NEW YORK (TheStreet) -- Shares of RingCentral (RNG) - Get Report were gaining 11.5% to $19.95 on heavy trading volume Friday following the software company's second quarter earnings report and an upgrade from analyst firm Raymond James.

RingCentral reported a loss of 5 cents a share for the second quarter, above analysts' estimates of a loss of 8 cents a share. Revenue grew 33.9% year over year to $70.7 million for the quarter, above analysts' estimates of $68.74 million.

"We continue seeing strong traction in the enterprise market, as evidenced by a growing number of new accounts with over a hundred users each," Chairman and CEO Vlad Shmunis said in a statement. "We also see good continued progress with all of our carrier partners."

Raymond James upgraded RingCentral to "strong buy" from "outperform" following the company's earnings report.

About 2.2 million shares of RingCentral were traded by 12:40 p.m. Friday, above the company's average trading volume of 573,000 shares a day.

TheStreet Ratings team rates RINGCENTRAL INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate RINGCENTRAL INC (RNG) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share."

You can view the full analysis from the report here: RNG Ratings Report

RNG data by YCharts

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