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CRTO & RNG Look Good Despite Software & Services Weakness
ZACKSยท 2025-05-15 19:46
Industry Overview - The Internet-Software & Services industry is closely tied to the economy, with estimates declining due to tariffs, inflation, and interest rate uncertainties [1][7] - Companies are focusing on cost-saving measures, reducing operating expenses to maintain profitability despite revenue challenges [1][7] - Capital investments are being limited, with only a few companies making significant investments [1] Key Industry Themes - Companies like Criteo (CRTO) and RingCentral (RNG) are performing well by leveraging AI for revenue growth and client retention through subscription models [2][18] - The industry is characterized by a diverse range of players, leading to varied performance outcomes [2] - The Zacks Industry Rank for the Internet-Software & Services sector is 203, placing it in the bottom 17% of nearly 250 classified industries, indicating limited growth prospects [6][8] Economic Impact - The level of technology adoption by businesses is crucial for growth, with some companies advancing in AI while others lag behind [7] - Economic slowdowns lead to reduced expenditures on software and services, impacting industry performance [7] - Geopolitical tensions and tariff changes contribute to market volatility and uncertainty, complicating the operating environment [7] Financial Performance - The industry has shown strong stock market performance, returning 20.5% over the past year, outperforming the broader sector and S&P 500 [11] - The industry is currently trading at a forward 12-month P/E ratio of 24.96X, which is a 15.2% premium to the S&P 500 [14] Company Highlights Criteo S.A. (CRTO) - Criteo's AI-driven platform connects advertisers with retailers, helping to drive commerce despite macroeconomic challenges [18][20] - The company has maintained a client retention rate close to 90% and reported an 18% growth in Retail Media contributions [21][22] - Despite a projected decline in earnings due to the loss of a major customer, Criteo's existing customer spending has increased significantly [21][23] RingCentral Inc. (RNG) - RingCentral's AI-powered solutions have led to an average recurring revenue (ARR) exceeding $2.5 billion [26] - The company has successfully integrated its services into the Salesforce CRM ecosystem and secured significant customer wins [26] - RingCentral's shares have decreased by 26.5% over the past year, with analysts projecting revenue growth of 4.6% in 2025 [27]
RingCentral(RNG) - 2025 Q1 - Earnings Call Presentation
2025-05-09 07:57
Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors including those that are described in greater detail in our most recent Form 10-K filed with the Securities and Exchange Commission, and in our other filings with the Securities and Exchange Commission from time to time. All future written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified ...
RingCentral(RNG) - 2025 Q1 - Earnings Call Transcript
2025-05-08 22:02
RingCentral (RNG) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Company Participants Vaibhav Agarwal - Chief Transformation Officer and Deputy CFOVlad Shmunis - Founder, Chairman and Chief Executive OfficerKira Makagon - President & Chief Operating OfficerAbhey Lamba - Chief Financial OfficerBilly Fitzsimmons - VP - Equity ResearchPeter Levine - Managing DirectorJessica Wang - Equity Research Associate Conference Call Participants Meta Marshall - AnalystKash Rangan - AnalystCatharine Trebnick - Senior Rese ...
RingCentral(RNG) - 2025 Q1 - Earnings Call Transcript
2025-05-08 22:00
RingCentral (RNG) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 Good day, and welcome to the RingCentral First Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please also note, today's event is being recorded. I would now like to turn the conference over to Vaibhav Agarwal, Deputy CFO for RingCentral. Please go ahead. Speaker1 Thank you. Good afternoon, and welcome to RingC ...