Latest news with #EGHT
Yahoo
20-05-2025
- Business
- Yahoo
8x8 Inc (EGHT) Q4 2025 Earnings Call Highlights: Strong Service Revenue Growth Amid Challenging ...
Total Revenue: $177 million, near the midpoint of guidance. Service Revenue: $171.6 million, near the midpoint of guidance. 8x8 Standalone Service Revenue Growth: 4.6% year-over-year growth in Q4, 2.8% for fiscal 2025. Gross Margin: 69%, at the low end of guidance range. Operating Margin: 10%, at the high end of guidance range. Operating Cash Flow: $5.9 million in Q4; $63.6 million for fiscal year 2025. Debt Reduction: Over $209 million reduced since August 2022 peak. Cash and Cash Equivalents: $89.3 million at the end of Q4. Net Debt to EBITDA Ratio: Approximately 2.7 times. Stock-Based Compensation: 4.6% of total revenue, a multi-year low. Guidance for Fiscal Q1 '26: Service revenue between $170 million and $175 million; total revenue between $175 million and $182 million; non-GAAP operating margin between 9% and 9.5%. Guidance for Fiscal Year 2026: Service revenue between $682 million and $702 million; total revenue between $702 million and $724 million; operating margin between 9% and 10%. Warning! GuruFocus has detected 5 Warning Signs with EGHT. Release Date: May 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. 8x8 Inc (NASDAQ:EGHT) reported a year-over-year growth in service revenue, excluding Fuze, of 4.6% in Q4, marking the highest growth rate in 10 quarters. The company achieved its highest two-year cash flow from operations, exceeding half of its market capitalization. There was a 13% year-over-year increase in customers with three or more products, indicating successful cross-selling and new customer acquisition. Strong momentum was observed in sales of Microsoft Teams integrations, with new license sales up 72% in Q4. 8x8 Inc (NASDAQ:EGHT) made substantial progress in upgrading customers from the Fuze platform, expecting full transition by the end of the calendar year. The economic environment remains challenging, with global uncertainties and tariff actions impacting market dynamics. The company is still navigating the transition of Fuze customers, which poses a risk of revenue loss during the migration process. Gross margin was at the low end of guidance due to a revenue mix shift towards lower-margin platform usage revenue. There is ongoing pressure on non-GAAP operating margins due to investments in growth and innovation. The macroeconomic environment has led to elongated deal cycles and shrinking deal sizes, affecting sales performance. Q: Can you share insights on the macro impact from your field reps and partners? Are there delays in sales cycles or spending? A: Samuel Wilson, CEO: In March and April, we noticed chaos in the US with elongated deal cycles and shrinking deal sizes. However, May has been calmer. The rest of the world seems to be chugging along unaffected by US dynamics. Q: What remains to be addressed in your go-to-market strategy, and can you provide adjusted service revenue growth for fiscal '26 excluding Fuze? A: Samuel Wilson, CEO: We are about 60-70% through our go-to-market transformation, focusing on solution selling. Kevin Kraus, CFO: Excluding Fuze, we expect positive growth next year as headwinds diminish. Q: How do you plan to achieve high single-digit growth, and what factors are driving this? A: Samuel Wilson, CEO: Growth is driven by internal factors like increased multi-product customers, new product sales, and improved go-to-market execution. We don't rely on market changes for growth. Q: Why are you winning in the CCaaS space, and how is your performance in the APAC region? A: Samuel Wilson, CEO: We offer a complete solution with best-in-breed technology from a single vendor, appealing to mid-market enterprises. In APAC, our CCaaS continues to perform well, supported by strong VAR and reseller networks. Q: What is your focus now that you've improved the balance sheet and expense structure? A: Samuel Wilson, CEO: Our focus is on returning to growth by accelerating the shutdown of Fuze and investing in CCaaS and distribution improvements for fiscal '27 and '28. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
8x8 Inc (EGHT) Q4 2025 Earnings Call Highlights: Strong Service Revenue Growth Amid Challenging ...
