Slide 1: Second Quarter FY 2024
Second Quarter FY 2024 Ended September 30, 2023 November 1, 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: Today's Presenters
Today’s Presenters Watch the video interview with Samuel Wilson discussing Q2 2024 Results Samuel Wilson Lisa Martin Kevin Kraus 8x8 Chief Executive Officer 8x8 Chief Revenue Officer 8x8 Chief Financial Officer Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 4: Overview
Overview Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 5: 8x8 Q2 Fiscal 2024
8x8 Q2 Fiscal 2024 $707M 41% Integrated platform Global Presence Continuous Innovation Total ARR(1) XCaaS as a % of total ARR(1) 3M+ 58% Paid business licenses Enterprise ARR as a % of total ARR(1)(2) AI-powered Full PSTN Video interaction 2.0 400K 60% modern architecture for CCaaS and replacement i
Slide 6: Recent product innovation highlights
Recent product innovation highlights ● Expanded AI self-service capabilities with voice Interactions for 8x8 Intelligent Customer Assistant. The addition of voice expands 8x8 Intelligent Customer Assistant’s powerful, user-friendly conversational AI self-service capabilities that enable 8x8 Contact
Slide 7: Recent awards and recognition
Recent awards and recognition Ranked as a top 5 Named a Strong Named Best Enterprise Won a Gold Stevie® Award provider in the Metrigy Performer in the The Service at the 2023 for Technology Team of the 2023 Contact Forrester Wave™: Comms Council UK Year and a Bronze Stevie Center-as-a-Service Unified
Slide 8: Recent awards and recognition cont.
Recent awards and recognition cont. Contact Center X Series Recognized in Received the 2023 TrustRadius Tech Cares 24 different categories Award in the UK for in the demonstrating G2 Fall 2023 Awards exceptional corporate social responsibility Copyright 2023 8x8, Inc. or its affiliates. All rights re
Slide 9: Communications for the Customer Obsessed
Communications for the Customer Obsessed Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 10: 99% of business leaders plan more contact center spending
99% of business leaders say their organization plans to dedicate more spending on the contact center this year Source: 2023 Hanover Research survey of 325 contact center and IT leaders Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 11: Nearly 30% of those outside the Contact Center help those inside
Nearly 30% of those outside the Contact Center help those inside the CC Source: Metrigy Customer Experience Optimization: 2023-24 Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 12: 45.7% of companies give contact center licenses to non-agents
45.7% of companies are giving contact center licenses to employees who aren’t full-time agents Source: 2023 Metrigy Technology Spending Forecast Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 13: Because customer engagement is everyone's job
Because customer engagement is everyone’s job Knowledge Workers Billing Account Management Customer Service & Support Shop Floor Worker Front Line Workers Field Service Sales HR & Recruiting Shipping and Receiving IT Service Desk Legal Internal Collaboration “Crossover” CX Tools & Visibility Omnicha
Slide 14: Q2 New Product Momentum: 8x8 AI-powered Intelligent Customer Assistant
Q2 New Product Momentum 8x8 AI-powered Intelligent Customer Assistant One platform. Every communications experience. Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 15: Westminster City Council offers smarter self-service with 8x8 ICA
Westminster City Council offers smarter self-service with 8x8 ICA “Bringing the 8x8 Intelligent Customer Challenge Result Assistant to life in Improving self-service options on website 24/7 self-service support for constituents our environment was Improving contact center Between 80% to 100% resolut
Slide 16: Watch Video
Watch Video Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 17: Acer delivers smart self-service with 8x8 ICA
“It was very Acer delivers smart self-service with 8x8 Intelligent Customer Assistance impressive. 8x8 definitely has a winner with Challenge Result Intelligent Customer An overloaded contact center Smart self-service option to Lack of SMS or WhatsApp automatically handle customer Assistant.” request
Slide 18: Customer quote: Acer on Intelligent Customer Assistant
“We chose 8x8 Intelligent Customer Assistant over other vendors because of its robust features and ease of use. The overall simplicity belies its complexity on the back end. Additionally, it offers us the option to escalate to live assistance, when necessary, with a seamless handoff from the automat
