We are nearing the end of earnings season with calendar first quarter 2023 results wrapping up. For the larger pure-play UCaaS and CCaaS providers, calendar 2023 has started out with positive momentum with earnings up and margins improving. Sales in the Americas are bouncing back nicely while EMEA sales struggle. CCaaS revenue growth is outpacing UCaaS growth as we move through 2023 which is in-line with the forecasts in Metrigy’s MetriCast service. In the CX Metricast study published in March 2023, we have forecast 18% CCaaS revenue growth in 2023. Here are highlights from select providers in order of revenue.
Zoom reported 3% year over year (YoY) growth in fiscal 1Q24 earnings (ended April 30, 2023), to $1.1 billion. Highlights for Zoom include: Zoom Phone reaches 10% of revenue and the online business is starting to stabilize with average monthly churn going from 3.6% in fiscal 1Q23 to 3.1% in 1Q24. 8% growth in the Americas offset 8% decline in EMEA and 5% decline in APAC revenue during the quarter. The Americas region represents 71% share of revenue. Online revenue was down 8% YoY and enterprise revenue was up 13%.
NICE reported 8% YoY revenue growth in its fiscal 1Q23 earnings (ended March 31, 2023), to $572 million. Its cloud revenue grew 25% for the same period and was 64% of total revenue. The Americas region is NICE’s largest, representing 83% of revenue in the quarter, grew 12% YoY. Comparatively EMEA was down 13% YoY (11% of total revenue). Its customer engagement segment was 83% of revenue and up 12% YoY.
RingCentral reported 14% YoY growth in its fiscal 1Q23 earnings (ended March 31, 2023), to $534 million. Subscription revenue which was 95% of total revenue in the quarter increased 16% YoY in the quarter. RingCentral noted slower upsell to existing customers due to macroeconomic conditions. Overall ARPU remained steady at slightly above $30. Operating margin has improved significantly to 17.2% (compared to 10.4% in 1Q22). Maintaining FY 2023 guidance of 10-11% revenue growth.
Five9 reported the strongest YoY growth at 20% in its fiscal 1Q23 (ended March 31, 2023), to $218 million, exceeding expectations. Five9’s growth stems from strength in its enterprise business with subscription revenue grew 31% YoY, accounting for 85% of revenue. International revenue grew 48% YoY – but only 10.6% of total revenue.
8×8 reported 2% YoY growth in its fiscal 4Q23 earnings (ended March 31, 2023), to $177 million. The Fuze business represented 14.6% of the total revenue. Its total annual recurring subscriptions and usage (ARR) was $687 million at the end of the quarter, up 33% YoY. 8×8’s enterprise class of customers (defined as customers representing >$100K of ARR) is 57% of total ARR, a segment 8×8 is focused on growing.
