8x8(EGHT) - 2023 Q1 - Quarterly Report

Forward-Looking Statements and Risk Factors This section outlines the forward-looking nature of statements within the report and details various factors that could cause actual results to differ materially from projections - The report contains forward-looking statements regarding industry trends, customer numbers, revenue, expenses, profitability, cash flow, and the impact of the COVID-19 pandemic[9] - Key risk factors include economic downturns (including COVID-19 and Russia-Ukraine conflict impacts), cost increases and inflationary pressure, customer churn, competitive market pressures, service quality and reliability, ability to scale, customer acquisition costs, reliance on channel partners and third-party infrastructure, cybersecurity breaches, regulatory compliance, and acquisition integration risks (e.g., Fuze, Inc.)[9] - A new risk factor highlights that cost reduction initiatives, particularly in sales and marketing, may not achieve anticipated savings or could inadvertently lead to a reduction in revenue[147] Part I. Financial Information Part I presents the unaudited condensed consolidated financial statements, management's discussion and analysis, market risk disclosures, and controls for the quarter ended June 30, 2022 Item 1. Financial Statements (Unaudited) This section provides unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, cash flows, and detailed notes Condensed Consolidated Balance Sheets This section presents the Company's financial position, detailing assets, liabilities, and stockholders' equity at specific reporting dates | Metric | June 30, 2022 (in thousands) | March 31, 2022 (in thousands) | Change (in thousands) | Percentage Change | | :--------------------- | :--------------------------- | :---------------------------- | :-------------------- | :---------------- | | Total Assets | $889,147 | $910,268 | $(21,121) | -2.32% | | Total Liabilities | $755,625 | $727,902 | $27,723 | 3.81% | | Total Stockholders' Equity | $133,522 | $182,366 | $(48,844) | -26.78% | Condensed Consolidated Statements of Operations This section details the Company's financial performance, including revenue, operating loss, and net loss over specific periods | Metric | Three Months Ended June 30, 2022 (in thousands) | Three Months Ended June 30, 2021 (in thousands) | Change (in thousands) | Percentage Change | | :--------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------- | :---------------- | | Total Revenue | $187,620 | $148,327 | $39,293 | 26.49% | | Loss from Operations | $(26,754) | $(38,827) | $12,073 | -31.10% | | Net Loss | $(26,043) | $(43,906) | $17,863 | -40.68% | | Net Loss per Share (Basic and Diluted) | $(0.22) | $(0.40) | $0.18 | -45.00% | Condensed Consolidated Statements of Comprehensive Loss This section presents the Company's comprehensive loss, including net loss and other comprehensive income/loss items | Metric | Three Months Ended June 30, 2022 (in thousands) | Three Months Ended June 30, 2021 (in thousands) | Change (in thousands) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :-------------------- | | Net Loss | $(26,043) | $(43,906) | $17,863 | | Unrealized loss on investments in securities | $(94) | $(33) | $(61) | | Foreign currency translation adjustment | $(8,384) | $283 | $(8,667) | | Comprehensive Loss | $(34,521) | $(43,656) | $9,135 | Condensed Consolidated Statements of Stockholders' Equity This section outlines changes in the Company's stockholders' equity, including common stock, additional paid-in capital, and accumulated deficit | Equity Component | Balance at March 31, 2022 (in thousands) | Balance at June 30, 2022 (in thousands) | Change (in thousands) | | :--------------------------- | :--------------------------------------- | :-------------------------------------- | :-------------------- | | Common Stock | $118 | $120 | $2 | | Additional Paid-in Capital | $956,599 | $895,602 | $(60,997) | | Accumulated Other Comprehensive Loss | $(7,913) | $(16,391) | $(8,478) | | Accumulated Deficit | $(766,438) | $(745,809) | $20,629 | | Total Stockholders' Equity | $182,366 | $133,522 | $(48,844) | - The decrease in Additional Paid-in Capital and increase in Accumulated Deficit are significantly impacted by the adoption of ASU 2020-06, which resulted in a $92.8 million decrease to additional paid-in capital and a $46.7 million decrease to accumulated deficit (effectively an increase in equity)[18][32][65] Condensed Consolidated Statements of Cash Flows This section details the Company's cash inflows and outflows from operating, investing, and financing activities | Cash Flow Activity | Three Months Ended June 30, 2022 (in thousands) | Three Months Ended June 30, 2021 (in thousands) | Change (in thousands) | | :----------------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------- | | Net