Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at 8x8 (NYSE:EGHT), and the best and worst performers in the video conferencing group.
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 Q1; on average, revenues beat analyst consensus estimates by 1.85%, while on average next quarter revenue guidance was 0.1% under consensus. Technology stocks have been hit hard on fears of higher interest rates as investors search for near-term cash flows, but video conferencing stocks held their ground better than others, with the share prices up 21.8% since the previous earnings results, on average.
Weakest 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 $184.5 million, up 1.74% year on year, missing analyst expectations by 0.65%. It was a weak quarter for the company, with underwhelming guidance for the next year.
“Fiscal 2023 was a year of milestones for 8x8 as we continued to invest in innovation while increasing our profitability and cash flow," said Samuel Wilson, 8x8 Interim Chief Executive Officer.
8x8 delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full year guidance update of the whole group. The company lost 8 enterprise customers paying more than $100,000 annually and ended up with a total of 1,301. The stock is up 24% since the results and currently trades at $4.
Read our full report on 8x8 here, it's free.
Best Q1: 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 $218.4 million, up 19.5% year on year, beating analyst expectations by 5.03%. It was a decent quarter for the company, with a solid beat of analyst estimates but a decline in gross margin.
Five9 achieved the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The stock is up 40.4% since the results and currently trades at $79.16.
Is now the time to buy Five9? Access our full analysis of the earnings results here, it's free.
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 $1.11 billion, up 2.94% year on year, beating analyst expectations by 1.94%. It was a mixed quarter for the company, with decelerating growth in large customers and a decline in net revenue retention rate. However, guidance was solid, with next quarter's revenue and adjusted operating profit guidance both slightly ahead. Additionally, full year revenue and adjusted operating profit guidance were both raised and are ahead of consensus.
The stock is down 3.65% since the results and currently trades at $68.88.
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 $533.7 million, up 14.1% year on year, beating analyst expectations by 1.07%. It was a decent quarter for the company, with strong free cash flow generation and revenue guidance for the next quarter roughly inline with analysts' estimates.
The stock is up 26.4% since the results and currently trades at $33.48.
Read our full, actionable report on RingCentral here, it's free.
The author has no position in any of the stocks mentioned