CAMPBELL, Calif.--(BUSINESS WIRE)--8x8, Inc. (NASDAQ: EGHT), a leading integrated cloud communications platform provider, today announced SellWith8™, an exclusive tier within the 8x8 Technology Partner Ecosystem, allowing technology partners to solve compelling business use cases for customers. The 8x8 Technology Partner Ecosystem program allows customer-first organizations to enhance customer experiences by deeply embedding cutting-edge technologies, including leading artificial intelligence capabilities, ...

CAMPBELL, Calif.--(BUSINESS WIRE)--8x8, Inc. (NASDAQ: EGHT), a leading integrated cloud contact center and unified communications platform provider, today announced it will release financial results for the third fiscal quarter ended December 31, 2023 following the close of market on Wednesday, January 31, 2024. The company will host a conference call on the same day at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss the results. The conference call will last approximately 60 minutes. Date: ...

CAMPBELL, Calif.--(BUSINESS WIRE)--8x8, Inc. (NASDAQ: EGHT), a leading integrated cloud contact center and unified communications platform provider, today announced the addition of AI-powered video meeting capabilities to the 8x8 XCaaS platform, enabling users to access real-time AI transcriptions, smart summaries, and follow up action items for enhanced collaboration during and after meetings. The new features highlight 8x8’s continued focus on platform innovation and delivering AI-driven contact center an ...

CAMPBELL, Calif.--(BUSINESS WIRE)--8x8, Inc. (NASDAQ: EGHT), a leading integrated cloud contact center and unified communications platform provider, today announced that Wayne Metro Community Action Agency has deployed the 8x8 XCaaS™ (Experience Communications as a Service™) integrated cloud contact center and unified communications platform to better serve the community with enhanced customer engagement, while improving employee efficiency and productivity. Wayne Metro is a non-profit organization servi ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to _________ Commission file number: 001-38312 _________________ 8x8, INC. (Exact name of Registrant as Specified in its Charter) __________ ...

Financial Data and Key Metrics Changes - The company met or exceeded guidance ranges for service revenue, total revenue, and non-GAAP operating margin for Q2 [21] - Total revenue for the quarter was $185 million, with service revenue at $177.8 million, exceeding guidance by $2.3 million [54] - Non-GAAP operating profit grew 162% year-over-year, with cash flow from operations increasing 26% compared to the prior year [53][62] - Cash from operations for the quarter was $17.5 million, with total cash and investments increasing to approximately $150 million [27][65] Business Line Data and Key Metrics Changes - Service revenue increased sequentially by $2.5 million, driven by growth in the CPaaS business [25] - The CPaaS revenue recorded year-over-year growth for the first time in many quarters, indicating a positive trend [54] - Adoption of the CCaaS product portfolio accelerated, with a 50% increase in conversation volume quarter-on-quarter [30] Market Data and Key Metrics Changes - The company saw significant growth in its North American reseller channel, committing to a channel-first strategy [32] - Enterprise customers accounted for 58% of total ARR, with enterprise ARR up approximately $3 million sequentially [56] Company Strategy and Development Direction - The company is focused on an innovation-led strategy to drive growth while improving profitability and cash flow [22] - Plans to return $250 million to investors from fiscal 2024 through fiscal 2026, with $25 million already returned through early repayment of loans [24][65] - The strategy includes building a strong ecosystem of channel and technology partners to enhance customer experiences [23] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment has become more challenging, with increased interest rates impacting customer behavior [92] - The company is cautious in its forward guidance but remains optimistic about the potential for revenue reacceleration in fiscal 2025 [78] Other Important Information - The company has introduced numerous innovations in a short time, including AI-powered applications and enhancements to existing products [36] - The management team has undergone changes, with new leaders in sales and marketing focused on optimizing go-to-market strategies [38][49] Q&A Session Summary Question: Can you explain the opportunities in the contact center with AI? - Management highlighted that there is a gap in awareness of their full range of capabilities, but they are seeing rapid adoption of AI-based products integrated into contact centers [82][83] Question: How did 8x8 fare during the quarter in the macro environment? - Management indicated that the company faced some downsell pressure but noted that SMB ARR held up better than expected [87][92] Question: Can you discuss the capital structure and plans for addressing it? - The company plans to use cash from operations primarily for debt repayments, with stock repurchases considered once a majority of the debt is paid off [98][99] Question: How do traditional channel partners differ from the Microsoft Elevate program? - Management explained that the Elevate program encompasses various partner types, including those selling Microsoft products, and emphasizes collaboration rather than competition [104][106] Question: What is the outlook for revenue growth acceleration next year? - Management expressed optimism about the potential for growth as they restructure their go-to-market strategy and expand their product offerings [111][113]

Three Months Ended September 30, Copyright 2023 8x8, Inc. or its affiliates. All rights reserved. ● Concurrent repurchase of 10.7M shares for $60M with Exchange Transaction partially offsets dilution from new convertible notes 201.9 250.0 63.3 2024 Notes 2028 Notes Term Loan Exchange Transaction August 2022 New Convert Notes New Term Loan Retired 201.9 225.0 63.3 $ 201.9 $ 250.0 $ (403.8) $ (6.0) $ (21.8) $ (5.0) $ (25.0) ~$33M Additional Repurchases of 2024 Notes Voluntary Early Repayment Term Loan Retired ...

