- Service revenue increased 30% year-over-year
- Cash flow from operations of $5.8 million
- Enterprise ARR increased 54% year-over-year to $403
million
- Adoption of 8x8 Voice for Microsoft Teams accelerated to more
than 200,000 users
8x8, Inc. (NYSE: EGHT), a leading integrated cloud
communications platform provider, today reported financial results
for the first quarter of fiscal 2023 ended June 30, 2022.
First Quarter Fiscal 2023 Financial
Results:
- Total revenue increased 26% year-over-year to $187.6 million,
including Fuze revenue of $29.5 million.
- Service revenue increased 30% year-over-year to $179.2 million,
including Fuze revenue of $29.3 million.
- GAAP operating loss was $26.8 million, compared to operating
loss of $38.8 million in the first quarter of fiscal 2022.
- Non-GAAP operating profit was $10.1 million, compared to
non-GAAP operating profit of $1.3 million in the first quarter of
fiscal 2022. Non-GAAP operating profit in the first quarter of
fiscal 2023 was increased by approximately $3 million in unusual
items.
"Our first quarter results reflect our increased emphasis on
profitability and cash flow generation, as well as strength in
XCaaS, 8x8 Voice for Teams, high retention of Fuze customers, and
continued global expansion of the enterprise base," said Dave
Sipes, 8x8 CEO. "Our progress on these strategic initiatives,
combined with our focus on driving operational efficiency, creates
the foundation for sustainable growth and increasing profitability
in the future. We believe this will deliver value to all our
stakeholders – customers, partners, employees, and
shareholders."
First Quarter Fiscal 2023 Financial Metrics and Recent
Business Highlights:
Financial Metrics
- Annual Recurring Subscriptions and Usage Revenue (ARR):
- Total ARR grew to $688 million, an increase of 28% from the end
of the same period last year.
- Enterprise ARR of $403 million increased 54% year-over-year and
represented 59% of total ARR.
- 1,277 customers generated ARR greater than $100,000, compared
to 824 at the end of the first quarter of fiscal 2022.
- GAAP gross margin was 64%, compared to 60% in the same period
last year. Non-GAAP gross margin was 69%, compared to 63% in the
same period last year.
- GAAP service gross margin was 70%, compared to 67% in the same
period last year. Non-GAAP service gross margin was 73%, compared
to 69% in the same period last year.
- Cash provided by operating activities was $5.8 million for the
first quarter, compared to $4.0 million in the first quarter of
fiscal 2022.
- Cash, restricted cash, and investments were $143.0 million on
June 30, 2022 and $148.2 million on March 31, 2022.
A reconciliation of the non-GAAP measures to the most directly
comparable GAAP measures and other information relating to non-GAAP
measures is included in the supplemental reconciliation at the end
of this release.
Recent Business Highlights:
Partner and Product Innovation
Highlights
- Launched the 8x8 Elevate MP Program for Microsoft Gold Partners
together with the exclusive 8x8 XT Direct Routing as a Service
offering that enables enterprises adopting Microsoft Teams to
reduce communication costs and improve employee productivity with a
highly resilient global telephony solution.
- Announced a product integration of 8x8 Work with Genesys Cloud
CX. The new integration helps organizations align agents and the
appropriate subject matter experts to quickly collaborate for
better customer outcomes.
- Expanded the distribution relationship and resale go-to-market
strategy with Ingram Micro Cloud to increase the number of reseller
partners helping organizations move off legacy on-premises systems
to the cloud with 8x8 XCaaS™.
- Launched 8x8 Connect Automation Builder, a no-code
multiple-channel communications management solution allowing a wide
array of user roles in organizations, from marketing operations to
customer support, to easily build engaging customer
experiences.
Industry Recognition
- Recognized as a Metrigy 2022 MetriStar Top Provider in the
Cloud Phone Systems category.
- Awarded the 2022 UK Vendor of the Year by AVANT.
Second Quarter and Updated Fiscal 2023 Financial
Outlook:
Management provides expected ranges for total revenue, service
revenue and non-GAAP operating margin based on its evaluation of
the current business environment. The Company emphasizes that these
expectations are subject to various important cautionary factors
referenced in the section entitled "Forward-Looking Statements"
below.
