8x8, Inc. Announces Second Quarter Fiscal Year 2025 Financial Results
8x8 Inc reported Q2 FY2025 financial results with total revenue of $181.0 million, down from $185.0 million year-over-year. Service revenue was $175.1 million, compared to $177.8 million in Q2 FY2024. The company achieved GAAP operating income of $7.2 million versus a loss last year, while non-GAAP operating profit was $21.5 million. Sales of new products increased over 60% year-over-year, led by AI-based solutions. The company marked its 15th consecutive quarter of positive cash flow from operations and reduced total debt principal by 32% over two years to $369 million.
8x8 Inc ha riportato i risultati finanziari del secondo trimestre dell'anno fiscale 2025, con ricavi totali di 181,0 milioni di dollari, in calo rispetto ai 185,0 milioni di dollari dell'anno precedente. Il fatturato dei servizi è stato di 175,1 milioni di dollari, rispetto ai 177,8 milioni di dollari del secondo trimestre dell'anno fiscale 2024. L'azienda ha registrato un reddito operativo GAAP di 7,2 milioni di dollari rispetto a una perdita dell'anno scorso, mentre il profitto operativo non GAAP è stato di 21,5 milioni di dollari. Le vendite di nuovi prodotti sono aumentate di oltre il 60% rispetto all'anno precedente, guidate dalle soluzioni basate sull'IA. L'azienda ha segnato il suo quindicesimo trimestre consecutivo di flusso di cassa operativo positivo e ha ridotto il debito totale principale del 32% in due anni, portandolo a 369 milioni di dollari.
8x8 Inc reportó los resultados financieros del segundo trimestre del año fiscal 2025, con ingresos totales de 181,0 millones de dólares, una disminución respecto a los 185,0 millones de dólares del año anterior. Los ingresos por servicios fueron de 175,1 millones de dólares, comparados con 177,8 millones de dólares en el segundo trimestre del año fiscal 2024. La compañía logró un ingreso operativo GAAP de 7,2 millones de dólares frente a una pérdida el año pasado, mientras que el beneficio operativo no GAAP fue de 21,5 millones de dólares. Las ventas de nuevos productos aumentaron más del 60% interanual, lideradas por soluciones basadas en inteligencia artificial. La empresa marcó su decimoquinto trimestre consecutivo con flujo de caja positivo por operaciones y redujo el principal total de la deuda en un 32% en dos años, hasta 369 millones de dólares.
8x8 Inc는 2025 회계연도 2분기 재무 결과를 보고했으며, 총 수익은 1억 8,100만 달러로, 전년 대비 1억 8,500만 달러에서 감소했습니다. 서비스 수익은 1억 7,510만 달러였으며, 2024 회계연도 2분기 1억 7,780만 달러와 비교되었습니다. 회사는 GAAP 운영 소득으로 720만 달러를 달성했으며, 이는 지난해의 손실에 비해 개선된 수치입니다. 비 GAAP 운영 이익은 2,150만 달러였습니다. 새로운 제품 판매는 전년 대비 60% 이상 증가했으며, AI 기반 솔루션이 주도했습니다. 회사는 운영에서 긍정적인 현금 흐름을 기록한 15번째 분기를 맞이했으며, 2년 동안 총 부채 원금을 32% 줄여 3억 6,900만 달러로 감소시켰습니다.
8x8 Inc a annoncé les résultats financiers du deuxième trimestre de l'exercice 2025, avec un chiffre d'affaires total de 181,0 millions de dollars, en baisse par rapport à 185,0 millions de dollars l'année précédente. Les revenus de services se sont élevés à 175,1 millions de dollars, contre 177,8 millions de dollars au deuxième trimestre de l'exercice 2024. La société a réalisé un résultat opérationnel GAAP de 7,2 millions de dollars contre une perte l'année dernière, tandis que le bénéfice opérationnel non GAAP s'élevait à 21,5 millions de dollars. Les ventes de nouveaux produits ont augmenté de plus de 60% d'une année sur l'autre, menées par des solutions basées sur l'IA. L'entreprise a enregistré son 15e trimestre consécutif de flux de trésorerie positif provenant des opérations et a réduit son principal de la dette totale de 32% en deux ans, atteignant 369 millions de dollars.
