Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at 8x8 (NASDAQ:EGHT) and its peers.
Work is becoming more distributed, both across geographies and devices. In order for businesses to keep functioning efficiently, they need to be able to communicate as well as they did when the teams were co-located, which drives the demand for integrated communication platforms.
The 4 video conferencing stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 1.4%. while next quarter's revenue guidance was 0.8% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, but video conferencing stocks have shown resilience, with share prices up 6.7% on average since the previous earnings results.
Slowest Q1: 8x8 (NASDAQ:EGHT)
Founded in 1987, 8x8 (NYSE:EGHT) provides software for organizations to efficiently communicate and collaborate with their customers, employees, and partners.
8x8 reported revenues of $179.4 million, down 2.8% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with a miss of analysts' ARR (annual recurring revenue) estimates and full-year revenue guidance missing analysts' expectations.
8x8 delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update of the whole group. The stock is up 39.9% since reporting and currently trades at $3.28.
Read our full report on 8x8 here, it's free.
Best Q1: Zoom (NASDAQ:ZM)
Started by Eric Yuan who once ran engineering for Cisco’s video conferencing business, Zoom (NASDAQ:ZM) offers an easy to use, cloud-based platform for video conferencing, audio conferencing and screen sharing.
Zoom reported revenues of $1.14 billion, up 3.2% year on year, outperforming analysts' expectations by 1.2%. It was a decent quarter for the company with an impressive beat of analysts' billings estimates but decelerating growth in large customers.
Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 6.4% since reporting. It currently trades at $59.98.
Is now the time to buy Zoom? Access our full analysis of the earnings results here, it's free.
Five9 (NASDAQ:FIVN)
Started in 2001, Five9 (NASDAQ: FIVN) offers software as a service that makes it easier for companies to set up and efficiently run call centers, and offer more tailored customer support.
Five9 reported revenues of $247 million, up 13.1% year on year, exceeding analysts' expectations by 2.9%. It was a mixed quarter for the company with a decent beat of analysts' billings estimates but full-year revenue guidance missing analysts' expectations.
As expected, the stock is down 21% since the results and currently trades at $44.77.
Read our full analysis of Five9's results here.
RingCentral (NYSE:RNG)
Founded in 1999 during the dot-com era, RingCentral (NYSE:RNG) provides software as a service that unifies phone, text, fax, video calls and chat in one platform.
RingCentral reported revenues of $584.2 million, up 9.5% year on year, surpassing analysts' expectations by 1%. Taking a step back, it was an ok quarter for the company with a decent beat of analysts' billings estimates but a miss of analysts' ARR (annual recurring revenue) estimates.
RingCentral pulled off the highest full-year guidance raise among its peers. The stock is up 14.3% since reporting and currently trades at $34.29.
Read our full, actionable report on RingCentral here, it's free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.