8x8 Inc · NASDAQ:EGHT

8x8 — Q3 FY2022 Earnings Presentation

29 slides from 8x8's earnings presentation, Feb 2, 2022

  1. Slide 1: Third Quarter Fiscal 2022

    Third Quarter Fiscal 2022 (Ended December 31, 2021) February 2, 2022 The eXperience Communications Platform © 8x8, Inc. Copyright and confidential.

  2. 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. These statements relate to the release of new products, market demand for products, impa

  3. Slide 3: Q3 2022 Highlights

    Q3 2022 Highlights ■ Total and Service Revenue above high end “Our investments in of guidance ranges XCaaS, channel, and ■ XCaaS ARR growth accelerated global coverage have us ■ Enterprise ARR and Channel-driven ARR up well positioned to achieve 30%+ YoY our long-term goals of ■ Achieved 2% Non-GAAP

  4. Slide 4: Q3 2022 Results vs. Guidance

    Q3 2022 Results vs. Guidance Q3 F2022 Guidance Results (November 2, 2021) (December 31, 2021) Service Revenue $144.0 – 145.0m $149.4m % Growth Y/Y 13 – 14% 18% Total Revenue $152.7 – 154.2m $156.9m % Growth Y/Y 12 - 13% 15% Non-GAAP Operating Margin* Positive 2.0% * For a reconciliation of GAAP to N

  5. Slide 5: 8x8 By the Numbers (Q3 2022)

    8x8 By the Numbers (Q3 2022) $572M 35%+ One platform Global coverage 8x8 Voice for MS Teams Total ARR* YoY XCaaS ARR growth* 2M+ 30%+ 100K+ Paid business users YoY Enterprise ARR growth* 60K+ 30%+ Single, all-in-one Full PSTN Industry-leading platform for replacement in integration for UCaaS, CCaaS,

  6. Slide 6: Strategic Priorities for Fiscal 2022

    Strategic Priorities for Fiscal 2022 Expanding Winning Expanding Driving Platform Together the Base Operational Advantage With Partners Excellence Integrated Channel Partner Upsell, Cross-sell, Tailored GTM to Drive UCaaS & CCaaS Engagement Retention Scale and Efficiency © 8x8, Inc. Copyright and con

  7. Slide 7: Q3 2022 Business Highlights

    Q3 2022 Business Highlights Product Innovation ■ Delivered the industry’s first integrated cloud phone and contact center solution that supports the communications and customer engagement requirements of multinational organizations in the Philippines. Increased full PSTN replacement services to 48 co

  8. Slide 8: Q3 2022 Business Highlights (continued)

    Q3 2022 Business Highlights (continued) Corporate and Leadership Updates ■ Completed the acquisition of Fuze, a leader in cloud-based communications for the enterprise. The acquisition expands the base of enterprise customers, creates incremental cross-selling opportunities for contact center capabi

  9. Slide 9: Non-GAAP Operating Expenses and Total Operating Expenses

    Non-GAAP Operating Expenses and Total Operating Expenses* As a % of Total Revenue 101.1% 98.7% 98.0% Non-GAAP Operating Expenses** Non-GAAP Total Expense*** 60.7% 62.9% 62.7% Q3'21 Q2'22 Q3’22 * For a reconciliation of GAAP to Non-GAAP metrics, refer to the Appendix for additional information. ** No

  10. Slide 10: Q3 2022 Financial Metrics

    Q3 2022 Financial Metrics Service Revenue1 $149.4 million, 18% Y/Y growth Revenue Other Revenue2 $7.5 million, (22)% Y/Y growth Total Revenue $156.9 million, 15% Y/Y growth Total ARR3 $572 million, 16% Y/Y growth Enterprise4 $307 million, 30% Y/Y growth ARR (May not sum to total Mid-Market5 $102 mil

  11. Slide 11: Delivering Revenue Growth at Scale

    Delivering Revenue Growth at Scale Fiscal Q3 Total Revenue Fiscal Q3 Service Revenue ($ in millions) ($ in millions) 17% Y/Y 15% Y/Y 18% Y/Y 18% Y/Y $152 $157 $149 $142 $496 $137 $127 $414 $145 Q3'21 Q2’22 Q3'22 Q3'21 Q2'22 Q3’22 © 8x8, Inc. Copyright and confidential.

  12. Slide 12: Enterprise Customers >$100K ARR

    Enterprise Customers >$100K ARR Fiscal Q3 Enterprise ARR Fiscal Q3 Enterprise Customers ($ in millions) 30% Y/Y 24% Y/Y 33% Y/Y 36% Y/Y 907 $307 $282 871 $496 $236 734 $414 $145 Q3'21 Q2'22 Q3'22 Q3'21 Q2'22 Q3’22 © 8x8, Inc. Copyright and confidential.

  13. Slide 13: Total and Service Revenue Non-GAAP Gross Margins

    Total and Service Revenue Non-GAAP Gross Margins* 69.6% 69.4% 66.0% Total Non-GAAP Gross Margin* 64.7% Non-GAAP Service Revenue 64.2% Gross Margin* 59.6% Q3'21 Q2'22 Q3’22 * For a reconciliation of GAAP to Non-GAAP metrics, refer to the Appendix for additional information. © 8x8, Inc. Copyright and

  14. Slide 14: Q4 2022 Guidance

    Q4 2022 Guidance1 Q4 F2022 Service Revenue2 $173.5 – 175.5m % Growth Y/Y 30 – 31% Total Revenue2 $180 – 182m % Growth Y/Y 24 – 26% Non-GAAP Operating Margin Positive 1. Guidance as of February 2, 2022. Refer to Forward Looking Statement for a discussion of factors that could cause actual results to