Second Quarter Fiscal 2023 Ending
September 30, 2022
- Service revenue in the range of $177 million to $180 million,
representing year-over-year growth of approximately 25% at the
midpoint.
- Total revenue in the range of $185 million to $188 million,
representing year-over-year growth of approximately 23% at the
midpoint.
- Non-GAAP operating margin in the range of 2.5% to 3.0%.
Fiscal Year 2023 Ending March 31,
2023
- Service revenue in the range of $720 million to $730 million,
representing year-over-year growth of 20% at the midpoint.
- Total revenue in the range of $747.5 million to $762.5 million,
representing year-over-year growth of approximately 18% at the
midpoint.
- Non-GAAP operating margin of approximately 4%, with a goal of
exiting fiscal 2023 with non-GAAP operating margin of at least
5%.
The Company does not reconcile its forward-looking estimates of
non-GAAP operating margin to the corresponding GAAP measures of
GAAP operating margin due to the significant variability of, and
difficulty in making accurate forecasts and projections with
regards to, the various expenses it excludes. For example, future
hiring and employee turnover may not be reasonably predictable,
stock-based compensation expense depends on variables that are
largely not within the control of nor predictable by management,
such as the market price of 8x8 common stock, and may also be
significantly impacted by events like acquisitions, the timing and
nature of which are difficult to predict with accuracy. Foreign
currency exchange fluctuations may negatively impact our guidance.
The actual amounts of these excluded items could have a significant
impact on the Company's GAAP operating margin. Accordingly,
management believes that reconciliations of this forward-looking
non-GAAP financial measure to the corresponding GAAP measure are
not available without unreasonable effort. All projections are on a
non-GAAP basis. See the Explanation of GAAP to Non-GAAP
Reconciliation below for the definition of non-GAAP operating
margin. Our increased emphasis on profitability and cash flow
generation may not be successful. The reduction in our total costs
as a percentage of revenue may negatively impact our revenue and
our business in ways we don't anticipate and may not achieve the
desired outcome.
Conference Call Information:
Management will host a conference call to discuss earnings
results on July 27, 2022, at 1:30 p.m. Pacific Time (4:30 p.m.
Eastern Time). The conference call will last approximately 60
minutes and is accessible via the following numbers and webcast
link:
Dial In: 1-844-200-6205 (U.S.) or 1-929-526-1599
(International)
Passcode 954074
Webcast: https://investors.8x8.com/events-and-presentations
Participants should plan to dial in or log on 10 minutes prior
to the start time. The webcast will be archived on 8x8's website
for a period of at least 30 days. For additional information, visit
http://investors.8x8.com.
About 8x8, Inc.
8x8, Inc. (NYSE: EGHT) is transforming the future of business
communications as a leading Software as a Service provider of 8x8
XCaaS™ (eXperience Communications as a Service™), an integrated
contact center, voice communications, video, chat, and API solution
built on one global cloud communications platform. 8x8 uniquely
eliminates the silos between Unified Communications as a Service
(UCaaS) and Contact Center as a Service (CCaaS) to power the
communications requirements of all employees globally as they work
together to deliver differentiated customer experiences. For
additional information, visit www.8x8.com, or follow 8x8 on
LinkedIn, Twitter and Facebook.
Forward Looking Statements:
This news release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995
and Section 21E of the Securities Exchange Act of 1934. Any
statements that are not statements of historical fact may be deemed
to be forward-looking statements. For example, words such as "may,"
"will," "should," "estimates," "predicts," "potential," "continue,"
"strategy," "believes," "anticipates," "plans," "expects,"
"intends," and similar expressions are intended to identify
forward-looking statements. These forward-looking statements,
include but are not limited to: changing industry trends,
operational and economic impacts of the COVID-19 pandemic, new
product innovations and integrations, the future impact of the
Fuze, Inc. acquisition on our operations and financial results,
market demand for our products, channel and e-commerce growth,
sales and marketing activities, strategic partnerships, business
strategies, customer acquisition and support costs, customer churn,
future operating performance and efficiencies, financial outlook,
revenue growth, and profitability, including whether we will
achieve sustainable growth and profitability.
