Slide 1: Fourth Quarter FY 2023
Fourth Quarter FY 2023 Ended March 31, 2023 May 11, 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: Overview
Overview Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 4: 8x8 By the Numbers - Fiscal 2023
8x8 By the Numbers - Fiscal 2023 $703M 40% One platform Global coverage 8x8 Voice for MS Teams Total ARR(1) XCaaS as a % of total ARR(1) 2.5M+ 58% 300K+ Paid business licenses Enterprise ARR as a % of total ARR(1)(2) Single, all-in-one Full PSTN Industry-leading 60K+ 60% platform for UCaaS, CCaaS, a
Slide 5: Q4 FY 2023 product innovation highlights
Q4 FY 2023 product innovation highlights Launched 8x8 Intelligent Customer Assistant for 8x8 Contact Center, a powerful, user-friendly conversational AI solution enabling businesses to create self-service experiences across all channels. Integrated OpenAI Whisper across the 8x8 XCaaS platform to del
Slide 6: Q4 FY 2023 industry recognition
Q4 FY 2023 industry recognition Strong Performer in 2023 Winner for Best Automation Named by DANA Indonesia, Gartner® Peer Insights™ “Voice Project in Computing’s DevOps one of Indonesia’s biggest of the Customer for Contact Excellence Awards 2023 digital wallet providers with Center as a Service” R
Slide 7: Communications for the Customer Obsessed
Communications for the Customer Obsessed Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 8: Customer obsessed organizations make CX a competitive advantage
Customer obsessed organizations make CX a competitive advantage Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 9: Customer obsessed organizations
Customer obsessed organizations Shift the mindset and recognize customer experience as a business accelerator Focus relentlessly on the customer experience in every interaction, across every channel Empower every employee to deliver an exceptional customer experience with the right tools Use AI and
Slide 10: XCaaS brings customer obsession to life
XCaaS brings customer obsession to life Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 11: Roadmap for customer obsessed communications
Roadmap for customer obsessed communications Enable the agile Empower users across Harness the power workplace the organization AI/ML High availability, scalable Unified administration LLM-based ICA for common issues communications platform and Tier 1 support “Right size” crossover features Messaging
Slide 12: 8x8 XCaaS empowers all employees globally
8x8 XCaaS empowers all employees globally Revenue opportunity: Crossover Users >2x CC Customer 3-5x Standalone voice Support Inside Sales Informal queues IT Admin & Supervisors Frontdesk Knowledge Worker + Omnichannel CC Shared use 10% of users Voice only + “Crossover” CX Tools & Visibility 40-50% o
Slide 13: Trajector customer case study
Trajector helps the underserved, at-risk, disabled, and veteran population receive the disability benefits they medically, legally, and ethically qualify for from both government and private entities. 8x8 Solutions 8x8 XCaaS with Contact Center & Voice for Microsoft Teams Supporting over 700 contact
Slide 14: Jackson Lewis P.C. customer case study
Jackson Lewis P.C. is a US-based law firm with more than 950 attorneys nationwide focused on labor and employment law 8x8 Solutions 8x8 XCaaS with Contact Center & Voice for Microsoft Teams Supporting over 2000 employees Why 8x8? Single cloud platform for UC and CC Seamless Microsoft Teams and Servic
Slide 15: Agilisys customer case study
Agilisys is one of the UK’s fastest growing and innovative cloud and digital transformation specialists, enabling both public and private sector organizations to adopt technologies, platforms and processes that promote new ways of working. 8x8 Solutions 8x8 XCaaS and Intelligent Customer Assistant S
Slide 16: Mayden customer case study
Mayden provides iaptus, a SaaS patient management system for over 200 mental healthcare providers in the NHS, UK and abroad supporting over 1M patients per year. 8x8 Solutions 8x8 UCaaS with CPaaS (SMS, Video) Why 8x8? NHS Credentials - Service Scalability Comprehensive APIs 8x8 Partnership Mayden u
Slide 17: Q4 and Fiscal 2023 Financial Performance
Q4 and Fiscal 2023 Financial Performance Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 18: Strength in numbers
Strength in numbers KEY FINANCIAL STATS KEY BUSINESS STATS $139M 9 ~1,300 Cash and investments1 Consecutive quarters of non-GAAP Enterprise customers, profitability2 and positive cash flow >2.5M paid business licenses $62M ~500% >90% FY’23 non-GAAP Operating Profit2 YoY increase in non-GAAP CSAT score
Slide 19: Q4 FY 2023 Financial Highlights
Q4 FY 2023 Financial Highlights ■ Record service and total revenue ■ 9th consecutive quarter of non-GAAP profitability and positive cash flow ■ Continued strong performance in enterprise and XCaaS ● 8% YoY growth in Enterprise ARR1 growth (excluding CPaaS, but including Fuze ARR in Q4’22 and Q4’23 ) ●
