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

CAMPBELL, CA. - July 30, 2020 - 8x8, Inc. (NYSE: EGHT), a leading integrated cloud communications platform, today reported financial results for the first quarter of fiscal 2021 ended June 30, 2020.

First Quarter Fiscal 2021 Financial Results Highlights:


•	Total revenue increased 26.0% year-over-year to $121.8 million.


•	Service revenue increased 27.1% year-over-year to $114.2 million.


•	GAAP Pre-Tax Loss was $41.7 million; Non-GAAP Pre-Tax Loss was $7.6 million.

“Our strategy remains focused on profitability, execution and maximizing growth. The results of last quarter clearly reflect steady improvements in operational efficiency,” said Vik Verma, Chief Executive Officer at 8x8, Inc. “We delivered Q1 results that exceeded our financial outlook and finished the quarter with strong momentum. The launch of our Open Communications Platform, coupled with continued growth in mid-market and enterprise driven by our channel-first approach position us well for the future.”

Q1 Fiscal 2021 Business Metrics and Highlights:

Financial and Business Metrics


•	Bookings greater than $100K ARR: The Company closed 38 new customer deals in the first quarter of fiscal 2021 with ARR (annual recurring revenue) greater than $100,000. These deals represented 43% of new bookings for the quarter, compared with 31% of new bookings in the same period last year.


•	Channel bookings grew 47% year-over-year and represented 62% of new bookings.


•	Contact center bookings represented 32% of total new bookings and grew 194% year-over-year.


•	Total ARR: The Company's total annual recurring revenue is $432.2 million, an increase of 30% from the same period last year.


•	Total ARR greater than $100K: The Company had 606 customers that generated ARR greater than $100,000, compared with 449 customers in the same period last year, a 35% year-over-year growth.


•	Strong ARR growth by customer size:


◦	Small Business customers (defined as companies whose annual revenue is less than $50 million) comprised 55% of total ARR which grew 16% year-over-year.


◦	Mid-market customers (defined as companies whose annual revenue is between $50 million and $1 billion) comprised 26% of total ARR which grew 40% year-over-year.


◦	Enterprise customers (defined as companies whose annual revenue is more than $1 billion) comprised 19% of total ARR which grew 72% year-over-year.


•	Average annual service revenue per customer:


◦	Small business was $4,623, compared with $4,596 in the same period last year, a 1% increase year-over-year.


◦	Mid-market was $41,963, compared with $36,498 in the same period last year, a 15% increase year-over-year.


◦	Enterprise was $167,000, compared with $150,653 in the same period last year, an 11% increase year-over-year.

The following information was filed by 8X8 Inc (EGHT) on Thursday, July 30, 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:

Financial - Expense Highlight
24 Table of Contents General and administrative expenses for the three months ended June 30, 2020 increased as compared to the same prior year period due to a $3.8 million increase in stock-based compensation expense, a $1.3 million higher allowance for credit losses recognized partially in response to external market factors and uncertainties in connection with the COVID-19 pandemic, a $1.3 million increase in legal and tax related costs, and a $0.7 million increase in employee and consulting related expenditures.

Financial - Shares Highlight
We believe that this approach and execution will enable the Company to grow and capture market share during this phase of industry disruption in a cost-effective way and support the Company in pursuit of its path to profitability and operating cash flow improvement, which we will continue to execute throughout fiscal 2021.
Other - Other Highlight
Factors that could cause or contribute to these differences include, but are not limited to, those discussed below and elsewhere in this report, particularly those set forth under the section entitled "Risk Factors" in our annual report on Form 10-K for the fiscal year ended March 31, 2020 as modified by those in Part II, Item 1A of this Quarterly Report on Form 10-Q under the heading "Risk Factors."
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, innovation in product and technology, and through strategic partnerships and other business development.
Revenue - Product Highlight
Service revenue increased for the three months ended June 30, 2020 compared with the same period of the previous fiscal year primarily due to a net increase in our subscriber base, expanded offerings to existing customers, and growth in related usage; service revenue from new customers was primarily driven by sales of standalone and bundled UCaaS and CCaaS deals globally to our mid-market and enterprise customers.
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Cost of service revenue consists...Read more
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We continued to show an...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 10.1: Material Contract

Exhibit 10.2: Material Contract

Exhibit 10.3: Material Contract

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: 0001023731-20-000106
Submitted to the SEC: Tue Aug 04 2020 4:31:30 PM EST
Accepted by the SEC: Tue Aug 04 2020
Period: Tuesday, June 30, 2020
Industry: Computer Processing And Data Preparation