As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q4. Today we are looking at the video conferencing stocks, 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 weak Q4; on average, revenues were in line with analyst consensus estimates, while on average next quarter revenue guidance was 1.91% under consensus. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021 and video conferencing stocks have not been spared, with share prices down 23.2% since the previous earnings results, on average.
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 $1.12 billion, up 4.33% year on year, beating analyst expectations by 1.55%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations.
“In fiscal year 2023, our growing base of Enterprise customers increasingly looked to Zoom to provide a seamless communication and collaboration platform, and drive productivity and efficiency during turbulent times,” said Zoom founder and CEO, Eric S. Yuan.
Zoom Video delivered the slowest revenue growth of the whole group. The company added 185 enterprise customers paying more than $100,000 annually to a total of 3,471. The stock is down 7.1% since the results and currently trades at $68.51.
Read our full report on Zoom Video here, it's free.
Best Q4: 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 $208.3 million, up 20% year on year, beating analyst expectations by 1.92%. It was an ok quarter for the company, with a beat of topline estimates but underwhelming revenue guidance for the next year.
Five9 achieved the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The stock is down 23.1% since the results and currently trades at $62.72.
Is now the time to buy Five9? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $524.7 million, up 17% year on year, missing analyst expectations by 0.6%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
RingCentral had the weakest full year guidance update in the group. The stock is down 43.4% since the results and currently trades at $27.44.
Read our full analysis of RingCentral's results here.
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 $184.4 million, up 17.5% year on year, missing analyst expectations by 0.91%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.
8x8 had the weakest performance against analyst estimates among the peers. The company added 18 enterprise customers paying more than $100,000 annually to a total of 1,309. The stock is down 19.4% since the results and currently trades at $4.04.
Read our full, actionable report on 8x8 here, it's free.
The author has no position in any of the stocks mentioned