NYSE$EGHT

8x8 Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported an increase in service and total revenue, with improved margins and cash flow.

8x8, Inc. reported an 18% year-over-year increase in both service and total revenue for Q3 2023. The company's GAAP and non-GAAP gross and operating margins reached multi-year highs, and cash flow from operations increased significantly. They repurchased $21.8 million in convertible senior notes.

  • Total revenue increased 18% year-over-year to $184.4 million, including Fuze revenue of $26.5 million.
  • Service revenue increased 18% year-over-year to $175.8 million, including Fuze revenue of $26.5 million.
  • GAAP operating loss was $18.1 million, improved from an operating loss of $37.6 million in the same quarter last year.
  • Non-GAAP operating profit was $18.3 million, a 485% increase compared to $3.1 million in the third quarter of fiscal 2022.

Headline financials

Total Revenue

$184M

Previous: $157M+17.5%
EPS (adj)

$0.07

Previous: $0.02+250.0%
Non-GAAP Gross Margin

72.0%

Previous: 65.0%+10.8%
Capital Expenditures

-$2.69M

Previous: -$2.92M+7.9%
Free Cash Flow

-$28.7M

Previous: -$46.5M+38.2%
Net Income

-$26M

Previous: -$43.6M+40.3%
Operating Income

-$18.1M

Previous: -$37.6M+51.9%
Gross Profit

$133M

Previous: $98.1M+35.6%
Cash & Equivalents

$93M

Previous: $200M-53.6%
Total Assets

$836M

Previous: $756M+10.6%
Stock-Based Comp

$21.1M

Previous: $33.7M-37.5%

Revenue & EPS history

8x8 · Revenue · Quarterly

$184M

Q3 2023+17.5%vs Q3 2022
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

The company provided financial outlook for Q4 2023 and fiscal year 2023, including service revenue, total revenue, and non-GAAP operating margin.

Tailwinds

  • Service revenue is expected to be in the range of $175 million to $178 million, representing year-over-year growth of approximately 2% at the midpoint.
  • Total revenue is expected to be in the range of $184 million to $187 million, representing year-over-year growth of approximately 2% at the midpoint.
  • Non-GAAP operating margin of approximately 10% is expected for Q4 2023.
  • Service revenue for fiscal year 2023 is expected to be in the range of $708.5 million to $711.5 million, representing year-over-year growth of 18% at the midpoint.
  • Total revenue for fiscal year 2023 is expected to be in the range of $743.4 million to $746.4 million, representing year-over-year growth of approximately 17% at the midpoint.

Headwinds

  • The expectations are subject to various important cautionary factors.
  • Foreign currency exchange fluctuations may negatively impact guidance.
  • 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.
  • The actual amounts of excluded items could have a significant impact on the Company's GAAP operating margin.

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 2023

Historical avgQ3 2023

+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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