RingCentral (RNG)
Communication is a cornerstone of a successful work-from-home implementation. RingCentral (NYSE:RNG) is here to meet those needs, offering cloud-based business communications and customer engagement solutions across multiple devices and locations. For a collaborative workforce environment, the company provides clients access to different communication modes like conferencing, online meetings, high-definition voice, video and more. Its products include RingCentral MVP, customer engagement solutions, RingCentral Events and RingCentral Video.
RNG’s last quarterly report for the period ending September 30, 2023, showcased impressive growth. Revenue increased by 10% YOY, ending at $558 million, primarily driven by subscription revenue’s 10% growth. Annualized recurring revenue also grew by 11% to $2.26 billion. On the other hand, the quarter ended at a net loss, but still improved 85.20% YOY.
RNG raised its full-year outlook on the back of these impressive results. Subscription revenue is expected to reach between $2.095 and $2.101 billion, and total revenue is anticipated to end between $2.198 billion and $2.205 billion. RingCentral’s strong momentum and positive guidance make a compelling case for adding it to your “work-from-home stocks to buy” list.
Workday (WDAY)
Working from home presents unique and evolving challenges, and demands for adaptable, scalable solutions are increasing. Workday (NASDAQ:WDAY) software-as-a-service (SaaS) solutions fit those demands quite nicely, which earns it a spot in our promising work-from-home stocks list. Its cloud-based, unified system helps organizations plan, analyze, execute and continuously adapt how they manage their day-to-day operations. The company leverages artificial intelligence and machine learning by including them in the workflow to assist users with automating tasks and boost growth.
Notably, Workday is experiencing growing momentum and adoption, with the company’s annual recurring revenue from hospitality and retail customers breaching $1 billion. It has also been focusing on AI integration into its products to expand its partner ecosystem, allowing it to surpass 5,000 core Workday human capital management customers.
WDAY’s Q3 2024 saw an 18.1% increase in subscription revenue, which bumped up total revenue by 16.7%. The company also reported its non-GAAP operating income surging to $462.1 million. Meanwhile, operating cash flows ended at $450.8 million and free cash at $390.8 million. The company also has a healthy cash position of $6.88 billion.
Zscaler (ZS)
Remote work requires more specialized safeguards, and some of the best candidates for attractive work-from-home stocks are companies that provide security. One of them is Zscaler (NASDAQ:ZS), a company that offers a platform that incorporates core security functionalities. This allows organizations access to cloud resources based on context, identity and organization policies. Its solution is multi-tenant and purpose-built to combine security functionality that allows users, devices and applications to utilize policy-allowed applications to be used only.
ZS follows a SaaS business model by selling subscriptions to customers and providing access to its cloud platform and related support services. The company recently announced its new Zscaler Zero Trust SASE, which utilizes Zscaler Zero Trust AI to help reduce cost and increase efficiency while implementing Zero Trust security across its customers, users and devices.
The company ended Q1 2024 with solid results. Revenue grew to $496.7 million or 40% YOY, while calculated billings and deferred revenue grew 34% and 39%, respectively. GAAP net loss narrowed by over 50% from $68.2 million to $33.5 million. Zscaler’s initiatives like Zero Trust and AI helped push the demand for Zero Trust Exchange, which allowed the company to scale its R&D and go-to-market capabilities for long-term growth. In addition, the company expects FY24’s revenue to end between $2.09 billion and $2.10 billion. Non-GAAP net income per share is also expected to reach between $2.45 and $2.48. Its strong results and position as a sector leader help ZS rank among the best contenders for work-from-home stocks today.
On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.