NYSE$EGHT

8x8 Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported financial results exceeding guidance with improving profitability.

8x8, Inc. reported a 15.3% year-over-year increase in total revenue to $136.7 million, exceeding the high-end of the company's original guidance. Service revenue also increased by 15.2% year-over-year to $127.1 million, also exceeding guidance. The company is raising its full-year revenue guidance and improving its path to profitability.

  • Total revenue increased 15.3% year-over-year to $136.7 million.
  • Service revenue increased 15.2% year-over-year to $127.1 million.
  • Total ARR grew 20% year-over-year to $494.3 million.
  • Closed a record 53 new customer deals with ARR greater than $100K, a 33% increase year-over-year.

Headline financials

Total Revenue

$137M

Previous: $119M+15.3%
EPS (adj)

-$0.02

Previous: -$0.17+88.2%
Non-GAAP Gross Margin

60.0%

No prior period
Capital Expenditures

-$4.98M

Previous: -$22.9M+78.2%
Free Cash Flow

-$45.2M

Previous: -$85.7M+47.3%
Net Income

-$40.2M

Previous: -$47.1M+14.5%
Operating Income

-$35.3M

Previous: -$43.2M+18.3%
Gross Profit

$76.3M

No prior period
Cash & Equivalents

$107M

Previous: $185M-42.2%
Total Assets

$693M

Previous: $732M-5.4%
Stock-Based Comp

$26.8M

No prior period

Revenue & EPS history

8x8 · Revenue · Quarterly

$137M

Q3 2021+15.3%vs Q3 2020
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

8x8 · $137M total across 2 segments · Q3 2021

  • Service Revenue
    $127M+11.9%
  • Other Revenue
    $9.58M

Forward guidance

The company provided financial outlook for the fourth quarter and full year fiscal 2021.

Tailwinds

  • Total Revenue guidance in the range of $138.5 million to $140.5 million, representing approximately 14% to 16% year-over-year growth for Q4.
  • Service Revenue guidance in the range of $130.8 million to $131.8 million, representing approximately 16% to 17% year-over-year growth for Q4.
  • Non-GAAP Pre-Tax Loss guidance of approximately $0.8 million for Q4.
  • Total Revenue guidance from a range of $519.0 million to $522.0 million to a range of $526.1 million to $528.1 million, representing approximately 18% year-over-year growth for full year 2021.
  • Service Revenue guidance from a range of $489.0 million to $492.0 million to a range of $493.0 million to $494.0 million, representing approximately 19% year-over-year growth for full year 2021.

Headwinds

  • Non-GAAP Pre-Tax Loss guidance updated from approximately $16.0 million to approximately $13.7 million for full year 2021.
  • Significant variability in forecasting stock-based compensation expense.
  • Impairments and other items are difficult to predict.
  • Potential future intellectual property infringement claims.
  • Economic impacts of the COVID-19 pandemic.

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 Q3 2021

Historical avgQ3 2021

+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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