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Q1 Video Conferencing Earnings: Zoom (NASDAQ:ZM) Earns Top Marks


Kayode Omotosho /
2024/05/29 8:14 am EDT

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how video conferencing stocks fared in Q1, starting with Zoom (NASDAQ:ZM).

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. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but video conferencing stocks have shown resilience, with share prices up 5.1% on average since the previous earnings results.

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, topping analysts' expectations by 1.2%. It was a mixed quarter for the company, with an impressive beat of analysts' billings estimates but underwhelming revenue guidance for the next quarter.

Zoom Total Revenue

The stock is down 4% since the results and currently trades at $61.55.

Is now the time to buy Zoom? Access our full analysis of the earnings results here, it's free.

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, outperforming analysts' expectations by 1%. It was a mixed quarter for the company, with a decent beat of analysts' billings estimates but a miss of analysts' ARR (annual recurring revenue) estimates.

RingCentral Total Revenue

RingCentral delivered the highest full-year guidance raise among its peers. The stock is up 15.7% since the results and currently trades at $34.7.

Is now the time to buy RingCentral? Access our full analysis of the earnings results here, it's free.

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. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' ARR (annual recurring revenue) estimates.

8x8 had the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. The stock is up 24.5% since the results and currently trades at $2.92.

Read our full analysis of 8x8's results here.

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, surpassing analysts' expectations by 2.9%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter.

Five9 scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 13.5% since the results and currently trades at $49.

Read our full, actionable report on Five9 here, it's free.

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