Slide 1: May 12, 2020
May 12, 2020 © 8x8, Inc. All Rights Reserved.
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. These statements relate to the release of new products, market demand for products, chan
Slide 3: Experience the new speed of business with 8x8
Experience the new speed of business with 8x8 NYSE: EGHT 1,600+ Employees in 8 Countries 1+ million business users in 150+ countries Guaranteed call reliability, quality Leading security and compliance Global capabilities Proven, trusted partner 8x8 Fiscal Q4 2020 Earnings Results 3 © 8x8, Inc. All
Slide 4: Financial Results vs. Guidance | Q4 Fiscal 2020
Financial Results vs. Guidance | Q4 Fiscal 2020 Q4 F2020 Guidance Results (February 4, 2020) (May 12, 2020) Total Revenue $118.9 - 119.4m $121.5m % Growth Y/Y 27% 29.6% Service Revenue* $114.4 – 114.9m $116.0m % Growth Y/Y 28-29% 30.2% Pre-Tax Loss (Non-GAAP) (~$14.1m) ($12.7m) * Guidance and result
Slide 5: Financial Results vs. Guidance | Full-Year Fiscal 2020
Financial Results vs. Guidance | Full-Year Fiscal 2020 Full-Year Fiscal 2020 Guidance Results (February 4, 2020) (May 12, 2020) Total Revenue ~$444m $446.2m % Growth Y/Y ~26% 26.6% Service Revenue* ~$425m $426.5m % Growth Y/Y ~27% 27.5% Pre-Tax Loss (Non-GAAP) (~$60m) ($58.6m) * Guidance and results
Slide 6: Q4 Fiscal 2020 | Business Highlights
Q4 Fiscal 2020 | Business Highlights Strong and Growing Large Deals With Annual Recurring Revenue (ARR) Greater than $100,000: • 611 customers with Annual Recurring Revenue (ARR) greater than $100,000, 50% year-over-year growth • Closed record 42 new customer deals with ARR > $100,000. These deals r
Slide 7: Q4 Fiscal 2020 | Business Highlights (continued ...)
Q4 Fiscal 2020 | Business Highlights (continued ...) Continued Contact Center Traction with Customer: • All top 10 deals were bundled deals • Contact center bookings represented 30% of total new bookings and grew 76% year-over-year Channel Momentum: • Channel Bookings grew 63% year-over-year and rep
Slide 8: New Bookings | Customers >$100K ARR
New Bookings | Customers >$100K ARR (Annual Recurring Revenue*) # of Customers (cumulative) % of New Bookings 41% 592 611 35% 34% 536 33% 31% 449 408 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 *Annual Recurring Revenue (ARR) = annualized subscription revenue and the annualized platform usage
Slide 9: Annual Recurring Revenue (ARR) | By Customer Size
Annual Recurring Revenue (ARR*) | By Customer Size Total ARR Growth of +34% YOY with Strong Growth & Contribution From Mid-Market & Enterprise Customers +79% COMBINED yoy growth 17% MID-MARKET ENTERPRISE +16% AND yoy growth ENTERPRISE 54% +63% SMALL +55% BUSINESS ARR By Customer Size** yoy growth yo
Slide 10: Revenue | Strong Continued Increases
Revenue | Strong Continued Increases ($ in millions) Total Revenue Service Revenue* $121.5 $118.6 $110.4 $112.5 $109.5 $101.3 $96.7 7% 7% $93.8 $86.6 $89.8 8% 8% 7% 93% 93% 92% 92% 93% 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 Service Revenue Other Revenue * Post-reclassification of Professi
Slide 11: Revenue Per Customer | Increasingly Attractive Economics
Revenue Per Customer | Increasingly Attractive Economics Consistent Increases in Unit Level Customer Economics ... With Particular Strength in Larger Customers Mid-Market Enterprise $177 $174 $42 $43 $167 $40 $35 $37 $151 $138 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 Average Annual Service
Slide 12: Gross Margin | Recurring Non-GAAP Margins
Gross Margin | Recurring Non-GAAP Margins* 76.0% 74.4% 66.2% 67.9% 66.4% 66.7% 64.2% Reclassifying 58.4% 56.7% 58.0% Professional Services from Service Revenue yielded a 500 bps improvement to Service Revenue Margin in Q4’20 Provides greater visibility into core Service Revenue Margin going forward
Slide 13: Single Technology Platform | 8x8 R&D Innovation
Single Technology Platform | 8x8 R&D Innovation Strong Continued Innovation With Large Total R&D Investment ($ in millions) 19.0% $21.8 $21.8 $21.4 $21.5 TOTAL FY20 $20.3 R&D $7.4 $7.3 $6.6 $8.4 INVESTMENT $8.8 E:R RATIO 34% 7.0% FY20 34% 36% 33% 31% CAPITALIZED 39% COSTS 43% (% Revenue) $14.3 $14.5
Slide 14: Guidance | Q1 Fiscal 2021
Guidance | Q1 Fiscal 2021 Q1 F2021 Guidance (May 12, 2020) Total Revenue $120.0 – 121.0m % Growth Y/Y 24-25% Service Revenue* $112.5 – 113.5m % Growth Y/Y 25-26% Pre-Tax Loss (Non-GAAP) (~$12.0m) * On a post-reclassification basis excluding Professional Services. Historical reporting of Service Reve
Slide 15: 8x8 Technology Platform
8x8 Technology Platform Customers Prof Services Developers ASPs UCaaS CCaaS VCaaS CPaaS Programmable APIs Programmable Platform Voice Integrations Contact Center IVR Video Messaging ● Quality Management ● callstats.io ● Speech Analytics ● Intelligent IVR ANALYTICS ● Data Analytics ● Virtual Agent UN
Slide 16: Empower Engagement Across All Communication Channels
Empower Engagement Across All Communication Channels SMS Chat Apps Video Interaction Voice Use SMS API & Programmatically send Redefine the customer Generate interactive Campaign Manager richer messages and experience by text-to-speech (TTS) to send messages to content to users of integrating video
Slide 17: Introducing 8x8 Meetings Pro
Introducing 8x8 Meetings Pro Freemium/Premium X Series Jitsi.org, is a 100% open source video conferencing project acquired by 8x8 in Oct 2018. Its foundation is a codebase that’s been Jitsi Meet 8x8 Meetings 8x8 Meetings 8x8 Meetings hardened by millions of downloads and Free Free Pro (bundled) imp
Slide 18: Channel Partner Program
Channel Partner Program VAR (Value Added Master Agent Sub-Agent Reseller) Company that adds features or Company that partners with Company that sells a variety of services to an existing product tech firms to provide solutions Definition technology solutions “as-is” to and resells it as an integrate
Slide 19: CloudFuel VAR Program with ScanSource & Poly
CloudFuel VAR Program with ScanSource & Poly 8x8 Fiscal Q4 2020 Earnings Results 19 © 8x8, Inc. All Rights Reserved.
