8x8, Inc. Reports Third Quarter Fiscal 2021 Financial Results
Service revenue growth of 15% year-over-year; Total ARR grew 20% to Approximately $500 million
Raises Fiscal Full-Year 2021 Service Revenue Guidance to Approximately 19% Year-over-Year Growth
CAMPBELL, CA. - January 28, 2021 - 8x8, Inc. (NYSE: EGHT), a leading integrated cloud communications platform, today reported financial results for the third quarter of fiscal 2021 ended December 31, 2020.
Third Quarter Fiscal 2021 Financial Results Highlights:
•Total revenue increased 15.3% year-over-year to $136.7 million, exceeding the high-end of the Company’s original guidance range of $132.0 to $133.0 million.
•Service revenue increased 15.2% year-over-year to $127.1 million, exceeding the high-end of the Company’s original guidance range of $124.0 to $125.0 million.
•GAAP Pre-Tax Loss was $39.9 million. Non-GAAP Pre-Tax Loss was $1.9 million and favorable to the Company’s original guidance of $3.0 million loss.
“Our integrated communications and contact center cloud platform is winning over mid-market and enterprise customers who value the benefits of a combined solution,” said Dave Sipes, Chief Executive Officer at 8x8, Inc. “We delivered a good quarter that exceeded the high-end of guidance with improving operating performance. I’m pleased to report that we are raising full-year revenue guidance, and also improving our path to profitability.”
Q3 Fiscal 2021 Business Metrics and Highlights:
Financial and Business Metrics
◦Closed a record 53 new customer deals in the third quarter of fiscal 2021 with ARR (annual recurring revenue) greater than $100K, an increase of 33% from the same period last year. These deals represented 39% of new bookings for the quarter and included 34 new logo deals.
◦Bundled contact center and communications represented 67% of new bookings that were $12K or more in ARR.
◦Channel bookings grew 64% year-over-year and represented 64% of new bookings.
◦Contact center new bookings grew 33% year-over-year and represented 31% of total new bookings.
•Annual recurring revenue (ARR):
◦Total ARR grew to $494.3 million, an increase of 20% from the same period last year.
◦734 customers generated ARR greater than $100K, compared with 592 customers in the same period last year, a 24% year-over-year growth.
◦ARR growth by customer size:
▪Small Business customers (defined as companies whose annual revenue is less than $50 million) comprised 52% of total ARR which grew 12% 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 21% year-over-year.
▪Enterprise customers (defined as companies whose annual revenue is more than $1 billion) comprised 22% of total ARR which grew 46% year-over-year.
•GAAP gross margin was 56%, compared with 53% in the same period last year. Non-GAAP gross margin was 60%, compared with 57% in the same period last year.
•GAAP service margin was 63%, compared with 63% in the same period last year. Non-GAAP service margin was 66%, compared with 66% in the same period last year.
The following information was filed by 8X8 Inc (EGHT) on Thursday, January 28, 2021 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.