Investors interested in Internet - Software stocks are likely familiar with 8x8 (EGHT) and Five9 (FIVN) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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 highli ...

Financial Data and Key Metrics Changes - For Q3 2025, total revenue was $178.9 million, near the midpoint of guidance, with service revenue at $173.5 million, exceeding guidance by $1 million [36] - Operating margin was reported at 10.7%, slightly above the midpoint of guidance, while gross margin was 69.5% [40] - The company generated record cash flow from operations of $27.2 million, marking the 16th consecutive quarter of positive cash flow [46] Business Line Data and Key Metrics Changes - New product monthly recurring revenue (MRR) increased over 60% year-over-year, driven by growth in AI-based solutions and video-enabled services [10] - Committed MRR from customers using three or more products increased over 10% since the start of the fiscal year, indicating effective cross-selling strategies [38] - The remaining Fuze customer base now accounts for approximately 5% of service revenue, down from 7% in the previous quarter [37] Market Data and Key Metrics Changes - The Asia-Pacific region saw significant growth, including the largest deal booked with a well-known auto manufacturer [11] - Customer satisfaction scores remained high, with CSAT scores in the mid- to high-90% range for targeted enterprise customers [12] Company Strategy and Development Direction - The company is focused on transforming into a customer experience (CX) leader, with a bold plan to enhance its product offerings and market presence [17] - The integration of Fuze is a priority, with plans to shut down the platform by the end of the calendar year [30] - Investments in R&D are being increased to design a CX platform tailored for small- and medium-sized enterprises, emphasizing simplicity and reliability [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the UC space, including pricing aggressiveness and market dynamics, but expressed confidence in the company's positioning and strategy [72][74] - The company aims to return to growth through a combination of new product revenue, multi-product customer retention, and customer acquisition [64] - Management remains optimistic about the future, despite acknowledging potential bumps along the transformation journey [31] Other Important Information - The company has reduced total debt from a peak of $548 million in August 2022 to approximately $354 million today, a 35% reduction [19] - The company was included in Newsweek's annual Excellence 1000 Index, highlighting its commitment to ethics and social responsibility [16] Q&A Session Summary Question: Record operating cash flow and growth progress - Management confirmed that service revenue would have been up quarter-over-quarter and year-over-year without FX impacts, with Q4 guidance reflecting similar trends [60] Question: AI offerings growth and future revenue - Management noted that new product revenue from AI is growing rapidly but still represents a small portion of overall revenue, with a goal to achieve consistent growth next fiscal year [63] Question: Transition from Fuze platform and cost savings - Management confirmed they are on track to shut down the Fuze platform by the end of the fiscal year, estimating mid-single-digit millions in hard savings from this transition [66] Question: Turbulence in the UC space - Management acknowledged pricing aggressiveness in the UC market but emphasized that their CX messaging is resonating well, leading to more platform wins [74] Question: International market opportunities - Management expressed optimism about international growth, particularly in the CPaaS business, and noted a more stable competitive environment compared to the U.S. [78] Question: Customer appetite for AI products - Management indicated strong interest in AI capabilities, particularly in the upper small business to low-end enterprise segments, with a focus on solving CX problems [86] Question: Go-to-market strategy adjustments - Management confirmed ongoing evolution in the sales organization towards consultative solution selling and emphasized the importance of branding as a CX company [118]

Third Quarter Fiscal 2025 For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Forms 10-K and 10-Q filed by 8x8, Inc. with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and 8x8, Inc. undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, eve ...

8x8 (EGHT) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 37.50%. 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 $0.09, delivering a surprise of 12.50%.Over the last four quarte ...