8x8 Inc hat die finanziellen Ergebnisse des 2. Quartals des Geschäftsjahres 2025 veröffentlicht, mit einem Gesamtumsatz von 181,0 Millionen Dollar, ein Rückgang von 185,0 Millionen Dollar im Jahresvergleich. Der Serviceumsatz betrug 175,1 Millionen Dollar, verglichen mit 177,8 Millionen Dollar im 2. Quartal des Geschäftsjahres 2024. Das Unternehmen erreichte ein GAAP-Betriebsergebnis von 7,2 Millionen Dollar im Gegensatz zu einem Verlust im Vorjahr, während der Non-GAAP-Betriebsgewinn 21,5 Millionen Dollar betrug. Der Verkauf neuer Produkte stieg im Jahresvergleich um über 60%, angeführt von KI-basierten Lösungen. Das Unternehmen verzeichnete sein 15. Quartal in Folge mit positivem Cashflow aus dem operativen Geschäft und reduzierte die gesamte Schuldenlast in zwei Jahren um 32% auf 369 Millionen Dollar.
- Sales of new products grew over 60% YoY, driven by AI solutions
- Achieved GAAP operating income of $7.2M vs loss last year
- 15th consecutive quarter of positive operating cash flow
- Reduced total debt by 32% ($173M) over past two years
- Non-GAAP operating profit of $21.5M
- Total revenue declined to $181.0M from $185.0M YoY
- Service revenue decreased to $175.1M from $177.8M YoY
- GAAP net loss increased to $14.5M from $7.5M YoY
- Non-GAAP net income decreased to $12.1M from $17.1M YoY
- Adjusted EBITDA declined to $26.7M from $30.5M YoY
Insights
8x8's Q2 FY2025 results show mixed performance with some concerning trends. Total revenue declined to
The company's debt management strategy is noteworthy, having reduced total debt by
-
Delivered service revenue of
and total revenue of$175 million $181 million -
Sales of new products increased more than
60% year-over-year, led by AI-based solutions - Achieved GAAP and non-GAAP operating profitability
- Reported 15th consecutive quarter of positive cash flow from operations
Second Quarter Fiscal Year 2025 Financial Results:
-
Total revenue of
, compared to$181.0 million in the second quarter of fiscal 2024.$185.0 million -
Service revenue of
, compared to$175.1 million in the second quarter of fiscal 2024.$177.8 million -
GAAP operating income was
, compared to GAAP operating loss of$7.2 million in the second quarter of fiscal 2024.$2.6 million -
Non-GAAP operating profit was
, compared to non-GAAP operating profit of$21.5 million in the second quarter of fiscal 2024.$23.8 million -
GAAP net loss was
, compared to GAAP net loss of$14.5 million in the second quarter of fiscal 2024.$7.5 million -
Non-GAAP net income was
, compared to non-GAAP net income of$12.1 million in the second quarter of fiscal 2024.$17.1 million -
Adjusted EBITDA was
, compared to Adjusted EBITDA of$26.7 million in the second quarter of fiscal 2024.$30.5 million
"We are pleased to report a solid quarter, with results that reflect the early signs of success of our investments in innovation and our transformation strategy," said Samuel Wilson, Chief Executive Officer at 8x8, Inc. "With strong growth in usage revenue, acceleration in the sales of new products, and high retention on the 8x8 platform, it's clear our innovation-led approach resonates in today's competitive CX landscape. I’m grateful to our customers, partners, and employees who have embraced our mission of unlocking the power of every interaction."
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:
Product Innovation Highlights
- Announced the availability of 8x8 Active Assessor, an AI-powered housing association solution that enables landlords to proactively engage with tenants, meet legal requirements, and ensure homes are compliant with health and safety standards.
- Announced expanded availability of Video Elevation capabilities for 8x8 Contact Center, including new digital engagement capabilities that enable contact center agents to visually diagnose and resolve issues, such as property damage or product assembly, reducing the need for onsite technical support and improving the customer experience.
- Extended AI-enabled interaction summarization capabilities across the 8x8 Platform to enable contact center agents to deliver more personalized interactions and faster wrap-up times, with context from previous conversations at the agents' fingertips and automatic AI summarization of interactions logged in external CRMs.
- Significant advancements to language support and real-time accuracy powered by the latest OpenAI Whisper model, delivering best-in-class accuracy for select languages and stronger performance with different accents. 8x8 also doubled the number of supported languages for live web chats, extending real-time chat translation to a broader global audience to foster more seamless multilingual interactions. Expanded text-to-speech capabilities offer support for over 40 languages, unlocking enhanced analytics, interaction insights and performance metrics that span the 8x8 platform, and empower a wide range of users to drive increased efficiency, boost employee productivity, and elevate customer satisfaction.
