8X8 Inc (EGHT) 10-K Annual Report May 2022

CAMPBELL, CA. - May 10, 2022 - 8x8, Inc. (NYSE: EGHT), a leading integrated cloud communications platform provider, today reported financial results for the fourth quarter and fiscal year 2022 ended March 31, 2022.

Fourth Quarter Fiscal 2022 Financial Results:

•Total revenue increased 25% year-over-year to $181.4 million, including Fuze revenue of $24.1 million.

•Service revenue increased 29% year-over-year to $172.8 million, including Fuze revenue of $23.9 million.

•GAAP operating loss was $40.5 million, compared to a GAAP operating loss of $40.0 million in the fourth quarter fiscal 2021.

•Non-GAAP operating profit was $4.2 million, compared to non-GAAP operating profit of $0.6 million in fourth quarter fiscal 2021.

Fiscal 2022 Financial Results:

•Total revenue increased 20% year-over-year to $638.1 million, including Fuze revenue of $24.1 million.

•Service revenue increased 21% year-over-year to $602.4 million, including Fuze revenue of $23.9 million.

•GAAP operating loss was $154.1 million, compared to a GAAP operating loss of $146.1 million in fiscal 2021.

•Non-GAAP operating profit was $10.6 million, or 2% of revenue, compared to a non-GAAP operating loss of $11.1 million in fiscal 2021.

“We improved non-GAAP operating profitability in every quarter of fiscal 2022 and achieved a non-GAAP operating profit for the year,” said Dave Sipes, Chief Executive Officer at 8x8, Inc. “We also made significant progress on our strategic initiatives by strengthening our management team, increasing our enterprise customer base, closing the Fuze acquisition, expanding our global coverage, and accelerating XCaaS innovation.”

“During the fourth quarter, we introduced industry-leading tailored experiences for the modern workplace with 8x8 Agent Workspace for 8x8 Contact Center and 8x8 Conversation IQ. We also extended 8x8 Global Reach, which provides full cloud PSTN support, to 50 countries and territories, including Thailand and Indonesia. Our continued focus on innovation and operational efficiency positions us for long-term success and improved operating results in the future,” Sipes added.

Fourth Quarter Fiscal 2022 Financial Metrics and Recent Business Highlights:

Financial Metrics

•Annual Recurring Subscriptions and Usage (ARR):

◦Total ARR grew to $687 million, an increase of 33% from the end of the same period last year. Total ARR included approximately $113 million acquired through the Fuze transaction.

◦1,320 customers generated ARR greater than $100,000, an increase of 73% from the end of 2021.

•GAAP gross margin was 62%, compared to 58% in the same period last year. Non-GAAP gross margin was 67%, compared to 61% in the same period last year.

•GAAP service margin was 69%, compared to 65% in the same period last year. Non-GAAP service margin was 72%, compared to 67% in the same period last year.

•Cash provided by operating activities was $16.6 million for the fourth quarter, compared to $0.8 million in the fourth quarter of fiscal 2021. For the year, cash provided by operating activities was $34.7 million, compared to $14.1 million cash used by operating activities in fiscal 2021.

The following information was filed by 8X8 Inc (EGHT) on Tuesday, May 10, 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-K Annual 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-K Annual Report:

Revenue - Product Highlight
Revenue Service revenue Service revenue increased for fiscal 2022, as compared to fiscal 2021, primarily due to a net increase in our installed base of mid-market and enterprise customers, expanded deployments by existing customers, growth in related telecom usage by our customers, and our acquisition of Fuze in January 2022, which contributed approximately $23.9 million in service revenue for fiscal 2022.

Financial - Expense Highlight
General and administrative expenses increased in fiscal 2021, as compared to fiscal 2020, primarily due to a $6.4 million increase in stock-based compensation expense, a $5.7 million increase in professional services and payroll and related expenses, including CEO succession costs, a $1.3 million higher allowance for credit losses, partially in response to external market factors and uncertainties in connection with the COVID-19 pandemic, and a $1.8 million increase in depreciation expense.
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 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
Service revenue increased for fiscal 2021, as compared to fiscal 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 sales of standalone and bundled UCaaS and CCaaS deals globally 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, and innovation in product and technology, and through strategic acquisitions of technologies and businesses.
Financial - Expense
Research and development expenses increased...Read more
Financial - Expense
While we expect to continue...Read more
Financial - Shares
We believe that this approach...Read more
Revenue - Geography
We continue to remain in...Read more
Financial - Expense
We expect to continue improving...Read more
Revenue - Product
We continue to focus on...Read more
Financial - Earnings
We focused on key areas...Read more
Financial - Expense
While we expect to continue...Read more
Revenue - Product
SUMMARY AND OUTLOOK In fiscal...Read more
Other - Other
Allowance for Credit Losses We...Read more
Revenue - Product
Service Revenue Recognition Service revenue...Read more
Other - Other
A significant item of objective...Read more
Financial - Expense
Other Expense, Net Other expense,...Read more
Revenue - Product
The increase in service revenue...Read more
Other - Other
These increases were partially offset...Read more
Revenue - Product
Professional services revenue is recognized...Read more
Revenue - Product
Sales and marketing increased slightly...Read more
Financial - Expense
General and administrative General and...Read more
Financial - Expense
With the adoption of ASU...Read more
Other - Other
In an effort to contain...Read more
Revenue - Product
We plan to continue investing...Read more
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We expect our service revenue...Read more
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Research and development as a...Read more
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Acquisitions Acquisitions are accounted for...Read more
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Annualized Recurring Subscriptions and Usage...Read more
Revenue - Product
The following table illustrates our...Read more
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Revenue is recognized when performance...Read more
Other - Other
Our service subscriber base grew...Read more
Other - Other
Our service subscriber base grew...Read more
Financial - Expense
We begin to capitalize our...Read more
Financial - Expense
The change in Other expense,...Read more
Revenue - Product
Other revenue is dependent on...Read more
Other - Other
In fiscal 2019, we launched...Read more
Financial - Expense
Costs incurred prior to meeting...Read more
M & A - Other
Additionally, we looked to drive...Read more
Revenue - Product
The increase in service revenue...Read more
Revenue - Product
The increase in service revenue...Read more
Revenue - Product
Other revenue increased in fiscal...Read more
Financial - Income
These amounts were partially offset...Read more
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Usage fees, when bundled, are...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

8X8 Inc provided additional information to their SEC Filing as exhibits

Exhibit 4.1: Instruments Defining The Rights Of Security Holders, Including Indentures

Exhibit 21.1: Subsidaries Of The Registrant

Exhibit 23.1: Consents Of Experts And Counsel

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-K Annual Report
Accession Number: 0001023731-22-000087
Submitted to the SEC: Fri May 27 2022 4:26:08 PM EST
Accepted by the SEC: Fri May 27 2022
Period: Thursday, March 31, 2022
Industry: Computer Processing And Data Preparation