8X8 Inc (EGHT) 10-Q Quarterly Report February 2022

CAMPBELL, CA. - February 2, 2022 - 8x8, Inc. (NYSE: EGHT), a leading integrated cloud communications platform provider, today reported financial results for the third quarter of fiscal 2022 ended December 31, 2021.

Third Quarter Fiscal 2022 Financial Results:

•Total revenue increased 15% year-over-year to $156.9 million.

•Service revenue increased 18% year-over-year to $149.4 million.

•GAAP operating loss was $37.6 million; Non-GAAP operating profit was $3.1 million.

“We delivered revenue above the high end of our guidance range and achieved non-GAAP operating profitability and positive cash flow from operations for the fourth consecutive quarter. Channel contribution, growth in Enterprise ARR, growth in XCaaS ARR, and adoption of 8x8 Voice for Microsoft Teams demonstrated continued strength in the third quarter,” said Dave Sipes, Chief Executive Officer at 8x8, Inc. “Our investments in XCaaS, channel, and global coverage have us well positioned to achieve our long-term goals of revenue growth and increased profitability.”

Third Quarter Fiscal 2022 Financial Metrics and Business Highlights:

Financial Metrics

•Annualized Recurring Subscriptions and Usage (ARR):

◦Total ARR of $572 million, an increase of 16% from the same period last year.

◦907 enterprise customers with ARR greater than $100,000, compared to 734 customers in the same period last year, an increase of 24% year-over-year.

◦Enterprise ARR growth of 30%, accounting for 54% of total ARR compared to 48% of total ARR at the end of the third quarter of fiscal 2021.

•GAAP gross margin was 62%, compared to 56% in the same period last year. Non-GAAP gross margin was 65%, compared to 60% in the same period last year.

•GAAP service revenue gross margin was 67%, compared to 63% in the same period last year. Non-GAAP service revenue gross margin was 70%, compared to 66% in the same period last year.

•Cash provided by operating activities was $9.0 million, compared to cash used by operating activities of $1.8 million in the third quarter of fiscal 2021.

•Cash, restricted cash, and investments of $260.5 million at December 31, 2021, compared to $161.5 million at March 31, 2021.

Product Innovation Highlights

•Delivered the industry’s first integrated cloud phone and contact center solution that supports the communications and customer engagement requirements of multinational organizations in the Philippines. Increased full PSTN replacement services to 48 countries and territories.

•Announced general availability of 8x8 Work for Web, a browser-based solution for a secure, unified communications and collaboration experience across almost any device and operating system.

•Released advanced enterprise video meeting capabilities, including breakout rooms and detailed meeting summaries.

Industry Recognition

•Named a Leader in the IDC MarketScape: Worldwide Unified Communication and Collaboration 2021 Vendor Assessment.

•Awarded the 2021 CRN Tech Innovator Award for 8x8 XCaaS.

The following information was filed by 8X8 Inc (EGHT) on Wednesday, February 2, 2022 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.

Financial - Expense Highlight
General and administrative 25 Table of Contents General and administrative expenses increased for the three months ended December 31, 2021, as compared to the three months ended December 31, 2020, primarily due to an increase of $5.5 million in acquisition and integration costs related to the Fuze acquisition, $4.5 million in stock-based compensation expense, partially offset by $2.9 million in employee and consulting related expenditures, $0.9 million of allowances for credit losses, and $0.8 million in legal, regulatory and contract termination costs.
Revenue - Product Highlight
Revenue Service revenue Service revenue increased for the three and nine months ended December 31, 2021, as compared to the three and nine months ended December 31, 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.
Financial - Expense Highlight
While we expect to continue to improve our cost structure and achieve operational efficiencies, we expect that research and development expenses will increase in absolute dollars in future periods as we continue to invest in our development efforts.
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.
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While we expect to improve...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 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: 0001023731-22-000034
Submitted to the SEC: Thu Feb 03 2022 4:08:56 PM EST
Accepted by the SEC: Thu Feb 03 2022
Period: Friday, December 31, 2021
Industry: Computer Processing And Data Preparation