With the business potentially at an important milestone, we thought we'd take a closer look at RingCentral, Inc.'s (NYSE:RNG) future prospects. RingCentral, Inc., together with its subsidiaries, provides cloud communications, video meetings, collaboration, and contact center software-as-a-service solutions worldwide. The US$3.1b market-cap company's loss lessened since it announced a US$165m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$133m, as it approaches breakeven. As path to profitability is the topic on RingCentral's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts' expectations for the company.

According to the 20 industry analysts covering RingCentral, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$74m in 2026. So, the company is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 80% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won't go into details of RingCentral's upcoming projects, though, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with RingCentral is it 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. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of RingCentral which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at RingCentral, take a look at RingCentral's company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:

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.

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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.