RingCentral Inc "Clean Execution, Modest Raise" (Neutral) McGinnis

研报英文原文证据摘录

RingCentral Inc "Clean Execution, Modest Raise" (Neutral) McGinnis

ated revs. For FY26, we estimate AI products are on track to be about ~$200M Q1 1.36 1.36 0 1.20

in ARR exiting this year, while the core UCaaS business is likely growing in the low- Q2 1.19 1.44 20 1.16

single digits. RNG said post-COVID rightsizing within the UCaaS business is Q3E 1.29 1.30 1 1.25

occurring as expected. Q4E 1.36 1.39 2 1.31

12/26E 5.25 5.50 5 4.92

Free Cash Flow Strength: RNG’s 2QF26 FCF margin of 27.4% was up ~420bps

12/27E 5.55 5.62 1 5.51

Y/Y, which was partly driven by certain one-time benefits from customer/partner 12/28E 6.00 6.09 2 6.09

prepayments. RNG isn’t breaking out the impact, but of the $22.5M FY26 FCF

raise, we think ~$10M was due to operating efficiencies (consistent with EBIT Taylor McGinnis

raise) and the remaining $12.5M was split between the prepayments and working Analyst

capital efficiencies. taylor.mcginnis@ubs.com

+1-212-713 1332

Avaya Cloud Office: RNG announced that existing Avaya Cloud Office customers Madeline Tribendis

will be transitioning to the RNG platform. Near-term, RNG characterized this as Associate Analyst

more of a brand change and the platform the same, but it will be taking on the madeline.tribendis@ubs.com

customer support and relationship, giving it the ability to cross-sell additional +1-212-713 8151

services over time that could be accretive to growth.

Valuation:

We maintain our PT of $45 based on 6x CY28E EV/FCF (rolled forward from 7x CY27E

EV/FCF).

Highlights (US$m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 2,202 2,400 2,515 2,646 2,770 2,869 2,970 3,075

EBIT (UBS) 420 504 566 635 680 719 759 801

Net earnings (UBS) 312 350 398 477 484 514 545 577

EPS (UBS, diluted) (US$) 3.23 3.71 4.36 5.50 5.62 6.09 6.58 7.12