8x8, Inc. (NASDAQ:EGHT) Q1 2024 Earnings Conference Call August 8, 2023 5:00 PM ET Company Participants Kate Patterson - Vice President of Investor Relations Samuel Wilson - Chief Executive Officer Kevin Kraus - Chief Financial Officer Conference Call Participants Catharine Trebnick - Rosenblatt Securities Inc. Jamie Reynolds - Morgan Stanley Abhinav Kumar - Mizuho Securities Austin Williams - Wells Fargo Securities James Rush - Craig-Hallum Capital Group Operator Good day, and thank you for standing by. We ...

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the quarter ended June 30, 2023, detailing the company's financial position, performance, and cash flows [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The company's financial statements show a net loss of $15.3 million on total revenues of $183.3 million for the quarter, an improvement from the prior year, alongside increased operating cash flow Condensed Consolidated Statements of Operations (in thousands) | | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Total revenue** | **$183,287** | **$187,620** | | Total operating expenses | $184,697 | $214,374 | | **Loss from operations** | **$(1,410)** | **$(26,754)** | | Other (expense) income, net | $(12,473) | $1,116 | | **Net loss** | **$(15,327)** | **$(26,043)** | | Net loss per share (Basic and diluted) | $(0.13) | $(0.22) | Condensed Consolidated Balance Sheet Highlights (in thousands) | | June 30, 2023 | March 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $122,229 | $111,400 | | Total current assets | $274,468 | $273,124 | | **Total assets** | **$828,463** | **$841,810** | | Total current liabilities | $236,317 | $229,887 | | **Total liabilities** | **$723,594** | **$741,904** | | **Total stockholders' equity** | **$104,869** | **$99,906** | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$26,473** | **$5,841** | | Net cash provided by (used in) investing activities | $6,792 | $(5,841) | | Net cash provided by (used in) financing activities | $(25,000) | $65 | | **Net increase (decrease) in cash** | **$10,483** | **$(6,620)** | [Notes to Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed information on accounting policies, revenue recognition, fair value measurements, debt structure, and stock-based compensation expenses - As of June 30, 2023, the company had approximately **$790.0 million** in remaining performance obligations, with **85%** expected to be recognized as revenue over the next 24 months[40](index=40&type=chunk) Debt Principal Outstanding as of June 30, 2023 (in millions) | Debt Instrument | Principal Amount | | :--- | :--- | | 0.50% Convertible Senior Notes due 2024 | $63.3 | | Senior Secured Term Loan due 2027 | $225.0 | | 4.00% Convertible Senior Notes due 2028 | $201.9 | Stock-Based Compensation Expense (in thousands) | | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | Cost of service revenue | $1,686 | $2,664 | | Research and development | $7,632 | $8,044 | | Sales and marketing | $4,649 | $8,107 | | General and administrative | $3,834 | $7,888 | | **Total** | **$18,195** | **$27,814** | - During the quarter, the company entered into a new three-year noncancellable hosting services contract for **$28.1 million**[55](index=55&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strategic focus on mid-market and enterprise customers, alongside a detailed analysis of financial performance, including revenue trends, operating expenses, and liquidity [Business Overview and Strategy](index=20&type=section&id=OVERVIEW) The company's strategy centers on expanding its mid-market and enterprise customer base through its integrated XCaaS platform, aiming for revenue growth, profitability, and positive cash flow - The company's core offering is the **8x8 XCaaS platform**, which integrates unified communications (UCaaS), contact center (CCaaS), and communication APIs (CPaaS) into a single cloud-based solution[87](index=87&type=chunk) - Strategic focus has shifted towards **mid-market, enterprise, and public sector customers** (typically 500 to 10,000 employees) who are more likely to adopt multiple services from the unified platform[92](index=92&type=chunk) - Key strategic initiatives include reducing service delivery costs, improving sales efficiency by focusing on larger customers, expanding partner programs, and investing in R&D, especially for contact center and AI capabilities[95](index=95&type=chunk)[96](index=96&type=chunk) [Key Business Metrics](index=21&type=section&id=KEY%20BUSINESS%20METRICS) Management's primary metric, Annualized