8X8 Inc (EGHT) 10-Q Quarterly Report November 2021

CAMPBELL, CA. - November 2, 2021 - 8x8, Inc. (NYSE: EGHT), a leading integrated cloud communications platform provider, today reported financial results for the second quarter of fiscal 2022 ended September 30, 2021.

Second Quarter Fiscal 2022 Financial Results:

•Total revenue increased 17% year-over-year to $151.6 million.

•Service revenue increased 18% year-over-year to $142.4 million.

•GAAP Operating Loss was $37.2 million; Non-GAAP Operating Profit was $1.9 million.

“Our second quarter results demonstrated growing adoption and enterprise demand for our integrated 8x8 XCaaSTM (eXperience Communications as a ServiceTM) solution, as well as significant contribution from our channel partners,” said Dave Sipes, Chief Executive Officer at 8x8, Inc. "We introduced two significant industry advancements. Frontdesk is our first composed experience that transforms the receptionist role by delivering a tailored experience and user interface that uniquely blends traditional UCaaS and CCaaS capabilities. We also announced the industry's first integrated cloud phone and contact center solution for multinational organizations operating in Russia, which expands our Global ReachTM to 46 countries and territories."

“Our leadership has been recognized by industry analysts. We were named a Leader in the 2021 Gartner Magic Quadrant for Unified Communications as a Service, Worldwide, for the tenth consecutive year and we were named a Challenger in the Gartner Magic Quadrant for Contact Center as a Service for the seventh consecutive year," added Sipes.

Second Quarter Fiscal 2022 Financial Metrics and Business Highlights:

Financial Metrics

•Annualized Recurring Subscriptions and Usage (ARR):

◦Total ARR of $553 million, an increase of 18% from the same period last year.

◦871 customers with ARR greater than $100,000, compared to 670 customers in the same period last year, an increase of 30% year-over-year.

•GAAP gross margin was 61%, compared with 56% in the same period last year. Non-GAAP gross margin was 64%, compared with 61% in the same period last year.

•GAAP service revenue gross margin was 67%, compared with 63% in the same period last year. Non-GAAP service revenue gross margin was 69%, compared with 67% in the same period last year.

•Cash provided by operating activities was $5.1 million.

•Cash, restricted cash, and investments of $166.5 million at September 30, 2021, compared to $161.5 million at March 31, 2021.

Product Innovation Highlights

•Introduced 8x8 Frontdesk, a new XCaaS composed experience that provides a great first impression for organizations as they adapt to the hybrid workplace. Frontdesk empowers the receptionist with advanced contact center and UC capabilities within a personalized experience for high volume interactions.

•Delivered the industry’s first integrated cloud phone and contact center solution that supports the communications and customer engagement requirements of multinationals organizations in Russia. Increased full PSTN replacement services to 46 countries and territories.

•Announced enhancements and rapid adoption of the 8x8 Voice for Microsoft Teams solution, surpassing more than 100,000 business users globally.

The following information was filed by 8X8 Inc (EGHT) on Tuesday, November 2, 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.

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

Financial - Expense Highlight
Cost of Service Revenue Cost of service revenue consists primarily of costs associated with network operations and related personnel, technology licenses, amortization of platform related capitalized internal-use software, other communication origination and termination services provided by third-party carriers and outsourced customer service call center operations, and other costs such as customer service, and technical support costs.

Revenue - Product Highlight
Revenue Service revenue Service revenue increased for the three and six months ended September 30, 2021, as compared to the three and six months ended September 30, 2020, primarily due to a net increase in our customer base, expanded offerings to existing customers, and growth in related usage; service revenue from new customers was primarily driven by global sales of XCaaS, and our standalone UCaaS and CCaaS offerings to our mid-market and enterprise customers.
Revenue - Product Highlight
We plan to continue driving 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 acquisitions of technologies and businesses.
Other - Other Highlight
NEW ACCOUNTING PRONOUNCEMENTS For a discussion of recently adopted accounting pronouncements and recent accounting pronouncements not yet adopted, refer to Note 2, Summary of Significant Accounting Policies, in the Notes to Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report.
Financial - Expense Highlight
22 Table of Contents Operating Expenses Research and development Research and development expenses increased for the three months ended September 30, 2021, as compared to the three months ended September 30, 2020, primarily due to increases of: $3.5 million from the reduction in the amount of internal-use software costs capitalized and amortization of capitalized internal-use software; $2.3 million in employee and consulting related expenditures; $1.2 million in stock-based compensation expense; and $0.8 million in public cloud expenses.
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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: 0001023731-21-000243
Submitted to the SEC: Wed Nov 03 2021 4:30:14 PM EST
Accepted by the SEC: Wed Nov 03 2021
Period: Thursday, September 30, 2021
Industry: Computer Processing And Data Preparation