Slide 20: Q4 FY 2023 Results vs. Guidance
Q4 FY 2023 Results vs. Guidance Q4 F2023 Guidance Results as of February 1, 2023 March 31, 2023 Service Revenue $175 – 178m2 $176.6m1 % Growth Y/Y 1 - 3% 2% Total Revenue $184 – 187m2 $184.5m2 % Growth Y/Y 1 – 3% 2% Non-GAAP Operating Margin2 ~10% 13.5% 1. Includes $26.7 million of revenue from Fuze
Slide 21: FY 2023 Results vs. Guidance
FY 2023 Results vs. Guidance Fiscal Year 2023 Guidance Results as of February 1, 2023 March 31, 2023 Service Revenue $708.5 - 711.5M $710.0m1 % Growth Y/Y 18% 18% Total Revenue $743.4 - 746.4M $743.92 % Growth Y/Y 17% 17% Non-GAAP Operating Margin2 ~7.5% 8.4%3 1. Includes $110.3 million of revenue f
Slide 22: Q4 FY 2023 Financial Metrics
Q4 FY 2023 Financial Metrics* Service Revenue1,7 $176.6 million, 2% Y/Y growth Q4 F2023 Other Revenue2,7 $8.0 million, -7% Y/Y growth Revenue Total Revenue7 $184.5 million, 2% Y/Y growth Total ARR3 $703 million, 2% Y/Y growth Enterprise ARR3,4 $405 million, 3% Y/Y growth 3 ARR Mid-Market3,5 $130 mil
Slide 23: Revenue Growth
Revenue Growth Fiscal Q4 Total Revenue1 Fiscal Q4 Service Revenue2 ($ in millions) ($ in millions) 18% Y/Y 2% Y/Y 18% Y/Y 2% Y/Y $184 $185 $176 $177 25% Y/Y 29% Y/Y $181 $173 $145 Q4'22 Q3’23 Q4'23 Q4'22 Q3'23 Q4’23 1. Q4’23, Q3’23, and Q4’22 Total Revenue included revenue from Fuze customers of $26
Slide 24: Enterprise Customers >$100K ARR
Enterprise Customers >$100K ARR Fiscal Q4 Enterprise ARR1,2 Fiscal Q4 Enterprise Customers2 ($ in millions) 1,309 1,301 30% Y/Y 3% Y/Y $400 $405 $496 1,258 $393 $145 Q4'22 Q3'23 Q4’23 Q4'22 Q3'23 Q4’23 1. Enterprise ARR is defined as ARR from customers that generate > $100K ARR. 2. Includes Fuze ente
Slide 25: Increasing Non-GAAP Gross Margins
Increasing Non-GAAP Gross Margins* Non-GAAP Total and Service Gross Margins as a % of Revenue 75.7% 75.3% 72.2% Non-GAAP Total Gross Margin* 72.5% 72.1% Non-GAAP Service Revenue Gross Margin* 66.7% Q4'22 Q3'23 Q4’23 * See Appendix for a reconciliation of Non-GAAP metrics to the nearest GAAP metric.
Slide 26: Non-GAAP Operating Expenses and Total Costs
Non-GAAP Operating Expenses and Total Costs* As a % of Total Revenue ~11 pts improvement 97.7% 90.1% Non-GAAP Operating Expenses as a % of 86.5% revenue 1 Non-GAAP Total Costs as a % of 64.4% revenue2 62.2% 59.0% Q4'22 Q3'23 Q4’23 * See Appendix for a reconciliation of GAAP to Non-GAAP metrics. 1. N
Slide 27: Non-GAAP Operating Income and Margin
Non-GAAP Operating Income and Margin1 Fiscal Q4 Operating Income Fiscal Q4 Operating Margin ($ in millions) (% of revenue) +489% $24.8 >11 points 13.5% $18.3 $496 9.9% $414 $4.2 2.3% $145 Q4'22 Q3'23 Q4’23 Q4'22 Q3'23 Q4’23 1. Non-GAAP. See Appendix for reconciliation of Non-GAAP metrics to nearest
Slide 28: Cash Flow from Operations and Interest Payments
Cash Flow from Operations and Interest Payments Fiscal Q4 Cash Flow from Operations Fiscal Year Cash Flow from Operations (3 months, $ millions) (12 months, $ millions) $22.2 $10.9 $1.3 $48.8 $16.5 $13.6 $2.2 $496 $34.7 $414 $0.9 $0.8 $145 $1.8 ($14.1) Q4'21 Q4’22 Q4’23 FY’21 FY’22 FY’23 Interest Pa
Slide 29: Q1 2024 Guidance
Q1 2024 Guidance1 Q1 FY 2024 as of May 11, 20231 Service Revenue $178.5 – 180.5m2 % Growth Y/Y 0 - 1% Total Revenue $186 – 188m2 % Growth Y/Y (1) – 0% Non-GAAP Operating Margin1 12.5 - 13.0% 1. Guidance as of May 11, 2023. Refer to Forward Looking Statements for a discussion of factors that could ca
Slide 30: FY 2024 Guidance
FY 2024 Guidance1 FY 2024 as of May 11, 20231 Service Revenue $725 – 732m2 % Growth Y/Y 2 - 3% Total Revenue $755 – 763m2 % Growth Y/Y 1 – 3% Non-GAAP Operating Margin1 12.0 - 13.0% 1. Guidance as of May 11, 2023. Refer to Forward Looking Statements for a discussion of factors that could cause actua
Slide 31: Appendix
Appendix Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 32: 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 33: 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 34: 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 35: Interest Expense Detail - Convertible Senior Notes & Term Loan
Interest Expense Detail - Convertible Senior Notes & Term Loan 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. All rights reserved.
Slide 36: Supplemental Details - Other Expense, Net
Supplemental Details - Other Expense, Net Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 37: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 38: 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 39: Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 40: Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 41: Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 42: Net Income (Loss) Non-GAAP Reconciliation
Net Income (Loss) Non-GAAP Reconciliation Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 43: 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