cash provided by operating activities | $5,841 | $4,032 | $1,809 | | Net cash used in investing activities | $(5,841) | $(11,146) | $5,305 | | Net cash provided by financing activities | $65 | $3,435 | $(3,370) | | Effect of exchange rate changes on cash | $(6,685) | $436 | $(7,121) | | Net decrease in cash, cash equivalents and restricted cash | $(6,620) | $(3,243) | $(3,377) | | Cash, cash equivalents and restricted cash, end of year | $94,094 | $117,929 | $(23,835) | Notes to Unaudited Condensed Consolidated Financial Statements These notes provide detailed information on the Company's business, significant accounting policies, revenue recognition, fair value measurements, intangible assets, leases, commitments, convertible senior notes, stock-based compensation, income taxes, net loss per share, geographical information, and recent acquisitions Note 1. The Company and Significant Accounting Policies - 8x8, Inc. is a leading Software-as-a-Service (SaaS) provider of contact center, voice, video, chat, and enterprise-class API solutions, powered by a global cloud communications platform, with a majority of revenue from communication services subscriptions and platform usage[24] - Effective April 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective approach, which significantly impacted the accounting for convertible senior notes[30][32] | Impact of ASU 2020-06 Adoption (in thousands) | Amount | | :-------------------------------------------- | :---------- | | Decrease to accumulated deficit | $46,700 | | Decrease to additional paid-in capital | $92,800 | | Increase to convertible senior notes, net | $46,200 | - Out-of-period adjustments of approximately $3.3 million were recorded, including a $2.1 million increase in subscription revenue and a $1.2 million decrease in bad debt provision[29] Note 2. Revenue Recognition | Contract Balance (in thousands) | June 30, 2022 | March 31, 2022 | | :------------------------------ | :------------ | :------------- | | Accounts receivable, net | $55,441 | $57,400 | | Contract assets, current | $11,402 | $10,514 | | Contract assets, non-current | $13,574 | $15,171 | | Deferred revenue, current | $34,064 | $34,262 | | Deferred revenue, non-current | $11,023 | $11,430 | - Approximately $43.6 million of revenue included in deferred revenue at the beginning of the fiscal year was recognized during the three months ended June 30, 2022[35] - Remaining performance obligations totaled approximately $700.0 million as of June 30, 2022, with 80% expected to be recognized over the next 36 months[36] | Amortization of Deferred Sales Commission Costs (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :------------------------------------------------------------- | :------------------------------- | :------------------------------- | | Amortization Expense | $9,200 | $8,200 | Note 3. Fair Value Measurements | Asset Category (in thousands) | June 30, 2022 (Estimated Fair Value) | March 31, 2022 (Estimated Fair Value) | | :---------------------------- | :----------------------------------- | :------------------------------------ | | Total Assets | $143,039 | $148,230 | | Cash and Cash Equivalents | $92,686 | $91,205 | | Short-Term Investments | $48,945 | $44,845 | | Long-Term Investments | $0 | $2,671 | - The estimated fair value of the Company's Convertible Senior Notes was $427.7 million as of June 30, 2022, down from $470.5 million as of March 31, 2022[42] Note 4. Intangible Assets and Goodwill | Intangible Asset (in thousands) | June 30, 2022 (Net Carrying Amount) | March 31, 2022 (Net Carrying Amount) | | :------------------------------ | :---------------------------------- | :----------------------------------- | | Technology | $24,506 | $26,875 | | Customer relationships | $97,956 | $100,938 | | Trade names and domains | $275 | $400 | | Total acquired identifiable intangible assets | $122,737 | $128,213 | | Goodwill (in thousands) | Amount | | :---------------------- | :---------- | | Balance at March 31, 2022 | $266,867 | | Foreign currency translation | $(1,838) | | Balance at June 30, 2022 | $265,029 | - Estimated annual amortization of intangible assets for fiscal year 2023 is $15.6 million, with a total of $122.7 million remaining[44] Note 5. Leases | Lease Metric (in thousands) | June 30, 2022 | March 31, 2022 | | :----------------------------------- | :------------ | :------------- | | Operating lease, right-of-use assets | $59,859 | $63,415 | | Operating lease liabilities, current | $14,424 | $15,485 | | Operating lease liabilities, non-current | $71,806 | $74,518 | | Total operating lease liabilities | $86,230 | $90,003 | | Lease Expense (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :--------------------------- | :------------------------------- | :------------------------------- | | Operating