Core Insights - GreetEat Corp has announced a strategic technology integration with 8x8, Inc. to enhance its virtual dining infrastructure through video-conferencing capabilities [1][9] About the Integration - GreetEat will utilize 8x8 Jitsi as a Service (JaaS) for hosting video meetings, providing a branded, secure, and scalable experience for various dining events [2][3] Key Features Enabled via 8x8 JaaS - Features include secure end-to-end encryption, HD video conferencing for up to 500 participants, group and private chat, remote control capabilities, connection quality controls, cloud recording, brand customization, AI-powered insights, virtual backgrounds, calendar integrations, YouTube integration, and multi-language support [6][7] Strategic Benefits to GreetEat Corp and Its Investors - The partnership allows GreetEat to scale its user base globally without the need to build its own video infrastructure, enhances user experience, and provides cost efficiency through a monthly active user pricing model [7][8][11] Why 8x8 (EGHT) Is a Strong Strategic Partner - 8x8 offers a unified communications platform with a global cloud-native architecture, ensuring high availability and security, which aligns with GreetEat's needs for a reliable video infrastructure [4][7] Company Overview - GreetEat Corporation is a technology-driven platform that combines video conferencing with meal delivery to create shared dining experiences, also owning WallStreetStats.io, a fintech app leveraging AI for market analysis [9]

Summary of 8x8 FY Conference Call Company Overview - **Company**: 8x8 (NasdaqGS:EGHT) - **Industry**: Mid-cap software, specifically focusing on Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) Key Points and Arguments 1. **Investment in Innovation**: 8x8 has committed to spending approximately 15% of non-GAAP revenue on R&D to foster innovation, particularly in AI-based products [10][11][12] 2. **Acquisition of Fuze**: The acquisition of Fuze, a company with over $100 million in annual revenue, is nearing completion, with upgrades to the 8x8 platform expected by the end of the calendar year [10][11] 3. **Debt Reduction**: The company has successfully reduced its debt by approximately 41% from a high of $558 million in August 2022 [11][12] 4. **Positive Cash Flow**: 8x8 has generated positive cash flow from operations for 19 consecutive quarters, indicating a strong financial footing [12][13] 5. **Revenue Growth**: After a period of revenue headwinds, the company has reported year-over-year revenue growth in the last two quarters, marking a turnaround from an eight-quarter decline [12][13] 6. **Usage-Based Revenue**: Usage-based revenue has grown to nearly 20% of total service revenue, up from 13% the previous year, driven by new AI-driven products [23][25] 7. **Customer Retention and Stickiness**: Over one-third of annual recurring revenue (ARR) comes from customers using three or more products, enhancing customer retention and revenue growth [29][42] 8. **AI Integration**: The company is focusing on AI-driven products, which are expected to enhance customer experience and operational efficiency [45][50][100] 9. **Market Dynamics**: The UCaaS and CCaaS markets are competitive but healthy, with a noted increase in deal velocity for UCaaS compared to CCaaS [59][81] 10. **Partnership with Microsoft**: 8x8 has a strong relationship with Microsoft, which enhances the attach rate of their contact center solutions to Microsoft Teams users [91][93] Additional Important Insights 1. **Capital Management Strategy**: The company is focused on reducing leverage and has engaged in opportunistic stock buybacks while prioritizing debt reduction to enhance future growth options [121][122] 2. **Internal AI Utilization**: 8x8 is leveraging AI internally for various functions, including deal velocity acceleration and customer interaction analysis, which enhances operational efficiency [128][133] 3. **Future Outlook**: The company anticipates a continued shift towards usage-based revenue and AI integration, which is expected to positively impact gross profit margins over time [110][114] This summary encapsulates the key insights from the 8x8 FY Conference Call, highlighting the company's strategic focus on innovation, financial health, and market positioning.

