8x8(EGHT)

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8x8 (EGHT) Q4 Earnings Match Estimates
ZACKS· 2025-05-19 22:21
Group 1: Earnings Performance - 8x8 reported quarterly earnings of $0.08 per share, matching the Zacks Consensus Estimate, and consistent with earnings from the previous year [1] - The company had revenues of $177.04 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.56% and down from $179.41 million a year ago [2] - Over the last four quarters, 8x8 has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2][3] Group 2: Stock Performance and Outlook - 8x8 shares have declined approximately 32.2% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The future performance of 8x8's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $177.61 million, and for the current fiscal year, it is $0.37 on revenues of $716.4 million [7] Group 3: Industry Context - The Internet - Software industry, to which 8x8 belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact 8x8's stock performance [5]
8x8(EGHT) - 2025 Q4 - Earnings Call Transcript
2025-05-19 22:02
Financial Data and Key Metrics Changes - Total revenue for Q4 was $177 million, near the midpoint of guidance, while service revenue totaled $171.6 million, also near guidance [31] - Year-over-year growth in service revenue, excluding Fuse, accelerated to 4.6% from 2.7% in Q3, marking the highest growth rate in 10 quarters [11] - Combined cash flow from operations for fiscal years 2024 and 2025 is the highest ever at 8x8, exceeding half of the market capitalization as of the last Friday [12] Business Line Data and Key Metrics Changes - The number of customers with three or more products increased by 13% year-over-year to over 700 customers, indicating successful cross-selling [12] - Sales of Microsoft Teams integration saw new license sales up 72% in Q4, with cumulative licenses sold growing 30% year-over-year to over 550,000 seats [13] - The gross margin for Q4 was 69%, driven by a revenue mix with lower margin platform usage revenue growing to approximately 13.5% of total revenue [32] Market Data and Key Metrics Changes - The company noted a shift in the economic picture due to recent tariff actions and global uncertainty, impacting sales cycles and spending [7][45] - The UK market showed strong performance with improved execution and higher retention rates compared to the U.S. market [71] Company Strategy and Development Direction - The company is focused on building a durable, cash-generative business that creates long-term value through disciplined execution and platform innovation [7] - A significant transformation began in fiscal 2023, with a focus on fixing the financial model, investing in innovation, and enhancing customer experience [10] - The company aims for high single-digit revenue growth and double-digit operating margins in the coming years, with expectations of continued execution and product adoption [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's direction despite macroeconomic challenges, emphasizing the importance of operational discipline and innovation [6][8] - The company anticipates that the headwinds from the Fuse platform will lessen significantly in fiscal 2027, allowing for improved growth rates [27] - Management highlighted the importance of transitioning customers from the legacy Fuse platform to enhance customer engagement and operational efficiency [31][25] Other Important Information - The company has made significant progress in upgrading customers from the Fuse platform, reducing revenue from Fuse to under 5% of service revenue [31] - Stock-based compensation has declined to 4.6% of total revenue, reflecting a shift to primarily cash-based compensation [33] - The company is investing in AI capabilities and expanding its technology partner ecosystem to enhance customer experience [19][20] Q&A Session Summary Question: What are the macro impacts on sales cycles and spending? - Management noted elongated deal cycles and some shrinking depending on urgency, with a calmer environment observed in May compared to March and April [45] Question: What remains in terms of go-to-market changes? - The company is approximately 60-70% through the go-to-market rebuild, focusing on solution selling and fine-tuning processes [48] Question: What is the adjusted service revenue growth forecast for fiscal 2026, excluding Fuse? - The company expects positive growth rates for fiscal 2026, with specific numbers not provided but indicating a positive outlook [56] Question: How much of the growth is driven by go-to-market changes versus customer demand? - Management emphasized that growth is primarily driven by internal factors, including an increase in multiproduct customers and improved retention rates [61] Question: What is the status of cash flow guidance for fiscal 2026? - The company provided a cash flow guidance range of $40 million to $50 million for the full year, reflecting ongoing investments [40] Question: Why is the company winning in the CCaaS space? - The company offers a complete solution with best-in-breed technology from a single vendor, which is appealing to mid-market and enterprise customers [68]
