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8x8(EGHT) - 2024 Q4 - Annual Results
EGHT8x8(EGHT)2024-05-08 20:08

Revenue and Financial Performance - Fourth quarter revenue was 179million,andfiscalyear2024revenuetotaled179 million, and fiscal year 2024 revenue totaled 729 million, representing a 2% decrease from 743.9millioninfiscal2023[7].−Totalannualrecurringrevenue(ARR)was743.9 million in fiscal 2023[7]. - Total annual recurring revenue (ARR) was 697 million at quarter-end, a decrease of 1% from the previous year[8]. - Service revenue for Q1 2024 was 172.49million,adecreaseof4.1172.49 million, a decrease of 4.1% from 176.56 million in Q1 2023[36]. - Total revenue for Q1 2024 was 179.41million,down2.4179.41 million, down 2.4% from 184.53 million in Q1 2023[36]. - Non-GAAP net income for the year was 57,964,000,representing8.057,964,000, representing 8.0% of total revenue, compared to 38,513,000 or 5.2% in the previous year, an increase of 50.9%[46]. - Total ARR for Q4 Fiscal 2023 was 703million,withagrowthrateofonly2703 million, with a growth rate of only 2% compared to previous quarters[51]. Profitability and Losses - GAAP operating loss improved by 58% to 27.6 million compared to a loss of 66.3millioninfiscal2023[7].−Non−GAAPoperatingprofitincreasedby5266.3 million in fiscal 2023[7]. - Non-GAAP operating profit increased by 52% to 94.7 million, up from 62.4millioninfiscal2023[7].−AdjustedEBITDAforthefourthquarterwas62.4 million in fiscal 2023[7]. - Adjusted EBITDA for the fourth quarter was 26 million, down from 31.6millioninthesameperiodlastyear[8].−NetlossforQ12024was31.6 million in the same period last year[8]. - Net loss for Q1 2024 was 23.59 million, compared to a net loss of 9.43millioninQ12023,indicatingasignificantincreaseinlosses[36].−ThenetlossfortheyearendedMarch31,2024,was9.43 million in Q1 2023, indicating a significant increase in losses[36]. - The net loss for the year ended March 31, 2024, was 67,592,000, an improvement from a net loss of 73,143,000inthepreviousyear,representingadecreaseofapproximately7.173,143,000 in the previous year, representing a decrease of approximately 7.1%[42]. - The company reported a basic and diluted net loss per share of 0.19 for Q1 2024, compared to 0.08forQ12023[36].−Non−GAAPnetincomepershareforQ1Fiscal2024was0.08 for Q1 2023[36]. - Non-GAAP net income per share for Q1 Fiscal 2024 was 0.08, down from 0.11inQ1Fiscal2023[48].−ThecompanyreportedaGAAPnetlosspershareof0.11 in Q1 Fiscal 2023[48]. - The company reported a GAAP net loss per share of (0.19) for Q1 Fiscal 2024, compared to (0.08)inQ1Fiscal2023[48].CashFlowandDebtManagement−Cashflowfromoperationsincreased62(0.08) in Q1 Fiscal 2023[48]. Cash Flow and Debt Management - Cash flow from operations increased 62% year-over-year to 79 million for fiscal year 2024[7]. - The company repaid 63.3millionofits2024Notes,bringingtotaldebtrepaymentinfiscal2024to63.3 million of its 2024 Notes, bringing total debt repayment in fiscal 2024 to 88.3 million[9]. - Interest paid increased to 35,574,000in2024from35,574,000 in 2024 from 22,162,000 in 2023, reflecting a rise of 60.5%[43]. - The company reported a repayment of 63,295,000onconvertibleseniornotesduringtheyear,comparedtoarepaymentof63,295,000 on convertible senior notes during the year, compared to a repayment of 217,299,000 in the previous year, indicating a reduction in debt repayment[42]. - Total current assets decreased to 247.84millionasofMarch31,2024,from247.84 million as of March 31, 2024, from 273.12 million as of March 31, 2023[40]. - Total liabilities decreased to 654.02millionasofMarch31,2024,from654.02 million as of March 31, 2024, from 741.90 million as of March 31, 2023[40]. - Cash and cash equivalents increased to 116.26millionasofMarch31,2024,comparedto116.26 million as of March 31, 2024, compared to 111.40 million as of March 31, 2023[40]. - Total cash, cash equivalents, and restricted cash at the end of the year was 116,723,000,upfrom116,723,000, up from 112,729,000 at the beginning of the year, indicating a net increase of 3,994,000[42].OperationalEfficiency−ResearchanddevelopmentexpensesforQ12024were3,994,000[42]. Operational Efficiency - Research and development expenses for Q1 2024 were 33.93 million, down from 36.46millioninQ12023,adecreaseof6.936.46 million in Q1 2023, a decrease of 6.9%[36]. - The company incurred stock-based compensation expenses of 65,857,000 for the year, down from 90,634,000in2023,areductionof27.490,634,000 in 2023, a reduction of 27.4%[46]. - The company recorded a charge of 10 million for Fuze indirect tax liabilities during the three months ended March 31, 2024[49]. - The total cost of service revenue as a percentage of service revenue was 27.5% for the year ended March 31, 2024, compared to 28.0% in 2023, showing a slight improvement[46]. Future Outlook - For Q1 fiscal 2025, the company expects service revenue in the range of 170millionto170 million to 174 million and total revenue between 176millionand176 million and 181 million[15]. - Non-GAAP net income per share for fiscal 2025 is projected to be between 0.37and0.37 and 0.45, based on a fully diluted share count of approximately 133 million[15]. Product Development - The company launched several new products, including 8x8 Engage and Proactive Outreach, aimed at enhancing customer engagement and experience[14]. - Total Annual Recurring Revenue (ARR) for Q1 Fiscal 2024 was 703million,showingayear−over−yeargrowthof2703 million, showing a year-over-year growth of 2%[51]. - Enterprise ARR, which accounts for customers generating over 100,000 ARR, was 404millioninQ1Fiscal2024,maintaining58404 million in Q1 Fiscal 2024, maintaining 58% of total ARR[51]. - Small Business ARR for Q1 Fiscal 2024 was 167 million, with a year-over-year growth of 5%[51]. - Mid-Market ARR for Q1 Fiscal 2024 was $132 million, reflecting a year-over-year growth of 5%[51].