A Look Back at Video Conferencing Stocks’ Q2 Earnings: Five9 (NASDAQ:FIVN) Vs The Rest Of The Pack

Let’s dig into the relative performance of Five9 (NASDAQ:FIVN) and its peers as we unravel the now-completed Q2 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 slower Q2. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was 1.4% below.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and video conferencing stocks have had a rough stretch. On average, share prices are down 18.6% since the latest 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 $252.1 million, up 13.1% year on year. This print exceeded analysts’ expectations by 2.8%. Despite the top-line beat, it was still a slower quarter for the company with underwhelming revenue guidance for the next quarter and a decline in its gross margin.

Five9 scored the biggest analyst estimates beat and fastest revenue growth, but had the weakest full-year guidance update of the whole group. Even though it had a great quarter relative to its peers, the market seems discontent with the results. The stock is down 10.7% since reporting and currently trades at $66.70.

Read our full report on Five9 here, it’s free.

Best Q2: 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 $1.16 billion, up 2.1% year on year, outperforming analysts’ expectations by 1.1%. The business had a satisfactory quarter with an impressive beat of analysts’ billings estimates but decelerating growth in large customers.

The market seems happy with the results as the stock is up 10.7% since reporting. It currently trades at $66.70.

Is now the time to buy Zoom? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: 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 $178.1 million, down 2.8% year on year, in line with analysts’ expectations. It was a softer quarter as it posted underwhelming revenue guidance for the next quarter and a miss of analysts’ billings estimates.

8x8 delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 31.4% since the results and currently trades at $1.77.

Read our full analysis of 8x8’s results here.

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 $592.9 million, up 9.9% year on year. This number surpassed analysts’ expectations by 1.1%. Taking a step back, it was a mixed quarter as it also recorded a decent beat of analysts’ billings estimates but a decline in its gross margin.

RingCentral achieved the highest full-year guidance raise among its peers. The stock is down 17.1% since reporting and currently trades at $27.75.

Read our full, actionable report on RingCentral here, it’s free.

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