8x8 Inc · NASDAQ:EGHT
8x8 — Q1 2020 Earnings Presentation
21 slides from 8x8's earnings presentation, Jul 30, 2019
Slide 1: Earnings Results First Quarter Fiscal 2020
EARNINGS RESULTS First Quarter Fiscal 2020 July 30, 2019 1 | © 8x8, Inc. All Rights Reserved.
Slide 2: Voice x Video x Chat x Contact Center x APIs In the Cloud
Voice x Video x Chat x Contact Center x APIs In the Cloud. NYSE: EGHT Headquarters in San Jose, CA +1,700 employees in 5 countries 1m+ business users in 150+ countries 7 year Leader UCaaS Gartner Magic Quadrant 191 patents awarded $60B+ TAM on-premise market migrating to cloud 2 | © 8x8, Inc. All Ri
Slide 3: Financial Results vs. Guidance | Q1 Fiscal 2020
Financial Results vs. Guidance | Q1 Fiscal 2020 Q1 F2020 GUIDANCE RESULTS (May 14, 2019) (July 30, 2019) TOTAL REVENUE $95.3m - $96.3m $96.7m % Growth Y/Y 15% - 16% 16.2% SERVICE REVENUE $91.0m - $92.0m $92.4m % Growth Y/Y 16% -18% 18.2% PRE-TAX LOSS (Non-GAAP) (~$17m) (~$14m) 3 | © 8x8, Inc. All Ri
Slide 4: Q1 Fiscal 2020 | Business Highlights
Q1 Fiscal 2020 | Business Highlights Strong and Growing Large Deals With Annual Recurring Revenue (ARR) Greater than $100,000: • 449 customers with Annual Recurring Revenue (ARR) greater than $100,000, a 50% year-over-year growth • Closed 28 new customer deals with ARR > $100,000. These deals repres
Slide 5: Q1 Fiscal 2020 | Business Highlights (continued ...)
Q1 Fiscal 2020 | Business Highlights (continued ...) Acquired Wavecell, 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 center (CCaaS), and video communica
Slide 6: New Bookings | Customers >$100K ARR
New Bookings | Customers >$100K ARR (Annual Recurring Revenue*) # of Customers (cumulative) % of New Bookings 449 35% 35% 408 31% 376 29% 332 26% 299 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 *Annual Recurring Revenue (ARR) = annualized (MRR x 12) recurring revenue (includes software subscri
Slide 7: Revenue | Continued Increases in Revenue Growth
Revenue | Continued Increases in Revenue Growth ($ in millions) Total Revenue Service Revenue $92.4 $96.7 $89.1 $89.9 $93.8 $83.2 $85.7 5% 4% 4% $85.9 6% 5% $81.3 96% $78.1 96% 95% 94% 95% 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 Service Revenue Product Revenue 7 | © 8x8, Inc. All Rights Re
Slide 8: Annual Recurring Revenue (ARR) | By Customer Size
Annual Recurring Revenue (ARR*) | By Customer Size Total ARR Growth of 21% YOY with Strong Growth & Contribution From Mid-Market & Enterprise Customers +52% yoy growth 14% ENTERPRISE +12% yoy growth 62% 25% +32% MID-MARKET SMALL BUSINESS 8x8 ARR By Customer Size** (based on company $ revenue) yoy gr
Slide 9: Increasingly Attractive Customer Economics
Increasingly Attractive Customer Economics Consistent Increases in Unit Level Customer Economics ... With Particular Strength in Larger Customers Mid-Market Enterprise $38 $155 $36 $142 $142 $34 $133 $129 $33 $32 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 Average Annual Service Revenue Per Cu
Slide 10: Single Technology Platform | 8x8 R&D Innovation
Single Technology Platform | 8x8 R&D Innovation ($ in millions) Strong Continued Innovation From Large Total R&D Spend 22.5% $21.7 $21.8 E:R ratio $20.1 $7.4 $7.3 $17.5 $6.8 34% 7.5% 33% $16.0 34% E:R ratio $6.3 34% $5.1 36% 32% 36% 15.0% $13.3 $14.3 $14.5 E:R ratio $10.9 $11.2 1Q19 2Q19 3Q19 4Q19 1
Slide 11: Gross Margin | Consistent Recurring Non-GAAP Margins
Gross Margin | Consistent Recurring Non-GAAP Margins 71.3% 71.2% 70.9% 70.9% 68.7% 66.6% 66.0% 66.2% 65.5% 64.2% 1Q19 2Q19 3Q19 4Q19 1Q20 Gross Margin Service Margin 11 | © 8x8, Inc. All Rights Reserved.
Slide 12: GUIDANCE | Q2 Fiscal 2020
GUIDANCE | Q2 Fiscal 2020 Q2 F2020 TOTAL REVENUE $106.0m - $107.0m % Growth Y/Y 24% - 25% SERVICE REVENUE $102.5m - $103.5m % Growth Y/Y 26% -27% PRE-TAX LOSS (Non-GAAP) (~$16.5m) 12 | © 8x8, Inc. All Rights Reserved.
Slide 13: GUIDANCE | Full-Year Fiscal 2020
GUIDANCE | Full-Year Fiscal 2020 F2020 TOTAL REVENUE ~$438m % Growth Y/Y ~24% SERVICE REVENUE ~$420m % Growth Y/Y ~26% PRE-TAX LOSS (Non-GAAP) (~$53m) 13 | © 8x8, Inc. All Rights Reserved.
Slide 14: 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 15: Investment Highlights
Investment Highlights Compelling TAM Attractive Economics $60+ billion market in early innings of solid customer land and expand cloud migration Unique Tech Platform Strong SaaS Model single cloud technology platform subscription revenue and visibility Complete Cloud Offering Multiple Growth Drivers
Slide 16: Appendix
APPENDIX 16 | © 8x8, Inc. All Rights Reserved.
Slide 17: Reconciliation of GAAP to Non-GAAP | COR and R&D
Reconciliation of GAAP to Non-GAAP | COR and R&D ($ in thousands, Unaudited) Three Months Ended June 30, Cost of Service Revenue: 2019 2018 GAAP cost of service revenue $31,967 $24,549 Amortization of acquired intangible assets $(1,310) $(1,110) Stock-based compensation expense $(1,731) $(1,026) Non
Slide 18: Reconciliation of GAAP to Non-GAAP | S&M and G&A
Reconciliation of GAAP to Non-GAAP | S&M and G&A ($ in thousands, Unaudited) Three Months Ended June 30, Sales & Marketing Expense: 2019 2018 GAAP sales and marketing $53,599 $40,495 Amortization of acquired intangible assets $(214) $(322) Stock-based compensation expense $(3,921) $(2,398) Non-GAAP
Slide 19: Reconciliation of GAAP to Non-GAAP | Net Loss / Per Share
Reconciliation of GAAP to Non-GAAP | Net Loss / Per Share ($ in thousands, Unaudited) Three Months Ended June 30, GAAP Net Income (Loss): 2019 2018 GAAP net loss $(34,265) $(15,355) Adjustments: Amortization of acquired intangible assets $1,524 $1,432 Stock-based compensation expense $13,597 $8,911
Slide 20: 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 21: 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.