Core Insights - 8x8 (EGHT) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2] Estimate Revisions - The upward trend in earnings estimate revisions indicates growing analyst optimism regarding 8x8's earnings prospects, which is expected to positively impact its stock price [2] - For the current quarter, 8x8 is projected to earn $0.08 per share, reflecting a year-over-year decline of 27.3%. However, the Zacks Consensus Estimate has increased by 33.33% over the last 30 days due to one upward revision and one downward revision [5] - For the full year, the earnings estimate is $0.32 per share, representing an 11.1% year-over-year decline. The trend for the current year is encouraging, with two estimates moving higher against one negative revision [6] Zacks Rank - 8x8 currently holds a Zacks Rank 2 (Buy), supported by favorable estimate revisions. This ranking system has a strong track record of identifying stocks that outperform the market [7] - Stocks rated Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500, indicating a positive outlook for 8x8 [7] Stock Performance - The stock has gained 6.1% over the past four weeks, driven by solid estimate revisions, suggesting potential for further growth in earnings and stock price [8]

Core Viewpoint - Investors are evaluating the value propositions of 8x8 (EGHT) and Zoom Communications (ZM) to determine which stock offers better value at present [1] Valuation Metrics - Both EGHT and ZM currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions for both companies [3] - Value investors focus on various valuation metrics to identify undervalued companies, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Specific Valuation Comparisons - EGHT has a forward P/E ratio of 6.00, significantly lower than ZM's forward P/E of 14.01, suggesting EGHT may be undervalued [5] - The PEG ratio for EGHT is 0.85, while ZM's PEG ratio is 6.97, indicating EGHT's expected earnings growth is more favorable relative to its price [5] - EGHT's P/B ratio stands at 1.97 compared to ZM's P/B of 2.76, further supporting the notion that EGHT is the more attractive value option [6] - Based on these valuation metrics, EGHT is rated with a Value grade of A, while ZM has a Value grade of C, reinforcing EGHT's position as the superior value choice [6]