You should not place undue reliance on such forward-looking
statements. Actual results could differ materially from those
projected in forward-looking statements depending on a variety of
factors, including, but not limited to: a reduction in our total
costs as a percentage of revenue may negatively impact our revenues
and our business; customer adoption and demand for our products may
be lower than we anticipate; the impact of economic downturns on us
and our customers, including from the COVID-19 pandemic, Russia's
invasion of Ukraine, and inflationary pressures; rising interest
rates; competitive dynamics of the cloud communication and
collaboration markets, including voice, contact center, video,
messaging, and communication application programming interfaces
("APIs"), in which we compete may change in ways we are not
anticipating; impact of supply chain disruptions; third parties may
assert ownership rights in our IP, which may limit or prevent our
continued use of the core technologies behind our solutions; our
customer churn rate may be higher than we anticipate; our
investments in marketing, channel and value-added resellers (VARs),
e-commerce, new products, and our acquisition of Fuze, Inc. may not
result in revenue growth; and we may not achieve our target service
revenue growth, or the revenue, earnings, operating margin or other
amounts we forecast in our guidance, for a particular quarter or
for the full fiscal year.
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 Company's
reports on Forms 10-K and 10-Q, as well as other reports that 8x8,
Inc. files from time to time 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, even as new information becomes
available or other events occur in the future.
Explanation of GAAP to Non-GAAP Reconciliation
The Company has provided, in this release, financial information
that has not been prepared in accordance with Generally Accepted
Accounting Principles (GAAP). Management uses these Non-GAAP
financial measures internally to understand, manage, and evaluate
the business, and to make operating decisions. Management believes
they are useful to investors, as a supplement to GAAP measures, in
evaluating the Company's ongoing operational performance.
Management also believes that some of 8x8’s investors use these
Non-GAAP financial measures as an additional tool in evaluating
8x8's ongoing "core operating performance" in the ordinary,
ongoing, and customary course of the Company's operations. Core
operating performance excludes items that are non-cash, not
expected to recur, or not reflective of ongoing financial results.
Management also believes that looking at the Company’s core
operating performance provides consistency in period-to-period
comparisons and trends.
These Non-GAAP financial measures may be calculated differently
from, and therefore may not be comparable to, similarly titled
measures used by other companies, which limits the usefulness of
these measures for comparative purposes. Management recognizes that
these Non-GAAP financial measures have limitations as analytical
tools, including the fact that management must exercise judgment in
determining which types of items to exclude from the Non-GAAP
financial information. Non-GAAP financial measures should not be
considered in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP. Investors are
encouraged to review the reconciliation of these Non-GAAP financial
measures to their most directly comparable GAAP financial measures
in the table titled "Reconciliation of GAAP to Non-GAAP Financial
Measures". Detailed explanations of the adjustments from comparable
GAAP to Non-GAAP financial measures are as follows:
Non-GAAP Costs of Revenue, Costs of Service Revenue and Costs of
Other Revenue
Non-GAAP Costs of Revenue includes: (i) Non-GAAP Cost of Service
Revenue, which is Cost of Service Revenue excluding amortization of
acquired intangible assets, stock-based compensation expense and
related employer payroll taxes, certain legal and regulatory costs,
and certain severance, transition and contract termination costs;
and (ii) Non-GAAP Cost of Other Revenue, which is Cost of Other
Revenue excluding stock-based compensation expense and related
employer payroll taxes, certain legal and regulatory costs, and
certain severance, transition and contract termination costs.
Non-GAAP Service Revenue Gross Margin, Other Revenue Gross
Margin, and Gross Margin
Non-GAAP Service Revenue Gross Margin (and as a percentage of
Service Revenue) and Non-GAAP Other Revenue Gross Margin (and as a
percentage of Other Revenue) are computed as Service Revenue less
Non-GAAP Cost of Service Revenue divided by Service Revenue and
Other Revenue less Non-GAAP Cost of Other Revenue divided by Other
Revenue, respectively. Non-GAAP Gross Margin (and as a percentage
of Revenue) is computed as Revenue less Non-GAAP Cost of Service
Revenue and Non-GAAP Cost of Other Revenue divided by Revenue.
