Slide 1: Fourth Quarter FY 2024
Fourth Quarter FY 2024 Ended March 31, 2024 May 8, 2024 One platform. Every communications experience. Copyright 2024 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: Today's Speakers
Today’s Speakers Watch the video of CEO Sam Wilson discussing fiscal Q4 and full year 2024 results on the investor relations playlist on our YouTube channel Samuel Wilson Kevin Kraus 8x8 Chief Executive Officer 8x8 Chief Financial Officer Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 4: Overview
Overview Copyright 2024 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 5: 8x8 Q4 Fiscal 2024
8x8 Q4 Fiscal 2024 Integrated Global Continuous $697M 43% platform Presence Innovation Total ARR(1) XCaaS(2) as a % of total ARR(1) 3M+ 58% Paid business licenses Enterprise ARR as a % of total ARR(1)(3) AI-powered Full PSTN Recent innovations: modern replacement in 59 8x8 Engage 8x8 Operator Connec
Slide 6: Recent product innovation highlights
Recent product innovation highlights ● Announced 8x8 Engage, an AI-powered, tailored solution that enables cross-organization customer engagement for enhanced customer experiences, fostering loyalty, and driving business success. Intentionally engineered, 8x8 Engage addresses the distinct needs of c
Slide 7: Q4'24 Customer Stories
Q4’24 Customer Stories One platform. Every communications experience. Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 8: Upward Health
Upward Health is an in-home medical group that specializes in primary medical, behavioral, and social healthcare for individuals with complex needs. Upward Health was ranked No. 7 on the 2023 Inc. 5000 list of the fastest-growing private companies in the United States. 8x8 Solutions 8x8 XCaaS with C
Slide 9: LSG Sky Chefs
LSG Sky Chefs is a classic catering and hospitality expert serving airline customers. LSG Sky Chefs delivers 308 million meals a year and is present at about 131 locations across the globe. 8x8 Solutions 8x8 UCaaS with ATAs for paging and faxing supporting over 800 employees across 49 locations Why
Slide 10: Induction Healthcare
Induction Healthcare is a leading healthcare technology company providing solutions that transform the interaction between patients and care teams, helping people take an active role in their health management and supporting more efficient care delivery. Used by over 90% NHS Trusts across the UK. 8x8
Slide 11: PalawanPay
PalawanPay is an e-wallet by the Palawan Group of Companies, with a range of functionalities including fund transfers, bill payments, mobile e-loading, and QRPH scan-to-pay options. It has over 15 million users and caters to over 400,000 merchants in the Philippines. 8x8 Solutions 8x8 CPaaS SMS API
Slide 12: Southern Housing
Southern Housing is one of the largest housing providers in the UK with more than 78,000 homes across London, the South East, the Isle of Wight and the Midlands, giving over 167,000 people somewhere affordable to call their own. 8x8 Solutions 8x8 Contact Center and Voice for Microsoft Teams supporti
Slide 13: Intelligent Customer Assistant customer quote
“The 8x8 Intelligent Customer Assistant has demonstrated positive outcomes in our customer engagement strategy. It has contributed to a reduction in email inquiries and has streamlined communication channels, providing a more efficient customer experience.” Mia Cura, Digital Marketing Manager Copyrig
Slide 14: Actuarial Management Resources, Inc.
Actuarial Management Resources, Inc. specializes in life, health and annuity products to provide insurance companies of all sizes with full third party administrative services to help them operate efficiently. 8x8 Solutions 8x8 XCaaS Why 8x8? ● Single cloud platform for UC and CC ● Ease of reporting
Slide 15: Copyright 2024 8x8, © Inc. 8x8, or Inc.
Copyright 2024 8x8,©Inc. 8x8, orInc. its affiliates. Copyright Alland rights confidential. reserved.
