Despite an acceleration in revenue and increased guidance, shares of RingCentral, Inc. (RNG, Financial), a leading Unified Communications as a Service provider,lagged during the quarter on investor fears around contraction in its total addressable market and increasing competition from Microsoft and Zoom. We believe the market is big enough to support multiple long-term winners and that RingCentral can continue to innovate at a fast rate with its platform, sustaining pricing and winning strong share.
From Ron Baron (Trades, Portfolio)'s Baron Partners Fund third-quarter 2021 letter.