Revenue Performance - Service revenue for the three months ended September 30, 2025, increased by $4.0 million, or 2.3%, compared to the same period in 2024, driven by an increase in platform usage revenue in the Asia-Pacific region [120]. - For the six months ended September 30, 2025, service revenue rose by $7.5 million, or 2.2%, primarily due to a $20.1 million increase in platform usage revenue, also mainly from the Asia-Pacific region [121]. - The service revenue for the three months ended September 30, 2025, was $179.1 million, representing 97.3% of total revenue [119]. - Other revenue decreased by $0.9 million, or 15.6%, for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to lower product revenue of $0.8 million [123]. - For the six months ended September 30, 2025, other revenue decreased by $1.2 million, or 10.8%, compared to the same period in 2024, driven by a $1.6 million decline in product revenue [124]. Profitability and Expenses - Gross profit for the three months ended September 30, 2025, was $119.3 million, with a gross profit margin of 64.8% [108]. - The company reported a net income of $767,000 for the three months ended September 30, 2025, which is 0.4% of total revenue [108]. - Cost of service revenue increased by $7.4 million, or 14.8%, for the three months ended September 30, 2025, mainly due to a $10.1 million rise in costs to deliver subscription and platform usage services [126]. - For the six months ended September 30, 2025, cost of service revenue rose by $11.8 million, or 11.8%, primarily due to a $17.3 million increase in subscription and platform usage service costs [127]. - Research and development expenses decreased by $3.4 million, or 10.8%, for the three months ended September 30, 2025, mainly due to a $2.1 million reduction in stock-based compensation [132]. - General and administrative expenses increased by $2.4 million, or 12.0%, for the three months ended September 30, 2025, primarily due to a $3.6 million rise in legal and regulatory costs [138]. - Sales and marketing expenses decreased by $1.0 million, or 1.6%, for the three months ended September 30, 2025, primarily due to a $3.3 million decline in channel commissions [135]. - Cost of other revenue decreased by $0.5 million, or 6.8%, for the three months ended September 30, 2025, primarily due to lower product costs associated with IP telephone hardware [129]. Strategic Focus and Initiatives - The company is focusing on retaining existing customers and expanding its mid-market, enterprise, and public sector customer base as part of its long-term strategy [105]. - The company plans to increase service revenue through new customer acquisition, cross-selling additional products, and strategic acquisitions of technologies and businesses [109]. - The company is committed to maintaining a high level of investment in research and development to drive innovation across its Platform for CX [105]. - The company is enhancing its platform with AI-based capabilities and expanding its Technology Partner Ecosystem to provide tailored solutions [106]. - The company has expanded its reseller partner programs to increase market reach and improve sales efficiency [107]. Cash Flow and Financial Position - Cash and cash equivalents totaled $75.9 million as of September 30, 2025, down from $88.1 million on March 31, 2025 [151]. - Net cash provided by operating activities decreased by $9.8 million to $20.7 million for the six months ended September 30, 2025, compared to $30.5 million in 2024 [155]. - Cash used in investing activities increased to $8.7 million for the six months ended September 30, 2025, up from $7.2 million in 2024 [155]. - The company repurchased 1.0 million shares of common stock for approximately $1.8 million at an average price of $1.83 per share during the six months ended September 30, 2025 [153]. - The outstanding principal of the 2024 Term Loan is $127.0 million as of September 30, 2025, after a reduction of $25.0 million during the fiscal year [160]. - The company has a material cash requirement of $527.1 million as of March 31, 2025, with a significant increase in a non-cancellable hosting service contract commitment from $24.1 million to $54.0 million [165]. - The 2024 Term Loan bears interest at an effective rate of 8.65% as of September 30, 2025 [159]. - The company anticipates that existing cash and cash flows from operations will be sufficient to meet working capital and contractual obligations for at least the next twelve months [150]. Accounting and Risk Management - The company's consolidated financial statements are prepared in accordance with U.S. GAAP, with no significant changes to critical accounting policies during the six months ended September 30, 2025 [168]. - There have been no material changes in the company's exposures to market risk since March 31, 2025, including interest rate and foreign currency exchange risks [170]. - The preparation of financial statements requires estimates and judgments that affect reported amounts of assets, liabilities, revenue, and expenses [167]. Other Income and Taxation - Other income increased to $0.5 million for the three months ended September 30, 2025, compared to a loss of $12.7 million in the same period of 2024, primarily due to a decrease in loss on debt extinguishment by $12.0 million [144]. - The provision for income taxes decreased by $0.9 million for the three months ended September 30, 2025, representing an 81.1% decline compared to the same period in 2024 [147]. - Interest expense decreased by $3.1 million, or 38.7%, for the three months ended September 30, 2025, primarily due to a lower interest rate on the 2024 Term Loan compared to the 2022 Term Loan [141]. - The percentage of total revenue attributed to research and development was 15.2% for the three months ended September 30, 2025, down from 17.3% in the same period of 2024 [131].

Core Insights - 8x8's shares surged by as much as 27.7% following the release of Q2 2026 results, which exceeded Wall Street's expectations and included optimistic guidance for the upcoming quarters [1][7] Financial Performance - Q2 2026 sales for 8x8 increased by 1.7% year-over-year, reaching $184.1 million, marking the second consecutive quarter of revenue growth after a prolonged decline [2] - Adjusted earnings remained stable at $0.09 per diluted share, surpassing the consensus estimate of $0.07 per share, with revenues expected around $178 million [2] Company Outlook - Despite the positive revenue trends, 8x8 is still in a turnaround phase, having faced challenges in growing top-line sales, with the stock down approximately 20% in 2025 and 49% over the past three years [4] - The company is actively reducing long-term debt and integrating artificial intelligence features into its services, although the fastest-growing products have lower gross margins [5] Market Position - While 8x8's stock has recently gained, it remains significantly down over the past year, indicating ongoing challenges in the digital communications market [7]

Core Insights - 8x8 reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, with a year-over-year comparison showing no change in earnings [1] - The company achieved revenues of $184.1 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.82% and showing an increase from $181 million year-over-year [2] - The stock has underperformed, losing approximately 30.3% since the beginning of the year, while the S&P 500 has gained 16.5% [3] Earnings Outlook - The future performance of 8x8's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [4][5] - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $177.24 million, and for the current fiscal year, it is $0.30 on revenues of $713.67 million [7] Industry Context - The Internet - Software industry, to which 8x8 belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Ziff Davis, another company in the same industry, is expected to report quarterly earnings of $1.76 per share, reflecting a year-over-year increase of 7.3% [9]

