8x8 Inc · NASDAQ:EGHT
8x8 — Q3 FY2021 Earnings Presentation
24 slides from 8x8's earnings presentation, Jan 28, 2021
Slide 1: Earnings Results Third Quarter Fiscal 2021
Earnings Results Third Quarter Fiscal 2021 (Ended December 31, 2020) January 28, 2021 © 8x8, Inc. All Rights Reserved.
Slide 2: Forward Looking Statements; Non-GAAP Measures
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: 8x8 - A Leader in Cloud Communications Services
8x8 - A Leader in Cloud Communications Services CoCen gs About 8x8 Inc. tin nt te ● Video conferencing Voice ac ● Routing ee ● 1,600+ employees ● Voice conferencing t ● Analytics M M r e ● 15 offices in 8 countries ● Co-browse / screen ● Workforce Engagement o ss de ag share ● AI/Automation & Assist
Slide 4: Financial Results vs. Guidance | Q3 Fiscal 2021
Financial Results vs. Guidance | Q3 Fiscal 2021 Q3 F2021 Guidance Results (October 28, 2020) (January 28, 2021) Total Revenue $132.0 – 133.0m $136.7m % Growth Y/Y 11-12% 15.3% Service Revenue $124.0 – 125.0m $127.1m % Growth Y/Y 12-13% 15.2% Pre-Tax Loss (Non-GAAP) (~$3.0m) ($1.9m) 8x8 Fiscal Q3 202
Slide 5: Q3 Fiscal 2021 | Business Highlights
Q3 Fiscal 2021 | Business Highlights Strong and Growing Large Deals With Annual Recurring Revenue (ARR) Greater than $100,000: • 734 customers with Annual Recurring Revenue (ARR) > $100,000, 24% year-over-year growth • Closed record 53 new customer deals with ARR > $100,000, 33% year-over-year growt
Slide 6: Q3 Fiscal 2021 | Business Highlights (continued ...)
Q3 Fiscal 2021 | Business Highlights (continued ...) Product Highlights: • Contact center new bookings grew 33% year-over-year and represented 31% of total new bookings • Included in Microsoft’s Connected Contact Center for Microsoft Teams Certification program, integrating seamlessly with 8x8 Voice
Slide 7: Q3 Fiscal 2021 | Business Highlights (continued ...)
Q3 Fiscal 2021 | Business Highlights (continued ...) Channel Momentum: • Channel Bookings grew 64% year-over-year and represented 64% of new bookings • 8 of top 10 new bookings from channel partners • 1,139 active channel partners, 28% year-over-year growth Industry Recognition: • Named Leader in th
Slide 8: New Bookings | Customers >$100K ARR
New Bookings | Customers >$100K ARR # of Customers (cumulative) % of New Bookings 734 43% 670 42% 39% 592 611 606 33% 34% 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 Annual Recurring Revenue (ARR) = annualized subscription revenue and the annualized platform usage revenue for all CPaaS custome
Slide 9: ARR | By Customer Size
ARR | By Customer Size Total ARR Growth of +20% YOY with Strong Growth & Contribution From Mid-Market & Enterprise Customers +46% COMBINED yoy growth 22% MID-MARKET AND ENTERPRISE +12% ENTERPRISE yoy growth 52% +31% +21% SMALL BUSINESS ARR By Customer Size yoy growth yoy growth 26% (based on company
Slide 10: Revenue | Strong Continued Increases
Revenue | Strong Continued Increases ($ in millions) Total Revenue Service Revenue $129.1 $136.7 $121.8 $127.1 $118.6 $121.5 7% 6% 7% 7% 6% $120.9 $114.2 $112.5 94% 94% 93% $110.4 93% 93% 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 Service Revenue Other Revenue 8x8 Fiscal Q3 2021 Earnings Resu
Slide 11: Revenue Per Customer | Increasingly Attractive Economics
Revenue Per Customer | Increasingly Attractive Economics Unit Level Customer Economics ... With Particular Strength in Larger Customers Mid-Market Enterprise $185 $177 $174 $173 $51 $167 $42 $43 $42 $45 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 Average Annual Service Revenue Per Customer (in
Slide 12: Gross Margin | Non-GAAP Margins