Slide 20: Awards and Recognition
Awards and Recognition Gartner UCaaS Magic TMC’s CUSTOMER Magazine 2019 CRN Tech Innovator Award Quadrant Leader Customer Experience Innovation for 8x8 X Series Gartner, 2012-2019 Award - 8x8 Contact Center 2018 CRN Tech Innovator Award Gartner CCaaS Magic Internet Telephony Magazine - AVANT Special
Slide 21: Investment Highlights
Investment Highlights Compelling TAM Attractive Economics $60+ billion market in early innings solid customer land and expand of cloud migration Unique Tech Platform Strong SaaS Model single cloud technology platform subscription revenue and visibility Complete Cloud Offering Multiple Growth Drivers
Slide 22: Thank you.
Thank you. 8x8 Fiscal Q4 2020 Earnings Results 22 © 8x8, Inc. All Rights Reserved.
Slide 23: Reconciliation of GAAP to Non-GAAP | Cost of Service Revenue
Reconciliation of GAAP to Non-GAAP | Cost of Service Revenue ($ in thousands, Unaudited) Three Months Ended March 31, Cost of Service Revenue: 2020 2019 GAAP cost of service revenue $43,114 $23,163 Amortization of acquired intangible assets ($1,818) ($1,310) Stock-based compensation expense and rela
Slide 24: Reconciliation of GAAP to Non-GAAP | Cost of Other Revenue
Reconciliation of GAAP to Non-GAAP | Cost of Other Revenue ($ in thousands, Unaudited) Three Months Ended March 31, Cost of Other Revenue: 2020 2019 GAAP cost of other revenue $14,507 $11,430 Stock-based compensation expense and related taxes ($728) ($499) Severance and related termination costs ($2
Slide 25: Reconciliation of GAAP to Non-GAAP | Research & Development
Reconciliation of GAAP to Non-GAAP | Research & Development ($ in thousands, Unaudited) Three Months Ended March 31, Research & Development Expense: 2020 2019 GAAP research and development $20,155 $18,064 Stock-based compensation expense and related taxes ($5,856) ($3,726) Acquisition and integratio
Slide 26: Reconciliation of GAAP to Non-GAAP | Sales and Marketing
Reconciliation of GAAP to Non-GAAP | Sales and Marketing ($ in thousands, Unaudited) Three Months Ended March 31, Sales and Marketing Expense: 2020 2019 GAAP sales and marketing $65,420 $49,525 Amortization of acquired intangible assets ($875) ($314) Stock-based compensation expense and related taxe
Slide 27: Reconciliation of GAAP to Non-GAAP | General and Administrative
Reconciliation of GAAP to Non-GAAP | General and Administrative ($ in thousands, Unaudited) Three Months Ended March 31, General and Administrative Expenses: 2020 2019 GAAP general and administrative $24,436 $19,010 Stock-based compensation expense and related taxes ($5,832) ($4,098) Acquisition and
Slide 28: Reconciliation of GAAP to Non-GAAP | Net Loss / Per Share
Reconciliation of GAAP to Non-GAAP | Net Loss / Per Share ($ in thousands, Unaudited) Three Months Ended March 31, GAAP Net Loss: 2020 2019 GAAP net loss ($50,100) ($28,131) Adjustments: Amortization of acquired intangible assets $2,693 $1,624 Stock-based compensation expense and related taxes $19,7
Slide 29: Reclassification | Non-GAAP Financial Measures
Reclassification | Non-GAAP Financial Measures ($ in thousands, Unaudited) 8x8 Fiscal Q4 2020 Earnings Results 29 © 8x8, Inc. All Rights Reserved.
Slide 30: Reclassification | Non-GAAP Financial Measures
Reclassification | Non-GAAP Financial Measures ($ in thousands, Unaudited) 8x8 Fiscal Q4 2020 Earnings Results 30 © 8x8, Inc. All Rights Reserved.
Slide 31: For tips, updates and the latest information.
For tips, updates and the latest information. 8x8.com @8x8 facebook.com/8x8Inc linkedin.com/company/8x8 youtube.com/8x8Inc © 8x8, Inc. All rights reserved. Unless otherwise specified, all trademarks identified by the ®, ™, or SM are registered trademarks, trademarks, or services marks respectively o