- Announced that Regal.io has joined the 8x8 Technology Partner Ecosystem, as part of the exclusive SellWith8 tier. The partnership combines Regal.io's sophisticated sales dialing capabilities with 8x8’s comprehensive cloud contact center and unified communications platform, enhancing outbound communication services, such as calls and SMS capabilities, to facilitate better employee and customer experiences.
- Announced a partnership with Descope, a drag-and-drop customer identity and access management (CIAM) platform, empowering businesses to enhance security, outsmart fraud, and deliver a secure, frictionless experience for customers. Descope's no-code visual workflows enable businesses to effortlessly create and customize entire user journeys, integrate authentication, authorization, and identity management into any app, and effectively prevent fraud and bot attacks.
Industry Recognition
- Named as a Leader in the 2024 Gartner® Magic Quadrant™ for Unified Communications as a Service. This is the thirteenth consecutive year 8x8 has been recognized as a Leader in this report.
- Named in the 2024 Gartner® Magic Quadrant™ for Contact Center as a Service. This is the tenth consecutive year 8x8 has been recognized in this report.
- Received the 2024 Frost & Sullivan Customer Value Leadership Award for Global Public Sector CCaaS Solutions.
- Won a Silver Stevie® Award in the Technology Team of the Year category and a Bronze Stevie® Award in the Customer Service Team of the Year category in the 21st Annual International Business Awards® for 8x8’s Professional Services team.
-
Named a Best Enterprise Service winner in the 2024 Comms Council
UK Awards for 8x8 Contact Center. - Awarded 17 badges in the G2 Fall 2024 Awards, and received TrustRadius Tech Cares and Top Rated awards for Unified Communications as a Service and Contact Center.
Corporate, ESG and Leadership Updates
-
In early July 2024, the Company secured a new
Delayed Draw Term Loan Credit Facility (the "Delayed Draw Term Loan") from Wells Fargo Securities, LLC, MUFG Bank, LTD, Silicon Valley Bank (a division of First-Citizens Bank & Trust Company), Citibank, and City National Bank. On August 5, 2024, the Company used the proceeds from the Delayed Draw Term Loan, plus approximately$200 million from existing cash balances, to fund the early repayment of the entire$29 million outstanding, plus accrued interest and fees, on the existing term loan with Francisco Partners.$225 million -
Subsequent to the end of the second quarter, the Company retired another
of principal value of the term loan debt, reducing total debt principal balance to$33 million as of November 1, 2024. This represents a total debt reduction of over$369 million , or$173 million 32% , over the past two years. -
Extended the scope of the ISO 140001 Environmental Management System to the Company's
Paris office and French operations.
Third Quarter and Updated Fiscal Year 2025 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.
Third Quarter Fiscal Year 2025 Ending December 31, 2024
-
Service revenue in the range of
to$171 million .$174 million -
Total revenue in the range of
to$177 million .$182 million -
Non-GAAP operating margin in the range of approximately
10% to11% .
Fiscal Year 2025 Ending March 31, 2025
-
Service revenue in the range of
to$690 million .$701 million -
Total revenue in the range of
to$714 million .$727 million -
Non-GAAP operating margin in the range of
10.25% to11% .
The Company does not reconcile its forward-looking estimates of non-GAAP operating margin to the corresponding GAAP measure of GAAP operating margin due to the significant variability of, and difficulty in making accurate forecasts and projections with regards to, the various expenses excluded by this metric. 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. 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. See the "Explanation of GAAP to Non-GAAP Reconciliation" below for the definition of non-GAAP operating margin.
All projections are on a non-GAAP basis. Additionally, 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 November 4, 2024 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call will last approximately 60 minutes. Participants may:
- Register to participate in the live call at https://register.vevent.com/register/BIed875625768e4940984f1a1789dc434b
- Access the live webcast and replay from the Company’s investor relations events and presentations page at https://8x8.gcs-web.com/news-events/events-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 https://8x8.gcs-web.com/.
About 8x8, Inc.
8x8, Inc. (NASDAQ: EGHT) is a leading provider of integrated contact center, voice communications, video, chat, and SMS solutions built on one global cloud platform. 8x8 uniquely eliminates the silos across the entire organization to power the communications and customer engagement 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, X, and Facebook.
8x8® is a trademark of 8x8, Inc.