Recurring Revenue (ARR), reached $703.0 million, with mid-market and enterprise customers contributing 76% of the total Annualized Recurring Revenue (ARR) as of June 30, 2023 | Metric | Value | YoY Change | | :--- | :--- | :--- | | **Total ARR** | **$703.0 million** | **+2%** | | ARR from Mid-market & Enterprise | 76% of Total | +1% | | ARR from Enterprise (> $100k) | 58% of Total | N/A | | ARR from Small Business (< $25k) | 24% of Total | N/A | [Results of Operations (Q1 FY2024 vs Q1 FY2023)](index=23&type=section&id=RESULTS%20OF%20OPERATIONS) This section details the company's financial results, showing a decrease in total revenue but significant improvements in operating expenses, leading to a reduced loss from operations Revenue Comparison (in thousands) | Revenue Type | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Service revenue | $175,238 | $179,161 | $(3,923) | (2.2)% | | Other revenue | $8,049 | $8,459 | $(410) | (4.8)% | - The decrease in service revenue was primarily due to lower usage revenue from SMS customers in Southeast Asia[114](index=114&type=chunk) Operating Expense Comparison (in thousands) | Expense Category | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of service revenue | $46,276 | $53,547 | $(7,271) | (13.6)% | | Sales and marketing | $68,505 | $83,527 | $(15,022) | (18.0)% | | General and administrative | $26,226 | $29,219 | $(2,993) | (10.2)% | - The significant decrease in Other (expense) income, net from **$1.1 million income** to **$12.5 million expense** was primarily due to an **$8.5 million increase in interest expense** on the variable-rate term loan, **$3.3 million in foreign exchange losses**, and a **$1.8 million loss on debt extinguishment**[122](index=122&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position is strong, with $138.2 million in cash and investments, supported by a significant increase in net cash provided by operating activities - As of June 30, 2023, the company held **$138.2 million** in cash, cash equivalents, and investments[125](index=125&type=chunk) Cash Flow from Operations Comparison (in millions) | Period | Net Cash Provided by Operating Activities | | :--- | :--- | | Three months ended June 30, 2023 | $26.5 | | Three months ended June 30, 2022 | $5.8 | - During the quarter, the company made a voluntary repayment of **$25.0 million** on its term loan[133](index=133&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its exposures to market risk, including interest rate and foreign currency exchange risks, since the prior fiscal year-end - There have been no material changes in the company's exposures to market risk, including interest rate and foreign currency exchange risks, since March 31, 2023[138](index=138&type=chunk) [Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation by management, the company's disclosure controls and procedures were deemed effective as of June 30, 2023[139](index=139&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[140](index=140&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings and Risk Factors](index=27&type=section&id=Item%201.%20Legal%20Proceedings%20%26%20Item%201A.%20Risk%20Factors) The company refers to Note 5 for legal proceedings and reports no material changes to previously disclosed risk factors - Information regarding legal proceedings is incorporated by reference from Note 5 of the financial statements[143](index=143&type=chunk) - There have been no material changes in the risk factors previously disclosed in the company's Form 10-K for the fiscal year ended March 31, 2023[144](index=144&type=chunk) [Other Information (Items 2-6)](index=27&type=section&id=Other%20Items) This section covers standard disclosures, including no unregistered equity sales, no defaults on senior securities, and no changes in Rule 10b5-1 trading arrangements by directors or officers - The company reported no unregistered sales of equity securities, no defaults upon senior securities, and no applicable mine safety disclosures for the period[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the reported quarterly period[148](index=148&type=chunk)