Slide 19: Customer quote: freeing agents from routine questions
“With Intelligent Customer Assistant, we freed agents from answering routine questions. The product is very flexible, covers a lot of different use cases and provides a common framework for scaling. The implementation process was quick and professional.” Adam Rigg, IT Digital Analyst Copyright 2023 8
Slide 20: Customer quote: bot handling over 90% of interactions
“At first, my team told me the tool wasn’t working because so few interactions were being passed to agents. What we discovered through the Intelligent Customer Assistant dashboards was that the bot was fully handling over 90% of its interactions without agent engagement. I was blown away!” Wendi Shee
Slide 21: Customer quote: agents built once, deployed across channels
“With 8x8 Intelligent Customer Assistant, agents are built once and deployed across multiple channels, keeping development simple.” Gary Byrne, Business Analyst Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 22: Customer quote: AI-driven voice self-service
“Our contact center needs intelligent AI-driven tools to help us handle a high volume of customer interactions while providing excellent service in a fast and timely manner. 8x8 Intelligent Customer Assistant will first allow us to apply AI-enabled voice self-service to quickly resolve customer inqui
Slide 23: Q2 Contact Center Momentum Win Highlight
Q2 Contact Center Momentum Win Highlight One platform. Every communications experience. Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 24: Somerset Bridge Group win
Somerset Bridge Group is an innovative, customer- focused insurance group ranked in the top 20 of UK insurance brokers. 8x8 Solutions 8x8 XCaaS with Contact Center & Voice for Microsoft Teams Supporting over 400,000 customers including 300+ contact center agents Why 8x8? Single cloud platform for UC
Slide 25: Q2 CPaaS Momentum Win Highlight
Q2 CPaaS Momentum Win Highlight One platform. Every communications experience. Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 26: Logic Dialog win
Logic Dialog delivers intelligent service automation, powered by conversational AI, that drives operational efficiencies and delivers exceptional customer experiences. 8x8 Solutions 8x8 CPaaS omnichannel communication solutions including SMS, WhatsApp Business and Video APIs. Why 8x8? ● Strategic par
Slide 27: Quotes from 8x8 Customer Appreciation Day
Quotes from 8x8 Customer Appreciation Day One platform. Every communications experience. Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 28: 8x8 Contact Center customer quotes
8x8 Contact Center “[I appreciate 8x8 because of] all the tools available within the Contact Center platform that make remote call center work shine!” Aaron Wyant Director of Customer Service Turning Point with Dr. David Jeremiah “I have used ‘live monitoring’ while working at the airport and have e
Slide 29: 8x8 Contact Center customer quotes
8x8 Contact Center “8x8 is a transformational solution offering reliability across both contact center and end-user telephony solutions.” Anthony Forder Head of Global IT and Operations transcosmos “It's a great product, and we've seen firsthand how it can improve communication and contact center ope
Slide 30: North American VARs
North American VARs “The product enhancements and the full XCaaS suite make it easy to offer 8x8 to our clients.” Jameson Hart Digital Transformation Advisor Barry Communications “8x8 is a great organization and a true partner that understands our space and the role we play in.” Gabe Sette Vice Pres
Slide 31: Q2 Fiscal 2024 Financial Performance
Q2 Fiscal 2024 Financial Performance Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 32: Financial Strength
Financial Strength As of 9/30/23 KEY FINANCIAL STATS KEY BUSINESS STATS $150M 11 ~1,250 Cash and investments1 Consecutive quarters of non-GAAP Enterprise customers, Operating Profit3 and positive cash flow >3M paid business licenses from operations $93M +252% >90% TTM non-GAAP Operating Profit2,3 YoY i
Slide 33: Q2 FY 2024 Financial Highlights
Q2 FY 2024 Financial Highlights ■ Service revenue of $178M and Total revenue of $185M exceeded midpoint of guidance ranges ■ 11th consecutive quarter of non-GAAP Operating Profit1 and positive operating cash flow ● Non-GAAP operating margin of 12.8%1, above guidance range ● Cash flow generated by opera
Slide 34: Q2 FY 2024 Results vs. Guidance