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; the size of our market opportunity; the potential success and impact of our investments in innovation and artificial intelligence technologies; our strategic transformation initiatives; our ability to increase profitability and cash flow to deleverage our balance sheet and fund investment in innovation; whether our unified communication and contact center traffic will increase; whether we can increase customer retention; our future revenue and growth (including platform usage revenue); whether we can sustain an increasing pace of innovation; the success of our go-to-market engine; our ability to improve general and administrative synergies; our ability to enhance shareholder value; and our 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; ongoing volatility and conflict in the political environment, including
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, and certain severance, transition and contract exit 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, and certain severance, transition and contract exit costs.
Non-GAAP Service Revenue Gross Margin, Other Revenue Gross Margin, and Total Revenue Gross Margin
Non-GAAP Service Revenue Gross Profit and Margin as a percentage of Service Revenue and Non-GAAP Other Revenue Gross Profit and Margin 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 Total Revenue Gross Profit and Margin as a percentage of Total Revenue is computed as Total Revenue less Non-GAAP Cost of Service Revenue and Non-GAAP Cost of Other Revenue divided by Total 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 Total Revenue Gross Margin performance compared to prior periods and trends.
Non-GAAP Operating Profit and Non-GAAP Operating Margin
Non-GAAP Operating Profit 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 exit costs from Operating Profit (Loss). Non-GAAP Operating Margin is Non-GAAP Operating Profit divided by Revenue. Management believes that these exclusions provide investors with a supplemental view of the Company’s ongoing operating performance.
Non-GAAP Net Income and Adjusted EBITDA
Non-GAAP Net Income 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 exit costs, amortization of debt discount and issuance cost, loss on debt extinguishment, gain on remeasurement of warrants, and other income. Adjusted EBITDA excludes interest expense, provision (benefit) for income taxes, depreciation, amortization of capitalized internal-use software costs, and other income (expense), net from non-GAAP net income. 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 Per Share – Basic and Non-GAAP Net Income Per Share - Diluted
Non-GAAP Net Income Per Share – Basic is Non-GAAP Net Income 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 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 exit costs include employee termination benefits, executive severance agreements, and cancellation of certain contracts. Debt amortization expenses relate to the non-cash accretion of the debt discount.
8x8, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited, in thousands, except per share amounts) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended September 30, |
|
Six Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Service revenue |
$ |
175,075 |
|
|
$ |
177,782 |
|
|
$ |
347,876 |
|
|
$ |
353,020 |
|
Other revenue |
|
5,923 |
|
|
|
7,217 |
|
|
|
11,269 |
|
|
|
15,266 |
|
Total revenue |
|
180,998 |
|
|
|
184,999 |
|
|
|
359,145 |
|
|
|
368,286 |
|
Cost of service revenue |
|
50,251 |
|