Management believes the Company’s investors benefit from
understanding these adjustments and from an alternative view of the
Company’s Cost of Service Revenue and Cost of Other Revenue as well
as the Company's Service, Other and Gross Margins performance as
compared to prior periods and trends.
Non-GAAP Operating Expenses
Non-GAAP Operating Expenses includes Non-GAAP Research and
Development, Non-GAAP Sales and Marketing, and Non-GAAP General and
Administrative, each of which excludes: amortization of acquired
intangible assets, stock-based compensation expense and related
employer payroll taxes, acquisition and integration expenses, and
certain severance, transition and contract termination costs.
Management believes that these exclusions provide investors with a
supplemental view of the Company’s ongoing operational
expenses.
Non-GAAP Operating Profit (Loss) and Non-GAAP Operating
Margin
Non-GAAP Operating Profit (Loss) excludes: amortization of
acquired intangible assets, stock-based compensation expense and
related employer payroll taxes, acquisition and integration
expenses, certain legal and regulatory costs, and certain
severance, transition and contract termination costs from Operating
Profit (Loss). Non-GAAP Operating Margin is Non-GAAP Operating
Profit (Loss) divided by Revenue. Management believes that these
exclusions provide investors with a supplemental view of the
Company’s ongoing operating performance.
Non-GAAP Other Income (Expense), net
Non-GAAP Other Income (Expense), net excludes: acquisition and
integration expenses, certain severance, transition and contract
termination costs, debt amortization expense and sub-lease income
from Other Income (Expense), net. Management believes the Company’s
investors benefit from this supplemental information to facilitate
comparison of the Company’s other income performance to prior
results and trends.
Non-GAAP Net Income (Loss)
Non-GAAP Net Income (Loss) excludes: amortization of acquired
intangible assets, stock-based compensation expense and related
employer payroll taxes, acquisition and integration expenses,
certain legal and regulatory costs, certain severance, transition
and contract termination costs, debt amortization expense, and
sub-lease income from Net Loss. Management believes the Company’s
investors benefit from understanding these adjustments and an
alternative view of our net income performance as compared to prior
periods and trends.
Non-GAAP Net Income (Loss) Per Share – Basic and Non-GAAP Net
Income (Loss) Per Share - Diluted
Non-GAAP Net Income (Loss) Per Share – Basic is Non-GAAP Net
Income (Loss) divided by the weighted-average basic shares
outstanding. Non-GAAP Net Income Per Share – Diluted is Non-GAAP
Net Income divided by the weighted-average diluted shares
outstanding. Diluted shares outstanding include the effect of
potentially dilutive securities from stock-based benefit plans and
convertible senior notes. These potentially dilutive securities are
excluded from the computation of net loss per share attributable to
common stockholders on a GAAP basis because the effect would have
been anti-dilutive. They are added for the computation of diluted
net income per share on a non-GAAP basis in periods when 8x8 has
net profit on a non-GAAP basis as their inclusion provides a better
indication of 8x8’s underlying business performance. Management
believes the Company’s investors benefit by understanding our
Non-GAAP net income (loss) performance as reflected in a per share
calculation as ways of measuring performance by ownership in the
company. Management believes these adjustments offer investors a
useful view of the Company’s diluted net income per share as
compared to prior periods and trends.
Management evaluates and makes decisions about its business
operations based on Non-GAAP financial information by excluding
items management does not consider to be “core costs” or “core
proceeds.” Management believes some of its investors also evaluate
our "core operating performance" as a means of evaluating our
performance in the ordinary, ongoing, and customary course of our
operations. Management excludes the amortization of acquired
intangible assets, which primarily represents a non-cash expense of
technology and/or customer relationships already developed, to
provide a supplemental way for investors to compare the Company’s
operations pre-acquisition to those post-acquisition and to those
of our competitors that have pursued internal growth strategies.