8x8(EGHT) - 2025 Q4 - Earnings Call Transcript
2025-05-19 22:00
Financial Data and Key Metrics Changes - Total revenue for Q4 was $177 million, near the midpoint of guidance, while service revenue totaled $171.6 million, also near the midpoint of guidance [29] - Year-over-year growth in service revenue, excluding Fuse customers, accelerated to 4.6% from 2.7% in Q3, marking the highest growth rate in 10 quarters [10] - For fiscal year 2025, service revenue excluding Fuse customers grew 2.8%, compared to 1.8% in fiscal year 2024 [10] - Gross margin for the quarter was 69%, at the low end of guidance, driven by a revenue mix with lower margin platform usage revenue growing to approximately 13.5% of total revenue [30] - Operating margin was 10%, at the high end of guidance, with stock-based compensation declining to 4.6% of total revenue, a multiyear low [31] Business Line Data and Key Metrics Changes - The number of customers with three or more products increased 13% year-over-year to over 700 customers, indicating successful cross-selling [11] - Sales of Microsoft Teams integration saw new license sales up 72% in Q4, with cumulative licenses sold growing 30% year-over-year to over 550,000 seats [12] - The transition from the legacy Fuse platform is on track, with remaining revenue from Fuse customers reduced to under 5% of service revenue, down from approximately 11% in Q4 2024 [29] Market Data and Key Metrics Changes - The company noted a shift in the economic picture due to recent tariff actions and global uncertainty, impacting sales cycles and spending [7] - The U.S. market experienced some chaos in March and April, with elongated deal cycles, while the rest of the world continued to perform steadily [44] Company Strategy and Development Direction - The company is focused on building a durable, cash-generative business that creates long-term value, emphasizing disciplined execution and platform innovation [7] - A massive transformation began in fiscal year 2023, with a clear plan to fix the financial model, invest in innovation, and improve customer experience outcomes [9] - The go-to-market model has been rebuilt around solution selling and partner enablement, with ongoing adjustments to improve performance [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, citing a solid foundation for growth and the expectation of high single-digit revenue growth and double-digit operating margins in the coming years [25] - The company anticipates that the headwinds from the Fuse platform will lessen significantly in fiscal year 2027, allowing for improved growth rates [25] - Management remains realistic about challenges ahead but sees signs of a tailwind, with growth accelerating in the core business [24] Other Important Information - The combined cash flow from operations for fiscal years 2024 and 2025 is the highest in the company's history, representing over half of its market capitalization [10] - The company has made significant progress in debt reduction, with over $209 million reduced since August 2022, enhancing financial flexibility [28] Q&A Session Summary Question: What are you hearing from your field reps regarding macro impacts? - Management noted elongated deal cycles and some shrinking depending on urgency, with a calmer environment in May compared to earlier months [42][43] Question: Can you clarify the status of your go-to-market changes? - The company is approximately 60-70% through the go-to-market rebuild, focusing on solution selling and fine-tuning processes [46] Question: What is the adjusted service revenue growth forecast for fiscal year 2026, excluding Fuse? - The company expects positive growth rates for fiscal year 2026, with the headwinds from Fuse expected to diminish [48][52] Question: What is driving the expected high single-digit growth by fiscal year 2028? - Growth is anticipated from increased multi-product customers, improved retention rates, and the rollout of new products [76][80] Question: How is the cash flow guidance for fiscal year 2026 structured? - The guidance reflects investments in growth, with a focus on maintaining stable net income despite some margin compression [60] Question: Why is the company winning in the CCaaS space? - The company offers a complete solution with best-in-breed technology from a single vendor, which is appealing to mid-market and enterprise customers [64][66]
8x8(EGHT) - 2025 Q4 - Earnings Call Presentation
2025-05-19 21:12
Business Highlights - 8x8's Voice AI interactions increased nearly 75% from Q3 2025 [31] - The number of customers with 3 or more 8x8 products increased 13% from Q4 FY 2024 [31] - 8x8 announced Technology Partner EcoSystem partnerships with SpinSci Technologies [32] Financial Performance (Q4 2025) - Service Revenue reached $171.6 million [37, 41] - Total Revenue amounted to $177 million [37, 41] - Non-GAAP Operating Margin was 10% [37, 41] - Cash flow generated by operations was $6 million [37] - Cash, equivalents, and restricted cash at quarter-end totaled $89 million [37] Financial Performance (FY 2025) - Service Revenue was $692.9 million [40] - Total Revenue reached $715.1 million [40] - Non-GAAP Operating Margin was 11% [40] - Principal of term loan debt was reduced by $73 million [40] Guidance - Q1 2026 Service Revenue is projected to be between $170 million and $175 million [73] - Q1 2026 Total Revenue is expected to be between $175 million and $182 million [73] - FY 2026 Service Revenue is projected to be between $682 million and $702 million [74] - FY 2026 Total Revenue is expected to be between $702 million and $724 million [74]
