Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q4 now behind us, let’s have a look at 8x8 (NYSE:EGHT) 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 mixed 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 video conferencing stocks have not been spared, with share price down 22.5% since earnings, on average.
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.
“We delivered revenue above the high end of our guidance range and achieved non-GAAP operating profitability and positive cash flow from operations for the fourth consecutive quarter. Channel contribution, growth in Enterprise ARR, growth in XCaaS ARR, and adoption of 8x8 Voice for Microsoft Teams demonstrated continued strength in the third quarter,” said Dave Sipes, Chief Executive Officer at 8x8, Inc.
8x8 achieved the highest full year guidance raise but had the slowest revenue growth of the whole group. The company added 36 enterprise customers paying more than $100,000 annually to a total of 907. The stock is down 31.2% since the results and currently trades at $10.33.
Is now the time to buy 8x8? 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 $448.4 million, up 34% year on year, beating analyst expectations by 3.14%. Despite the solid top-line growth, 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 37.7% since the results and currently trades at $92.01.
Is now the time to buy RingCentral? Access our full analysis of the earnings results here, it's free.
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.
Zoom Video had the weakest performance against analyst estimates and weakest full year guidance update in the 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 23.2% since the results and currently trades at $101.80.
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%. Despite the impressive top-line result, it was a weaker quarter for the company, with an underwhelming guidance for the next year and a decline in gross margin.
Five9 scored the strongest analyst estimates beat and fastest revenue growth among the peers. The stock is up 2.02% since the results and currently trades at $106.25.
The author has no position in any of the stocks mentioned