|
|
49,144 |
|
|
|
99,747 |
|
|
|
95,420 |
|
Cost of other revenue |
|
7,572 |
|
|
|
7,958 |
|
|
|
15,263 |
|
|
|
16,356 |
|
Total cost of revenue |
|
57,823 |
|
|
|
57,102 |
|
|
|
115,010 |
|
|
|
111,776 |
|
Gross profit |
|
123,175 |
|
|
|
127,897 |
|
|
|
244,135 |
|
|
|
256,510 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
31,291 |
|
|
|
34,207 |
|
|
|
63,428 |
|
|
|
69,499 |
|
Sales and marketing |
|
64,867 |
|
|
|
68,687 |
|
|
|
131,973 |
|
|
|
137,191 |
|
General and administrative |
|
19,848 |
|
|
|
27,586 |
|
|
|
42,939 |
|
|
|
53,812 |
|
Total operating expenses |
|
116,006 |
|
|
|
130,480 |
|
|
|
238,340 |
|
|
|
260,502 |
|
Income (loss) from operations |
|
7,169 |
|
|
|
(2,583 |
) |
|
|
5,795 |
|
|
|
(3,992 |
) |
Interest expense |
|
(7,905 |
) |
|
|
(10,061 |
) |
|
|
(17,861 |
) |
|
|
(20,139 |
) |
Other income (expense), net |
|
(12,709 |
) |
|
|
4,803 |
|
|
|
(10,993 |
) |
|
|
2,407 |
|
Loss before provision (benefit) for income taxes |
|
(13,445 |
) |
|
|
(7,841 |
) |
|
|
(23,059 |
) |
|
|
(21,724 |
) |
Provision (benefit) for income taxes |
|
1,098 |
|
|
|
(389 |
) |
|
|
1,774 |
|
|
|
1,055 |
|
Net loss |
$ |
(14,543 |
) |
|
$ |
(7,452 |
) |
|
$ |
(24,833 |
) |
|
$ |
(22,779 |
) |
Net loss per share: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
$ |
(0.11 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.19 |
) |
Weighted average number of shares: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
|
129,250 |
|
|
|
120,757 |
|
|
|
127,633 |
|
|
|
118,778 |
|
Comprehensive loss |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(14,543 |
) |
|
$ |
(7,452 |
) |
|
$ |
(24,833 |
) |
|
$ |
(22,779 |
) |
Unrealized gain (loss) on investments in securities |
|
— |
|
|
|
7 |
|
|
|
(5 |
) |
|
|
297 |
|
Foreign currency translation adjustment |
|
8,363 |
|
|
|
(4,320 |
) |
|
|
8,009 |
|
|
|
(2,879 |
) |
Comprehensive loss |
$ |
(6,180 |
) |
|
$ |
(11,765 |
) |
|
$ |
(16,829 |
) |
|
$ |
(25,361 |
) |
8x8, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands) |
|||||||
|
|||||||
|
September 30, 2024 |
|
March 31, 2024 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
117,405 |
|
|
$ |
116,262 |
|
Restricted cash |
|
462 |
|
|
|
356 |
|
Short-term investments |
|
— |
|
|
|
1,048 |
|
Accounts receivable, net |
|
64,567 |
|
|
|
58,979 |
|
Deferred sales commission costs |
|
34,107 |
|
|
|
35,933 |
|
Other current assets |
|
29,810 |
|
|
|
35,258 |
|
Total current assets |
|
246,351 |
|
|
|
247,836 |
|
Property and equipment, net |
|
50,364 |
|
|
|
53,181 |
|
Operating lease, right-of-use assets |
|
34,825 |
|
|
|
35,924 |
|
Intangible assets, net |
|
76,519 |
|
|
|
86,717 |
|
Goodwill |
|
269,229 |
|
|
|
266,574 |
|
Restricted cash, non-current |
|
— |
|
|
|
105 |
|
Deferred sales commission costs, non-current |
|
48,711 |
|
|
|
52,859 |
|
Other assets, non-current |
|
14,127 |
|
|
|
12,783 |
|
Total assets |
$ |
740,126 |
|
|
$ |
755,979 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
51,261 |
|
|
$ |
48,862 |
|
Accrued and other liabilities |
|
68,783 |
|
|
|
78,102 |
|
Operating lease liabilities |
|
11,707 |
|
|
|
11,295 |
|
Deferred revenue |
|
37,696 |
|
|
|
34,325 |
|
Term loan, current |
|
39,393 |
|
|
|
— |
|
Total current liabilities |
|
208,840 |
|
|
|
172,584 |
|
Operating lease liabilities, non-current |
|
52,785 |
|
|
|
56,647 |
|
Deferred revenue, non-current |
|
6,594 |
|
|
|
7,810 |
|
Convertible senior notes, non-current |
|
198,300 |
|
|
|
197,796 |
|
Term loan |
|
159,194 |
|
|
|
211,894 |
|
Other liabilities, non-current |
|
4,601 |
|
|
|