Slide 16: Recent Awards and Recognition
Recent Awards and Recognition One platform. Every communications experience. Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 17: Recent awards and recognition
Recent awards and recognition Recognized in 2024 Highly commended CRN recognized Michael Constellation ShortList recognition in CX Quince, VP of NA Channel for Contact Center as a Today’s CX Awards Sales, as 2024 Channel Service (CCaaS) and 2024 in the categories Chief and Emily Unified of Best Mid-M
Slide 18: Recent awards and recognition cont.
Recent awards and recognition cont. Awarded G2 2024 Best Recognized in Software Awards in the 39 different categories categories of Customer in the Service Products and G2 Spring 2024 Awards Collaboration and Productivity Products. Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 19: Q4 and Fiscal 2024 Financial Performance
Q4 and Fiscal 2024 Financial Performance Copyright 2024 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 20: Financial Strength
Financial Strength As of 3/31/24 KEY FINANCIAL STATS KEY BUSINESS STATS $118M 13 >3.0M Cash and investments1 Consecutive quarters of non-GAAP Paid business licenses Operating Profit3 and positive cash flow from operations $95M +52% >57,000 TTM non-GAAP Operating YoY increase in TTM non-GAAP Customers
Slide 21: Q4 FY 2024 Financial Highlights
Q4 FY 2024 Financial Highlights ■ YoY growth in sales of new products accelerated to >50% YoY ■ Service revenue of $172.5M and total revenue of $179.4M ■ 13th consecutive quarter of non-GAAP Operating Profit1 and positive operating cash flow ● Non-GAAP operating margin of 11.3%1, above guidance of ~10
Slide 22: FY 2024 Financial Highlights
FY 2024 Financial Highlights ■ YoY growth in sales of new products increased every quarter of FY’24 ■ Service revenue of $700.6M and total revenue of $728.7M ■ Non-GAAP operating margin1 of 13.0% vs. 8.4% in FY’23 ■ Adjusted EBITDA1 of $121.0M (16.7% of revenue), up 29% YoY ■ Cash flow generated by o
Slide 23: Q4 and FY 2024 Results vs. Guidance
Q4 and FY 2024 Results vs. Guidance Q4 F2024 FY 2024 Guidance Results Guidance Results $ millions As of 12/31/24 5/8/24 As of 12/31/24 5/8/24 Service Revenue $171 – 175M $172.5m $699.1 - 703.1 $700.6 % Growth Y/Y (3) - (1)% (2%) (2) - (1)% (1)% Total Revenue $176 – 181M $179.4m $725.3 - 730.3 $728.7
Slide 24: Income Statement
Q4 and FY 2024 Financial Metrics Q4’24 FY’24 % of Total % of Total $ Millions YoY $ Millions YoY Revenue Revenue Service Revenue1 172.5 96% -2% 700.6 96% -1% Revenue Other Revenue2 6.9 4% -13% 28.1 4% -17% Income Statement Total Revenue 179.4 100% -3% 728.7 100% -2% Gross Profit 127.0 70.8% -1.7 pts
Slide 25: Operational Metrics
Q4 and FY 2024 Financial Metrics continued FY’23 FY’24 $ Millions $ Millions YoY Year-end Cash & Investments1 $139M $118M -$21M Balance Sheet, Cash Flow & Cash Operating Cash Flow $48.8 $79.0 +62% Metrics Operational Metrics Cap Ex & Cap SW ($14.9) ($16.9) +$2M Accounts Receivable $62.3 $59.0M -$3M
Slide 26: Revenue Growth
Revenue Growth Fiscal Q4 Total Revenue Fiscal Q4 Service Revenue ($ in millions) ($ in millions) 2% Y/Y (2)% Y/Y (3)% Y/Y 2% Y/Y (0)% Y/Y (2)% Y/Y Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 27: Q4 2024 Ending ARR
Q4 2024 Ending ARR1 Fiscal Q4 ARR by Customer Size* Fiscal Q4 ARR by Product* ($ in millions) ($ in millions) 2 3 4 * Amounts may not sum to total due to rounding. 5 1. Annualized Recurring Subscriptions and Usage Revenue (ARR) (A) equals the sum of the most recent month of (i) recurring subscriptio
