Slide 1: First Quarter FY 2024
First Quarter FY 2024 Ended June 30, 2023 August 8, 2023 One platform. Every communications experience. Copyright 2023 8x8, Inc. or its affiliates. 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. Any statements that are not statements of historical fact may be deemed to be forward-lo
Slide 3: Overview
Overview Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 4: 8x8 By the Numbers - Q1 Fiscal 2024
8x8 By the Numbers - Q1 Fiscal 2024 $703M 41% One platform Global coverage 8x8 Voice for MS Teams Total ARR(1) XCaaS as a % of total ARR(1) 3M+ 58% 350K+ Paid business licenses Enterprise ARR as a % of total ARR(1)(2) Single, all-in-one Full PSTN Industry-leading 60K+ 60% platform for UCaaS, CCaaS,
Slide 5: Recent product innovation highlights
Recent product innovation highlights ● Enhanced 8x8 Intelligent Customer Assistant for 8x8 Contact Center, a powerful, user-friendly conversational AI self-service solution that enables businesses to create simple to complex self-service experiences across all channels. ● Announced the 8x8 Technolog
Slide 6: Recent industry recognition
Recent industry recognition Silver Stevie Awards for TrustRadius 2023 Top Rated Top 5 provider in 2023 Contact Customer Service Executive of Awards for 8x8 Contact Center Center as-a-Service MetriRank the Year and Customer Service & 8x8 Work in the categories of Report Department of the Year at The
Slide 7: Recent industry recognition
Recent industry recognition UCaaS CCaaS VoIP 8x8 has been recognized across our XCaaS platform in 12 different categories in the G2 Summer 2023 Awards Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 8: Q1 FY 2024 leadership appointments
Q1 FY 2024 leadership appointments Samuel Wilson, CEO Kevin Kraus, CFO Lisa Martin CRO Appointed Samuel Wilson as Chief Appointed Kevin Kraus as Chief Appointed Lisa Martin as Chief Executive Officer and member of Financial Officer. Previously 8x8’s Revenue Officer. Martin is a the Company’s Board of D
Slide 9: Communications for the Customer Obsessed
Communications for the Customer Obsessed Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 10: Customer obsessed organizations make CX a competitive advantage
Customer obsessed organizations make CX a competitive advantage Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 11: Customer obsessed organizations
Customer obsessed organizations Shift the mindset and recognize customer experience as a business accelerator Focus relentlessly on the customer experience in every interaction, across every channel Empower every employee to deliver an exceptional customer experience with the right tools Use AI and
Slide 12: XCaaS brings customer obsession to life
XCaaS brings customer obsession to life Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 13: 8x8 XCaaS empowers all employees globally
8x8 XCaaS empowers all employees globally Revenue opportunity: Crossover Users >2x CC Customer 3-5x Standalone voice Support Inside Sales Informal queues IT Admin & Supervisors Frontdesk Knowledge Worker + Omnichannel CC Shared use 10% of users Voice only + “Crossover” CX Tools & Visibility 40-50% o
Slide 14: Health First customer story
Health First is Central Florida's only fully integrated health system. With a mission to positively change the health & wellness of the communities they serve, Health First offers the latest technological advances and quality care at its four hospitals and through Outpatient & Wellness Services, as
Slide 15: Horizon Hobby customer story
Horizon Hobby, LLC. is an American international hobby product distributor that manufactures hobby-grade radio-controlled models, as well as Athearn model trains and die-cast models, which it sells direct to consumers as well as to hobby retailers. 8x8 Solutions 8x8 XCaaS with Contact Center & Voice
Slide 16: Sotheby's customer story