Financial Data and Key Metrics Changes - Total revenue for Q2 2026 was $184.1 million, exceeding guidance by approximately $4 million, with a year-over-year growth of 1.7% [13] - Service revenue reached $179.1 million, growing 2.3% year-over-year, driven by strong usage-based offerings [13] - Gross profit was $120.9 million, with a gross margin of 65.7%, reflecting a sequential decline due to a shift towards lower-margin usage revenue [14] - Operating income was $17.3 million, resulting in a 9.4% operating margin, above expectations [14] - Cash flow from operations was $8.8 million, exceeding guidance, with a cash balance of $76.7 million at quarter-end [14][15] Business Line Data and Key Metrics Changes - Usage revenue, including CPaaS communication APIs, accounted for approximately 19% of service revenue, up from 13% in Q2 2025 [13] - Service revenue from Fused customers declined to about 3% of total service revenue, down from 7% in Q2 2025, as the company transitions these customers to the 8x8 Platform [13] Market Data and Key Metrics Changes - The U.S. business is experiencing slower growth compared to international markets, with the U.K. and international segments growing substantially faster [63] - The company is seeing increased demand for its AI-powered solutions, which are becoming integral to customer engagement strategies [55] Company Strategy and Development Direction - The company is focusing on innovation, particularly through the integration of AI across its platform to enhance customer experiences and operational efficiency [5][11] - A new product, 8x8 Workforce Management, will be offered free to all Contact Center customers, marking a shift towards product-led growth [6][7] - The company is committed to disciplined capital management, including debt reduction, with a significant reduction of $224 million in debt principal since August 2022 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustained shareholder value, despite potential variability in usage-based revenue growth [16][19] - The transition to a usage-based revenue model is expected to lead to increased revenue growth, albeit with decreasing gross margins in the short term [61] - Management is aware of pricing pressures in the market but believes that the introduction of new AI products will help offset these challenges [42] Other Important Information - The company is actively exploring M&A opportunities to drive geographic and product portfolio expansion, while maintaining a focus on cash flow and debt management [49][50] - The company is implementing a new conference call format, providing detailed quarterly letters and financial highlights to enhance communication with investors [4][12] Q&A Session Summary Question: What is driving the service margin changes? - Management indicated that the changes are primarily driven by volume rather than price, with stable margins on application services [22] Question: How will the revenue trajectory look as Fused customers transition? - Management noted that while there will be a temporary headwind as Fused customers are upgraded, they expect to return to normalized growth rates thereafter [23][24] Question: How is pipeline quality being measured? - Pipeline quality is measured by the number of deals reaching stage three in their sales process, indicating a higher likelihood of closing [25][26] Question: What actions are being taken regarding cost management? - The company is deploying AI technologies internally to improve efficiency and reduce costs, while also managing supplier pricing [60][62] Question: How does the company view M&A versus organic growth? - Management stated that while they are looking at tuck-in acquisitions, debt reduction remains a priority, and they are focused on cash flow-driven growth [49][50]

Financial Performance - Service revenue reached $179 million, a 2.3% year-over-year increase and a 1.6% quarter-over-quarter increase[40] - Total revenue amounted to $184 million, reflecting a 1.7% year-over-year increase and a 1.5% quarter-over-quarter increase[40] - The company's GAAP operating margin was 2.9%, while the non-GAAP operating margin was 9.4%[40] - Positive operating cash flow was generated for the 19th consecutive quarter, reaching $8.8 million[40] Customer & Product Growth - Customers using 3 or more products increased by 11% year-over-year[40] - Revenue from products sold on an as-used basis accounted for 19% of service revenue[38] - Intelligent Customer Assistant (ICA) customer adoption increased by 59% year-over-year[18] - API Messaging Interactions experienced a 181% year-over-year growth[18] Debt Reduction - A $10 million prepayment of principal was made on the Term Loan during Q2 2026[40, 41] - The company has reduced the principal amount of debt by approximately $224 million since August 2022[70] Q3 2026 Guidance - The company projects service revenue to be between $172 million and $177 million, representing a growth rate between -1% and 2% year-over-year[73] - Total revenue is expected to be between $177 million and $182 million, also indicating a growth rate between -1% and 2% year-over-year[73]

