The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how video conferencing stocks fared in Q3, 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 satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 0.9% below.

Thankfully, share prices of the companies have been resilient as they are up 6.2% on average since the latest earnings results.

Five9 (NASDAQ: FIVN)

Taking its name from the "five nines" (99.999%) standard for optimal service reliability in telecommunications, Five9 (NASDAQ: FIVN) provides cloud-based software that enables businesses to run their contact centers with tools for customer service, sales, and marketing across multiple communication channels.

Five9 reported revenues of $285.8 million, up 8.2% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

Five9 scored the fastest revenue growth but had the weakest performance against analyst estimates of the whole group. Still, the market seems discontent with the results. The stock is down 16.6% since reporting and currently trades at $20.54.

Read our full report on Five9 here, it’s free for active Edge members.

Best Q3: 8x8 (NASDAQ: EGHT)

Named after its founding year (1987) with "8x8" representing binary code for communications, 8x8 (NASDAQ: EGHT) provides cloud-based contact center and unified communications solutions that enable businesses to manage customer interactions and internal communications through a single platform.

8x8 reported revenues of $184.1 million, up 1.7% year on year, outperforming analysts’ expectations by 3.1%. The business had a very strong quarter with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

8x8 delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 16.6% since reporting. It currently trades at $2.08.

Is now the time to buy 8x8? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: RingCentral (NYSE: RNG)

Built on its proprietary Message Video Phone (MVP) platform that unifies multiple communication methods, RingCentral (NYSE: RNG) provides AI-driven cloud communications and collaboration solutions that enable businesses to connect through voice, video, messaging, and contact center services.

RingCentral reported revenues of $638.7 million, up 4.9% year on year, in line with analysts’ expectations. It was a slower quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and billings in line with analysts’ estimates.

As expected, the stock is down 1.1% since the results and currently trades at $29.61.

Read our full analysis of RingCentral’s results here.

Zoom (NASDAQ: ZM)

Once the verb that defined remote work during the pandemic ("let's Zoom later"), Zoom (NASDAQ: ZM) provides a cloud-based platform for video meetings, phone calls, team chat, and collaboration tools that helps businesses and individuals connect virtually.

Zoom reported revenues of $1.23 billion, up 4.4% year on year. This result topped analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and EPS guidance for next quarter beating analysts’ expectations.

Zoom pulled off the highest full-year guidance raise among its peers. The company added 89 enterprise customers paying more than $100,000 annually to reach a total of 4,363. The stock is up 14.5% since reporting and currently trades at $90.02.

Read our full, actionable report on Zoom here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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