Investors abandoned cash burning companies since high interest rates will make it harder to raise capital and video conferencing stocks have not been spared, with share prices down 34.7% since the previous earnings results, on average. The 4 video conferencing stocks we track reported a slower Q2 on average, revenues beat analyst consensus estimates by 1.4%, while on average next quarter revenue guidance was 2.1% under consensus. 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. Work is becoming more distributed, both across geographies and devices. With Q2 now behind us, let’s have a look at RingCentral (NYSE:RNG) and its peers.

The company joined the NASDAQ-100 stock index on April 30, 2020.īeginning in early 2020, Zoom's software usage saw a remarkable global increase after quarantine measures were adopted in response to the COVID-19 pandemic.Earnings results often give us a good indication what direction will the company will take in the months ahead. The company first became profitable in 2019, and completed an initial public offering that year. Zoom's revenue growth, and perceived ease-of-use and reliability of its software, resulted in a $1 billion valuation in 2017, making it a 'unicorn' company. It provides videotelephony and online chat services through a cloud-based peer-to-peer software platform used for video communications, messaging, voice calls, conference rooms for video meetings, virtual events and contact centers, and offers an open platform allowing third-party developers to build custom applications on its unified communications platform.Įric Yuan, a former Cisco engineer and executive, founded Zoom in 2011, and launched its software in 2013.

is an American communications technology company headquartered in San Jose, California.

Why is zoom stock down today