lease expense | $3,121 | $3,459 | | Variable lease expense | $1,587 | $750 | - Cash outflows from operating leases were $4.8 million for the three months ended June 30, 2022, compared to $4.2 million for the same period in 2021[47] Note 6. Commitments and Contingencies - The Company is involved in various legal proceedings, including a wage and hour class action and PAGA lawsuit, for which a preliminary settlement was approved on June 13, 2022[53] | Contingent Indirect Tax Liabilities (in thousands) | June 30, 2022 | March 31, 2022 | | :------------------------------------------------- | :------------ | :------------- | | Accrued Liabilities | $16,700 | $17,200 | - The Company has purchase obligations with third-party customer support and network service providers, including minimum monthly commitments[52] Note 7. Convertible Senior Notes and Capped Calls - The Company has $500.0 million aggregate principal amount of 0.50% convertible senior notes due February 1, 2024, with an initial conversion price of approximately $25.68 per share[58][59] - Upon conversion, the Company intends to settle the principal amount of the Notes in cash[62] | Convertible Senior Notes (in thousands) | June 30, 2022 | March 31, 2022 | | :-------------------------------------- | :------------ | :------------- | | Principal | $500,000 | $500,000 | | Unamortized debt discount and issuance costs | $(5,556) | $(52,548) | | Net carrying amount | $494,444 | $447,452 | | Interest Expense (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :--------------------------------------- | :------------------------------- | :------------------------------- | | Contractual interest expense | $625 | $453 | | Amortization of debt discount and issuance costs | $831 | $4,393 | | Total interest expense | $1,456 | $4,846 | - The decrease in amortization of debt discount and issuance costs is a direct result of adopting ASU 2020-06, which eliminated the separate equity component accounting for the convertible notes[65][66] - The Company entered into capped call transactions covering approximately 14.1 million shares, with an initial strike price of $25.68 per share and cap prices of $39.50 per share, to partially offset potential dilution from the Initial and First Additional Notes[68] Note 8. Stock-Based Compensation and Stockholders' Equity | Stock-Based Compensation Expense (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | | Cost of service revenue | $2,664 | $1,968 | | Cost of other revenue | $1,111 | $1,071 | | Research and development | $8,044 | $8,698 | | Sales and marketing | $8,107 | $14,326 | | General and administrative | $7,888 | $10,524 | | Total | $27,814 | $36,587 | | Restricted Stock Units (RSUs) Activity (in thousands) | Number of Shares | Weighted Average Grant Date Fair Value | | :---------------------------------------------------- | :--------------- | :------------------------------------- | | Balance at March 31, 2022 | 9,375 | $20.41 | | Granted | 8,528 | $6.36 | | Vested and released | (1,657) | $21.00 | | Forfeited | (780) | $17.94 | | Balance at June 30, 2022 | 15,466 | $12.72 | - As of June 30, 2022, total unrecognized compensation cost related to RSUs was $130.7 million, and for Performance Stock Units (PSUs) was $32.1 million[77][81] Note 9. Income Taxes | Income Tax Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :---------------- | :------------------------------- | :------------------------------- | | Effective Tax Rate | (1.6)% | (0.6)% | | Provision for Income Taxes (in thousands) | $405 | $256 | - The Company maintains a full valuation allowance against its deferred tax assets, primarily due to the uncertainty of realizing these benefits through future taxable income[84] Note 10. Net Loss Per Share | Net Loss Per Share (in thousands, except per share data) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :------------------------------------------------------- | :------------------------------- | :------------------------------- | | Net Loss | $(26,043) | $(43,906) | | Weighted average common shares outstanding - basic and diluted | 119,721 | 109,925 | | Net loss per share - basic and diluted | $(0.22) | $(0.40) | - Potentially dilutive common shares totaling 18,632 thousand for Q2 2022 (vs. 14,340 thousand for Q2 2021) were excluded from diluted EPS calculation as their inclusion would have been anti-dilutive[86] Note 11. Geographical Information | Revenue by Geography (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :---------------------------------- | :------------------------------- | :------------------------------- | | United States | $136,120 | $103,658 | | International | $51,500 | $44,669 | | Total Revenue | $187,620 | $148,327 | | Property and Equipment, Net by Geography (in thousands) | June 30, 2022 | March 31, 2022 | | :------------------------------------------------------ | :------------ | :------------- | | United States | $69,469 | $73,967 | | International | $4,407 | $5,049 | | Total Property and Equipment, Net | $73,876 | $79,016 | Note 12. Acquisitions - On January 18, 2022, the Company acquired 100% of Fuze, Inc. for $213.8 million in cash and stock[88] - Fuze, Inc. contributed $29.5 million in revenue during the first quarter of fiscal 2023[88] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on the Company's financial performance, including an overview of its business, key metrics, and detailed analysis of revenue, expenses, liquidity, and capital resources for the quarter ended June 30, 2022 Overview - 8x8 is a leading SaaS provider of cloud communications, including UCaaS, CCaaS, and communication APIs, serving customers across over 170 countries, with an increasing focus on mid-market and enterprise sectors[91] - The flagship offering is the 8x8 XCaaS platform, which unifies communications and contact center solutions, integrating with over 50 third-party applications like Microsoft Teams[92] - The acquisition of Fuze, Inc. in January 2022 expanded the enterprise customer base and accelerated innovation on the XCaaS platform[93] Summary and Outlook | Metric | Q1 Fiscal 2023 (in thousands) | YoY Growth | | :----------------------------------------- | :---------------------------- | :--------- | | Total Revenue | $187,600 | 26% | | Total Revenue (excluding Fuze) | N/A | 7% | | Annualized Recurring Subscriptions and Usage Revenue (ARR) | Percentage of Total ARR | YoY Change | | :------------------------------------------------------- | :---------------------- | :--------- | | Strategic Mid-Market and Enterprise Customers | 77% | 45% | | Small Business Customers | 23% | -7% | - The Company's long-term strategy focuses on increasing profitability and cash flow by reducing service delivery costs, improving operating efficiency, and increasing revenue from XCaaS and enterprise customers[97] - Plans include increasing investment in research and development for competitive advantage, reducing unit costs to improve gross profit margin, and decreasing sales and marketing expenses as a percentage of revenue to enhance efficiency[98] Impact of COVID-19 - The long-term impact of the COVID-19 pandemic on the Company's business, operations, and financial results remains uncertain and difficult to predict[100] Key Business Metrics - Annualized Recurring Subscriptions and Usage Revenue (ARR) is defined as the sum of the most recent month's recurring subscription amounts and platform usage charges for CPaaS customers (with a minimum billing threshold for at least six consecutive months), multiplied by 12[102] Components of Results of Operations - Service revenue primarily comes from communication services subscriptions, platform usage, and related fees from UCaaS, CCaaS, and CPaaS offerings[103] - Other revenue is generated from professional services and sales/rentals of IP telephones[104] - Cost of service revenue includes network operations, technology licenses, amortization of internal-use software, third-party carrier services, and customer support[105] - Operating expenses are categorized into Research and Development, Sales and Marketing, and General and Administrative, with allocated IT and facilities costs[107][109][110] Results of Operations This section provides a detailed comparative analysis of the Company's revenue, cost of revenue, operating expenses, other income/expense, and income taxes for the three months ended June 30, 2022, compared to the same period in 2021, highlighting the impact of the Fuze acquisition and accounting changes Revenue | Revenue Type (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Change (in thousands) | Percentage Change | | :-------------------------- | :------------------------------- | :------------------------------- | :-------------------- | :---------------- | | Service revenue | $179,161 | $137,796 | $41,365 | 30.0% | | Other revenue | $8,459 | $10,531 | $(2,072) | -19.7% | | Total revenue | $187,620 | $148,327 | $39,293 | 26.5% | - Service revenue increased primarily due to growth in mid-market and enterprise customers, expanded deployments, increased telecom usage, and a $29.3 million contribution from the Fuze, Inc. acquisition[114] - Other revenue decreased due to supply chain issues affecting hardware product sales and a decline in professional services revenue[116] Cost of Revenue | Cost of Revenue (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Change (in thousands) | Percentage Change | | :----------------------------- | :------------------------------- | :------------------------------- | :-------------------- | :---------------- | | Cost of service revenue | $53,547 | $46,010 | $7,537 | 16.4% | | Percentage