• In recent days, RingCentral has seen modest share movement as investors respond to ongoing revenue growth, fluctuating profits, and accelerating adoption of its AI-powered products including RingCX, RingSense, and AIR.

• While the company’s new AI offerings are delivering early double-digit growth and expanding customer adoption, rising competition and a shift by enterprise clients toward bundled productivity suites may challenge RingCentral’s ability to sustain its momentum and profit margins.

• We’ll explore how ongoing enterprise adoption of AI-driven products is influencing RingCentral’s long-term investment outlook.

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To be a shareholder in RingCentral today, you need to believe that the company’s AI-driven innovation and sticky partnerships can offset margin pressures and fend off bundled-suite competitors. The recent news around AI sector profitability does little to disrupt RingCentral’s core catalyst: accelerating enterprise demand for its new AI-powered offerings. The principal near-term risk, intense pricing pressure from powerful rivals, remains unchanged for now.

Among RingCentral’s recent announcements, enhancements to AI Receptionist™ (AIR) stand out as most pertinent. AIR’s growing feature set and multilingual support highlight how much hinges on the company’s ability to deliver differentiated, AI-enabled experiences that draw in and keep enterprise customers, which remains its primary driver despite broader market jitters.

However, investors should not overlook the increased threat from large competitors bundling communications tools into all-in-one suites which…

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RingCentral’s outlook anticipates $2.8 billion in revenue and $219.0 million in earnings by 2028. This is based on a projected 5.0% annual revenue growth rate and a $231.2 million increase in earnings from the current level of $-12.2 million.

Uncover how RingCentral’s forecasts yield a $33.24 fair value, a 22% upside to its current price.

Simply Wall St Community members offer four fair value estimates between US$33.24 and US$89.93 per share, pointing to significant gaps in expectations. As consensus builds around the need to defend market share from bundled-suite rivals, consider how differing outlooks reflect uncertainty about RingCentral’s long-term revenue growth path.

Explore 4 other fair value estimates on RingCentral – why the stock might be worth just $33.24!