7,290 |
|
Total liabilities |
|
630,314 |
|
|
|
654,021 |
|
Stockholders' equity: |
|
|
|
||||
Preferred stock: outstanding as of September 30, 2024 and March 31, 2024 |
|
— |
|
|
|
— |
|
Common stock: |
|
131 |
|
|
|
125 |
|
Additional paid-in capital |
|
998,572 |
|
|
|
973,895 |
|
Accumulated other comprehensive loss |
|
(3,549 |
) |
|
|
(11,553 |
) |
Accumulated deficit |
|
(885,342 |
) |
|
|
(860,509 |
) |
Total stockholders' equity |
|
109,812 |
|
|
|
101,958 |
|
Total liabilities and stockholders' equity |
$ |
740,126 |
|
|
$ |
755,979 |
|
8x8, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands) |
|||||||
|
|||||||
|
Six Months Ended September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(24,833 |
) |
|
$ |
(22,779 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation |
|
3,756 |
|
|
|
4,090 |
|
Amortization of intangible assets |
|
10,198 |
|
|
|
10,198 |
|
Amortization of capitalized internal-use software costs |
|
7,022 |
|
|
|
10,061 |
|
Amortization of debt discount and issuance costs |
|
1,718 |
|
|
|
2,240 |
|
Amortization of deferred sales commission costs |
|
19,697 |
|
|
|
20,099 |
|
Allowance for credit losses |
|
1,269 |
|
|
|
993 |
|
Operating lease expense, net of accretion |
|
6,038 |
|
|
|
5,109 |
|
Stock-based compensation expense |
|
22,177 |
|
|
|
32,717 |
|
Loss on debt extinguishment |
|
11,996 |
|
|
|
1,766 |
|
Gain on remeasurement of warrants |
|
(2,010 |
) |
|
|
(2,531 |
) |
Other |
|
(3,626 |
) |
|
|
52 |
|
Changes in assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
(5,314 |
) |
|
|
299 |
|
Deferred sales commission costs |
|
(12,447 |
) |
|
|
(12,068 |
) |
Other current and non-current assets |
|
850 |
|
|
|
(1,306 |
) |
Accounts payable and accruals |
|
(8,886 |
) |
|
|
(2,934 |
) |
Deferred revenue |
|
2,860 |
|
|
|
(2,070 |
) |
Net cash provided by operating activities |
|
30,465 |
|
|
|
43,936 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(1,589 |
) |
|
|
(1,558 |
) |
Capitalized internal-use software costs |
|
(5,892 |
) |
|
|
(7,442 |
) |
Purchase of investments |
|
— |
|
|
|
(6,174 |
) |
Purchase of cost investment |
|
(771 |
) |
|
|
— |
|
Maturities of investments |
|
1,048 |
|
|
|
27,909 |
|
Net cash (used in) provided by investing activities |
|
(7,204 |
) |
|
|
12,735 |
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of common stock under employee stock plans |
|
1,682 |
|
|
|
2,365 |
|
Payments for debt issuance costs |
|
(1,114 |
) |
|
|
— |
|
Repayment of principal on term loan |
|
(225,000 |
) |
|
|
(25,000 |
) |
Gross proceeds from term loan |
|
200,000 |
|
|
|
— |
|
Other financing activities |
|
(704 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(25,136 |
) |
|
|
(22,635 |
) |
Effect of exchange rate changes on cash |
|
3,019 |
|
|
|
(1,752 |
) |
Net increase in cash and cash equivalents |
|
1,144 |
|
|
|
32,284 |
|
Cash, cash equivalents and restricted cash, beginning of year |
|
116,723 |
|
|
|
112,729 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
117,867 |
|
|
$ |
145,013 |
|
Supplemental disclosures of cash flow information:
|
Six Months Ended September 30, |
||||
|
|
2024 |
|
|
2023 |
Interest paid |
$ |
16,324 |
|
$ |
17,799 |
Income taxes paid |
$ |
2,386 |
|
$ |
3,118 |
Payables and accruals for property and equipment |
$ |
3,207 |
|
$ |
— |
8x8, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited, in thousands, except per share amounts) |
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
|
Three Months Ended September 30, |
|
Six Months Ended September 30, |
