A Look Back at Video Conferencing Stocks’ Q4 Earnings: 8x8 (NASDAQ:EGHT) Vs The Rest Of The Pack

Let’s dig into the relative performance of 8x8 (NASDAQ:EGHT) and its peers as we unravel the now-completed Q4 video conferencing earnings season.

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. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.6% since the latest earnings results.

8x8 (NASDAQ:EGHT)

8x8 reported revenues of $178.9 million, down 1.2% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a slight miss of analysts’ billings estimates.

"Our third quarter results highlight further progress and continued momentum in our transformation journey. We delivered solid financial performance, with record cash flow from operations and strong adoption of our AI-powered customer experience solutions, driving a 60% year-over-year increase in new products. As we move forward, our focus remains on enhancing customer value, accelerating growth, and driving long-term profitability. With a clear strategy and a strong team, I believe we are well-positioned to capitalize on the opportunities ahead," said Samuel Wilson, Chief Executive Officer at 8x8, Inc.

8x8 delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 8% since reporting and currently trades at $2.63.

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Best Q4: Five9 (NASDAQ:FIVN)

Five9 reported revenues of $278.7 million, up 16.6% year on year, outperforming analysts’ expectations by 4%. The business had a strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ billings estimates.

Five9 pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 13.2% since reporting. It currently trades at $36.32.

Weakest Q4: RingCentral (NYSE:RNG)

RingCentral reported revenues of $614.5 million, up 7.6% year on year, in line with analysts’ expectations. It was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations and a miss of analysts’ annual recurring revenue estimates.

As expected, the stock is down 7% since the results and currently trades at $28.61.

Zoom (NASDAQ:ZM)

Zoom reported revenues of $1.18 billion, up 3.3% year on year. This result met analysts’ expectations. More broadly, it was a mixed quarter as it also logged accelerating growth in large customers but full-year EPS guidance missing analysts’ expectations significantly.

Zoom had the weakest full-year guidance update among its peers. The company added 93 enterprise customers paying more than $100,000 annually to reach a total of 4,088. The stock is down 10.3% since reporting and currently trades at $72.68.

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This content was originally published on Stock Story