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As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the video conferencing industry, including Zoom (NASDAQ:ZM) 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 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 25.8% since the latest earnings results.
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 3.3% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with accelerating growth in large customers but full-year EPS guidance missing analysts’ expectations significantly.
“In FY25, Zoom AI Companion emerged as the driving force behind our transformation into an AI-first company, enabling our customers to discover enhanced productivity opportunities. As Zoom AI Companion becomes increasingly agentic, we look forward to continuing to help our customers fully realize the benefits of AI and discover what’s possible with AI agents,” said Eric S. Yuan, Zoom's founder and CEO.
Zoom delivered the weakest full-year guidance update of the whole group. The company added 93 enterprise customers paying more than $100,000 annually to reach a total of 4,088. Unsurprisingly, the stock is down 6.5% since reporting and currently trades at $75.82.
Read our full report on Zoom here, it’s free.
Best Q4: 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 $278.7 million, up 16.6% year on year, outperforming analysts’ expectations by 4%. The business had a strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ billings estimates.
Five9 scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 38.5% since reporting. It currently trades at $25.73.