RingCentral, Inc. (NYSE:RNG) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. RingCentral, Inc., together with its subsidiaries, provides cloud business communications, contact center, video, and hybrid event solutions in North America and internationally. On 31 December 2024, the US$2.0b market-cap company posted a loss of US$58m for its most recent financial year. The most pressing concern for investors is RingCentral's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Consensus from 18 of the American Software analysts is that RingCentral is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$40m in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 49% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for RingCentral given that this is a high-level summary, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for RingCentral

Before we wrap up, there’s one issue worth mentioning. RingCentral currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are too many aspects of RingCentral to cover in one brief article, but the key fundamentals for the company can all be found in one place – RingCentral's company page on Simply Wall St. We've also put together a list of essential factors you should further research:

1. Valuation: What is RingCentral worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether RingCentral is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on RingCentral’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.