Slide 28: Non-GAAP Gross Margins
Non-GAAP Gross Margins1 Non-GAAP Total and Service Gross Margins as a % of Revenue 75.3% 74.5% 74.2% Non-GAAP Total Revenue Gross Margin1 72.5% Non-GAAP 70.8% Service Revenue 71.6% Gross Margin1 Q4'23 Q3'24 Q4’24 1. See Appendix for reconciliation of Non-GAAP metrics to nearest GAAP metric. . Copyri
Slide 29: Non-GAAP Operating Expenses and Total Costs
Non-GAAP Operating Expenses and Total Costs1 As a % of Total Revenue 88.7% 86.5% 86.6% Non-GAAP Operating Expenses as a % of revenue 2 Non-GAAP Total 59.5% Costs as a % of 59.0% revenue 3 58.2% Q4'23 Q3'24 Q4’24 1. See Appendix for reconciliation of Non-GAAP metrics to nearest GAAP metric. 2. Non-GA
Slide 30: Non-GAAP Operating Income and Margin
Non-GAAP Operating Income and Margin1 Fiscal Q4 Operating Income Fiscal Q4 Operating Margin ($ in millions) (% of revenue) $24.8 $24.3 13.5% 13.4% $20.3 11.3% $496 $414 $145 Q4'23 Q3'24 Q4’24 Q4'23 Q3'24 Q4’24 1. See Appendix for reconciliation of Non-GAAP metrics to nearest GAAP metric. . Copyright
Slide 31: Cash Flow from Operations and Cash Interest Paid
Cash Flow from Operations and Cash Interest Paid Fiscal Q4 Cash Flow from Operations YTD Cash Flow from Operations and and Cash Interest Paid Cash Interest Paid (3 months, $ millions) (12 Months, $ millions) $35.6 $6.9 $22.2 $79.0 $496 $22.4 $13.1 $10.9 $2.2 $48.8 $13.6 $12.7 $34.7 Q4'23 Q3’24 Q4’24
Slide 32: Q1 2025 Guidance
Q1 2025 Guidance1 Q1 FY 2025 as of May, 2024 Service Revenue $170 – 174M % Growth Y/Y (3) - (1)% Total Revenue $176 – 181M % Growth Y/Y (4) – (1)% Non-GAAP Operating Margin1 11-12% 1. Reconciliation to nearest GAAP metric not available for forward looking Non-GAAP Operating Margin. Refer to Forward
Slide 33: FY 2025 Guidance
FY 2025 Guidance1 FY 2025 as of May 8 20241 Service Revenue $693 - 707 % Growth Y/Y (1) - 1% Total Revenue $720 - 738 % Growth Y/Y (1) - 1% Non-GAAP Operating Margin1 11.5 - 13.0% Non-GAAP Net Income per Share - Diluted $0.37 - $0.45 Weighted Average Shares - Diluted ~133M 1. Reconciliation to neare
Slide 34: Additional Financial Model Commentary
Additional Financial Model Commentary FY’26 and Q1’25 Q2’25 FY’25 As of 5/8/24 Beyond Non-GAAP Interest Expense ~$8.7M in Q1 and Q2 Cash Interest Expense ~$6.7M ~10.4M $15-20M less in FY’25 compared to FY’24 due to lower Paid $5.6M of $10M beginning $80-85M in FY’26 in Fuze indirect tax Cash Flow fr
Slide 35: Additional Financial Model Commentary
Additional Financial Model Commentary “We continue to believe that our current non-GAAP cost structure continues to be the about right level of investment to drive innovation and adoption of our expanded product portfolio,” 8x8 CFO Kevin Kraus. Non-GAAP Cost Structure1 Near-Term FY’22 FY’23 FY’24 %
Slide 36: Appendix
Appendix Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 37: Supplemental Details on Other (Expense) Income, Net
Supplemental Details on Other (Expense) Income, Net Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 38: Outstanding Convertible Notes and Term Loan
Outstanding Convertible Notes and Term Loan Repaid in full on 2/1/24 For more detailed disclosures on the terms of the Company’s convertible senior notes and term loan, see the Company’s most recent 10K filing. Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 39: Interest Expense Detail - Senior Notes & Term Loan
