A Look Back at Video Conferencing Stocks' Q1 Earnings: RingCentral (NYSE:RNG) Vs The Rest Of The Pack
Looking back on video conferencing stocks' Q1 earnings, we examine this quarter's best and worst performers, including RingCentral (NYSE:RNG) 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 1.4%. while next quarter's revenue guidance was 0.8% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and video conferencing stocks have held roughly steady amidst all this, with share prices up 2.8% on average since the previous earnings results.
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 $584.2 million, up 9.5% year on year, exceeding analysts' expectations by 1%. Overall, it was an ok quarter for the company with a decent beat of analysts' billings estimates but a miss of analysts' ARR (annual recurring revenue) estimates.
“We had a solid start to the year, and exceeded the high end of our revenue and non-GAAP operating profit margin guidance," said Vlad Shmunis, RingCentral’s Founder and CEO.
RingCentral achieved the highest full-year guidance raise of the whole group. The stock is up 4.5% since reporting and currently trades at $31.35.
Is now the time to buy RingCentral? Access our full analysis of the earnings results here, it's free.
Best Q1: Zoom (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 reported revenues of $1.14 billion, up 3.2% year on year, outperforming analysts' expectations by 1.2%. It was a decent quarter for the company with an impressive beat of analysts' billings estimates but decelerating growth in large customers.
Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 8.5% since reporting. It currently trades at $58.66.
Is now the time to buy Zoom? Access our full analysis of the earnings results here, it's free.
Slowest Q1: 8x8 (NASDAQ: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 $179.4 million, down 2.8% year on year, in line with analysts' expectations. It was a weak quarter for the company with a miss of analysts' ARR (annual recurring revenue) estimates and full-year revenue guidance missing analysts' expectations.
8x8 had the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. Interestingly, the stock is up 14.7% since the results and currently trades at $2.69.
Read our full analysis of 8x8's results here.
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 $247 million, up 13.1% year on year, surpassing analysts' expectations by 2.9%. Zooming out, it was a mixed quarter for the company with a decent beat of analysts' billings estimates but full-year revenue guidance missing analysts' expectations.
Five9 achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 22.2% since reporting and currently trades at $44.07.
Read our full, actionable report on Five9 here, it's free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.