NYSE$EGHT

8x8 Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported second quarter fiscal year 2024 financial results.

8x8 reported total revenue of $185 million and service revenue of $178 million. GAAP operating loss improved by 89.7% and non-GAAP operating profit increased by 162% year-over-year. The company saw continued momentum in AI-powered solutions, including over 50% quarter-over-quarter growth in self-service conversations through 8x8 Intelligent Customer Assistant.

  • Total revenue was $185.0 million, compared to $187.4 million in the second quarter of fiscal 2023.
  • Service revenue was $177.8 million, compared to $178.6 million in the second quarter of fiscal 2023.
  • GAAP operating loss was $2.6 million, an improvement of 89.7% compared to GAAP operating loss of $25.0 million in the second quarter of fiscal 2023.
  • Non-GAAP operating profit was $23.8 million, an increase of 162% compared to non-GAAP operating profit of $9.1 million in the second quarter of fiscal 2023.

Headline financials

Total Revenue

$185M

Previous: $187M-1.3%
EPS (adj)

$0.14

Previous: $0.05+180.0%
Adjusted EBITDA

$30.5M

No prior period
Non-GAAP Gross Margin

72.0%

Previous: 70.0%+2.9%
Capital Expenditures

-$1.56M

Previous: -$1.85M+15.6%
Free Cash Flow

-$9.01M

Previous: -$13.5M+33.2%
Net Income

-$7.45M

Previous: -$11.6M+36.0%
Operating Income

-$2.58M

Previous: -$25M+89.7%
Gross Profit

$128M

Previous: $126M+1.9%
Cash & Equivalents

$144M

Previous: $101M+43.3%
Total Assets

$824M

Previous: $856M-3.8%
Stock-Based Comp

$14.5M

Previous: $24.6M-41.0%

Revenue & EPS history

8x8 · Revenue · Quarterly

$185M

Q2 2024-1.3%vs Q2 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

8x8 · $185M total across 2 segments · Q2 2024

  • Service Revenue
    $178M
  • Other Revenue
    $7.22M

Forward guidance

Management provides expected ranges for total revenue, service revenue and non-GAAP operating margin based on its evaluation of the current business environment.

Tailwinds

  • Service revenue in the range of $173 million to $178 million for Q3 2024.
  • Total revenue in the range of $180 million to $186 million for Q3 2024.
  • Non-GAAP operating margin in the range of 11% to 12% for Q3 2024.
  • Service revenue in the range of $701 million to $711 million for fiscal year 2024.
  • Total revenue in the range of $732.5 million to $742.5 million for fiscal year 2024.

Headwinds

  • Non-GAAP operating margin in the range of 12% to 13% for fiscal year 2024.
  • The Company does not reconcile its forward-looking estimates of non-GAAP operating margins 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.
  • 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.
  • Our increased emphasis on profitability and cash flow generation may not be successful.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.6%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+2.5%

Avg return

30 days after

41%

26 / 64 earnings

Positive

+38.7%

Q3 2026

Best reaction

-29.0%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+4.8%+6.6%+47.0%
Q3 2026+38.7%+62.0%+51.8%
Q2 2026+25.3%+11.3%+14.7%
Q1 2026-7.4%-8.4%+8.4%
Q4 2025+0.0%-11.7%+2.2%
Q3 2025-5.3%+0.7%-19.0%
Q2 2025+25.0%+35.5%+41.8%
Q1 2025-24.5%-30.8%-30.4%
Q4 2024+10.7%+18.8%+11.1%
Q3 2024-16.6%-23.9%-20.8%
Q2 2024+31.1%+26.1%+36.6%
Q1 2024-29.0%-24.5%-42.6%
Q4 2023-3.7%-3.4%+20.4%
Q3 2023+35.5%+26.8%+19.1%
Q2 2023+20.1%+22.1%+25.0%
Q1 2023+5.7%+0.0%-2.6%
Q4 2022-2.9%+2.9%-16.0%
Q3 2022-9.1%-6.4%-24.1%
Q2 2022-5.7%-3.3%-21.2%
Q1 2022-0.9%-1.6%-2.0%
Q4 2021-13.0%-15.4%-15.9%
Q3 2021-3.3%-4.8%-6.2%
Q2 2021+9.4%+4.1%+22.1%
Q1 2021-7.0%-4.0%-0.3%
Q4 2020-24.4%-22.8%-28.6%
Q3 2020+7.8%+3.4%-9.5%
Q2 2020-0.5%-0.6%+5.7%
Q1 2020-6.0%-7.8%-4.8%
Q4 2019-4.5%+0.8%+5.1%
Q3 2019-9.3%-8.0%+1.2%
Q2 2019-0.7%+7.5%+13.2%
Q1 2019-5.5%-9.1%+3.4%
Q4 2018-14.3%-16.6%-9.5%
Q3 2018+13.4%+14.4%+18.5%
Q2 2018+5.2%+6.8%+12.8%
Q1 2018-11.5%-9.8%-8.7%
Q4 2017+3.1%+3.8%+15.3%
Q3 2017-1.8%-4.2%-2.1%
Q2 2017-6.2%-7.5%-1.3%
Q1 2017-0.8%-4.1%-10.9%
Q4 2016+6.1%
Q3 2016+13.4%
Q2 2016+9.5%
Q1 2016+4.4%
Q4 2015-0.1%
Q3 2015-6.1%
Q2 2015+12.2%
Q1 2015-4.6%
Q4 2014-7.0%
Q3 2014-2.3%
Q2 2014-2.6%
Q1 2014+9.3%
Q4 2013+5.3%
Q3 2013-8.4%
Q2 2013+3.8%
Q1 2013+14.2%
Q4 2010-0.5%
Q3 2011+1.4%
Q3 2012+1.4%
Q2 2012+0.3%
Q1 2011-7.5%
Q4 2011-7.5%
Q2 2011-7.5%
Q1 2012-7.5%

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