Wrapping up Q2 earnings, we look at the numbers and key takeaways for the video conferencing stocks, including 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 slower Q2; on average, revenues beat analyst consensus estimates by 1.4%, while on average next quarter revenue guidance was 2.1% under consensus. There has been a stampede out of high valuation technology stocks as raising interest rates encourage investors to value profits over growth again and video conferencing stocks have not been spared, with share prices down 34.3% since the previous earnings results, on average.
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 the full year guidance missing analysts' expectations.
"Our first quarter results reflect our increased emphasis on profitability and cash flow generation, as well as strength in XCaaS, 8x8 Voice for Teams, high retention of Fuze customers, and continued global expansion of the enterprise base," said Dave Sipes, 8x8 CEO.
8x8 delivered the weakest full year guidance update of the whole 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 43.2% since the results and currently trades at $3.02.
Read our full report on 8x8 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 delivered the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The stock is down 41.5% since the results and currently trades at $57.55.
Is now the time to buy Five9? Access our full analysis of the earnings results here, it's free.
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 guidance missing analysts' expectations.
Zoom Video had the weakest performance against analyst estimates and slowest revenue growth in the group. The company added 200 enterprise customers paying more than $100,000 annually to a total of 3,116. The stock is down 24.2% since the results and currently trades at $73.90.
Read our full analysis of Zoom Video'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%. Despite the stock rising on the results, it was a weaker quarter for the company, with revenue guidance for both the next quarter and the full year guidance missing analysts' expectations.
The stock is down 28.5% since the results and currently trades at $35.50.
Read our full, actionable report on RingCentral here, it's free.
The author has no position in any of the stocks mentioned