[Part I](index=4&type=section&id=Part%20I) [Business](index=5&type=section&id=Item%201.%20Business) 8x8, Inc. provides the XCaaS platform, integrating UCaaS, CCaaS, and CPaaS solutions for over 60,000 global customers - 8x8 is a leading provider of the **XCaaS platform**, integrating UCaaS, CCaaS, and CPaaS solutions on a single global cloud-native communications platform[15](index=15&type=chunk)[16](index=16&type=chunk)[181](index=181&type=chunk) - The company serves over **60,000 customers** and **2.5 million paid business licenses** globally, with no single customer accounting for 10% or more of fiscal 2023 revenue[15](index=15&type=chunk)[31](index=31&type=chunk) - Key solutions like **8x8 Work (UCaaS)**, **8x8 Contact Center (CCaaS)**, and **8x8 CPaaS** are bundled into tiered "X Series" plans[24](index=24&type=chunk)[25](index=25&type=chunk)[27](index=27&type=chunk) - The company faces significant competition from cloud communication providers, internet service vendors, and legacy equipment providers[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) - As of March 31, 2023, 8x8 had **1,921 full-time employees**, with **65%** located outside the United States[52](index=52&type=chunk) [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial risks including operating losses, intense competition, cybersecurity, debt, and regulatory compliance - The company has a history of losses, with an operating loss of approximately **$66.3 million** in fiscal 2023 and an accumulated deficit of **$792.9 million**[75](index=75&type=chunk) - The business is susceptible to cybersecurity breaches, including a Q2 fiscal 2023 incident where approximately **one terabyte of confidential information** was exfiltrated[127](index=127&type=chunk) - The company has substantial indebtedness, including a **$250.0 million** senior secured term loan and approximately **$265.2 million** in convertible senior notes[146](index=146&type=chunk)[147](index=147&type=chunk)[248](index=248&type=chunk) - International operations, especially in **Romania**, are exposed to risks from the ongoing conflict between Russia and Ukraine[114](index=114&type=chunk)[116](index=116&type=chunk) - The company's ability to use its **$1,199.1 million federal net operating loss** and tax credit carryforwards is subject to limitations due to ownership changes[107](index=107&type=chunk)[427](index=427&type=chunk) [Unresolved Staff Comments](index=28&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[162](index=162&type=chunk) [Properties](index=28&type=section&id=Item%202.%20Properties) The company's principal operations are in Campbell, California, with leased offices and data centers globally - The company's main operations are in **Campbell, California**, with significant international leased offices[163](index=163&type=chunk) - 8x8 leases space from third-party data center hosting facilities across the US, South America, Europe, and Asia Pacific[164](index=164&type=chunk) [Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings, with provisions recorded, though outcomes could materially affect financial results - The company is involved in various legal proceedings, with recorded provisions, but ultimate outcomes are uncertain and could materially affect financial results[360](index=360&type=chunk)[361](index=361&type=chunk) [Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[166](index=166&type=chunk) [Part II](index=29&type=section&id=Part%20II) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%20and%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under 'EGHT', has never paid dividends, and repurchased shares in fiscal 2022 - The company's common stock trades under the symbol "**EGHT**" on the Nasdaq Global Select Market[169](index=169&type=chunk) - No cash dividends have ever been paid, and none are planned for the foreseeable future[170](index=170&type=chunk) - In August 2022, the company repurchased **10,695,000 shares** for approximately **$60.0 million** in privately negotiated transactions[176](index=176&type=chunk) - In August 2022, the company issued **1,015,024 shares** of common stock, valued at approximately **$5.1 million**, to settle financial advisory fees[178](index=178&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2023 total revenue grew **16.6%** to **$743.9 million**, driven by the Fuze acquisition and strategic focus on enterprise customers [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Fiscal 2023 total revenue increased **16.6%** to **$743.9 million**, with service revenue up **17.9%**, and operating loss narrowed to **$66.3 million** Fiscal 2023 vs. Fiscal 2022 Revenue | Revenue Type | FY 2023 (in thousands) | FY 2022 (in thousands) | Change (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Service Revenue | $710,044 | $602,357 | $107,687 | 17.9% | | Other Revenue | $33,894 | $35,773 | $(1,879) | -5.3% | | **Total Revenue** | **$743,938** | **$638,130** | **$105,808** | **16.6%** | Fiscal 2023 vs. Fiscal 