The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the video conferencing stocks have fared in Q4, starting with RingCentral (NYSE:RNG).
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. The technology sell-off has been putting pressure on stocks since November and video conferencing stocks have not been spared, with share price down 24.1% since earnings, on average.
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.
“Fourth quarter results were outstanding, driven by continued momentum with upmarket customers and ramping contributions from our key partners,” said Vlad Shmunis, RingCentral’s founder, chairman and CEO.
The stock is down 38.2% since the results and currently trades at $91.40.
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.
8x8 pulled off the highest full year guidance raise but had the slowest revenue growth among its peers. The company added 36 enterprise customers paying more than $100,000 annually to a total of 907. The stock is down 31.7% since the results and currently trades at $10.25.
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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 25.5% since the results and currently trades at $98.76.
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 strong top-line growth, it was a weaker quarter for the company, with an underwhelming guidance for the next year and a decline in gross margin.
Five9 delivered the strongest analyst estimates beat and fastest revenue growth among the peers. The stock is down 1.23% since the results and currently trades at $102.85.
The author has no position in any of the stocks mentioned