RingCentral is being avoided due to weak billings and slim projected revenue growth. Billings reached $632.4 million in Q1, with year-on-year growth averaging just 5.2% over the last four quarters, signaling soft demand. Wall Street expects revenue to rise only 4.5% over the next 12 months, a deceleration from 15% annualized growth over the past five years. While GAAP operating margin improved by 5.3 percentage points over two years to 6.3%, the company's shaky fundamentals present too much downside risk despite a reasonable valuation of 1.3 times forward price-to-sales.
Ringcentral IncWeak billings and slim projected revenue growth signal soft demand for RingCentral's services.