Total Revenue: $177 million, near the midpoint of guidance. Service Revenue: $171.6 million, near the midpoint of guidance. 8x8 Standalone Service Revenue Growth: 4.6% year-over-year growth in Q4, 2.8% for fiscal 2025. Gross Margin: 69%, at the low end of guidance range. Operating Margin: 10%, at the high end of guidance range. Operating Cash Flow: $5.9 million in Q4; $63.6 million for fiscal year 2025. Debt Reduction: Over $209 million reduced since August 2022 peak. Cash and Cash Equivalents: $89.3 million at the end of Q4. Net Debt to EBITDA Ratio: Approximately 2.7 times. Stock-Based Compensation: 4.6% of total revenue, a multi-year low. Guidance for Fiscal Q1 '26: Service revenue between $170 million and $175 million; total revenue between $175 million and $182 million; non-GAAP operating margin between 9% and 9.5%. Guidance for Fiscal Year 2026: Service revenue between $682 million and $702 million; total revenue between $702 million and $724 million; operating margin between 9% and 10%. Warning! GuruFocus has detected 5 Warning Signs with EGHT. Release Date: May 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. 8x8 Inc (NASDAQ:EGHT) reported a year-over-year growth in service revenue, excluding Fuze, of 4.6% in Q4, marking the highest growth rate in 10 quarters. The company achieved its highest two-year cash flow from operations, exceeding half of its market capitalization. There was a 13% year-over-year increase in customers with three or more products, indicating successful cross-selling and new customer acquisition. Strong momentum was observed in sales of Microsoft Teams integrations, with new license sales up 72% in Q4. 8x8 Inc (NASDAQ:EGHT) made substantial progress in upgrading customers from the Fuze platform, expecting full transition by the end of the calendar year. The economic environment remains challenging, with global uncertainties and tariff actions impacting market dynamics. The company is still navigating the transition of Fuze customers, which poses a risk of revenue loss during the migration process. Gross margin was at the low end of guidance due to a revenue mix shift towards lower-margin platform usage revenue. There is ongoing pressure on non-GAAP operating margins due to investments in growth and innovation. The macroeconomic environment has led to elongated deal cycles and shrinking deal sizes, affecting sales performance. Q: Can you share insights on the macro impact from your field reps and partners? Are there delays in sales cycles or spending? A: Samuel Wilson, CEO: In March and April, we noticed chaos in the US with elongated deal cycles and shrinking deal sizes. However, May has been calmer. The rest of the world seems to be chugging along unaffected by US dynamics. Q: What remains to be addressed in your go-to-market strategy, and can you provide adjusted service revenue growth for fiscal '26 excluding Fuze? A: Samuel Wilson, CEO: We are about 60-70% through our go-to-market transformation, focusing on solution selling. Kevin Kraus, CFO: Excluding Fuze, we expect positive growth next year as headwinds diminish. Q: How do you plan to achieve high single-digit growth, and what factors are driving this? A: Samuel Wilson, CEO: Growth is driven by internal factors like increased multi-product customers, new product sales, and improved go-to-market execution. We don't rely on market changes for growth. Q: Why are you winning in the CCaaS space, and how is your performance in the APAC region? A: Samuel Wilson, CEO: We offer a complete solution with best-in-breed technology from a single vendor, appealing to mid-market enterprises. In APAC, our CCaaS continues to perform well, supported by strong VAR and reseller networks. Q: What is your focus now that you've improved the balance sheet and expense structure? A: Samuel Wilson, CEO: Our focus is on returning to growth by accelerating the shutdown of Fuze and investing in CCaaS and distribution improvements for fiscal '27 and '28. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
8x8: Fiscal Q4 Earnings Snapshot