Financial Performance - Total revenue for Q3 FY2025 was $178.9 million, a decrease from $181.0 million in Q3 FY2024, while service revenue was $173.5 million, down from $175.1 million in the same period [8]. - GAAP net income for Q3 FY2025 was $3.0 million, compared to a net loss of $21.2 million in Q3 FY2024, indicating a significant turnaround in profitability [8]. - Cash flow from operations reached $27.2 million, an increase from $22.4 million in Q3 FY2024, marking the 16th consecutive quarter of positive cash flow [8]. - Service revenue for Q3 2024 was $173,459,000, a decrease of 0.35% from $175,069,000 in Q3 2023 [37]. - Total revenue for Q3 2024 was $178,882,000, down 0.63% from $181,006,000 in Q3 2023 [37]. - Net income for Q3 2024 was $3,022,000, a significant improvement from a net loss of $21,222,000 in Q3 2023 [37]. - Non-GAAP operating profit for Q3 2024 was $8,979,000, compared to a loss of $9,391,000 in Q3 2023 [37]. - GAAP net income for Q4 2024 was $3,022,000, representing 1.7% of total revenue, compared to a loss of $21,222,000 (11.7%) in Q4 2023 [45]. - Non-GAAP net income for Q4 2024 was $14,471,000, or 8.1% of total revenue, slightly down from $14,759,000 (8.2%) in Q4 2023 [45]. - Adjusted EBITDA for Q4 2024 was $23,913,000, accounting for 13.4% of total revenue, compared to $30,657,000 (16.9%) in Q4 2023 [45]. - Basic GAAP net income per share for Q4 2024 was $0.02, recovering from a loss of $0.17 per share in Q4 2023 [45]. Cash Flow and Assets - The company made an additional $15 million term loan prepayment in January 2025, enhancing its balance sheet and financial flexibility [5]. - Total current assets decreased to $219,090,000 as of December 31, 2024, down from $247,836,000 as of March 31, 2024 [39]. - Cash and cash equivalents were $104,165,000 as of December 31, 2024, down from $116,262,000 as of March 31, 2024 [39]. - Net cash provided by operating activities for the nine months ended December 31, 2024, was $57,681,000, compared to $66,332,000 in 2023, reflecting a decrease of approximately 13.5% [42]. - Cash, cash equivalents, and restricted cash at the end of the period was $104,627,000, down from $169,331,000 at the end of the previous year [42]. - The company reported a net cash used in financing activities of $59,097,000 for the nine months ended December 31, 2024, compared to $22,635,000 in 2023 [42]. Operational Highlights - New product adoption increased by 60% year-over-year, reflecting strong demand for AI-powered customer experience solutions [3]. - The company launched new features including 8x8 Secure Pay and AI-powered payment solutions to enhance customer experience and operational efficiency [9]. - 8x8 expanded its Technology Partner Ecosystem with CallCabinet, enhancing compliance call recording for Microsoft Teams users [10]. - The company appointed Joel Neeb as Chief Transformation and Business Operations Officer to drive strategic alignment and operational excellence [18]. - The company plans to continue focusing on market expansion and new product development to drive future growth [46]. Liabilities and Expenses - Total liabilities decreased to $585,198,000 as of December 31, 2024, compared to $654,021,000 as of March 31, 2024 [39]. - Total depreciation and amortization expenses for the nine months ended December 31, 2024, amounted to $30,899,000, compared to $36,547,000 in 2023 [42]. - Stock-based compensation expense for the nine months ended December 31, 2024, was $31,710,000, a decrease from $46,835,000 in 2023 [42]. - Total stock-based compensation expense for Q4 2024 was $9,769,000, down from $14,890,000 in Q4 2023 [45]. - Interest expense for Q4 2024 was $5,415,000, a decrease from $8,878,000 in Q4 2023 [45]. - The company incurred acquisition and integration costs of $244,000 in Q4 2024, compared to $102,000 in Q4 2023 [45]. Margins and Profitability - For Q4 FY2025, the company expects total revenue in the range of $175.0 million to $181.0 million and service revenue between $170.0 million and $175.0 million [19]. - Non-GAAP operating margin is projected to be between 9% and 10% for Q4 FY2025, with a full-year projection of 10.7% to 11.0% [19]. - GAAP service revenue margin for the nine months ended December 31, 2024, was 71.2%, down from 72.7% in 2023 [44]. - Non-GAAP gross margin for the nine months ended December 31, 2024, was 70.1%, compared to 72.1% in 2023, indicating a decline of 2% [44]. - Operating loss for the nine months ended December 31, 2024, was $14,774,000, an improvement from a loss of $13,384,000 in 2023 [44]. - The GAAP cost of service revenue as a percentage of service revenue for the nine months ended December 31, 2024, was 28.8%, up from 27.3% in 2023 [44].

8x8 (EGHT) is slated to release its third-quarter fiscal 2025 results on Feb. 04. Find the latest EPS estimates and surprises on Zacks Earnings Calendar.For the fiscal third quarter, the company expects revenues between $177 million and $182 million.The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $179.18 million, suggesting a 1.01% year-over-year decline.The consensus mark for earnings is pegged at 8 cents per share, unchanged in the past 30 days. The projection suggests a 33.33% ...

8x8 (EGHT) shares have plunged 23.4% in the trailing 12-month period, outperforming the Zacks Computer & Technology sector’s return of 27.1% and the Zacks Internet Software industry’s appreciation of 31.5%.This global provider of cloud-based contact center as-a-service (CCaaS) and unified communications-as-a-service (UCaaS) software has underperformed its closest peers, such as Zoom Communications (ZM) , RingCentral (RNG) and Twilio (TWLO) , over the same timeframe. While TWLO and ZM shares have appreciated ...

Group 1: Company Overview - Vince Holding offers a broad range of women's and men's ready-to-wear and has a Zacks Rank 1 (Strong Buy) with a 14.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - LATAM Airlines Group provides domestic and international passenger and cargo air services, primarily operating in Chile, the United States, the South Pacific, Europe, and Latin America, also holding a Zacks Rank 1 with a 26.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - 8x8 is the provider of the world's first Communications Cloud, integrating unified communications, team collaboration, contact center, and real-time analytics, carrying a Zacks Rank 1 with a 3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [5] Group 2: Financial Metrics - Vince Holding has a price-to-earnings ratio (P/E) of 4.25 compared to the industry average of 20.40, and possesses a Value Score of A [4] - LATAM Airlines Group has a price-to-earnings ratio (P/E) of 9.12 compared to the industry average of 16.90, and also possesses a Value Score of A [6] - 8x8 has a price-to-earnings ratio (P/E) of 0.71 compared to the industry average of 1.84, and possesses a Value Score of B [3]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" to maximize returns in a shorter time frame [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks can lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify promising stocks [3] Group 2: Stock Analysis - 8x8 (EGHT) - 8x8 (EGHT) has shown a price increase of 3% over the past four weeks, indicating growing investor interest [4] - The stock has gained 41.3% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer time frame [5] - EGHT has a beta of 1.63, suggesting it moves 63% more than the market, indicating fast-paced momentum [5] - With a Momentum Score of A, EGHT is positioned as a favorable entry point for investors looking to capitalize on momentum [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to EGHT earning a Zacks Rank 1 (Strong Buy), which is associated with strong momentum effects [7] - EGHT is currently trading at a Price-to-Sales ratio of 0.50, indicating it is attractively priced at 50 cents for each dollar of sales, providing room for growth [7] Group 4: Additional Investment Opportunities - Besides EGHT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Investors with an interest in Internet - Software stocks have likely encountered both 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.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Score ...