Established in 1744, Sotheby’s is the world’s premier destination for art and luxury. Sotheby’s promotes access, connoisseurship and preservation of fine art and rare objects through auctions and buy-now channels. 8x8 Solutions 8x8 UCaaS with Voice for Microsoft Teams Supporting over 2100 employees g
Slide 17: United Musculoskeletal Partners customer story
United Musculoskeletal Partners aligns and connects with best-in-class physician-owned orthopedic practices to deliver exceptional clinical care to patients around the country. One of its practices, Panorama Orthopedics and Spine Center, has been an 8x8 customer since March 2022. 8x8 Solutions 8x8 X
Slide 18: NexGen Virtual Office customer story
NexGen Virtual Office offers an all-in-one digital workplace solution with a unified digital office framework that can be customized and branded for distributed teams and schools. 8x8 Solutions 8x8 CPaaS (Jitsi as a Service, SMS) Why 8x8? Easy to deploy secure HD video meeting platform Extremely good t
Slide 19: Sovereign Housing customer story
Sovereign Housing is a leading housing association, striving to provide quality, affordable homes in happy, successful places. They have deep roots in the south of England, with over 60,000 homes. 8x8 Solutions 8x8 XCaaS with Contact Center & Voice for Microsoft Teams and CPaaS (SMS, Video) Supporti
Slide 20: Housing Association Resident Customer Journey BEFORE
REPRESENTATIVE Housing Association Resident Customer Journey BEFORE Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 21: Housing Association Resident Customer Journey AFTER
REPRESENTATIVE Housing Association Resident Customer Journey AFTER Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 22: Q1 Fiscal 2024 Financial Performance
Q1 Fiscal 2024 Financial Performance Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 23: Financial Strength
Financial Strength KEY FINANCIAL STATS KEY BUSINESS STATS $139M 10 ~1,300 Cash and investments1 Consecutive quarters of non-GAAP Enterprise customers, profitability2 and positive cash flow >3M paid business licenses from operations $79M +305% >90% TTM non-GAAP Operating Profit2,3 YoY increase in TTM no
Slide 24: Q1 FY 2024 Financial Highlights
Q1 FY 2024 Financial Highlights ■ 10th consecutive quarter of non-GAAP profitability and positive cash flow from operations ● Record non-GAAP operating margin of 14.4% ■ YoY ARR growth across all customer size categories ■ 12% YoY growth in XCaaS ARR3 ■ Operating cash flow of $26.5 million, up 353% YoY
Slide 25: Q1 FY 2024 Results vs. Guidance
Q1 FY 2024 Results vs. Guidance Q1 F2024 Guidance Results as of May 11, 2023 June 30, 2023 Service Revenue $178.5 – 180.5m $175.2m % Growth Y/Y 0 - 1% (2%) Total Revenue $186 – 188m $183.3m % Growth Y/Y (1) – 0% (2%) Non-GAAP Operating Margin2 12.5 - 13% 14.4%2 1. See Appendix for a reconciliation o
Slide 26: Q1 FY 2024 Financial Metrics
Q1 FY 2024 Financial Metrics* Service Revenue1 $175.2 million, (2%) Y/Y growth Q1 F2024 Other Revenue2 $8.0 million, (5%) Y/Y growth Revenue Total Revenue $183.3 million, (2%) Y/Y growth Total ARR3 $703 million, 2% Y/Y growth Enterprise ARR3,4 $404 million, 0% Y/Y growth 3 ARR Mid-Market3,5 $132 mil
Slide 27: Revenue Growth
Revenue Growth Fiscal Q1 Total Revenue Fiscal Q1 Service Revenue ($ in millions) ($ in millions) 26% Y/Y 2% Y/Y (2%) Y/Y 30% Y/Y 2% Y/Y (2%) Y/Y Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 28: Q1 2024 Ending ARR
Q1 2024 Ending ARR1 Fiscal Q1 ARR by Customer Size* Fiscal Q1 ARR by Product* ($ in millions) ($ in millions) $688 $703 $703 $688 $703 $703 30% Y/Y 0% Y/Y 2 3 4 5 * Amounts may not sum to total due to rounding. 1. Annualized Recurring Subscriptions and Usage Revenue (“ARR”) equals the sum of the mos
Slide 29: Increasing Non-GAAP Gross Margins
Increasing Non-GAAP Gross Margins* Non-GAAP Total and Service Gross Margins as a % of Revenue 75.3% 76.2% 73.4% Non-GAAP Total Gross Margin* 73.0% 72.5% Non-GAAP Service Revenue Gross Margin* 68.5% Q1'23 Q4'23 Q1’24 * See Appendix for a reconciliation of Non-GAAP metrics to the nearest GAAP metric.