of service revenue | 29.9% | 33.4% | -3.5 pp | | | Cost of other revenue | $13,126 | $13,746 | $(620) | -4.5% | | Percentage of other revenue | 155.2% | 130.5% | 24.7 pp | | - Cost of service revenue increased due to higher communication infrastructure costs ($9.1M), employee/consulting costs ($1.8M), and depreciation/amortization ($1.0M), partially offset by a decrease in stock-based compensation and amortization of intangibles ($4.3M)[119] - Cost of other revenue decreased due to lower product costs from reduced shipments, but its percentage of other revenue increased due to a larger decline in other revenue itself[120] Operating Expenses | Operating Expense (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Change (in thousands) | Percentage Change | | :------------------------------- | :------------------------------- | :------------------------------- | :-------------------- | :---------------- | | Research and development | $34,955 | $25,392 | $9,563 | 37.7% | | Percentage of total revenue | 18.6% | 17.1% | 1.5 pp | | | Sales and marketing | $83,527 | $75,915 | $7,612 | 10.0% | | Percentage of total revenue | 44.5% | 51.2% | -6.7 pp | | | General and administrative | $29,219 | $26,091 | $3,128 | 12.0% | | Percentage of total revenue | 15.6% | 17.6% | -2.0 pp | | - R&D expenses increased due to higher personnel/consulting costs ($4.5M), reduced capitalized internal-use software costs ($3.2M), and increased software license/amortization ($1.6M), reflecting increased investment in the XCaaS platform and the Fuze acquisition[121] - Sales and marketing expenses increased due to higher channel commissions ($8.6M) and amortization of intangibles ($2.9M), but decreased as a percentage of revenue due to overall revenue growth, including from Fuze[124] - General and administrative expenses increased due to higher legal/regulatory costs ($1.9M) and facilities costs ($1.6M), but decreased as a percentage of revenue due to higher revenue and improved operational efficiency[126] Other income (expense), net | Other Income (Expense), Net (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Change (in thousands) | Percentage Change | | :----------------------------------------- | :------------------------------- | :------------------------------- | :-------------------- | :---------------- | | Other income (expense), net | $1,116 | $(4,823) | $5,939 | 123.1% | | Percentage of total revenue | 0.6% | (3.3)% | 3.9 pp | | - The significant increase in other income (expense), net, was primarily driven by a $3.4 million decrease in debt amortization costs due to ASU 2020-06 adoption and $2.8 million in foreign currency gains[128] Provision for Income Taxes | Provision for Income Taxes (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Change (in thousands) | Percentage Change | | :---------------------------------------- | :------------------------------- | :------------------------------- | :-------------------- | :---------------- | | Provision for income taxes | $405 | $256 | $149 | 58.2% | | Percentage of total revenue | 0.2% | 0.2% | 0.0 pp | | - There was no material change to the provision for income taxes for the three months ended June 30, 2022, and no material changes are anticipated for the remainder of fiscal year 2023[129] Liquidity and Capital Resources - As of June 30, 2022, the Company had $143.0 million in cash, cash equivalents, and investments[130] - Management believes existing cash and anticipated cash flows will be sufficient for the next 12 months and foreseeable future, but expects to refinance its $500 million convertible senior notes prior to their February 1, 2024 maturity[130] Period-over-Period Changes (Cash Flows) | Cash Flow Activity (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Change (in thousands) | | :-------------------------------- | :------------------------------- | :------------------------------- | :-------------------- | | Net cash provided by operating activities | $5,841 | $4,032 | $1,809 | | Net cash used in investing activities | $(5,841) | $(11,146) | $5,305 | | Net cash provided by financing activities | $65 | $3,435 | $(3,370) | - Operating cash flow was positively impacted by $56.3 million in non-cash charges, including stock-based compensation and depreciation/amortization, partially offset by $24.4 million in working capital adjustments[133] - Investing cash outflow decreased due to lower internally developed software capitalization, net investments, and a $1.3 million payout related to the Fuze acquisition cash holdback[133] Critical Accounting Policies and Estimates - No significant changes to critical accounting policies and estimates were made during the three months ended June 30, 2022, other than the adoption of ASU 2020-06[136] Item 3. Quantitative and Qualitative Disclosures About Market Risk This