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Q3 Video Conferencing Earnings: Five9 (NASDAQ:FIVN) Earns Top Marks

FIVN Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at video conferencing stocks, starting with Five9 (NASDAQ:FIVN).

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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 0.7% below.

Thankfully, share prices of the companies have been resilient as they are up 7.7% on average since the latest earnings results.

Best Q3: 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 to offer more tailored customer support.

Five9 reported revenues of $264.2 million, up 14.8% year on year. This print exceeded analysts’ expectations by 3.6%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.

“We are very pleased to report strong third quarter results, which exceeded our guidance across all key metrics. Subscription revenue grew 20% year-over-year, and we achieved an adjusted EBITDA margin of 20%, helping drive robust operating cash flow of $41 million. With the acceleration of AI, CX is at an inflection point. We believe our AI-powered platform is at the forefront of enabling a hyper-personalized experience, continuous engagement, and seamless customer journeys, all while creating a pathway for durable growth. We are energized by the momentum we are seeing with our AI products and believe that the market opportunity ahead is stronger than ever.”

Five9 Total Revenue

Five9 achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 25.8% since reporting and currently trades at $41.31.

Is now the time to buy Five9? Access our full analysis of the earnings results here, it’s free.

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 $1.18 billion, up 3.6% year on year, outperforming analysts’ expectations by 1.2%. The business had a strong quarter with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

Zoom Total Revenue

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.3% since reporting. It currently trades at $82.56.

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

Weakest Q3: 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 $608.8 million, up 9.1% year on year, exceeding analysts’ expectations by 1.1%. Still, it was a mixed quarter as it posted annual recurring revenue in line with analysts’ estimates.

RingCentral delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 4.5% since the results and currently trades at $37.04.

Read our full analysis of RingCentral’s results here.

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 $181 million, down 2.2% year on year. This number topped analysts’ expectations by 1.5%. More broadly, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates but a slight miss of analysts’ annual recurring revenue estimates.

8x8 had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is up 16.8% since reporting and currently trades at $2.71.

Read our full, actionable report on 8x8 here, it’s free.


Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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