Stock-based compensation expense has been excluded because it is a
non-cash expense and relies on valuations based on future
conditions and events, such as the market price of 8x8 common
stock, that are difficult to predict and/or largely not within the
control of management. The related employer payroll taxes for
stock-based compensation are excluded since they are incurred only
due to the associated stock-based compensation expense. Acquisition
and integration expenses consist of external and incremental costs
resulting directly from merger and acquisition and strategic
investment activities such as legal and other professional
services, due diligence, integration, and other closing costs,
which are costs that vary significantly in amount and timing. Legal
and regulatory costs include litigation and other professional
services, as well as certain tax and regulatory liabilities.
Severance, transition and contract termination costs include
employee termination benefits, executive severance agreements,
cancellation of certain contracts, and lease impairments. Debt
amortization expenses relate to the non-cash accretion of the debt
discount.
8x8, Inc.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited, in thousands,
except per share amounts)
Three Months Ended June
30,
2022
2021
Service revenue
$
179,161
$
137,796
Other revenue
8,459
10,531
Total revenue
187,620
148,327
Cost of revenue and operating
expenses:
Cost of service revenue
53,547
46,010
Cost of other revenue
13,126
13,746
Research and development
34,955
25,392
Sales and marketing
83,527
75,915
General and administrative
29,219
26,091
Total operating expenses
214,374
187,154
Loss from operations
(26,754
)
(38,827
)
Other income (expense), net
1,116
(4,823
)
Loss from operations before provision for
income taxes
(25,638
)
(43,650
)
Provision for income taxes
405
256
Net loss
$
(26,043
)
$
(43,906
)
Net loss per share:
Basic and diluted
$
(0.22
)
$
(0.40
)
Weighted average number of shares:
Basic and diluted
119,721
109,925
8x8, Inc.
CONSOLIDATED BALANCE
SHEETS
(Unaudited, in
thousands)
June 30, 2022
March 31, 2022
ASSETS
Current assets
Cash and cash equivalents
$
92,686
$
91,205
Restricted cash, current
590
8,691
Short-term investments
48,945
44,845
Accounts receivable, net
55,441
57,400
Deferred sales commission costs,
current
36,510
35,482
Other current assets
38,545
37,999
Total current assets
272,717
275,622
Property and equipment, net
73,876
79,016
Operating lease, right-of-use assets
59,859
63,415
Intangible assets, net
122,737
128,213
Goodwill
265,029
266,867
Restricted cash, non-current
818
818
Long-term investments
—
2,671
Deferred sales commission costs,
non-current
76,083
75,668
Other assets
18,028
17,978
Total assets
$
889,147
$
910,268
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable
$
42,584
$
49,721
Accrued compensation
33,713
36,319
Accrued taxes
31,864
32,573
Operating lease liabilities, current
14,424
15,485
Deferred revenue, current
34,064
34,262
Other accrued liabilities
18,767
23,167
Total current liabilities
175,416
191,527
Operating lease liabilities,
non-current
71,806
74,518
Convertible senior notes, net
494,444
447,452
Deferred revenue, non-current
11,023
11,430
Other liabilities, non-current
2,936
2,975
Total liabilities
755,625
727,902
Stockholders' equity:
Common stock
120
118
Additional paid-in capital
895,602
956,599
Accumulated other comprehensive loss
(16,391
)
(7,913
)
Accumulated deficit
(745,809
)
(766,438
)
Total stockholders' equity
133,522
182,366
Total liabilities and stockholders'
equity
$
889,147
$
910,268
8x8, Inc.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited, in
thousands)
Three Months Ended June
30,
2022
2021
Cash flows from operating
activities:
Net loss
$
(26,043
)
$
(43,906
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation
2,789
2,922
Amortization of intangible assets
5,476
1,285
Amortization of capitalized software