section discusses the Company's exposure to market risks, specifically interest rate fluctuation risk and foreign currency exchange risk, and how these risks are managed Interest Rate Fluctuation Risk - The Company's investment policy prioritizes capital preservation and liquidity, investing in highly rated securities with limited credit exposure to any single issuer other than the U.S. government[137] - A hypothetical 10% change in interest rates would not materially impact the value of cash, cash equivalents, or available-for-sale investments[137] - The fair value of the $500.0 million convertible senior notes is subject to interest rate and market risk, but these changes do not impact the Company's financial position, cash flows, or results of operations due to the fixed nature of the debt[138] Foreign Currency Exchange Risk - The Company has foreign currency risks related to revenue and operating expenses denominated primarily in British Pounds and Euros[140] - A hypothetical 10% decrease in all foreign currencies against the U.S. dollar would not result in a material foreign currency loss on foreign-denominated balances as of June 30, 2022[141] - The Company does not currently use financial instruments to hedge foreign currency exchange risk but may do so in the future as foreign operations expand[142] Item 4. Controls and Procedures This section details the evaluation of the Company's disclosure controls and procedures and internal control over financial reporting, including any changes and inherent limitations Evaluation of Disclosure Controls and Procedures - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2022[143] - The evaluation excluded the disclosure controls and internal control over financial reporting related to Fuze, Inc., which was acquired on January 18, 2022[143] Changes in Internal Control Over Financial Reporting - There were no material changes in internal control over financial reporting during the three months ended June 30, 2022[144] Limitations on the Effectiveness of Controls - Management acknowledges that no control system can prevent all errors and fraud, providing only reasonable, not absolute, assurance due to inherent limitations and resource constraints[145] Part II. Other Information Part II includes additional information not covered in Part I, such as legal proceedings, updated risk factors, details on equity securities, defaults, mine safety disclosures, and a list of exhibits Item 1. Legal Proceedings This section incorporates by reference the legal proceedings information detailed in Note 6 of the financial statements - Information regarding legal proceedings is incorporated by reference from Note 6, 'Commitments and Contingencies,' in the Notes to Unaudited Condensed Consolidated Financial Statements[146] Item 1A. Risk Factors This section refers to the risk factors outlined in the annual report on Form 10-K and highlights a new risk related to the potential impact of cost reduction initiatives on revenue - Investors should consider risk factors from the annual report on Form 10-K, as modified by this Quarterly Report[147] - A new risk factor emphasizes that efforts to reduce spending for profitability and cash flow generation, particularly in sales and marketing, may not achieve desired cost savings or could lead to a reduction in revenue[147] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This item reports that there were no unregistered sales of equity securities or use of proceeds during the period - There were no unregistered sales of equity securities or use of proceeds to report[147] Item 3. Defaults Upon Senior Securities This item indicates that there were no defaults upon senior securities during the reporting period - There were no defaults upon senior securities[149] Item 4. Mine Safety Disclosures This item states that mine safety disclosures are not applicable to the Company's operations - Mine safety disclosures are not applicable[149] Item 5. Other Information This item reports that there is no other information to disclose - There is no other information to disclose[149] Item 6. Exhibits This section lists the exhibits filed with the Form 10-Q, including certifications from the CEO and CFO, and amendments to the Company's organizational documents - Exhibits include certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14 and 18 U.S.C. 1350[152] - The report also includes the Certificate of Amendment to the Restated Certificate of Incorporation and Amended and Restated By-Laws of 8x8, Inc.[154] Signature This section contains the signature of the Company's Principal Accounting Officer, certifying the filing of the Quarterly Report on Form 10-Q - The Quarterly Report on Form 10-Q was signed by Suzy Seandel, Principal Accounting Officer and Duly Authorized Officer, on July 29, 2022[157][158]