Interest Expense Detail - 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 10K filing. Copyright 2024 8x8, Inc. or its affiliates
Slide 40: History of Debt Repayments
History of Debt Repayments Reduced Principal Amount of Debt by $121M since August 2022. 35% completion against goal of repaying $250M from FY’24 thru FY’26 $ 250.0 $ (403.8) Repaid >121M of Aggregate Principal Retired 2024 2027 Term Notes Loan ~$33M Additional Early Repay 2024 $ 201.9 Repurchases Re
Slide 41: Debt Maturity by Fiscal Year
Debt Maturity by Fiscal Year As of 3/31/24 2024 Notes Repaid with cash on 2/1/24 Term Loan 2028 Notes Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 42: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 43: 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 44: Net Debt to TTM Adjusted EBITDA
Net Debt to TTM Adjusted EBITDA Steady improvement in leverage ratio Net Debt to Adjusted EBITDA due to increased operational efficiency and early debt retirement Net Debt and Ratio of Net Debt to TTM Adjusted EBITDA1 $ Millions except ratio $ millions except debt ratios Q4'23 Q3'24 Q4'24 Aggregate P
Slide 45: Consolidated Statement of Operations
8x8, INC. CONSOLIDATED STATEMENT OF OPERATIONS FY2022 FY2023 FY2024 FY2022 FY2023 FY2024 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 YTD Q4 YTD Q4 YTD March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31, March 31, March 31, March 31, 2022 2022 2022 2022 2023 2023 2
Slide 46: Consolidated Balance Sheets
8x8 Inc. Consolidated Balance Sheets FY2022 FY2023 FY2024 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31, 2022 2022 2022 2022 2023 2023 2023 2023 2024 ASSETS Current assets: Cash and cash equivalents $ 91,205 $ 92,686 $
Slide 47: Consolidated Statement of Cash Flows
8X8 INC. CONSOLIDATED STATEMENT OF CASH FLOWS Fiscal Year Fiscal Year Fiscal Year 2024 2022 2023 Three Months Three Months Three Months Year Ended Year Ended Three Months Ended Ended Ended March Year Ended March 31, March 31, Ended June 30, September 30, December 31, 31, March 31, Q4 YTD FY22 Q4 YTD
Slide 48: Non-GAAP Reconciliations and Income Statement
8x8 INC Non-GAAP Reconcilations and Income Statement FY22 FY23 FY24 FY22 FY23 FY24 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 YTD YTD YTD March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31, March 31, March 31, March 31, 2022 2022 2022 2022 2023 2023 2023 2023 2024 2
Slide 49: Non-GAAP Reconciliations and Income Statement
8x8 INC Non-GAAP Reconcilations and Income Statement FY22 FY23 FY24 FY22 FY23 FY24 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 YTD YTD YTD March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31, March 31, March 31, March 31, 2022 2022 2022 2022 2023 2023 2023 2023 2024 2
Slide 50: Non-GAAP Reconciliations and Income Statement
8x8 INC Non-GAAP Reconcilations and Income Statement FY22 FY23 FY24 FY22 FY23 FY24 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 YTD YTD YTD March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31, March 31, March 31, March 31, 2022 2022 2022 2022 2023 2023 2023 2023 2024 2
Slide 51: Selected Operating Metrics
8x8 INC. SELECTED OPERATING METRICS Fiscal 2022 Fiscal 2023 Fiscal 2024 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 TOTAL ARR (1) $687 $688 $692 $698 $703 $703 $707 $707 $697 Growth % (YoY) 33 % 28 % 25 % 22 % 2% 2% 2% 1% (1)% ARR BY CUSTOMER SIZE ENTERPRISE (2) $393 $403 $401 $400 $405 $404 $407 $409 $402 % of Tota
Slide 52: 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