5,964
7,243
Amortization of debt discount and issuance
costs
831
4,393
Amortization of deferred sales commission
costs
9,166
8,245
Allowance for credit losses
695
383
Operating lease expense, net of
accretion
3,121
3,459
Stock-based compensation expense
27,814
36,587
Other
456
713
Changes in assets and liabilities:
Accounts receivable, net
(99
)
924
Deferred sales commission costs
(9,246
)
(11,615
)
Other current and non-current assets
(692
)
(2,550
)
Accounts payable and accruals
(13,786
)
(5,063
)
Deferred revenue
(605
)
1,012
Net cash provided by operating
activities
5,841
4,032
Cash flows from investing
activities:
Purchases of property and equipment
(971
)
(878
)
Cost of capitalized software
(2,309
)
(6,546
)
Purchases of investments
(18,838
)
(28,721
)
Sales of investments
1,937
10,299
Proceeds from maturity of investments
15,590
14,700
Acquisition of businesses
(1,250
)
—
Net cash used in investing activities
(5,841
)
(11,146
)
Cash flows from financing
activities:
Finance lease payments
—
(4
)
Tax-related withholding of common
stock
—
(99
)
Proceeds from issuance of common stock
under employee stock plans
65
3,538
Repurchase of common stock
—
—
Net proceeds from issuance of convertible
debt
—
—
Net cash provided by financing
activities
65
3,435
Effect of exchange rate changes on
cash
(6,685
)
436
Net decrease in cash, cash equivalents and
restricted cash
(6,620
)
(3,243
)
Cash, cash equivalents and restricted
cash, beginning of period
100,714
121,172
Cash, cash equivalents and restricted
cash, end of period
$
94,094
$
117,929
8x8, Inc.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(Unaudited, in thousands,
except per share amounts)
Three Months Ended June
30,
2022
2021
Costs of Revenue:
GAAP cost of service revenue
$
53,547
$
46,010
Amortization of acquired intangible
assets
(2,369
)
(1,066
)
Stock-based compensation expense and
related employer payroll taxes
(2,696
)
(2,040
)
Legal and regulatory costs
—
—
Severance, transition and contract
termination costs
(897
)
5
Non-GAAP cost of service revenue
$
47,585
$
42,909
Non-GAAP service margin (as a percentage
of service revenue)
$
131,576
73.4
%
$
94,887
68.9
%
GAAP cost of other revenue
$
13,126
$
13,746
Stock-based compensation expense and
related employer payroll taxes
(1,147
)
(1,135
)
Legal and regulatory costs
—
5
Severance, transition and contract
termination costs
(533
)
(21
)
Non-GAAP cost of other revenue
$
11,446
$
12,595
Non-GAAP other margin (as a percentage of
other revenue)
$
(2,987
)
(35.3
) %
$
(2,064
)
(19.6
) %
Non-GAAP gross margin (as a percentage of
revenue)
$
128,589
68.5
%
$
92,823
62.6
%
Operating Expenses:
GAAP research and development
$
34,955
$
25,392
Stock-based compensation expense and
related employer payroll taxes
(8,193
)
(9,073
)
Legal and regulatory costs
—
9
Severance, transition and contract
termination costs
(37
)
(70
)
Non-GAAP research and development (as a
percentage of revenue)
$
26,725
14.2
%
$
16,258
11.0
%
GAAP sales and marketing
$
83,527
$
75,915
Amortization of acquired intangible
assets
(3,106
)
(219
)
Stock-based compensation expense and
related employer payroll taxes
(8,280
)
(14,700
)
Legal and regulatory costs
—
—
Severance, transition and contract
termination costs
(391
)
(622
)
Non-GAAP sales and marketing (as a
percentage of revenue)
$
71,750
38.2
%
$
60,374
40.7
%
GAAP general and administrative
$
29,219
$
26,091
Stock-based compensation expense and
related employer payroll taxes
(7,923
)
(10,904
)
Acquisition and integration costs
(624
)
—
Legal and regulatory costs
62
532
Severance, transition and contract
termination costs
(755
)
(871
)
Non-GAAP general and administrative (as a
percentage of revenue)
$
19,979
10.6
%
$
14,848
10.0
%
Non-GAAP Operating Expenses (as a
percentage of revenue)
$
118,454
63.1
%
$
91,480
61.7
%
Operating Profit (Loss):
GAAP loss from operations
$
(26,754
)
$
(38,827
)
Amortization of acquired intangible
