The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how RingCentral (NYSE:RNG) and the rest of the video conferencing stocks fared in Q4.
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. 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 20% since the previous earnings results, on average.
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.
"We are in a select category of SaaS companies with over $2 billion of recurring revenue, and our Q4 results reflect our ability to deliver healthy growth and increasing profitability as we continue to scale," said Vlad Shmunis, RingCentral's founder, chairman and CEO.
RingCentral delivered the weakest full year guidance update of the whole group. The stock is down 40.4% since the results and currently trades at $28.9.
Read our full report on RingCentral 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 a decent quarter for the company, with and increase in gross margin but underwhelming guidance for the next year.
Five9 delivered the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The stock is down 12.8% since the results and currently trades at $71.11.
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 $1.12 billion, up 4.33% year on year, beating analyst expectations by 1.55%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
Zoom Video had the slowest revenue growth in the group. The company added 185 enterprise customers paying more than $100,000 annually to a total of 3,471. The stock is down 5.16% since the results and currently trades at $69.94.
Read our full analysis of Zoom Video'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 21.8% since the results and currently trades at $3.92.
Read our full, actionable report on 8x8 here, it's free.
The author has no position in any of the stocks mentioned