CAMPBELL, Calif. (AP) — CAMPBELL, Calif. (AP) — 8x8 Inc. (EGHT) on Monday reported a loss of $5.4 million in its fiscal fourth quarter. On a per-share basis, the Campbell, California-based company said it had a loss of 4 cents. Earnings, adjusted for stock option expense and severance costs, were 8 cents per share. The results met Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was also for earnings of 8 cents per share. The telecommunications services company posted revenue of $177 million in the period, which did not meet Street forecasts. Three analysts surveyed by Zacks expected $178 million. For the year, the company reported a loss of $27.2 million, or 21 cents per share. Revenue was reported as $715.1 million. For the current quarter ending in June, 8x8 expects its per-share earnings to range from 7 cents to 9 cents. The company said it expects revenue in the range of $175 million to $182 million for the fiscal first quarter. 8x8 expects full-year earnings in the range of 34 cents to 37 cents per share, with revenue ranging from $702 million to $724 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on EGHT at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
8x8: Fiscal Q4 Earnings Snapshot
CAMPBELL, Calif. (AP) — CAMPBELL, Calif. (AP) — 8x8 Inc. (EGHT) on Monday reported a loss of $5.4 million in its fiscal fourth quarter. On a per-share basis, the Campbell, California-based company said it had a loss of 4 cents. Earnings, adjusted for stock option expense and severance costs, were 8 cents per share. The results met Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was also for earnings of 8 cents per share. The telecommunications services company posted revenue of $177 million in the period, which did not meet Street forecasts. Three analysts surveyed by Zacks expected $178 million. For the year, the company reported a loss of $27.2 million, or 21 cents per share. Revenue was reported as $715.1 million. For the current quarter ending in June, 8x8 expects its per-share earnings to range from 7 cents to 9 cents. The company said it expects revenue in the range of $175 million to $182 million for the fiscal first quarter. 8x8 expects full-year earnings in the range of 34 cents to 37 cents per share, with revenue ranging from $702 million to $724 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on EGHT at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
3 Cash-Producing Stocks in Dangerous Territory
While strong cash flow is a key indicator of stability, it doesn't always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning. Not all companies are created equal, and StockStory is here to surface the ones with real upside. That said, here are three cash-producing companies to steer clear of and a few better alternatives. Trailing 12-Month Free Cash Flow Margin: 7.8% Founded in 1987, 8x8 (NYSE:EGHT) provides software for organizations to efficiently communicate and collaborate with their customers, employees, and partners. Why Do We Pass on EGHT? Offerings couldn't generate interest over the last year as its billings have averaged 2.1% declines Projected sales are flat for the next 12 months, implying demand will slow from its three-year trend Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue 8x8's stock price of $1.94 implies a valuation ratio of 0.4x forward price-to-sales. To fully understand why you should be careful with EGHT, check out our full research report (it's free). Trailing 12-Month Free Cash Flow Margin: 9.1% Founded in 1965, Universal Technical Institute (NYSE: UTI) is a leading provider of technical training programs, specializing in automotive, diesel, collision repair, motorcycle, and marine technicians. Why Do We Think UTI Will Underperform? Subpar operating margin of 7.8% constrains its ability to invest in process improvements or effectively respond to new competitive threats Free cash flow margin is forecasted to shrink by 1.7 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors ROIC of 9.2% reflects management's challenges in identifying attractive investment opportunities At $33.15 per share, Universal Technical Institute trades at 15.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including UTI in your portfolio, it's free. Trailing 12-Month Free Cash Flow Margin: 19.2% With roots dating back to 1946 and a focus on components that must perform flawlessly in critical situations, Knowles (NYSE:KN) designs and manufactures specialized electronic components like high-performance capacitors, microphones, and speakers for medical technology, defense, and industrial applications. Why Do We Steer Clear of KN? Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.2% annually over the last four years Projected sales decline of 7.2% over the next 12 months indicates demand will continue deteriorating Flat earnings per share over the last five years underperformed the sector average Knowles is trading at $17.25 per share, or 15.6x forward P/E. Dive into our free research report to see why there are better opportunities than KN. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
