8x8(US:EGHT)2024-05-08 20:08Revenue and Financial Performance - Fourth quarter revenue was $179 million, and fiscal year 2024 revenue totaled $729 million, representing a 2% decrease from $743.9 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 $172.49 million, a decrease of 4.1% from $176.56 million in Q1 2023[36]. - Total revenue for Q1 2024 was $179.41 million, down 2.4% from $184.53 million in Q1 2023[36]. - Non-GAAP net income for the year was $57,964,000, 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 $703 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 $66.3 million in fiscal 2023[7]. - Non-GAAP operating profit increased by 52% to $94.7 million, up from $62.4 million in fiscal 2023[7]. - Adjusted EBITDA for the fourth quarter was $26 million, down from $31.6 million in the same period last year[8]. - Net loss for Q1 2024 was $23.59 million, compared to a net loss of $9.43 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 $73,143,000 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 $0.08 for Q1 2023[36]. - Non-GAAP net income per share for Q1 Fiscal 2024 was $0.08, down from $0.11 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) 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 $63.3 million of its 2024 Notes, bringing total debt repayment in fiscal 2024 to $88.3 million[9]. - Interest paid increased to $35,574,000 in 2024 from $22,162,000 in 2023, reflecting a rise of 60.5%[43]. - The company reported a repayment of $63,295,000 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 $247.84 million as of March 31, 2024, from $273.12 million as of March 31, 2023[40]. - Total liabilities decreased to $654.02 million as of March 31, 2024, from $741.90 million as of March 31, 2023[40]. - Cash and cash equivalents increased to $116.26 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, up from $112,729,000 at the beginning of the year, indicating a net increase of $3,994,000[42]. Operational Efficiency - Research and development expenses for Q1 2024 were $33.93 million, down from $36.46 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 $90,634,000 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 $170 million to $174 million and total revenue between $176 million and $181 million[15]. - Non-GAAP net income per share for fiscal 2025 is projected to be between $0.37 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 $703 million, showing a year-over-year growth of 2%[51]. - Enterprise ARR, which accounts for customers generating over $100,000 ARR, was $404 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].