Slide 30: Non-GAAP Operating Expenses and Total Costs
Non-GAAP Operating Expenses and Total Costs* As a % of Total Revenue ~11 pts improvement 94.6% 86.5% Non-GAAP Operating Expenses as a % of 85.6% revenue 1 Non-GAAP Total Costs as a % of 63.1% revenue2 59.0% 58.6% Q1'23 Q4'23 Q1’24 * See Appendix for a reconciliation of GAAP to Non-GAAP metrics. 1. N
Slide 31: Non-GAAP Operating Income and Margin
Non-GAAP Operating Income and Margin1 Fiscal Q1 Operating Income Fiscal Q1 Operating Margin ($ in millions) (% of revenue) +161% $26.4 ~9 points 14.4% $24.8 13.5% $496 $414 $10.1 5.4% $145 Q1'23 Q4'23 Q1’24 Q1'23 Q4'23 Q1’24 1. Non-GAAP. See Appendix for reconciliation of Non-GAAP metrics to nearest
Slide 32: Cash Flow from Operations and Interest Payments
Cash Flow from Operations and Interest Payments Fiscal Q1 Cash Flow from Operations Fiscal Year Cash Flow from Operations (3 months, $ millions) (12 months, $ millions) $4.9 $22.2 $26.5 $48.8 $10.9 $2.2 $496 $13.6 $34.7 $5.8 $414 $145 $1.8 ($14.1) Q1'23 Q4’23 Q1’24 FY’21 FY’22 FY’23 Cash Interest Pa
Slide 33: Q2 2024 Guidance
Q2 2024 Guidance1 Q2 FY 2024 as of August 8, 20231 Service Revenue $173 – 178M % Growth Y/Y (3) - 0% Total Revenue $180 – 186M % Growth Y/Y (4) – (1%) Non-GAAP Operating Margin1 10.5 - 11.5% 1. Guidance as of August 8, 2023. Refer to Forward Looking Statements for a discussion of factors that could
Slide 34: Updated FY 2024 Guidance
Updated FY 2024 Guidance1 FY 2024 as of May 11, 20231 Updated as of May 11, 20231 Service Revenue $725 – 732m $701 – 711m % Growth Y/Y 2 - 3% (1) - 0% Total Revenue $755 – 763m $732.5 – 742.5m % Growth Y/Y 1 – 3% (2) – 0% Non-GAAP Operating 12.0 - 13.0% 12.0 - 13.0% Margin1 1. Guidance as of August
Slide 35: Appendix
Appendix Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 36: Annualized Recurring Subscriptions and Usage (ARR)
Annualized Recurring Subscriptions and Usage (ARR)1 Selected operating metrics presented in this table have not been derived from financial measures that have been prepared in accordance with US Generally Accepted Accounting Principles. 8x8 provides these selected operating metrics to assist investor
Slide 37: History of Outstanding Debt
History of Outstanding Debt Reduced Principal Amount of Debt by >10% in since August 2022. $ 250.0 Retired $58M of Principal Retired Term Loan New $ 201.9 ~$33M Additional Voluntary Early Repurchases Repayment of 2024 Notes Term Loan Convert Notes New $ (403.8) 96.1 $ (6.0) $ (21.8) $ (5.0) 63.3 $ (
Slide 38: Outstanding Convertible Notes and Term Loan
Outstanding Convertible Notes and Term Loan For more detailed disclosures on the terms of the Company’s convertible senior notes and term loan, see the Company’s most recent 10Q filing. Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 39: Interest Expense Detail - Convertible Senior Notes & Term Loan
Interest Expense Detail - Convertible Senior Notes & Term Loan Amounts may not sum to total due to rounding. For more detailed disclosures on the terms of the Company’s convertible senior notes, term loan and detachable warrants, see the Company’s most recent 10Q filing. Copyright 2023 8x8, Inc. or i
Slide 40: Supplemental Details - Other Expense, Net
Supplemental Details - Other Expense, Net Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 41: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 42: Non-GAAP Measures and Guidance
Non-GAAP Measures and Guidance Non-GAAP Measures This presentation contains certain financial information that has not been prepared in accordance with Generally Accepted Accounting Principles (GAAP). Management uses these non-GAAP financial measures internally in analyzing the Company’s financial resu
Slide 43: Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 44: Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 45: Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 46: Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 47: 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 instagram.com/8x8inc © 8x8, Inc. All rights reserved. Unless otherwise specified, all trademarks identified by the ®, ™, or SM are registered trademarks, trademarks, or services m