Summary of 8x8 FY Conference Call Company Overview - **Company**: 8x8 (NasdaqGS:EGHT) - **Industry**: Mid-cap software, specifically focusing on Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) Key Points and Arguments 1. **Investment in Innovation**: 8x8 has committed to spending approximately 15% of non-GAAP revenue on R&D to foster innovation, particularly in AI-based products [10][11][12] 2. **Acquisition of Fuze**: The acquisition of Fuze, a company with over $100 million in annual revenue, is nearing completion, with upgrades to the 8x8 platform expected by the end of the calendar year [10][11] 3. **Debt Reduction**: The company has successfully reduced its debt by approximately 41% from a high of $558 million in August 2022 [11][12] 4. **Positive Cash Flow**: 8x8 has generated positive cash flow from operations for 19 consecutive quarters, indicating a strong financial footing [12][13] 5. **Revenue Growth**: After a period of revenue headwinds, the company has reported year-over-year revenue growth in the last two quarters, marking a turnaround from an eight-quarter decline [12][13] 6. **Usage-Based Revenue**: Usage-based revenue has grown to nearly 20% of total service revenue, up from 13% the previous year, driven by new AI-driven products [23][25] 7. **Customer Retention and Stickiness**: Over one-third of annual recurring revenue (ARR) comes from customers using three or more products, enhancing customer retention and revenue growth [29][42] 8. **AI Integration**: The company is focusing on AI-driven products, which are expected to enhance customer experience and operational efficiency [45][50][100] 9. **Market Dynamics**: The UCaaS and CCaaS markets are competitive but healthy, with a noted increase in deal velocity for UCaaS compared to CCaaS [59][81] 10. **Partnership with Microsoft**: 8x8 has a strong relationship with Microsoft, which enhances the attach rate of their contact center solutions to Microsoft Teams users [91][93] Additional Important Insights 1. **Capital Management Strategy**: The company is focused on reducing leverage and has engaged in opportunistic stock buybacks while prioritizing debt reduction to enhance future growth options [121][122] 2. **Internal AI Utilization**: 8x8 is leveraging AI internally for various functions, including deal velocity acceleration and customer interaction analysis, which enhances operational efficiency [128][133] 3. **Future Outlook**: The company anticipates a continued shift towards usage-based revenue and AI integration, which is expected to positively impact gross profit margins over time [110][114] This summary encapsulates the key insights from the 8x8 FY Conference Call, highlighting the company's strategic focus on innovation, financial health, and market positioning.

Core Insights - WestCX has launched Engage, an AI-native engagement platform that integrates Engage, LinguaAI, and Journey Insights to enhance patient experiences in healthcare organizations [1][8] - The platform aims to improve patient satisfaction, reduce missed appointments, and ensure equitable access to care [1][8] Engage Platform - Engage features streaming Speech-to-Speech AI, enabling natural and compliant patient communication [2] - It automates core functions such as appointment scheduling, insurance verification, payments, and medication reminders [3] LinguaAI - LinguaAI supports over 100 languages in real time, promoting accessibility and inclusion for Limited English Proficiency (LEP) populations [5] - It ensures high-quality care through context-aware conversations that reflect empathy [5] Journey Insights - Journey Insights captures and analyzes patient interactions to identify friction points and benchmark performance [6] - It predicts next best actions to enhance satisfaction and care outcomes [6] Operational Impact - The integration of these solutions is expected to reduce patient no-shows by approximately 20-35%, allowing organizations to recapture revenue [8] - The platform integrates seamlessly with existing EHR and CRM systems, enabling personalized care journeys [8] Compliance and Security - Engage ensures that all conversations are secure and compliant with HITRUST, HIPAA, SOC 2, and PCI standards [8]

