雅虎香港財經 Will RingCentral (RNG) be Able to Achieve its Long-Term Target?
RiverPark Advisors, an investment advisory firm, and sponsor of the RiverPark family of mutual funds released its “RiverPark Large Growth Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The fund returned 2.41% in the fourth quarter compared to a 7.56% return for the S&P 500 Total Return Index and a 2.20% return for the Russell 1000 Growth Total Return Index. In 2022, the fund declined by 47.37% compared to -18.11% and -29.14% fall for the S&P 500 and the Russell 1000 Growth Index, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2022.
RiverPark Large Growth Fund highlighted stocks like RingCentral, Inc. (NYSE:RNG) in the Q4 2022 investor letter. Headquartered in Belmont, California, RingCentral, Inc. (NYSE:RNG) is a software-as-a-service solutions provider. On February 10, 2023, RingCentral, Inc. (NYSE:RNG) stock closed at $41.30 per share. One-month return of RingCentral, Inc. (NYSE:RNG) was 13.90%, and its shares lost 75.44% of their value over the last 52 weeks. RingCentral, Inc. (NYSE:RNG) has a market capitalization of $3.966 billion.
RiverPark Large Growth Fund made the following comment about RingCentral, Inc. (NYSE:RNG) in its Q4 2022 investor letter:
“RingCentral, Inc. (NYSE:RNG): Despite reporting strong results this year, RNG shares were a top detractor for 4Q, as the market continues to anticipate slowing growth for the company. The company reported 1Q and 2Q revenue growth of 33% and 28%, respectively, and in mid-September reiterated 3Q guidance for 21%-22% revenue growth.
RingCentral is the largest and fastest growing pure play Unified Communications as a Service (UcaaS) vendor. UcaaS solutions support employees who communicate from anywhere with any device, using voice, video, text, messaging and social media in a capital and labor light model. RNG is the UcaaS market leader with two million users in an extremely fragmented market and is growing rapidly. The company started in the small-and-medium business market and now also serves larger enterprises, helped by its channel partnerships. The company’s increasing scale from its growing recurring revenue should improve operating margins, allowing the company to achieve its long-term target of 20%-25% (vs. 11% for 2Q22), while also generating increasing FCF.”
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RingCentral, Inc. (NYSE:RNG) is not on our 30 Most Popular Stocks Among Hedge Funds list. As per our database, 41 hedge fund portfolios held RingCentral, Inc. (NYSE:RNG) at the end of the third quarter, which was 42 in the previous quarter.
We discussed RingCentral, Inc. (NYSE:RNG) in another article and shared the list of most popular video calling software companies in the world. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
