitled to vote on an as-converted to Class A Common Stock basis and have rights to approve certain actions.
  • The issuance of shares of our Series A Convertible Preferred Stock reduces the relative voting power of holders of our common stock, and the conversion of those shares into shares of our Class A Common Stock would dilute the ownership of our common stockholders and may adversely affect the market price of our Class A Common Stock.
  • Our Series A Convertible Preferred Stock has rights, preferences and privileges that are not held by, and are preferential to the rights of, our common stockholders, which could adversely affect our liquidity and financial condition.
  • We cannot guarantee that our stock repurchase program will be fully implemented or that it will enhance long-term stockholder value.
  • Anti-takeover provisions in our certificate of incorporation and bylaws and under Delaware corporate law could make an acquisition of us more difficult, limit attempts by our stockholders to replace or remove our current management and limit the market price of our Class A Common Stock.
  • Changes in effective tax rates, or adverse outcomes resulting from examination of our income or other tax returns, could adversely affect our results of operations and financial condition.
  • Changes in U.S. and foreign tax laws could have a material adverse effect on our business, cash flow, results of operations or financial conditions.
  • If our internal control over financial reporting is not effective, it may adversely affect investor confidence in our company.
  • The nature of our business requires the application of complex revenue and expense recognition rules and the current legislative and regulatory environment affecting generally accepted accounting principles is uncertain. Significant changes in current principles could affect our financial statements going forward and changes in financial accounting standards or practices may cause adverse, unexpected financial reporting fluctuations and harm our operating results.
  • Our corporate headquarters, one of our data centers and co-location facilities, our third-party customer service and support facilities, and a research and development facility are located near known earthquake fault zones, and the occurrence of an earthquake, tsunami, or other catastrophic disaster could damage our facilities or the facilities of our contractors, which could cause us to curtail our operations.
  • If research analysts do not publish research or reports about our business, or if they issue unfavorable commentary or downgrade our Class A Common Stock, our stock price and trading volume may decline.
Management Discussion
  • * Percentages may not add up due to rounding.
  • Subscriptions revenue. Subscriptions revenue increased by $111.8 million, or 32%, for the three months ended June 30, 2022, and $226.5 million, or 33%, for the six months ended June 30, 2022, as compared to the respective prior year period. The increase was primarily a combination of the acquisition of new customers and upsells of seats and additional offerings to our existing customer base from our MVP and contact center solutions. This growth was primarily driven by an increase in sales to our mid-market and enterprise customers as we continue to move up market and increase in sales through our direct and indirect sales channels, including resellers, strategic partners and carriers. Although we expect to continue to add new customers and to increase the usage of our product for existing customers, we will monitor the impact of macroeconomic conditions, strengthening U.S. Dollar, and the continued effects of the COVID-19 pandemic. Subscriptions revenues included a foreign currency impact of approximately 1% for the three months ended June 30, 2022 compared to the respective prior year period. In addition, these macroeconomic factors could have an impact on customer buying behavior and demand, contract duration, churn, payment terms, and credit card declines, all of which could cause variability in our revenue.
  • Other revenues. Other revenues are primarily comprised of product revenue from the sale of pre-configured phones and professional services.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior Good
New words: behavior, Bulgaria, buying, Connecticut, destabilization, joint, landscape, lock, manifesting, output, Pound, question, retire, retired, Spain, Sterling, UK
Removed: Aspect, Brazil, breakthrough, carefully, concluding, conference, determining, framework, Fuze, India, invalidated, Justice, Lithium, mechanism, onset, partial, Poland, recovered, relied, Shield, SparkCentral, StarBlue, trial, West

Patents

Utility
Collaboration System for a Virtual Session with Multiple Types of Media Streams
28 Jul 22
A method for controlling data streams of a virtual session with several participants who access at least access one application in the virtual session can include use of a selected media processing and a signaling mode in a centralized process for each participant according to the individual requirements of the participant.
Utility
Computer-implemented method for controlling a collaboration platform, communication and collaboration application, and communication and collaboration platform
26 Jul 22
A method can include receiving a request for a read receipt by a first user of a predetermined user group for a session.
Utility
Method and telecommunications arrangement for transferring media data having differing media types via a network sensitive to quality of service
12 Jul 22
A telecommunication system and a method for transferring media data from a first client over a QoS-sensitive network to a second client.
Utility
System and method for joining a meeting and setup thereof
5 Jul 22
A method includes receiving an input data from a host to schedule a meeting.
Utility
Methods and Systems for Associating a Team with a Meeting
30 Jun 22
A method for associating a team with a meeting for prospective meeting includes receiving a meeting invitation comprising first information, wherein the first information comprises data identifying the prospective meeting attendees, receiving second information for a plurality of teams, wherein the second information comprises data identifying members for each one of the plurality of teams, comparing the first information with the second information to determine a match metric for each one of the plurality of teams, and determining a matching team from the plurality of teams for which the match metric is above a match threshold value.