  15. Slide 15: Full Year Fiscal 2022 Guidance

    Full Year Fiscal 2022 Guidance Ending March 31, 2022 Prior Prior Prior Updated2 (5/2/21) (8/4/21) (11/2/21) (2/2/22) Service Revenue $555.0 – 565.0m $564.0 – 572.0m $572.5 – 576.5m $603 – 605m % Growth Y/Y 12 – 14% 14 – 15% 15 – 16% ~22% Total Revenue $595.0 – 605.0m $604.0 – 612.0m $611.0 – 615.0m

  16. Slide 16: Industry Recognition

    Industry Recognition UC Vendor, 2021 Best UC Collaboration Top Overall Supplier, 2021 Tech Innovator Award Top New Provider, 2021 Platform, 2021 International Vendor for 8x8 XCaaS, 2021 of the Year, 2020 5-Star Partner Program, Special Forces Summit – 2021 Top Vendor Sales UK Cloud Services Performa

  17. Slide 17: Analyst Recognition

    Analyst Recognition Gartner UCaaS Magic Quadrant Strong Performer in the IDC Worldwide Unified Leader, 2012–2021 Forrester Wave: UCaaS, 2019 Communication and Collaboration MarketScape Leader, 2021 Gartner CCaaS Magic Quadrant Challenger, 2015–2021 IDC Worldwide UCaaS MarketScape Leader for Enterpris

  18. Slide 18: GAAP to Non-GAAP Reconciliations

    GAAP to Non-GAAP Reconciliations © 8x8, Inc. Copyright and confidential.

  19. Slide 19: Non-GAAP Measures; Non-GAAP 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 results and believes they are usefu

  20. Slide 20: Reconciliation: Cost of Service Revenue

    Reconciliation of GAAP to Non-GAAP Cost of Service Revenue ($ in thousands, Unaudited) Fiscal Quarter Cost of Service Revenue: Q3'21 Q2’22 Q3'22 GAAP cost of service revenue $47,044 $47,198 $48,763 Amortization of acquired intangible assets (1,192) (1,044) (858) Stock-based compensation expense and

  21. Slide 21: Reconciliation: Cost of Other Revenue

    Reconciliation of GAAP to Non-GAAP Cost of Other Revenue ($ in thousands, Unaudited) Fiscal Quarter Q3’21 Q2’22 Q3'22 Cost of Other Revenue: GAAP cost of other revenue $13,364 $12,269 $11,071 Stock-based compensation expense and related (1,196) (1,372) (1,286) employer payroll taxes Legal and regula

  22. Slide 22: Reconciliation: Gross Margin

    Reconciliation of GAAP to Non-GAAP Gross Margin ($ in thousands, Unaudited) Fiscal Quarter Q3'21 Q2’22 Q3’22 Gross Margin: Non-GAAP cost of service revenue $43,171 $43,571 $45,460 Non-GAAP cost of other revenue 12,028 10,709 9,887 Non-GAAP cost of revenue $55,199 $54,280 $55,347 Non-GAAP gross margi

  23. Slide 23: Reconciliation: Sales and Marketing Expense

    Reconciliation of GAAP to Non-GAAP Sales and Marketing Expense ($ in thousands, Unaudited) Fiscal Quarter Sales and Marketing Expense: Q3’21 Q2’22 Q3’22 GAAP sales and marketing $63,986 $76,726 $76,797 Amortization of acquired intangible assets (343) (221) (221) Stock-based compensation expense and

  24. Slide 24: Reconciliation: Research and Development Expense

    Reconciliation of GAAP to Non-GAAP Research and Development Expense ($ in thousands, Unaudited) Fiscal Quarter Research and Development Expense: Q3'21 Q2’22 Q3'22 GAAP research and development $23,702 $28,498 $27,911 Stock-based compensation expense and related (8,525) (10,086) (8,711) employer payr

  25. Slide 25: Reconciliation: General and Administrative Expense

    Reconciliation of GAAP to Non-GAAP General and Administrative Expense ($ in thousands, Unaudited) Fiscal Quarter General and Administrative Expenses: Q3'21 Q2’22 Q3'22 GAAP general and administrative $23,844 $24,023 $29,950 Stock-based compensation expense and related (5,661) (10,423) (10,193) emplo

  26. Slide 26: Reconciliation: Total Operating Expenses

    Reconciliation of GAAP to Non-GAAP Total Operating Expenses ($ in thousands, Unaudited) Fiscal Quarter Operating Expenses: Q3'21 Q2'22 Q3'22 Non-GAAP sales and marketing $53,462 $62,386 $64,640 Non-GAAP research and development 14,679 18,370 19,076 Non-GAAP general and administrative 14,826 14,584 1

  27. Slide 27: Reconciliation: Total Expense

    Reconciliation of GAAP to Non-GAAP Total Expense ($ in thousands, Unaudited) Fiscal Quarter Q3'21 Q2’22 Q3'22 Total Expense: Non-GAAP cost of revenue $55,199 $54,280 $55,347 Non-GAAP operating expenses 82,967 95,340 98,394 Non-GAAP total expense $138,166 $149,620 $153,741 Non-GAAP total expense as a

  28. Slide 28: Reconciliation: Operating Margin

    Reconciliation of GAAP to Non-GAAP Operating Margin ($ in thousands, Unaudited) Fiscal Quarter Operating Margin: Q3'21 Q2'22 Q3'22 GAAP loss from operations ($35,255) ($37,157) ($37,618) Amortization of acquired intangible assets 1,535 1,265 1,079 Stock-based compensation expense and related 27,485

  29. Slide 29: 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

8x8 — Q3 FY2022 Earnings Presentation on 6ix