assets
5,475
1,285
Stock-based compensation expense and
related employer payroll taxes
28,239
37,852
Acquisition and integration costs
624
—
Legal and regulatory costs
(62
)
(546
)
Severance, transition and contract
termination costs
2,613
1,579
Non-GAAP operating profit (loss) (as a
percentage of revenue)
$
10,135
5.4
%
$
1,343
0.9
%
Other Income (Expenses):
GAAP other income (expense), net
$
1,116
$
(4,823
)
Debt amortization expense
831
4,394
Sublease Income
(116
)
(39
)
Non-GAAP other income (expense), net (as
a
percentage of revenue)
$
1,831
1.0
%
$
(468
)
(0.3
) %
Net Income (Loss):
GAAP net loss
$
(26,043
)
$
(43,906
)
Amortization of acquired intangible
assets
5,475
1,285
Stock-based compensation expense and
related employer payroll taxes
28,239
37,852
Acquisition and integration costs
624
—
Legal and regulatory costs
(62
)
(546
)
Severance, transition and contract
termination costs
2,613
1,579
Debt amortization expense
831
4,394
Sublease income
(116
)
(39
)
Non-GAAP net income (loss) (as a
percentage of revenue)
11,561
6.2
%
619
0.4
%
Shares used in computing per share
amounts:
Basic
119,721
109,925
Diluted
121,756
117,028
GAAP net loss per share - Basic and
Diluted
$
(0.22
)
$
(0.40
)
Non-GAAP net income (loss) per share -
Basic
$
0.10
$
0.01
Non-GAAP net income (loss) per share -
Diluted
$
0.09
$
0.01
8x8, Inc.
SELECTED OPERATING
METRICS
(Unaudited, in millions,
except number of enterprise customers)
Fiscal 2022
Fiscal 2023
Q1
Q2
Q3
Q4 (5)
Q1
TOTAL ARR (1)
$
536
$
553
$
572
$
687
$
688
Growth % (YoY)
24
%
18
%
16
%
33
%
28
%
ARR BY CUSTOMER SIZE
ENTERPRISE (2)
$
262
$
282
$
307
$
393
$
403
% of Total ARR
49
%
51
%
54
%
57
%
59
%
Growth % (YoY)
40
%
33
%
30
%
55
%
54
%
Total number of Enterprise Customers
824
871
907
1,258
(6)
1,277
MID-MARKET (3)
$
103
$
103
$
102
$
128
$
125
% of Total ARR
19
%
19
%
18
%
19
%
18
%
Growth % (YoY)
22
%
14
%
9
%
31
%
22
%
SMALL BUSINESS(4)
$
172
$
167
$
162
$
166
$
159
% of Total ARR
32
%
30
%
28
%
24
%
23
%
Growth % (YoY)
7
%
2
%
(1
) %
(1
) %
(7
) %
(1)
Annualized Recurring Subscriptions and Usage (ARR) equals the sum
of the most recent month of (i) recurring subscription amounts and
(ii) platform usage charges for all CPaaS customers (subject to a
minimum billings threshold for a period of at least six consecutive
months), multiplied by 12.
(2)
Enterprise ARR is defined as ARR from
customers that generate >$100,000 ARR.
(3)
Mid-market ARR is defined as ARR from
customers that generate $25,000 to $100,000 ARR.
(4)
Small business ARR is defined as ARR from
customers that generate <$25,000 ARR.
(5)
Includes Fuze.
(6)
Previously reported enterprise customer
count of 1,320 for Q4'22 was adjusted to eliminate double counting
of subsidiaries.
Selected operating metrics presented in this table have not been
derived from financial measures that have been prepared in
accordance with US Generally Accepted Accounting Principles. 8x8
provides these selected operating metrics to assist investors in
evaluating the Company's operations and assessing its prospects.
8x8’s management periodically reviews the selected operating
metrics to evaluate 8x8’s operations, allocate resources, and drive
financial performance in the business. Management monitors these
metrics together, and not individually, as it does not make
business decisions based upon any single metric. 8x8 is not aware
of any uniform standards for defining these selected operating
metrics and caution that its presentation may not be consistent
with that of other companies. Prior period metrics and customer
classifications have not been adjusted for current period changes
unless noted.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220727005654/en/
8x8, Inc.
Investor Relations: Kate Patterson 1-408-763-8175
katherine.patterson@8x8.com
Media: John Sun 1-408-692-7054 john.sun@8x8.com
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