Shares of RingCentral (NYSE:RNG), an application-software company, dropped by as much as 9% Wednesday, marking the most significant intraday fall since August 2023.
This decline followed the announcement of the resignation of the company's Chief Financial Officer (CFO), Sonalee Parekh. RingCentral confirmed that Parekh's departure, effective September 10, was not due to any disagreements with the company.
Parekh's resignation comes close on the heels of another high-profile exit, with CEO Tarek Robbiati having left the company nine months prior. The turnover in RingCentral's executive suite has raised concerns among investors about the company's direction and its ability to compete in the unified communications and collaboration (UCC) market.
Piper Sandler expressed ongoing concerns regarding RingCentral's strategy, competitive positioning, and fundamental business aspects. The analyst firm indicated that the latest developments could limit the potential for any major strategic changes in the near term.
Following her departure from RingCentral, Parekh will join Asana (NYSE:ASAN), taking on the role of CFO starting September 11. Meanwhile, RingCentral has stated that there will be no change to its business outlook and that the company has begun the process of searching for a new CFO to succeed Parekh.
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