As video conferencing stocks’ Q2 earnings season wraps, let's dig into this quarters’ best and worst performers, including Five9 (NASDAQ:FIVN) 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 slower Q2; on average, revenues beat analyst consensus estimates by 1.4%, while on average next quarter revenue guidance was 2.1% under consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows and video conferencing stocks have not been spared, with share prices down 34.4% since the previous earnings results, on average.
Best Q2: 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 $189.3 million, up 31.7% year on year, beating analyst expectations by 5.16%. It was a strong quarter for the company, with a significant improvement in gross margin and a solid beat of analyst estimates.
“We are excited to report strong second quarter results with revenue growing 32% year-over-year to a record $189.4 million. This growth continues to be driven primarily by the strength of our Enterprise business where LTM subscription revenue grew 41% year-over-year.”
Five9 scored the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise of the whole group. The stock is down 44% since the results and currently trades at $55.00.
Is now the time to buy Five9? Access our full analysis of the earnings results here, it's free.
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 $486.8 million, up 28.3% year on year, beating analyst expectations by 1.59%. It was a slower quarter for the company, with revenue guidance for both the next quarter and full year missing analysts' expectations.
The stock is down 32.4% since the results and currently trades at $33.59.
Is now the time to buy RingCentral? Access our full analysis of the earnings results here, it's free.
Weakest Q2: Zoom Video (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 Video reported revenues of $1.09 billion, up 7.63% year on year, missing analyst expectations by 1.57%. It was a weak quarter for the company, with revenue guidance for both the next quarter and full year missing analysts' expectations.
Zoom Video had the weakest performance against analyst estimates and slowest revenue growth in the group. The company added 200 enterprise customers paying more than $100,000 annually to a total of 3,116. The stock is down 23.3% since the results and currently trades at $74.73.
Read our full analysis of Zoom Video's results here.
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 $187.6 million, up 26.4% year on year, in line with analyst expectations. It was a weak quarter for the company, with revenue guidance for both the next quarter and full year missing analysts' expectations.
8x8 had the weakest full year guidance update among the peers. The company lost 43 enterprise customers paying more than $100,000 annually and ended up with a total of 1,277. The stock is down 37.9% since the results and currently trades at $3.30.
Read our full, actionable report on 8x8 here, it's free.
The author has no position in any of the stocks mentioned