Investors looking for stocks in the Internet - Software sector might want to consider either 8x8 (EGHT) or Smartsheet (SMAR) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks ...

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Investors interested in Internet - Software stocks are likely familiar with 8x8 (EGHT) and Smartsheet (SMAR) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings esti ...

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, 2024 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) __________ ...

Second Quarter 2025 Ended September 30, 2024 November 4, 2024 Copyright 2024 8x8, Inc. or its affiliates. All rights reserved. One platform. Every communications experience. Forward looking statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Any statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, words s ...

Financial Data and Key Metrics Changes - The company reported Q2 service revenue of $175.1 million, reflecting growth in both subscription and usage on the 8x8 platform, despite a decline in revenue from customers on the Fuze platform, which represented approximately 7% of service revenue in Q2 compared to 12% in Q2 2024 [30][28][27] - Non-GAAP operating margin for Q2 was 11.9%, up from 11.3% in Q1, exceeding the high end of guidance due to strong top-line performance [32][27] - Cash flow from operations was $12.3 million in Q2, marking the 15th consecutive quarter of positive cash flow from operations [28][38] Business Line Data and Key Metrics Changes - Communications Platform as a Service (CPaaS) revenue increased over 20% year-over-year, achieving the highest single platform usage revenue day in early September [10][8] - Sales of new products rose more than 60% year-over-year, with AI-based new products increasing over 50% sequentially and more than 200% year-over-year [13][16] Market Data and Key Metrics Changes - The company noted a significant increase in engagement through public APIs and a 50% year-over-year growth in sales of non-SMS products [10][8] - The remaining performance obligation increased by $20 million sequentially, indicating improvement in multiyear customer contract backlog [37] Company Strategy and Development Direction - The company is focused on several transformation initiatives, including accelerating innovation in contact centers, establishing leadership in CPaaS offerings in Asia Pacific, and improving sales productivity [9][8] - The strategy includes maintaining a strong balance sheet by reducing debt and controlling costs, with a commitment to invest 15% of revenue in R&D [13][9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future growth, attributing it to high gross retention rates and the successful introduction of new products [48][47] - The company is on track to complete customer upgrades from the Fuze platform to the 8x8 platform by the end of calendar year 2025, which is expected to eliminate revenue headwinds from Fuze [30][54] Other Important Information - The company has reduced its total debt principal balance to $369 million, representing a 32% reduction since the end of fiscal Q2 2023 [28][36] - Stock-based compensation as a percentage of revenue was 5.2%, the lowest in at least five years, contributing to GAAP operating profitability in Q2 [33][27] Q&A Session Summary Question: What drove the sequential growth improvement in services revenue? - Management attributed the growth to robust platform usage revenue and growth in the core business on the 8x8 platform [47][48] Question: What is driving the increased sales of AI-based solutions? - Management noted that customers are more willing to adopt AI solutions now, as these technologies are increasingly solving business problems [49][48] Question: What could drive future growth for the company? - Future growth is expected to come from new products becoming a larger part of revenue and the continued migration of customers from the Fuze platform [53][54] Question: What is the outlook for gross margin? - Management indicated that gross margin may experience slight compression due to a mix shift towards lower-margin CPaaS products [56][58] Question: What trends are seen in AI adoption among customers? - Customers are currently adding AI capabilities to enhance agent productivity rather than reducing the number of agents [61][62] Question: How is the transition from Fuze progressing? - The transition is ongoing, with management expressing a desire to accelerate the upgrade cycle [68][67]

8x8 (EGHT) reported $181 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 2.2%. EPS of $0.09 for the same period compares to $0.14 a year ago.The reported revenue represents a surprise of +1.83% over the Zacks Consensus Estimate of $177.75 million. With the consensus EPS estimate being $0.08, the EPS surprise was +12.50%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

8x8 (EGHT) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12.50%. A quarter ago, it was expected that this telecommunications services company would post earnings of $0.08 per share when it actually produced earnings of $0.08, delivering no surprise.Over the last four quarters, the c ...

Revenue Performance - Total revenue for Q2 FY2025 was $181 million, a decrease of 2.2% from $185 million in Q2 FY2024[2] - Service revenue for Q2 FY2025 was $175 million, down from $177.8 million in Q2 FY2024, representing a decline of 1.6%[2] - Total revenue for FY2025 is projected to be between $714 million and $727 million[9] - Total revenue for Q2 2024 was $180.998 million, a decrease of 2% from $184.999 million in Q2 2023[27] - Service revenue for Q2 2024 was $175.075 million, down from $177.782 million in Q2 2023, representing a 1% decline[27] Profitability and Loss - GAAP operating income was $7.2 million, compared to a GAAP operating loss of $2.6 million in the same quarter last year[2] - Non-GAAP operating profit was $21.5 million, down from $23.8 million in Q2 FY2024, reflecting a decrease of 9.7%[2] - The company reported a GAAP net loss of $14.5 million, worsening from a net loss of $7.5 million in Q2 FY2024[2] - Net loss for Q2 2024 was $14.543 million, compared to a net loss of $7.452 million in Q2 2023, indicating a worsening of 95%[27] - Non-GAAP Net Income for Q2 2024 was not explicitly stated, but management emphasizes the importance of understanding adjustments for a clearer view of performance[24] Expenses and Cost Management - Research and development expenses for Q2 2024 were $31.291 million, a decrease of 8% from $34.207 million in Q2 2023[27] - Total operating expenses for Q2 2024 were $116.006 million, down from $130.480 million in Q2 2023, reflecting a reduction of 11%[27] - Non-GAAP cost of service revenue for the three months ended September 30, 2024, was $46,848 thousand, representing 26.8% of service revenue, compared to 25.4% in the same period of 2023[31] - GAAP gross margin for the three months ended September 30, 2024, was $123,175 thousand, or 68.1%, compared to 69.1% in the same period of 2023[31] - Non-GAAP operating profit for the three months ended September 30, 2024, was $21,538 thousand, or 11.9% of total revenue, compared to 12.8% in the same period of 2023[31] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2024, were $117.405 million, slightly up from $116.262 million as of March 31, 2024[29] - Cash, cash equivalents, and restricted cash at the end of the period were $117,867 thousand, down from $145,013 thousand at the end of the previous year[30] - Net cash provided by operating activities decreased to $30,465 thousand from $43,936 thousand year-over-year[30] - The company experienced a net increase in cash and cash equivalents of $1,144 thousand for the six months ended September 30, 2024, compared to an increase of $32,284 thousand in the same period of 2023[30] Debt Management - The company reduced total debt principal by over $173 million, or 32%, over the past two years, bringing the total debt to $369 million[7] - Interest paid for the six months ended September 30, 2024, was $16,324 thousand, compared to $17,799 thousand in the same period of 2023[30] - The company reported a loss on debt extinguishment of $11,996 thousand for the six months ended September 30, 2024, compared to $1,766 thousand in the same period of 2023[30] Recognition and Market Position - 8x8 was recognized as a Leader in the 2024 Gartner Magic Quadrant for Unified Communications as a Service for the thirteenth consecutive year[6] Shareholder Information - The weighted average number of shares outstanding increased to 129.250 million in Q2 2024 from 120.757 million in Q2 2023[27] - Basic GAAP net loss per share for the three months ended September 30, 2023, was $(0.11)[33] - Non-GAAP net income per share (Basic) for the three months ended September 30, 2023, was $0.09[33] - Total shares used in computing diluted net income per share for the three months ended September 30, 2023, was 131,294,000[33]

8x8 (EGHT) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on November 4, 2024, might help the stock move higher if these key numbers are better than expect ...