8x8(EGHT) - 2025 Q4 - Annual Results
2025-05-19 20:10
Revenue Performance - Fourth quarter service revenue was $172 million, and total revenue was $177 million, reflecting a 2% decrease from the previous year[1]. - Fiscal year 2025 service revenue totaled $693 million, with total revenue at $715 million, down from $728.7 million in fiscal 2024[7]. - Total revenue for Q1 2025 was $177.043 million, a decrease of 1.9% from $179.413 million in Q1 2024[32]. - Service revenue for Q1 2025 was $171.588 million, down from $172.490 million in Q1 2024, reflecting a decline of 0.5%[32]. - Gross profit for Q1 2025 was $120.052 million, compared to $122.444 million in Q1 2024, indicating a decrease of 2.0%[32]. Profitability Metrics - GAAP operating income increased by 155% to $15.2 million compared to a loss of $27.6 million in fiscal 2024[7]. - Non-GAAP operating profit decreased by 17% to $78.4 million from $94.7 million in fiscal 2024[7]. - Non-GAAP operating profit for Q1 2025 was $419 thousand, compared to a loss of $14.219 million in Q1 2024[32]. - The net loss for the year ended March 31, 2025, was $27,212,000, an improvement from a net loss of $67,592,000 in 2024[37]. - GAAP net loss for the three months ended March 31, 2025, was $5,401,000, representing 3.1% of total revenue, compared to a loss of $23,591,000 (13.1%) for the same period in 2024[40]. Cash Flow and Liquidity - Cash flow from operations for fiscal year 2025 was $64 million, with $5.9 million in the fourth quarter[1][7]. - Cash and cash equivalents decreased to $88.050 million as of March 31, 2025, down from $116.262 million a year earlier[34]. - Net cash provided by operating activities for the year ended March 31, 2025, was $63,554,000, a decrease from $78,985,000 in 2024[37]. - Cash, cash equivalents, and restricted cash at the end of the year was $89,324,000, down from $116,723,000 at the beginning of the year[37]. Debt and Liabilities - The total principal amount of debt outstanding decreased to $353.9 million from $426.9 million at the end of fiscal 2024[10]. - Total liabilities decreased to $560.973 million as of March 31, 2025, down from $654.021 million a year earlier[34]. - The company incurred $273,000,000 in principal repayment on term loans during the year ended March 31, 2025[37]. Future Projections - The company expects first quarter fiscal 2026 service revenue to be between $170 million and $175 million, and total revenue between $175 million and $182 million[17]. - Non-GAAP net income per share for fiscal year 2026 is projected to be between $0.34 and $0.37, based on approximately 144 million shares[17]. Operational Developments - The company is focused on upgrading remaining customers on the Fuze service platform, expecting completion by the end of calendar year 2025[2]. - New AI-powered features have been introduced across the 8x8 Platform for CX to enhance customer engagement and operational efficiency[9][11]. Stock-Based Compensation and Expenses - Stock-based compensation expense for the year ended March 31, 2025, was $39,940,000, a decrease from $61,910,000 in 2024[37]. - Stock-based compensation expense for the three months ended March 31, 2025, was $8,615,000, down from $15,865,000 in the same period last year[40]. Comprehensive Loss - The company reported a comprehensive loss of $1.642 million for Q1 2025, compared to a comprehensive loss of $25.606 million in Q1 2024[32].
Top Wall Street Forecasters Revamp 8x8 Expectations Ahead Of Q4 Earnings
Benzinga· 2025-05-19 13:33
Core Insights - 8×8, Inc. is set to release its fourth-quarter earnings results on May 19, with analysts expecting earnings of 8 cents per share, unchanged from the previous year [1] - The projected quarterly revenue is $177.98 million, a decrease from $179.41 million a year earlier [1] - The company has recently expanded its market presence in Ireland through a partnership with CCMA Ireland [1] Analyst Ratings - Rosenblatt analyst Catherine Trebnick maintained a Buy rating but reduced the price target from $3.3 to $2.7 [7] - Wells Fargo analyst Michael Turrin maintained an Underweight rating and cut the price target from $2 to $1.5 [7] - Morgan Stanley analyst Meta Marshall also maintained an Underweight rating, lowering the price target from $2.6 to $1.9 [7] - Mizuho analyst Siti Panigrahi kept an Underperform rating and decreased the price target from $2.5 to $2 [7] - Barclays analyst Ryan Macwilliams maintained an Equal-Weight rating and raised the price target from $2.5 to $3 [7]
Are Investors Undervaluing 8x8 (EGHT) Right Now?