Q2 FY 2024 Results vs. Guidance Q2 F2024 Guidance Results As of 8/8/23 9/30/23 Service Revenue $173 – 178M $177.8m % Growth Y/Y (2) - 1% (0.4%) Total Revenue $180 – 186M $185.0m % Growth Y/Y (4) – (1%) (1%) Non-GAAP Operating Margin1 10.5 - 11.5% 12.8%1 1. See Appendix for a reconciliation of Non-GA
Slide 35: Q2 FY 2024 Financial Metrics
Q2 FY 2024 Financial Metrics* Service Revenue1 $177.8 million, (0.4%) Y/Y growth Q2 F2024 Other Revenue2 $7.2 million, (18%) Y/Y growth Revenue Total Revenue $185.0 million, (1%) Y/Y growth Total ARR3 $707 million, 2% Y/Y growth Ending Enterprise ARR3,4 $407 million, 1% Y/Y growth ARR3 Mid-Market3,5
Slide 36: Revenue Growth
Revenue Growth Fiscal Q2 Total Revenue Fiscal Q2 Service Revenue ($ in millions) ($ in millions) 24% Y/Y (2)% Y/Y (1%) Y/Y 25% Y/Y (0%) Y/Y (2)% Y/Y Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 37: Q2 2024 Ending ARR
Q2 2024 Ending ARR1 Fiscal Q2 ARR by Customer Size* Fiscal Q2 ARR by Product* ($ in millions) ($ in millions) $692 $703 $707 $692 $703 $707 2 3 4 5 * Amounts may not sum to total due to rounding. 1. Annualized Recurring Subscriptions and Usage Revenue (“ARR”) equals the sum of the most recent month
Slide 38: Non-GAAP Gross Margins
Non-GAAP Gross Margins1 Non-GAAP Total and Service Gross Margins as a % of Revenue 76.2% 74.1% 74.6% Non-GAAP Total Revenue 73.0% Gross Margin1 71.5% Non-GAAP 70.1% Service Revenue Gross Margin1 Q2'23 Q1'24 Q2’24 1. See Appendix for reconciliation of Non-GAAP metrics to nearest GAAP metric. . Copyri
Slide 39: Non-GAAP Operating Expenses and Total Costs
Non-GAAP Operating Expenses and Total Costs1 As a % of Total Revenue ~8 pts improvement 95.2% 87.2% Non-GAAP Operating Expenses as a % of 85.6% revenue 2 Non-GAAP Total Costs as a % of 65.3% revenue 3 58.6% 58.7% Q2'23 Q1'24 Q2’24 1. See Appendix for reconciliation of Non-GAAP metrics to nearest GAA
Slide 40: Non-GAAP Operating Income and Margin
Non-GAAP Operating Income and Margin1 Fiscal Q2 Operating Income Fiscal Q2 Operating Margin ($ in millions) (% of revenue) +162% ~8 points $26.4 $23.8 14.4% $49612.8% $414 $9.1 4.8% $145 Q2'23 Q1'24 Q2’24 Q2'23 Q1'24 Q2’24 1. See Appendix for reconciliation of Non-GAAP metrics to nearest GAAP metric
Slide 41: Cash Flow from Operations and Cash Interest Paid
Cash Flow from Operations and Cash Interest Paid Fiscal Q2 Cash Flow from Operations YTD Cash Flow from Operations (3 months, $ millions) (6 months, $ millions) $17.8 $496 $43.9 $4.9 $12.9 $4.7 $26.5 $17.5 $4.7 $19.7 $0.9 $13.8 $9.1 Q2'23 Q1’24 Q2’24 FY’22 $145 FY’23 FY’24 Cash Interest Payments Cas
Slide 42: Q3 2024 Guidance
Q3 2024 Guidance1,2 Q3 FY 2024 as of November 1, 2023 Service Revenue $173 – 178M % Growth Y/Y (2) - 1% Total Revenue $180 – 186M % Growth Y/Y (2) – 1% Non-GAAP Operating Margin2 11 - 12% 1. Refer to Forward Looking Statements for a discussion of factors that could cause actual results to differ fro
Slide 43: Updated FY 2024 Guidance
Updated FY 2024 Guidance1,2 FY 2024 Prior Prior Updated as of May 11, 20231 as of May 11, 2023 as of Nov. 1, 20231 Service Revenue $725 – 732m $701 – 711m $701 – 711m % Growth Y/Y 2 - 3% (1) - 0% (1) - 0% Total Revenue $755 – 763m $732.5 – 742.5m $732.5 – 742.5m % Growth Y/Y 1 – 3% (2) – 0% (2) – 0%
Slide 44: Appendix
Appendix Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 45: 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 46: Supplemental Details on Other (Expense) Income, Net
Supplemental Details on Other (Expense) Income, Net Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 47: 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 48: 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 49: 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 10Q filing. Copyright 2023 8x8, Inc. or its affiliates
Slide 50: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 51: 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 52: Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 53: Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 54: Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 55: Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 56: Links to Speaker Referenced Content
Links to Speaker Referenced Content ■ Archived webcast ■ Video case study by City of Westminster ■ Additional Online Customer Stories ■ 8x8 Cookbook and Food and Beverage Customer Case Studies ■ Video conversation with Samuel Wilson, CEO on Q2 2024 results Copyright 2023 8x8, Inc. or its affiliates.
Slide 57: 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