||||||||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||||||
Cost of Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP cost of service revenue (as a percentage of service revenue) |
$ |
50,251 |
|
|
28.7 |
% |
|
$ |
49,144 |
|
|
27.6 |
% |
|
$ |
99,747 |
|
|
28.7 |
% |
|
$ |
95,420 |
|
|
27.0 |
% |
Amortization of acquired intangible assets |
|
(2,118 |
) |
|
|
|
|
(2,118 |
) |
|
|
|
|
(4,235 |
) |
|
|
|
|
(4,235 |
) |
|
|
||||
Stock-based compensation expense and related employer payroll taxes |
|
(1,230 |
) |
|
|
|
|
(1,743 |
) |
|
|
|
|
(2,838 |
) |
|
|
|
|
(3,967 |
) |
|
|
||||
Severance, transition and contract exit costs |
|
(55 |
) |
|
|
|
|
(82 |
) |
|
|
|
|
(577 |
) |
|
|
|
|
(288 |
) |
|
|
||||
Non-GAAP cost of service revenue (as a percentage of service revenue) |
$ |
46,848 |
|
|
26.8 |
% |
|
$ |
45,201 |
|
|
25.4 |
% |
|
$ |
92,097 |
|
|
26.5 |
% |
|
$ |
86,930 |
|
|
24.6 |
% |
GAAP service revenue margin (as a percentage of service revenue) |
$ |
124,824 |
|
|
71.3 |
% |
|
$ |
128,638 |
|
|
72.4 |
% |
|
$ |
248,129 |
|
|
71.3 |
% |
|
$ |
257,600 |
|
|
73.0 |
% |
Non-GAAP service revenue margin (as a percentage of service revenue) |
$ |
128,227 |
|
|
73.2 |
% |
|
$ |
132,581 |
|
|
74.6 |
% |
|
$ |
255,779 |
|
|
73.5 |
% |
|
$ |
266,090 |
|
|
75.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP cost of other revenue (as a percentage of other revenue) |
$ |
7,572 |
|
|
127.8 |
% |
|
$ |
7,958 |
|
|
110.3 |
% |
|
$ |
15,263 |
|
|
135.4 |
% |
|
$ |
16,356 |
|
|
107.1 |
% |
Stock-based compensation expense and related employer payroll taxes |
|
(304 |
) |
|
|
|
|
(468 |
) |
|
|
|
|
(723 |
) |
|
|
|
|
(1,119 |
) |
|
|
||||
Severance, transition and contract exit costs |
|
(156 |
) |
|
|
|
|
(28 |
) |
|
|
|
|
(256 |
) |
|
|
|
|
(50 |
) |
|
|
||||
Non-GAAP cost of other revenue (as a percentage of other revenue) |
$ |
7,112 |
|
|
120.1 |
% |
|
$ |
7,462 |
|
|
103.4 |
% |
|
$ |
14,284 |
|
|
126.8 |
% |
|
$ |
15,187 |
|
|
99.5 |
% |
GAAP other revenue margin (as a percentage of other revenue) |
$ |
(1,649 |
) |
|
(27.8 |
)% |
|
$ |
(741 |
) |
|
(10.3 |
)% |
|
$ |
(3,994 |
) |
|
(35.4 |
)% |
|
$ |
(1,090 |
) |
|
(7.1 |
)% |
Non-GAAP other revenue margin (as a percentage of other revenue) |
$ |
(1,189 |
) |
|
(20.1 |
)% |
|
$ |
(245 |
) |
|
(3.4 |
)% |
|
$ |
(3,015 |
) |
|
(26.8 |
)% |
|
$ |
79 |
|
|
0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP gross margin (as a percentage of total revenue) |
$ |
123,175 |
|
|
68.1 |
% |
|
$ |
127,897 |
|
|
69.1 |
% |
|
$ |
244,135 |
|
|
68.0 |
% |
|
$ |
256,510 |
|
|
69.6 |
% |
Non-GAAP gross margin (as a percentage of total revenue) |
$ |
127,038 |
|
|
70.2 |
% |
|
$ |
132,336 |
|
|
71.5 |
% |
|
$ |
252,764 |
|
|
70.4 |
% |
|
$ |
266,169 |
|
|
72.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Profit (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP income (loss) from operations (as a percentage of total revenue) |
$ |
7,169 |
|
|
4.0 |
% |
|
$ |
(2,583 |
) |
|
(1.4 |
)% |
|
$ |
5,795 |
|
|
1.6 |
% |
|
$ |
(3,992 |
) |
|
(1.1 |
)% |
Amortization of acquired intangible assets |
|
5,099 |
|
|
|
|
|
5,100 |
|
|
|
|
|
10,198 |
|
|
|
|
|
10,198 |
|
|
|
||||
Stock-based compensation expense and related employer payroll taxes |
|
9,845 |
|
|
|
|
|
15,427 |
|
|
|
|
|
23,438 |
|
|
|
|
|
35,102 |
|
|
|
||||
Acquisition and integration costs |
|
193 |
|
|
|
|
|
307 |
|
|
|
|
|
316 |
|
|
|
|
|
650 |
|
|
|
||||
Legal and regulatory costs |
|
(3,166 |
) |
|
|
|
|
3,879 |
|
|
|
|
|
(2,618 |
) |
|
|
|
|
5,347 |
|
|
|
||||
Severance, transition and contract exit costs |