ZACKS· 2025-04-21 14:45
Core Viewpoint - The focus is on identifying undervalued stocks using the Zacks Rank system and Style Scores, with a specific emphasis on value investing strategies that have proven successful across various market conditions [2][3]. Company Analysis - 8x8 (EGHT) is highlighted as a stock to watch, currently holding a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [3]. - EGHT has a Price-to-Book (P/B) ratio of 1.84, which is significantly lower than its industry's average P/B of 4.77, suggesting that the stock may be undervalued [4]. - The P/B ratio for EGHT has fluctuated between a high of 4.09 and a low of 1.84 over the past 52 weeks, with a median of 2.84 [4]. - The Price-to-Cash Flow (P/CF) ratio for EGHT is 5.49, which is also lower than the industry's average P/CF of 13.93, further indicating potential undervaluation [5]. - Over the past year, EGHT's P/CF has ranged from a high of 23.04 to a low of 5.49, with a median of 10.82 [5]. - The combination of these metrics suggests that EGHT is likely being undervalued, supported by a strong earnings outlook [6].
EGHT Declines 20% in a Month: Should You Buy, Sell or Hold the Stock?
ZACKS· 2025-03-07 17:50
Core Viewpoint - 8x8, Inc. (EGHT) has experienced a significant decline in share price, dropping 19.6% since the release of its third-quarter fiscal 2025 results, underperforming both the broader technology sector and its industry peers [1][3]. Financial Performance - Total revenues for 8x8 fell by 1.2% year-over-year and sequentially, amounting to $179 million in the third quarter of fiscal 2025, primarily due to expected revenue declines from customers on the Fuze platform and over $2 million in forex headwinds [3][13]. - The Zacks Consensus Estimate for fourth-quarter fiscal 2025 earnings is 8 cents per share, indicating no year-over-year change, while revenues are expected to decline by 0.76% to $178.04 million [13]. - For the full fiscal year 2025, revenue estimates are pegged at $716.06 million, reflecting a 1.74% year-over-year decline, with earnings expected to be 36 cents per share, down 23.40% year-over-year [14]. Strategic Developments - 8x8 is enhancing its customer experience platform by integrating Contact Center, Unified Communications, and CPaaS, which aims to streamline customer interactions and improve operational efficiency [5]. - The company has expanded its 8x8 Secure Pay service to facilitate secure payments across various channels, enhancing customer experience through automation [6]. - The introduction of the 8x8 Intelligent Customer Assistant with a Voice Intelligent Directory aims to improve customer interactions by connecting callers to the right contacts more efficiently [7]. Growth Initiatives - The acquisition of Fuze has strengthened 8x8's Experience Communications as a Service (XCaaS) platform, expanding its global presence, particularly in Europe, and ensuring a smooth integration process [9]. - Partnerships, such as with CallCabinet, enhance compliance capabilities for users on Microsoft Teams, reinforcing 8x8's commitment to delivering certified solutions for business communications [10]. - 8x8 is focusing on expanding its international presence, particularly in the Asia-Pacific region, where it secured its largest deal to date with a leading auto manufacturer [11]. Market Engagement - A major U.S. retailer has engaged 8x8 for a new contact center, marking the largest follow-on deal in the company's history, indicating strong customer engagement and growth potential [12].
8x8 (EGHT) Upgraded to Buy: Here's What You Should Know
ZACKS· 2025-02-25 18:05
Core Viewpoint - 8x8 (EGHT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling actions [3]. Company Performance and Outlook - The upgrade for 8x8 reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [4]. - The Zacks Consensus Estimate for 8x8 has increased by 300% over the past three months, although the expected earnings per share for the fiscal year ending March 2025 is projected to be $0.36, representing a year-over-year decline of 23.4% [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade of 8x8 to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].
EGHT vs. BL: Which Stock Is the Better Value Option?
ZACKS· 2025-02-21 17:40
Core Insights - The article compares two stocks in the Internet - Software sector, 8x8 (EGHT) and BlackLine (BL), to determine which is more attractive to value investors [1] Valuation Metrics - 8x8 (EGHT) has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to BlackLine (BL), which has a Zacks Rank of 4 (Sell) [3] - EGHT has a forward P/E ratio of 7.92, significantly lower than BL's forward P/E of 23.76, suggesting EGHT is undervalued [5] - The PEG ratio for EGHT is 0.68, while BL's PEG ratio is 4.70, indicating that EGHT is expected to grow earnings at a more favorable rate relative to its price [5] - EGHT's P/B ratio is 3.27, compared to BL's P/B of 6.90, further supporting the notion that EGHT is more attractively valued [6] - Based on these metrics, EGHT holds a Value grade of B, while BL has a Value grade of D, making EGHT the preferred choice for value investors [6]