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Actionable news in RNG: RINGCENTRAL Inc,

RingCentral CEO Shmunis Sees Growth Re-Accelerating

Following a Q4 report by telephony services provider RingCentral (RNG) this afternoon, in which it beat expectations, and forecast revenue this quarter and the year ahead of consensus, CEO Vlad Shmunis was kind enough to talk with me by phone for a few minutes.

I asked him what he made of the sharp fall-off in the shares. The stock dropped as much as 9% at one point, in late trading, before it recouped some of its losses, but the shares are still down 4% in late trading at this time.

Said Shmunis, “I would not read too much into this momentary stock change.”

The only major thing investors have lingered on tonight, he said, is the company’s move away from what he termed an “agency” approach to how it books some of its business:

If I could predict the stock market,well .. But, look, one thing I would note is that volumes [of trading after-hours] are very, very small. Ten, twenty shares, I don’t know, it doesn’t seem to be as convinced as block trades by any stretch. Look, we just had a couple calls so far, but you know, I think by and large, people seem to be happy with the results. People are just beginning to digest the fact that our growth will be stable and possibly re-accelerating. I don’t think that is digested yet. We got a couple questions about our going away from the agency model in how we handle phones. That traditional model, where we have phones on our books. But that’s the biggest — I wouldn’t say concern, just question — that we have gotten. That’s a small part of our revenues, 7%, and it’s not going to move the bottom line one way or another. So, just a little something for people to digest.

Shmunis took the opportunity to talk about how his company’s and financials seem a better deal than that of...


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