Why RingCentral Shares Are Trading Lower Today

Needham analyst Ryan Koontz downgraded RingCentral, Inc RNG from Buy to Hold.
His recent fieldwork indicates the company's enterprise growth could continue to slow to the point where 2023 estimates now appear at risk.
Since 4Q21, he worried that a softening pipeline could impact RNG's enterprise revenue growth and limit the magnitude of revenue beats if new strategic partner sales did not quickly gain momentum.
It has become clear that Microsoft Corp MSFT Teams' enterprise footprint up-sell to voice represents an "increasing headwind" to RingCentral's growth.
His recent research indicates that new Teams' sell-in dialing plan opportunities now reach below $5 per month per seat.
Therefore, he lowered his 2023 estimates for revenue growth from 24% to 22% and EPS from $2.48 to $2.29 and downgraded the stock.
Price Action: RNG shares traded lower by 9.82% at $55.31 on the last check Wednesday.

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