As video conferencing stocks’ Q1 earnings season wraps, let's dig into this quarter’s best and worst performers, 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 mixed Q1; on average, revenues beat analyst consensus estimates by 2.25%, while on average next quarter revenue guidance was 1.03% above consensus. The whole tech sector has been facing a sell-off since late last year, but video conferencing stocks held their ground better than others, with share price down 2.21% since earnings, on average.
Best Q1: 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 $181.3 million, up 25.3% year on year, missing analyst expectations by 0.02%. It was a solid quarter for the company, with accelerating growth in large customers.
“We improved non-GAAP operating profitability in every quarter of fiscal 2022 and achieved a non-GAAP operating profit for the year,” said Dave Sipes, Chief Executive Officer at 8x8,
8x8 delivered the weakest performance against analyst estimates of the whole group. The company added 413 enterprise customers paying more than $100,000 annually to a total of 1,320. The stock is down 26.4% since the results and currently trades at $5.67.
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 $182.7 million, up 32.5% year on year, beating analyst expectations by 6.96%. It was a strong quarter for the company, with a solid beat of analyst estimates.
Five9 pulled off the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is down 3.35% since the results and currently trades at $99.48.
Is now the time to buy Five9? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $467.6 million, up 32.7% year on year, beating analyst expectations by 2.02%. It was a weaker quarter for the company, with a full year guidance missing analysts' expectations and a decline in gross margin.
RingCentral delivered the fastest revenue growth but had the weakest full year guidance update in the group. The stock is down 13.8% since the results and currently trades at $59.30.
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 12.2% year on year, in line with analyst expectations. Despite the stock rising on the results, it was a weaker quarter for the company, with a decline in net revenue retention rate and a slow revenue growth.
Zoom Video had the slowest revenue growth among the peers. The company added 191 enterprise customers paying more than $100,000 annually to a total of 2,916. The stock is up 34.8% since the results and currently trades at $120.45.
The author has no position in any of the stocks mentioned