As Q4 earnings season comes to a close, it’s time to take stock of this quarters’ best and worst performers amongst the video conferencing stocks, including Zoom Video (NASDAQ:ZM) 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 decent Q4; on average, revenues beat analyst consensus estimates by 2.93%, while on average next quarter revenue guidance was 3.2% above consensus. Technology stocks have been hit hard on fears of higher interest rates and while some of the video conferencing stocks have fared somewhat better, they have not been spared, with share price declining 16.4% since earnings, on average.
Weakest Q4: 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 $1.07 billion, up 21.4% year on year, beating analyst expectations by 1.56%. It was a weak quarter for the company, with the guidance for both the next quarter and the full year missing analyst estimates.
“In fiscal year 2022, we delivered strong results with total revenue of more than $4 billion growing 55% year over year along with increased profitability and operating cash flow growth as our global customer base continued to grow and find new use cases for our broadening communications platform,” said Zoom founder and CEO, Eric S. Yuan.
Zoom Video delivered the weakest performance against analyst estimates and weakest full year guidance update of the whole group. The company lost 2,300 enterprise customers with more than 10 employees and ended up with a total of 509,800. The stock is down 17.8% since the results and currently trades at $108.97.
Is now the time to buy Zoom Video? Access our full analysis of the earnings results here, it's free.
Best Q4: 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 $156.8 million, up 14.7% year on year, beating analyst expectations by 2.07%. It was a solid quarter for the company, with a very optimistic guidance for the next quarter.
8x8 scored the highest full year guidance raise but had the slowest revenue growth among its peers. The company added 36 enterprise customers paying more than $100,000 annually to a total of 907. The stock is down 26.1% since the results and currently trades at $11.09.
Is now the time to buy 8x8? Access our full analysis of the earnings results here, it's free.
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 $173.5 million, up 35.7% year on year, beating analyst expectations by 4.94%. It was a weaker quarter for the company, with an underwhelming guidance for the next year and a decline in gross margin.
Five9 achieved the strongest analyst estimates beat and fastest revenue growth in the group. The stock is up 6.86% since the results and currently trades at $111.29.
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 $448.4 million, up 34% year on year, beating analyst expectations by 3.14%. It was a mixed quarter for the company, with a decline in gross margin and underwhelming guidance for the next year.
The stock is down 28.7% since the results and currently trades at $105.44.
The author has no position in any of the stocks mentioned