As the Q1 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the video conferencing industry, including Five9 (NASDAQ:FIVN) 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. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and while some of the video conferencing stocks have fared somewhat better than others, they collectively declined, with share prices falling 2.9% on average since the previous earnings results.
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, exceeding analysts' expectations by 2.9%. Overall, it was a mixed quarter for the company with a decent beat of analysts' billings estimates but full-year revenue guidance missing analysts' expectations.
“We are pleased to report strong first quarter results with subscription revenue growing 20% year-over-year and adjusted EBITDA margin of 15%, helping drive robust LTM operating cash flow of $128 million. Five9 is changing the game for many of the largest brands in the world as we help them reimagine CX with our AI-infused data-centric platform combined with our passionate experts. We are also very excited to share that we signed our largest deal ever, a Fortune 50 financial services company, which is a testament to our continuing success in marching up-market. The market remains massive and underpenetrated, we believe we are a clear market leader, and we see a long runway ahead for durable growth.”
Five9 achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. The stock is down 22.2% since reporting and currently trades at $44.07.
Is now the time to buy Five9? Find out by reading the original article on StockStory, 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.
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 posted 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.
RingCentral (NYSE: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, surpassing analysts' expectations by 1%. Taking a step back, 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.
RingCentral achieved the highest full-year guidance raise among its peers. The stock is up 4.5% since reporting and currently trades at $31.35.
This content was originally published on Stock Story
