ZM Competitor? : RingCentral RNG

Hi, I’m a long-time lurker. Big thanks to Saul and all who post here. It has meant a lot to me over the past few years.

The reason for posting is I saw some analyst noise (and a strong recommendation) about RingCentral (RNG) on Seeking Alpha. They are apparently launching a so-called ZM competitor this week. The info. is easy to find by searching SA.

Although they (RNG) are a bit late of course I haven’t seen any mention of it here (my apologies if I missed it). Anyway I’m wondering if anyone here has any experience/knowledge of the company and their capability?

Lest people just dismiss this out of hand it is worth noting that RNG stock has doubled in the last year and is now only about 2-3% below its high for the year so some people seem to like it a lot.

Thanks

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One does have to observe that, if they are just launching a Zoom competitor, that they currently have 0% of the market. I would wait a bit before getting excited about them as competition, especially with the awareness of Zoom which has resulted from the current crises.

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Anyway I’m wondering if anyone here has any experience/knowledge of the company and their capability?

My workplace has a RingCentral, LoopUp and Zoom account. Over the past few weeks, only Zoom has worked flawlessly and been unrestricted by heavy traffic.

Brandon

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I don’t post much and only scan through the messages. But, thought this may be worthwhile to remind everyone about:
https://www.ringcentral.com/whyringcentral/company/pressrele…

Ringcentral is using Zoom technology to power their video capabilities. So, any success Ringcentral has will still benefit zoom

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HI there-
I"m famiilar with Ring Central and my company uses it as their solo phone, video conferencing, and video meeting app. It works quite well and clearly I’ve been using it a ton these past few weeks. Ring Central uses Zoom technology and my IT guy said that it is basically Zoom, but Ring Central puts its logo on it. Whatever that means…

shahb73

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This seems to be more complicated than it appears at first sight. Ring Central has had video component of its “unified communication software as a service” business. From above posts and from the SA post it seems that Ring has used Zoom for the video component.

A big part of the share price increase lately was due to the strategic partnership with Avaya. Avaya seems to be one of the new-sh name change big com companies. Avaya, which is not growing, had revenue last QUARTER was 715M, ZM’s FY revenue was $623M, and RNG now has a 1B annual run rate, increasing about 30%. Ring is SMB and Enterprise oriented, not consumer faced.

What Ring Central is doing is replacing Zoom with its own video solution. They are not, grass roots, entering the video conference business. Question is, as Ring replaces Zoom in its offering to existing customers, how will user satisfaction compare? And, as has been speculated here, how will Zoom broaden its offering in the coming quarters? I think it is not a question of Ring becoming a competitor of Zoom, but whether Zoom will become a competitor of Ring. Will Ring be able to scale as well as Zoom is scaling? This replacement must have been planned well before COVID-19 was even a thing. I suppose the switch from Zoom could be done a customer at a time…

I know nothing, actually. I’d heard of Ring Central as an investment somewhere but all of the above is from the last hour’s research.

KC, long a tad of ZM, no RNG position but not opposed to adding one more iron to the fire.

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To again clarify, as ssk pointed out a few posts back on this thread, Ring Central is NOT a competitor of Zoom. They are a partner who pays Zoom to use its service:

https://www.ringcentral.com/whyringcentral/company/pressrele…

The above link is to a Press Release by Ring Central saying they are extending their multiyear partnership with Zoom. THERE IS NO COMPETITION!!!

RingCentral, a leading provider of global enterprise cloud communications, collaboration, and contact center solutions and Zoom, a leader in modern enterprise video-first unified communications solutions, today announced a multi-year extension of their partnership. This extension will allow RingCentral customers to continue replacing their legacy on-premise communications infrastructure with a best-in-class solution that leverages the combined power of RingCentral’s cloud PBX and Zoom’s video communications platform.

“We have had a strong partnership with RingCentral over many years, enabling them to bring our frictionless video platform to their global customers,” said Eric S. Yuan, Founder, Chairman and CEO of Zoom. “Our architecture is video-first, cloud-native and optimized to dynamically process and deliver reliable, high-quality video across all devices and spaces. We’re excited to extend our relationship to enable more enterprises to replace their legacy systems with modern cloud solutions.”

“We are happy to continue our fruitful partnership with Zoom to bring the best video experience to our customers,” said Vlad Shmunis, Founder, Chairman and CEO, RingCentral. “Our cloud communications solutions are designed for today’s mobile, global and distributed workforce. Our partnership with Zoom extends the capabilities of RingCentral’s platform with world-class video communications capabilities.”

Saul

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Mar. 27, 2020 8:58 AM ET|About: RingCentral, Inc. (RNG)|By: Brandy Betz, SA News Editor
Rosenblatt analyst Ryan Koontz sees “very strong sales momentum” for RingCentral (NYSE:RNG) through the coronavirus impact.

The analyst expects RNG to launch its video product to compete with Zoom Video (NASDAQ:ZM) within the next week.

Koontz: “In the very near term, RCMeeting will not only begin to be sold in RingCentral Office (RCO) bundles across most U.S. segments, but it will also begin to replace the installed base of ZM at RNG customer.”

Conflicting info. One would tend to believe the CEO’s over an analyst even though the analyst comment is 3 days old and the Ring Central press release is almost a year old.

We mere mortals will learn in due course.

KC

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Hi Oforfive!

You are spot on, IMO.

There has been a great deal of fear at Ringcentral that Zoom is encroaching on their space. It was in fact intimated in the most recent Q conference call of both companies.

RNG was a top 3 holding of mine from 2014 until mid February when i began scaling back. My position is average/small now and probably should have reloaded when the price collapsed to the $140s a couple of weeks ago.

The CEO is first rate and i expect will eventually find ways to compete, but this new video conferencing product is just now launching and may be overhyped. We’ll have to keep an eye on it. OTOH, while he may have felt he had no choice, it’s hard to believe Shmunis would put out an inferior new product.

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