2022 Operating Expenses | Expense Category | FY 2023 (in thousands) | FY 2022 (in thousands) | Change (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of Service Revenue | $198,871 | $195,909 | $2,962 | 1.5% | | Research & Development | $146,220 | $112,387 | $33,833 | 30.1% | | Sales & Marketing | $311,883 | $314,223 | $(2,340) | -0.7% | | General & Administrative | $110,652 | $118,103 | $(7,451) | -6.3% | - The increase in service revenue was substantially driven by the **Fuze acquisition**, contributing approximately an **$86.5 million** increase[212](index=212&type=chunk) - Other expense, net decreased by **$17.6 million**, primarily due to an **$18.5 million gain** from debt extinguishment, partially offset by a **$20.7 million increase** in interest expenses[226](index=226&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2023, the company had **$137.6 million** in cash and investments, with net cash from operations at **$48.8 million** Cash and Liquidity | Metric | As of March 31, 2023 (in thousands) | | :--- | :--- | | Cash and cash equivalents | $111,400 | | Short-term investments | $26,228 | | **Total Cash, equivalents, and short-term investments** | **$137,628** | Cash Flow Summary (Fiscal Year 2023 vs 2022) | Cash Flow Activity | FY 2023 (in thousands) | FY 2022 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $48,786 | $34,680 | | Net cash provided by (used in) investing activities | $6,050 | $(159,978) | | Net cash (used in) provided by financing activities | $(37,784) | $105,425 | - In May 2023, the company voluntarily prepaid **$25.0 million** of principal on its senior secured term loan, reducing the outstanding principal to **$225 million**[195](index=195&type=chunk)[436](index=436&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rate and foreign currency fluctuations, with no material impact expected from a 10% adverse change - The company has interest rate risk from its **$250.0 million variable-rate Term Loan** and fixed-rate convertible notes, whose fair value is sensitive to stock price[248](index=248&type=chunk) - Foreign currency risk exists from revenues and expenses in British Pound and Euro, but a hypothetical **10% adverse change** would not result in a material loss[249](index=249&type=chunk)[250](index=250&type=chunk) - The company does not currently use financial instruments for trading, speculative purposes, or to hedge foreign currency exchange risk[247](index=247&type=chunk)[251](index=251&type=chunk) [Financial Statements and Supplementary Data](index=40&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal 2023, with an unqualified opinion from Moss Adams LLP [Consolidated Balance Sheets](index=43&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2023, total assets were **$841.8 million**, total liabilities **$741.9 million**, and stockholders' equity **$99.9 million** Consolidated Balance Sheet Summary (in thousands) | | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$841,810** | **$910,268** | | Total Current Assets | $273,124 | $275,622 | | Goodwill | $266,863 | $266,867 | | **Total Liabilities** | **$741,904** | **$727,902** | | Total Current Liabilities | $229,887 | $191,527 | | Convertible senior notes, non-current | $196,821 | $447,452 | | Term loan | $231,993 | $— | | **Total Stockholders' Equity** | **$99,906** | **$182,366** | [Consolidated Statements of Operations](index=45&type=section&id=Consolidated%20Statements%20of%20Operations) For fiscal 2023, total revenue was **$743.9 million**, operating loss narrowed to **$66.3 million**, and net loss improved to **$73.1 million** or **($0.63) per share** Statement of Operations Summary (in thousands, except per share data) | | FY 2023 | FY 2022 | FY 2021 | | :--- | :--- | :--- | :--- | | Total Revenue | $743,938 | $638,130 | $532,344 | | Loss from Operations | $(66,292) | $(154,141) | $(146,149) | | Net Loss | $(73,143) | $(175,383) | $(165,585) | | Net Loss Per Share | $(0.63) | $(1.55) | $(1.57) | - Other expense, net, for fiscal 2023 included a **gain on debt extinguishment of $18.5 million**, significantly reducing the net loss[270](index=270&type=chunk) [Consolidated Statements of Cash Flows](index=48&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For fiscal 2023, net cash from operations was **$48.8 million**, investing activities provided **$6.1 million**, and financing activities used **$37.8 million** Cash Flow Summary (in thousands) | | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $48,786 | $34,680 | | Net cash provided by (used in) investing activities | $6,050 | $(159,978) | | Net cash (used in) provided by financing activities | $(37,784) | $105,425 | | **Net increase (decrease) in cash** | **$12,015** | **$(20,458)** | [Notes to Consolidated Financial Statements](index=50&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, the Fuze acquisition, debt instruments including the **$250 million Term Loan**, and the company's **$1.2 billion federal NOLs** - As of March 31, 2023, remaining performance obligations were approximately **$775.0 million**, with **85%** expected to be recognized over 24 months[343](index=343&type=chunk) - In August 2022, the company borrowed **$250.0 million** via a senior secured term loan and issued warrants to purchase **3.1 million shares**[376](index=376&type=chunk)[381](index=381&type=chunk) - The company exchanged **$403.8 million** of its 2024 Notes for cash and **$201.9 million** of new 2028 Convertible Senior Notes, resulting in a **$16.1 million debt extinguishment gain**[385](index=385&type=chunk)[386](index=386&type=chunk) - As of March 31, 2023, the company had federal net operating loss carryforwards of approximately **$1,199.1 million** and maintains a full valuation allowance against U.S. deferred tax assets[422](index=422&type=chunk)[423](index=423&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=73&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[438](index=438&type=chunk) [Controls and Procedures](index=73&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of March 31, 2023 - Management concluded that the company's disclosure controls and procedures were effective as of **March 31, 2023**[440](index=440&type=chunk) - Management's assessment concluded that internal control over financial reporting was effective as of **March 31, 2023**, based on the COSO framework[441](index=441&type=chunk)[442](index=442&type=chunk) - The independent registered public accounting firm, Moss Adams LLP, audited and reported on the effectiveness of internal control over financial reporting[443](index=443&type=chunk) [Other Information](index=73&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[444](index=444&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=73&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - None[445](index=445&type=chunk) [Part III](index=74&type=section&id=Part%20III) [Directors, Executive Officers and Corporate Governance](index=74&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2023 Proxy Statement - Information for this item is incorporated by reference from the forthcoming **2023 Proxy Statement**[449](index=449&type=chunk) [Executive Compensation](index=74&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2023 Proxy Statement - Information for this item is incorporated by reference from the forthcoming **2023 Proxy Statement**[451](index=451&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=74&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership and related matters is incorporated by reference from the 2023 Proxy Statement - Information for this item is incorporated by reference from the forthcoming **2023 Proxy Statement**[452](index=452&type=chunk) [Certain Relationships and Related Transactions and Director Independence](index=74&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the 2023 Proxy Statement - Information for this item is incorporated by reference from the forthcoming **2023 Proxy Statement**[453](index=453&type=chunk) [Principal Accountant Fees and Services](index=74&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the 2023 Proxy Statement - Information for this item is incorporated by reference from the forthcoming **2023 Proxy Statement**[454](index=454&type=chunk) [Part IV](index=75&type=section&id=Part%20IV) [Exhibits and Financial Statement Schedules](index=75&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements, Schedule II - Valuation and Qualifying Accounts, and a comprehensive list of exhibits filed with the 10-K Schedule II: Valuation and Qualifying Accounts (Allowance for Credit Losses) | Fiscal Year Ended | Beginning Balance (in thousands) | Additions Charged to Expenses (in thousands) | Deductions (in thousands) | Ending Balance (in thousands) | | :--- | :--- | :--- | :--- | :--- | | March 31, 2021 | $3,106 | $7,374 | $(2,302) | $8,178 | | March 31, 2022 | $8,178 | $1,997 | $(3,658) | $6,517 | | March 31, 2023 | $6,517 | $3,204 | $(4,942) | $4,779 | [Form 10-K Summary](index=77&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company provides no summary for this item - None[467](index=467&type=chunk)