Gross Margin | Non-GAAP Margins* 67.7% 66.4% 66.7% 66.8% 66.0% 61.3% 60.9% 59.6% 58.0% 56.7% 3Q20 4Q20 1Q21 2Q21 3Q21 Gross Margin Service Margin * For a reconciliation of GAAP to Non-GAAP metrics, refer to the Appendix for additional information. Post-reclassification of Professional Services for a
Slide 13: Single Technology Platform | 8x8 R&D Innovation
Single Technology Platform | 8x8 R&D Innovation Strong Continued Innovation With Large Total R&D Investment ($ in millions) $22.4 15.6% $21.5 $20.8 $21.4 3Q21 R&D $20.3 $8.1 $8.4 $6.7 INVESTMENT $8.8 $8.1 (% of Revenue) 34% 31% 39% 36% 4.9% 39% 3Q21 CAPITALIZED 43% 36% COSTS (% of Revenue) $14.3 $14
Slide 14: Guidance | Q4 and Full-Year Fiscal 2021
Guidance | Q4 and Full-Year Fiscal 2021 Q4 F2021 FY F2021 Ending March 31, 2021 Ending March 31, 2021 Total Revenue $138.5 – 140.5m $526.1 – 528.1m % Growth Y/Y 14-16% 18% Service Revenue $130.8 – 131.8m $493.0 – 494.0m % Growth Y/Y 16-17% 19% Pre-Tax Loss (Non-GAAP) (~$0.8m) (~$13.7m) Guidance as o
Slide 15: Investment Highlights
Investment Highlights Compelling TAM Attractive Economics $60+ billion market in early innings solid customer land and expand of cloud migration Unique Tech Platform Strong SaaS Model single cloud technology platform subscription revenue and visibility Complete Cloud Offering Multiple Growth Drivers
Slide 16: Thank you.
Thank you. 8x8 Fiscal Q3 2021 Earnings Results 16 © 8x8, Inc. All Rights Reserved.
Slide 17: Appendix
APPENDIX 8x8 Fiscal Q3 2021 Earnings Results 17 © 8x8, Inc. All Rights Reserved.
Slide 18: Reconciliation of GAAP to Non-GAAP | Cost of Service Revenue
Reconciliation of GAAP to Non-GAAP | Cost of Service Revenue ($ in thousands, Unaudited) Three Months Ended December 30, Cost of Service Revenue: 2020 2019 GAAP cost of service revenue $47,044 $40,786 Amortization of acquired intangible assets (1,192) (1,803) Stock-based compensation expense and rel
Slide 19: Reconciliation of GAAP to Non-GAAP | Cost of Other Revenue
Reconciliation of GAAP to Non-GAAP | Cost of Other Revenue ($ in thousands, Unaudited) Three Months Ended December 30, Cost of Other Revenue: 2020 2019 GAAP cost of other revenue $13,364 $15,433 Stock-based compensation expense and related taxes (1,196) (903) Acquisition and integration costs — (6)
Slide 20: Reconciliation of GAAP to Non-GAAP | Research and Development
Reconciliation of GAAP to Non-GAAP | Research and Development ($ in thousands, Unaudited) Three Months Ended December 30, Research and Development Expense: 2020 2019 GAAP research and development $23,702 $19,870 Stock-based compensation expense and related taxes (8,525) (6,236) Acquisition and integ
Slide 21: Reconciliation of GAAP to Non-GAAP | Sales and Marketing
Reconciliation of GAAP to Non-GAAP | Sales and Marketing ($ in thousands, Unaudited) Three Months Ended December 30, Sales and Marketing Expense: 2020 2019 GAAP sales and marketing $63,986 $63,099 Amortization of acquired intangible assets (343) (519) Stock-based compensation expense and related tax
Slide 22: Reconciliation of GAAP to Non-GAAP | General and Administrative
Reconciliation of GAAP to Non-GAAP | General and Administrative ($ in thousands, Unaudited) Three Months Ended December 30, General and Administrative Expenses: 2020 2019 GAAP general and administrative $23,844 $22,547 Stock-based compensation expense and related taxes (5,661) (7,010) Acquisition an
Slide 23: Reconciliation of GAAP to Non-GAAP | Net Loss / Per Share
Reconciliation of GAAP to Non-GAAP | Net Loss / Per Share ($ in thousands, Unaudited) Three Months Ended December 30, Net Loss: 2020 2019 GAAP net loss ($40,225) ($47,071) Adjustments: Amortization of acquired intangible assets 1,535 2,322 Stock-based compensation expense and related taxes 27,485 21
Slide 24: 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