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

CAMPBELL, CA. - October 28, 2020 - 8x8, Inc. (NYSE: EGHT), a leading integrated cloud communications platform, today reported financial results for the second quarter of fiscal 2021 ended September 30, 2020.

Second Quarter Fiscal 2021 Financial Results Highlights:

•Total revenue increased 17.9% year-over-year to $129.1 million.

•Service revenue increased 19.3% year-over-year to $120.9 million.

•GAAP Pre-Tax Loss was $38.3 million; Non-GAAP Pre-Tax Loss was $3.3 million.

“Our go-to-market strategy and unique value proposition as the only, single-vendor open communications platform are clearly paying off,” said Vik Verma, Chief Executive Officer at 8x8, Inc. “We delivered a strong quarter across the board and we have a clear line of sight to both profitability and continued growth. This reflects the significant strides made in unlocking the operating leverage in the company as well as strong demand for our platform with mid-market and enterprise customers.”

Q2 Fiscal 2021 Business Metrics and Highlights:

Financial and Business Metrics

•Bookings:

◦Bookings greater than $100K ARR: Closed a record 48 new customer deals in the second quarter of fiscal 2021 with ARR (annual recurring revenue) greater than $100,000, an increase of 60% from the same period last year. These deals represented 42% of new bookings for the quarter and included 22 upsell and cross-sell deals.

◦Channel bookings grew 23% year-over-year and represented 59% of new bookings.

◦Contact center bookings grew to 32% of total new bookings which represented 62% year-over-year growth.

•Annual recurring revenue (ARR):

◦Total ARR grew to $467.1 million, an increase of 20% from the same period last year.

◦Total ARR greater than $100K: 670 customers generated ARR greater than $100,000, compared with 536 customers in the same period last year, a 25% 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 54% of total ARR which grew 11% year-over-year.

▪Mid-market customers (defined as companies whose annual revenue is between $50 million and $1 billion) comprised 27% of total ARR which grew 25% year-over-year.

▪Enterprise customers (defined as companies whose annual revenue is more than $1 billion) comprised 20% of total ARR which grew 44% year-over-year.

•GAAP gross margin was 56%, compared with 55% in the same period last year. Non-GAAP gross margin was 61%, compared with 58% in the same period last year.

•GAAP service margin was 63%, compared with 65% in the same period last year. Non-GAAP service margin was 67%, compared with 68% in the same period last year.

•Cash used in operating activities was $3.8 million. Cash, restricted cash, and investments were $175.0 million at September 30, 2020 and $186.3 million at June 30, 2020.

The following information was filed by 8X8 Inc (EGHT) on Wednesday, October 28, 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 - Shares Highlight
We believe that effective 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.

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 our Quarterly Report for the three-month period ended June 30, 2020 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
Revenue Service revenue increased for the three and six months ended September 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 21 Table of Contents CCaaS deals globally to our mid-market and enterprise customers.
Financial - Expense Highlight
20 Table of Contents Cost of Service Revenue 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, and technical support costs.
Financial - Expense
While we may not be...Read more
Financial - Expense
While we expect to continue...Read more
Financial - Expense
General and administrative expenses for...Read more
Revenue - Product
Our continued business focus is...Read more
Financial - Expense
We expect to continue improving...Read more
Financial - Expense
Cost of Revenue The increase...Read more
Financial - Expense
While we expect to continue...Read more
Other - Other
As discussed in the section...Read more
Revenue - Product
We continued to show an...Read more
Revenue - Product
Service revenue from mid-market and...Read more
Revenue - Product
19 Table of Contents SUMMARY...Read more
Financial - Income
Other Income (Expense), net Other...Read more
Other - Other
These increases were partially offset...Read more
Other - Other
These increases were partially offset...Read more
Financial - Expense
These migrations may require us...Read more
Financial - Expense
Operating Expenses Research and development...Read more
Revenue - Product
We expect total service revenue...Read more
Other - Other
In an effort to contain...Read more
Revenue - Product
We plan to continue investing...Read more
Other - Other
We continue to proactively and...Read more
Other - Other
IMPACTS OF COVID-19 The full...Read more
M & A - Other
Additionally, we aim to drive...Read more
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These increases were partially offset...Read more
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General and administrative expenses for...Read more
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Other revenue is dependent on...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 10.4: Material Contract

Exhibit 10.5: 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: 0001023731-20-000179
Submitted to the SEC: Thu Oct 29 2020 4:04:07 PM EST
Accepted by the SEC: Thu Oct 29 2020
Period: Wednesday, September 30, 2020
Industry: Computer Processing And Data Preparation