8X8 Inc (EGHT) 10-Q Quarterly Report February 2020

SAN JOSE, CA. - February 4, 2020 - 8x8, Inc. (NYSE: EGHT), a leading integrated cloud communications platform, today reported financial results for the third quarter of fiscal 2020 ended December 31, 2019.

Third Quarter Fiscal 2020 Financial Results Highlights:


•	Total revenue increased 31.9% year-over-year to $118.6 million.


•	Service revenue increased 32.2% year-over-year to $113.6 million.


•	GAAP Pre-Tax Loss was $46.8 million; Non-GAAP Pre-Tax Net Loss was $16.3 million.

Quotes from Vik Verma, Chief Executive Officer:

“8x8’s third quarter was another strong performance, with record revenue growth of 32%. Our X Series platform continues to resonate strongly with the market, driving enterprise ARR year-over-year growth of 85%. In fact, all of our top 10 deals were from bundled platform deals. And we are seeing acceleration in large customers migrating off of legacy solutions, with four of our top ten wins coming from Avaya replacements.”

“As we continue to accelerate revenue growth, we took the opportunity to align our operations and go-to-market growth initiatives with a more optimal global footprint and cost structure. And as we pass a $500+ million revenue run rate in the near term, we are tracking to profitability exiting the coming fiscal year.”

“Earlier today, we announced new strategic partnerships with four prominent UK-based VARs: Softcat, Computacenter, Charterhouse and NSL. These relationships further extend our global footprint and bring compelling value to customers and partners. This complements our very successful channel master-agent referral program which we expect to continue to grow bookings in excess of 50% year-over-year. When combined with CloudFuel, our strategic partnership with ScanSource and Poly, our channel strategy creates a unique opportunity for 8x8 to partner with both the channel master-agent referral partners and the VAR community as we displace over 350 million on-premises seats from legacy players including Avaya and Mitel.”

Q3 F2020 Business Metrics and Highlights:

Financial and Business Metrics


•	Bookings greater than $100K ARR: The Company closed 40 new customer deals in the third quarter of fiscal 2020 with ARR (annual recurring revenue) greater than $100,000. These deals represented 33% of new bookings for the quarter, compared with 29% of new bookings in the same period last year.


•	Channel bookings grew 62% year-over-year and represented 54% of new bookings.


•	Contact center bookings represented 33% of total new bookings and grew 90% year-over-year.


•	Total ARR: The Company's total annual recurring revenue is $411.3 million, an increase of 33% from the same period last year.


•	Total ARR greater than $100K: The Company had 592 customers that generated ARR greater than $100,000, compared with 376 customers in the same period last year, a 57% year-over-year growth.


•	Strong ARR growth by customer size:


◦	Small Business customers (defined as companies whose revenue is less than $50 million) comprised 56% of total ARR which grew 18% year-over-year.

The following information was filed by 8X8 Inc (EGHT) on Tuesday, February 4, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside 8X8 Inc's 10-Q Quarterly Report:

Revenue - Product Highlight
Period-over-Period Changes Net cash used in operating activities for the nine months ended December 31, 2019 was $62.8 million, primarily due to making investments necessary to accelerate revenue growth.

Financial - Expense Highlight
Cost of service revenue consists primarily of costs associated with network operations and related personnel, technology licenses, amortization of internally developed software, and other costs such as customer service, deployment and technical support costs.
Financial - Expense Highlight
Research and development expenses for the nine months ended December 31, 2019 increased over the same prior year period primarily due to a $7.4 million increase in personnel and related costs, a $5.9 million increase in stock-based compensation expense, and a $1.8 million increase in amortization of capitalized software expenses, as well as other smaller cost increases.
Revenue - Product Highlight
We plan to continue to drive our business to increase service revenue through a combination of increased sales and marketing efforts, geographic expansion of our customer base outside the United States, and through strategic acquisitions of technologies and businesses.
Revenue - Product Highlight
Service revenue increased for the three and nine months ended December 31, 2019 compared with the same periods of the previous fiscal year primarily due to an increase in our business customer subscriber base (net of customer churn), an increase in the average service revenue from each customer on a monthly basis and, to a lesser extent, revenue associated with our newly acquired products as compared to the same prior year period.
Financial - Expense
While we expect to continue...Read more
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Revenue - Product
Our third quarter fiscal 2020...Read more
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Other - Other
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Other - Other
Factors that could cause or...Read more
Revenue - Product
We continued to show an...Read more
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Revenue - Product
We plan to continue to...Read more
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Accordingly, we believe that it...Read more
Other - Other
With recent successes driving growth...Read more
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Other - Other
Historically, the Company maintained all...Read more
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Product revenue increased during the...Read more
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Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

8X8 Inc provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: EGHT
CIK: 1023731
Form Type: 10-Q Quarterly Report
Accession Number: 0001023731-20-000020
Submitted to the SEC: Wed Feb 05 2020 8:17:24 AM EST
Accepted by the SEC: Wed Feb 05 2020
Period: Tuesday, December 31, 2019
Industry: Computer Processing And Data Preparation