Slide 1: Earnings Results Second Quarter Fiscal 2020
EARNINGS RESULTS Second Quarter Fiscal 2020 (Ended September 30, 2019) October 30, 2019 1 | © 8x8, Inc. All Rights Reserved.
Slide 2: Voice, Video, Chat, Contact Center, APIs in the Cloud
Voice x Video x Chat x Contact Center x APIs In the Cloud. ü NYSE: EGHT ü Headquarters: San Jose, CA ü ~1,800 employees in 8 countries ü 1m+ business users in 150+ countries ü 8-year Leader UCaaS Gartner Magic Quadrant ü 200+ patents awarded ü $60B+ TAM on-premise market migrating to cloud 2 | © 8x8
Slide 3: Financial Results vs. Guidance | Q2 Fiscal 2020
Financial Results vs. Guidance | Q2 Fiscal 2020 Q2 F2020 GUIDANCE RESULTS (July 30, 2019) (October 30, 2019) TOTAL REVENUE $106-107m $109.5m % Growth Y/Y 24-25% 27.8% SERVICE REVENUE $102.5-103.5m $104.5m % Growth Y/Y 26-27% 28.5% PRE-TAX LOSS (Non-GAAP) (~$16.5m) ($15.8m) 3 | © 8x8, Inc. All Rights
Slide 4: Q2 Fiscal 2020 | Business Highlights
Q2 Fiscal 2020 | Business Highlights Strong and Growing Large Deals With Annual Recurring Revenue (ARR) Greater than $100,000: • 536 customers with Annual Recurring Revenue (ARR) greater than $100,000, 61% year-over-year growth • Closed 30 new customer deals with ARR > $100,000. These deals represen
Slide 5: Q2 Fiscal 2020 | Business Highlights (continued)
Q2 Fiscal 2020 | Business Highlights (continued ...) Announced strategic partnership with Poly and ScanSource to launch CloudFuelTM, a comprehensive cloud migration program for the value- added reseller (VAR) channel community. This new program will utilize 8x8’s award-winning unified communications
Slide 6: New Bookings | Customers >$100K ARR
New Bookings | Customers >$100K ARR (Annual Recurring Revenue*) # of Customers (cumulative) % of New Bookings 41% 536 35% 35% 449 408 31% 376 29% 332 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 *Annual Recurring Revenue (ARR) = annualized subscription revenue and the annualized platform usage
Slide 7: Annual Recurring Revenue | By Customer Size
Annual Recurring Revenue (ARR*) | By Customer Size Total ARR Growth of +34% YOY with Strong Growth & Contribution From Mid-Market & Enterprise Customers +83% yoy growth 16% COMBINED MID-MARKET AND ENTERPRISE +18% ENTERPRISE yoy growth +63% yoy growth 58% +53% 26% SMALL yoy growth MID-MARKET BUSINESS
Slide 8: Revenue | Strong Continued Increases
Revenue | Strong Continued Increases ($ in millions) Total Revenue Service Revenue $104.5 $109.5 5% $92.4 $96.7 $85.9 $89.1 $93.8 $89.9 4% $81.3 $85.7 4% 5% 5% 95% 95% 96% 95% 96% 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 Service Revenue Product Revenue 8 | © 8x8, Inc. All Rights Reserved.
Slide 9: 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 $41 $38 $172 $34 $36 $33 $155 $142 $142 $133 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 Average Annual Service
Slide 10: Single Technology Platform | 8x8 R&D Innovation
Single Technology Platform | 8x8 R&D Innovation Strong Continued Innovation With Large Total R&D Investment ($ in millions) 19.6% $21.7 $21.7 $21.4 TOTAL R&D $20.1 INVESTMENT $7.4 $7.3 $6.6 E:R RATIO $17.5 $6.8 34% 34% 31% 6.0% 34% $6.3 34% CAPITALIZED COSTS 36% 36% (% Revenue) $14.3 $14.5 $14.8 13.
Slide 11: Gross Margin | Recurring Non-GAAP Margins
Gross Margin | Recurring Non-GAAP Margins 70.9% 71.2% 70.9% 66.6% 68.7% 66.0% 66.2% 64.2% 62.6% 58.4% 2Q19 3Q19 4Q19 1Q20 2Q20 Gross Margin Service Margin 11 | © 8x8, Inc. All Rights Reserved.
Slide 12: Guidance | Q3 and Full-Year F2020
GUIDANCE | Q3 and Full-Year F2020 October 30, 2019 Q3 F2020 FULL-YEAR F2020 GUIDANCE GUIDANCE TOTAL REVENUE $113.5-114.5m ~$440m % Growth Y/Y 26-27% ~25% SERVICE REVENUE $109-110m ~$422m % Growth Y/Y 27-28% ~26% PRE-TAX LOSS (Non-GAAP) (~$16.5m) (~$60m)* * Updated to include a one-time, non-recurrin
Slide 13: Wavecell Acquisition | Leading CPaaS Platform
Wavecell Acquisition | Leading CPaaS Platform (July 17, 2019) Acquisition provides 8x8 with access to Asia Pacific’s leading communications platform to pursue CPaaS globally, and represents a natural expansion and cross-sell opportunity for 8x8 to extend unified communications (UCaaS), contact cente
Slide 14: Investment Highlights
Investment Highlights Compelling TAM Attractive Economics $60+ billion market in early innings of solid customer land and expand cloud migration Unique Tech Platform Strong SaaS Model single cloud technology platform subscription revenue and visibility Complete Cloud Offering Multiple Growth Drivers
Slide 15: Appendix
APPENDIX 15 | © 8x8, Inc. All Rights Reserved.
Slide 16: Reconciliation of GAAP to Non-GAAP | COR and R&D
Reconciliation of GAAP to Non-GAAP | COR and R&D ($ in thousands, Unaudited) Three Months Ended September 30, Cost of Service Revenue: 2019 2018 GAAP cost of service revenue $43,195 $26,202 Amortization of acquired intangible assets $(1,796) $(1,112) Stock-based compensation expense $(1,939) $(1,379
Slide 17: Reconciliation of GAAP to Non-GAAP | S&M and G&A
Reconciliation of GAAP to Non-GAAP | S&M and G&A ($ in thousands, Unaudited) Three Months Ended September 30, Sales & Marketing Expense: 2019 2018 GAAP sales and marketing $57,895 $41,680 Amortization of acquired intangible assets $(507) $(313) Stock-based compensation expense $(5,340) $(2,206) Inte
Slide 18: Reconciliation of GAAP to Non-GAAP | Net Loss / Per Share
Reconciliation of GAAP to Non-GAAP | Net Loss / Per Share ($ in thousands, Unaudited) Three Months Ended September 30, GAAP Net Income (Loss): 2019 2018 GAAP net loss $(40,932) $(21,482) Adjustments: Amortization of acquired intangible assets $2,303 $1,425 Stock-based compensation expense $17,391 $1
Slide 19: 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 20: 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. All trademarks identified by the ®, ™, or SM are registered trademarks, trademarks, or service marks of 8x8, Inc.