Financial Performance - Total revenue for Q2 FY 2026 was $184.1 million, a year-over-year increase from $181.0 million in Q2 FY 2025[5] - Service revenue for Q2 FY 2026 reached $179.1 million, compared to $175.1 million in the same quarter last year[5] - GAAP net income for Q2 FY 2026 was $0.8 million, a significant improvement from a net loss of $14.5 million in Q2 FY 2025[5] - Non-GAAP net income for Q2 FY 2026 was $13.1 million, up from $12.1 million in Q2 FY 2025[5] - Total revenue for Q2 2025 was $184.1 million, a 1.2% increase from $181.0 million in Q2 2024[36] - Service revenue reached $179.1 million, up from $175.1 million year-over-year, indicating a growth of 1.2%[36] - Net income for Q2 2025 was $767,000, a significant improvement from a net loss of $14.5 million in Q2 2024[36] - Basic and diluted net income per share for Q2 2025 was $0.01, compared to a loss of $0.11 per share in Q2 2024[36] - GAAP net income for Q3 2025 was $767, representing 0.4% of total revenue, a significant improvement from a loss of $14,543 in Q3 2024, which was -8.0% of total revenue[43] - Non-GAAP net income for Q3 2025 reached $13,113, or 7.1% of total revenue, compared to $12,099, or 6.7% in Q3 2024[43] Cash Flow and Expenses - Cash flow from operations for Q2 FY 2026 was $8.8 million, down from $12.3 million in Q2 FY 2025[5] - Total operating expenses decreased slightly to $114.0 million from $116.0 million year-over-year[36] - Cash and cash equivalents as of September 30, 2025, were $75.9 million, down from $88.1 million at the end of March 2025[38] - Total assets decreased to $670.8 million from $683.2 million since March 31, 2025[38] - Stockholders' equity increased to $133.2 million from $122.2 million since March 31, 2025[38] - Net cash provided by operating activities for the six months ended September 30, 2025, was $20,708, compared to $30,465 for the same period in 2024, representing a decrease of 32.2%[40] - Cash, cash equivalents, and restricted cash at the end of the period were $76,684, down from $117,867 at the end of the previous year[40] Profitability Metrics - Non-GAAP operating margin for FY 2026 is projected to be between 8.5% and 9.5%[19] - GAAP service revenue margin for the six months ended September 30, 2025, was 68.6%, down from 71.3% in 2024[42] - Non-GAAP gross margin as a percentage of total revenue for the six months ended September 30, 2025, was 66.7%, compared to 70.4% in 2024[42] - Non-GAAP operating profit for the six months ended September 30, 2025, was $33,657, down from $41,648 in 2024, reflecting a decrease of 19.2%[42] - Adjusted EBITDA for Q3 2025 was $22,037, accounting for 12.0% of total revenue, down from $26,650, or 14.7% in Q3 2024[43] Debt and Capital Management - The company has reduced total debt by $224 million, or 41%, since August 2022, reflecting a commitment to disciplined capital management[12] - The company incurred $25,000 in principal repayment on term loans during the six months ended September 30, 2025[40] - The company reported a loss on debt extinguishment of $46 in Q3 2025, compared to a significant loss of $11,996 in Q3 2024[43] Recognition and Innovation - 8x8 was recognized as a leader in the IDC MarketScape for European Contact Center-as-a-Service Applications Software 2025[12] - The company introduced AI-powered features to enhance agent productivity and improve service quality in the contact center[12] Stock-Based Compensation - Stock-based compensation expense for the six months ended September 30, 2025, was $12,671, compared to $23,438 in 2024, indicating a reduction of 46%[42] - Stock-based compensation expense for Q3 2025 was $5,762, down from $9,845 in Q3 2024[43]