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Q2 Earnings Outperformers: Zoom Video (NASDAQ:ZM) And The Rest Of The Video Conferencing Stocks


Radek Strnad /
2022/09/21 3:08 am EDT
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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 have a look at how the video conferencing stocks have fared in Q2, starting with Zoom Video (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 slower Q2; on average, revenues beat analyst consensus estimates by 1.4%, while on average next quarter revenue guidance was 2.1% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital and video conferencing stocks have not been spared, with share price down 18.8% since the previous earnings results, on average.

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 the full year missing analysts' expectations.

“In Q2, we continued to gain traction as the platform of choice for enterprises looking to deliver flexible, productive solutions for collaboration and customer engagement,” said Zoom founder and CEO, Eric S. Yuan.

Zoom Video Total Revenue

Zoom Video delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The company added 200 enterprise customers paying more than $100,000 annually to a total of 3,116. The stock is down 20.9% since the results and currently trades at $77.05.

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

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.

Five9 Total Revenue

Five9 achieved the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The stock is down 17% since the results and currently trades at $81.63.

Is now the time to buy Five9? Access our full analysis of the earnings results here, it's free.

8x8 (NYSE: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 $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 in the group. 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 24.8% since the results and currently trades at $4.

Read our full analysis of 8x8'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 $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 12.6% since the results and currently trades at $43.41.

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

The author has no position in any of the stocks mentioned