|
2,398 |
|
|
|
|
|
1,634 |
|
|
|
|
|
4,519 |
|
|
|
|
|
2,888 |
|
|
|
||||
Non-GAAP operating profit (as a percentage of total revenue) |
$ |
21,538 |
|
|
11.9 |
% |
|
$ |
23,764 |
|
|
12.8 |
% |
|
$ |
41,648 |
|
|
11.6 |
% |
|
$ |
50,193 |
|
|
13.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP net loss (as a percentage of total revenue) |
$ |
(14,543 |
) |
|
(8.0 |
)% |
|
$ |
(7,452 |
) |
|
(4.0 |
)% |
|
$ |
(24,833 |
) |
|
(6.9 |
)% |
|
$ |
(22,779 |
) |
|
(6.2 |
)% |
Amortization of acquired intangible assets |
|
5,099 |
|
|
|
|
|
5,100 |
|
|
|
|
|
10,198 |
|
|
|
|
|
10,198 |
|
|
|
||||
Stock-based compensation expense and related employer payroll taxes |
|
9,845 |
|
|
|
|
|
15,427 |
|
|
|
|
|
23,438 |
|
|
|
|
|
35,102 |
|
|
|
||||
Acquisition and integration costs |
|
193 |
|
|
|
|
|
307 |
|
|
|
|
|
316 |
|
|
|
|
|
650 |
|
|
|
||||
Legal and regulatory costs |
|
(3,166 |
) |
|
|
|
|
3,879 |
|
|
|
|
|
(2,618 |
) |
|
|
|
|
5,347 |
|
|
|
||||
Severance, transition and contract exit costs |
|
2,398 |
|
|
|
|
|
1,634 |
|
|
|
|
|
4,519 |
|
|
|
|
|
2,888 |
|
|
|
||||
Amortization of debt discount and issuance cost |
|
656 |
|
|
|
|
|
1,132 |
|
|
|
|
|
1,718 |
|
|
|
|
|
2,240 |
|
|
|
||||
Loss on debt extinguishment |
|
11,996 |
|
|
|
|
|
— |
|
|
|
|
|
11,996 |
|
|
|
|
|
1,766 |
|
|
|
||||
Gain on warrants remeasurement |
|
(263 |
) |
|
|
|
|
(2,781 |
) |
|
|
|
|
(2,010 |
) |
|
|
|
|
(2,531 |
) |
|
|
||||
Other income |
|
(116 |
) |
|
|
|
|
(117 |
) |
|
|
|
|
(232 |
) |
|
|
|
|
(234 |
) |
|
|
||||
Income tax expense effects, net (1) |
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
||||
Non-GAAP net income (as a percentage of total revenue) |
$ |
12,099 |
|
|
6.7 |
% |
|
$ |
17,129 |
|
|
9.3 |
% |
|
$ |
22,492 |
|
|
6.3 |
% |
|
$ |
32,647 |
|
|
8.9 |
% |
Interest expense |
|
7,249 |
|
|
|
|
|
8,929 |
|
|
|
|
|
16,143 |
|
|
|
|
|
17,899 |
|
|
|
||||
Provision (benefit) for income taxes |
|
1,098 |
|
|
|
|
|
(389 |
) |
|
|
|
|
1,774 |
|
|
|
|
|
1,055 |
|
|
|
||||
Depreciation |
|
1,848 |
|
|
|
|
|
1,964 |
|
|
|
|
|
3,756 |
|
|
|
|
|
4,090 |
|
|
|
||||
Amortization of capitalized internal-use software costs |
|
3,264 |
|
|
|
|
|
4,779 |
|
|
|
|
|
7,022 |
|
|
|
|
|
10,061 |
|
|
|
||||
Other income (expense), net |
|
1,092 |
|
|
|
|
|
(1,905 |
) |
|
|
|
|
1,239 |
|
|
|
|
|
(1,408 |
) |
|
|
||||
Adjusted EBITDA (as a percentage of total revenue) |
$ |
26,650 |
|
|
14.7 |
% |
|
$ |
30,507 |
|
|
16.5 |
% |
|
$ |
52,426 |
|
|
14.6 |
% |
|
$ |
64,344 |
|
|
17.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Shares used in computing net income (loss) per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic |
|
129,250 |
|
|
|
|
|
120,757 |
|
|
|
|
|
127,633 |
|
|
|
|
|
118,778 |
|
|
|
||||
Diluted |
|
131,294 |
|
|
|
|
|
122,624 |
|
|
|
|
|
129,772 |
|
|
|
|
|
120,599 |
|
|
|
||||
GAAP net loss per share - Basic and Diluted |
$ |
(0.11 |
) |
|
|
|
$ |
(0.06 |
) |
|
|
|
$ |
(0.19 |
) |
|
|
|
$ |
(0.19 |
) |
|
|
||||
Non-GAAP net income per share - Basic |
$ |
0.09 |
|
|
|
|
$ |
0.14 |
|
|
|
|
$ |
0.18 |
|
|
|
|
$ |
0.27 |
|
|
|
||||
Non-GAAP net income per share - Diluted |
$ |
0.09 |
|
|
|
|
$ |
0.14 |
|
|
|
|
$ |
0.17 |
|
|
|
|
$ |
0.27 |
|
|
|
||||
(1) Non-GAAP adjustments do not have a material impact on our federal income tax provision due to past non-GAAP losses. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241102964158/en/
8x8, Inc.
Media:
PR@8x8.com
Investor Relations:
Investor.relations@8x8.com
Source: 8x8, Inc.
FAQ
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