8x8, Inc. Reports Second Quarter Fiscal 2021 Financial Results
Service revenue growth of 19% year-over-year
Initiates Full-Year Fiscal 2021 Financial Outlook with 18% to 19% Service Revenue Growth
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 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.