Core Insights - Mosaicx has launched its next-generation Engage platform, which is an AI-native, omnichannel virtual agent solution designed for modern enterprises, showcasing its commitment to innovation and customer experience [3][4] - The company received the CCWomen's Best Workplace for Gender Equity Award, highlighting its dedication to fostering an inclusive workplace culture [2][4] Company Developments - The Engage platform aims to enhance customer interactions by enabling adaptive, voice-led, and personalized experiences, moving beyond traditional intent-based workflows [3] - Mosaicx's strategic priorities include leading with breakthrough technology, delivering measurable customer outcomes, and cultivating a high-performing, inclusive culture [4] - The new Engage platform is set to be generally available in Q3 2025, indicating a timeline for market introduction [4] Industry Impact - Mosaicx's innovations are positioned to improve customer retention, reduce operational costs, and provide faster time to value for clients across various sectors, including healthcare, financial services, and retail [4][5] - The company is part of WestCX under the West Technology Group portfolio, which is managed by affiliates of Apollo Global Management, indicating strong backing and resources for its initiatives [5]

Core Insights - Mosaicx is launching its next-generation AI-native platform, Engage, at Customer Contact Week (CCW) in Las Vegas from June 9-12, 2025, marking a significant advancement in customer engagement technology [1][4] - The Engage platform enables natural, personalized self-service conversations across multiple channels, including voice, SMS, email, and web chat, by embedding intelligence at every layer [2][3] - The platform aims to enhance customer satisfaction, reduce operational costs, and improve agent productivity through intelligent automation and empathetic interactions [3][4] Company Overview - Mosaicx is part of WestCX within the West Technology Group portfolio and has over 30 years of experience in delivering enterprise customer experience (CX) solutions [1][8] - The company is recognized as a finalist in two categories of the 2025 CCW Excellence Awards, highlighting its commitment to gender equity and self-service innovation [5] Product Features - Engage replaces traditional intent-based workflows with adaptive interactions, allowing for a more seamless customer experience [2][4] - The platform is designed to achieve faster time to value and lower total cost of ownership for enterprises [3] Upcoming Events - Mosaicx will lead three speaking sessions at CCW, focusing on various aspects of customer experience and innovation [6][7] - The Engage platform is expected to be generally available in Q3 2025 [4]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $76.1 million, a 21% increase year-over-year [25] - Full year 2024 revenue reached $284.9 million, up 25% from the previous year [32] - Gross profit for Q4 was $45.2 million, an 11% increase year-over-year, with a gross margin of 59.5% [28] - Non-GAAP operating income for full year 2024 was $32.9 million, up approximately 80% year-over-year [32] - Net income for Q4 was $11.3 million, or $0.06 per share [31] Business Line Data and Key Metrics Changes - Olo's gross payment volume (GPV) increased to $2.8 billion in 2024, up from over $1 billion in 2023 [8] - Active locations reached approximately 86,000, adding about 1,000 net new locations in Q4 and 6,000 for the full year [11][26] - Average revenue per user (ARPU) for Q4 was approximately $878, a 12% increase year-over-year [27] Market Data and Key Metrics Changes - Olo powered $29 billion in gross merchandise volume (GMV) for over 750 brands in 2024 [7] - The company expects to add approximately 5,000 net new locations in 2025, maintaining recent trends [37] Company Strategy and Development Direction - The company aims to ramp Olo Pay card-present functionality, targeting a $130 billion GPV opportunity [20] - Focus on expanding Catering Plus and increasing the number of full Flywheel customers in 2025 [18] - The partnership with FreedomPay is expected to enhance Olo Pay's market reach and transaction processing capabilities [17] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued growth in digital ordering and a need for efficiency amid rising costs and macroeconomic uncertainty [36] - The company expects gross profit growth to accelerate in the second half of 2025, following a tougher comparison in the first half [98] - Management emphasizes the importance of leveraging guest data for personalized marketing to drive profitable traffic [70] Other Important Information - The company ended 2024 with approximately $403 million in cash and investments [33] - Full year 2025 guidance includes revenue expectations of $333 million to $336 million and non-GAAP operating income of $45.5 million to $47 million [35] Q&A Session Summary Question: Can you elaborate on the FreedomPay partnership and its expected impact? - Management indicated that Olo Pay card-present through FreedomPay will be generally available by mid-year, enhancing the ability to sell and deploy Olo Pay broadly [47][49] Question: What strategies are in place to increase module adoption among enterprise customers? - Management noted organic growth in module adoption and highlighted successful expansions with brands like Jack in the Box [52][54] Question: How is the management team currently structured following recent leadership changes? - Management expressed confidence in the current team, particularly with the new CTO, and emphasized the importance of the upcoming Chief Revenue Officer hire [106][109]