07.07.2024

Conference Call: What It is, How It Works

What Is a Conference Call?

A conference call is a meeting where participants connect via audio, video, or web to a conference room using an access number. A meeting organizer commonly assembles a participant list and invites attendees before the event. A conference call connects parties by phone or computer rather than in person.

Key Takeaways

  • A conference call is a meeting where participants connect via audio, video, or web to a conference room using an access number. 
  • Audio, video, and web platforms are common types of conference calling.
  • Companies may use conference calls for training, weekly meetings, or an «earnings call» to discuss the company’s financials.

Types of Conference Calls

  • Audio: Users connect and communicate via landline or any VoIP-based phone service.
  • Video: Participants join a shared virtual space using webcams in a real-time, audio-visual call.
  • Web: Users can conduct a presentation or event online, and participants interact through screen sharing.

How a Conference Call Works

Service providers commonly facilitate conference calls. Conference call services make communication accessible even when employees are geographically distanced. In 2022, nearly 1.3 billion global visitors visited Zoom.us, a videoconferencing platform for remote work, distance education, and online social meetings.

Companies may use conference calls for training, weekly meetings, or an «earnings call» to discuss the company’s financials and other key performance indicators (KPI) that drive business operations. Earnings calls are held four times yearly, typically after each quarterly earnings announcement.

For many companies, the conference call can allay fears created during the quarter or reinforce the message of positive future growth. If a company was the center of controversy, missed analyst estimates, or issued weak guidance, the call is an opportunity for management to address that weakness.

Service Providers

Many conference calling services offer free trials before users commit to a particular plan. RingCentral, AT&T, and GoToMeeting offer voice conference calling services. Zoom, Microsoft Teams, and Slack provide video conferencing.

Audio and video conferencing solutions will have features such as screen sharing, cloud recordings, breakout rooms, closed captioning, and file sharing.

What Are Common Features of Video Conferencing Software?

Some services are best for one-on-one calls, some are ideal for small groups, and others can handle large meetings or webinars. The best video conferencing software should be reliable and easy to use.

What Is the Difference Between Free or Paid Conferencing Services?

A free conference call service provides basic service, usually for a limited time. Paid services commonly support more call participants with access to collaboration features.

What Is an Earnings Conference Call?

An earnings conference call is an event in which investors listen to a company’s management team detail aspects of the current quarter and projected earnings growth.

The Bottom Line

A conference call connects participants via audio, video, or web to a conference room if the users are geographically distant. Service providers like Zoom or AT&T provide access to audio, video, and web conference calling. Companies may use conference calls for training, weekly meetings, or earnings calls.

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