8x8 Inc · NASDAQ:EGHT
8x8 — Q1 2025 Earnings Presentation
41 slides from 8x8's earnings presentation, Aug 7, 2024
Slide 1: First Quarter FY 2025
First Quarter FY 2025 Ended June 30, 2024 August 7, 2024 One platform. Every communications experience. Copyright 2024 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 Speaker
Today’s Speaker Watch the video of CEO Sam Wilson discussing fiscal Q1’25 on the investor relations playlist on our YouTube channel Samuel Wilson 8x8 Chief Executive Officer Copyright 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 4: Overview
Overview Copyright 2024 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 5: 8x8 Q1 Fiscal 2025
8x8 Q1 Fiscal 2025 Integrated Global Continuous $178M 14 platform Presence Innovation Consecutive quarters of Total Revenue non-GAAP profitability1 and positive cash flow 3M+ 35% Paid business licenses YoY increase in New Logo pipeline AI-powered Full PSTN Recent innovations: modern replacement in 59
Slide 6: Recent product innovation highlights
Recent product innovation highlights ● Embedded new AI capabilities spanning the entire 8x8 cloud contact center and unified communications platform, including: ◦ Deployed a more powerful large language engine, improving transcription accuracy and expanding language support, at no additional cost to
Slide 7: Industry Recognition
Industry Recognition • Won two 2024 ChannelVision Visionary Spotlight Awards (VSA); Business Technology Award for 8x8 Contact Center and Overall Excellence Award for the 8x8 Elevate partner program. • Recognized as a leader in TrustRadius’ Unified Communications as a Service (UCaaS) and Contact Cent
Slide 8: Q1'25 Customer Stories
Q1’25 Customer Stories One platform. Every communications experience. Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 9: Great Places Housing Group
Great Places Housing Group exists to improve the lives of the people living in their 25,000 homes across the North West and Yorkshire in the UK providing general needs rented homes and tenancy services as well as accommodation and services that promote independence and wellbeing for some of society’
Slide 10: ATRIO Health Plans
ATRIO Health Plans was established by Oregon physicians in 2004 and has since grown to serve thousands of members. ATRIO Health Plans fosters a culture of compassion, capability, and customer service. Their mission is to deliver high quality health insurance at a reasonable price, leverage the talen
Slide 11: ICA Voice customer testimonial
“The implementation of ICA Voice has allowed us to eliminate the need for a dedicated switchboard operator, saved £40,000 annually and improved our call handling success rate to over 80%. Our multi-skilled agents can now manage calls seamlessly alongside their other tasks, reducing idle time and imp
Slide 12: Leading Home Furnishings Retailer
Leading Home Furnishings Retailer A rapidly growing lifestyle retailer of premium home furnishings with showrooms and design centers across the United States, complimentary in-home design services and online & ecommerce capabilities. 8x8 Solutions 8x8 Contact Center with Voice for Microsoft Teams, V
Slide 13: The King Power Corporation
The King Power Corporation, established in 1989 and headquartered in Bangkok, Thailand, has emerged as a leading retail business group in the travel retail industry, driving the business towards new global dimensions. 8x8 Solutions 8x8 SMS API to manage communications with over 850,000 customers Why
Slide 14: Fiscal Year Q1'25 Performance
Fiscal Year Q1’25 Performance Copyright 2024 2023 8x8, Inc. or its affiliates. All rights reserved.
Slide 15: Financial Strength
Financial Strength As of 6/30/24 KEY FINANCIAL STATS KEY BUSINESS STATS $131M 14 >3.0M Cash, restricted cash Consecutive quarters of non-GAAP Paid business licenses and equivalents1 Operating Profit3 and positive cash flow from operations $88M +12% >57,000 TTM non-GAAP YoY increase in TTM Customers Op
Slide 16: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights ■ Service revenue of $172.8M and total revenue of $178.1M ■ 14th consecutive quarter of non-GAAP operating profit1 and positive operating cash flow ● Non-GAAP operating margin of 11.3%1 ● Cash flow generated by operations of $18.1M ■ $131M cash, equivalents and restricted c
Slide 17: Q1 2025 Results vs. Guidance
Q1 2025 Results vs. Guidance Q1 F2025 Guidance Results $ millions As of 5/8/24 Service Revenue $170 – 174M $172.8m % Growth Y/Y (3) - (1)% (1%) Total Revenue $176 – 181M $178.1m % Growth Y/Y (4) – (1)% (3%) Non-GAAP Operating 11-12% 11.3%1 Margin1 1. See Appendix for a reconciliation of Non-GAAP met
Slide 18: Income Statement
Q1 2025 Financial Metrics Q1’25 % of Total $ Millions YoY Revenue Service Revenue1 $172.8 97% -1% Revenue Other Revenue2 $5.3 4% -34% Income Statement Total Revenue $178.1 100% -3% Gross Profit $125.7 70.6% -2.4 pts Non-GAAP Operating Income $20.1 11.3% -3.1 pts Metrics3 Adjusted EBITDA $25.8 14.5% -
Slide 19: Q1 2025 Financial Metrics continued
Q1 2025 Financial Metrics continued Q1’24 Q1’25 $ Millions $ Millions YoY Cash & Investments1 $139.2M $131.2M (7.9M) Cash Operating Cash Flow $26.5M $18.1M (8.3M) Metrics YoY decrease in ending cash Cap Ex + Cap SW ($3.7M) ($3.4M) (0.3M) reflects redemption of remaining 2024 TTM Cash TTM Operating Ca
Slide 20: Revenue Growth
Revenue Growth Fiscal Q1 Total Revenue Fiscal Q1 Service Revenue ($ in millions) ($ in millions) (2)% Y/Y (3)% Y/Y (3)% Y/Y (2)% Y/Y (2)% Y/Y (1)% Y/Y Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 21: Non-GAAP Gross Margins
Non-GAAP Gross Margins1 Non-GAAP Total and Service Gross Margins as a % of Revenue 76.2% 74.2% 73.8% Non-GAAP Total Revenue Gross Margin1 73.0% Non-GAAP 70.6% Service Revenue 70.8% Gross Margin1 Q1'24 Q4'24 Q1’25 1. See Appendix for reconciliation of Non-GAAP metrics to nearest GAAP metric. . Copyri
Slide 22: Non-GAAP Operating Expenses and Total Costs
Non-GAAP Operating Expenses and Total Costs1 As a % of Total Revenue 88.7% 88.7% 85.6% Non-GAAP Operating Expenses as a % of revenue 2 Non-GAAP Total 59.5% Costs as a % of 59.0% 59.3% revenue 3 Q1'24 Q4'24 Q1’25 1. See Appendix for reconciliation of Non-GAAP metrics to nearest GAAP metric. 2. Non-GA
Slide 23: Non-GAAP Operating Income and Margin
Non-GAAP Operating Income and Margin1 Fiscal Q1 Operating Income Fiscal Q1 Operating Margin ($ in millions) (% of revenue) $26.4 14.4% $20.3 $20.1 11.3% 11.3% $496 $414 $145 Q1'24 Q4'24 Q1’25 Q1'24 Q4'24 Q1’25 1. See Appendix for reconciliation of Non-GAAP metrics to nearest GAAP metric. . Copyright
Slide 24: Cash Flow from Operations and Cash Interest Paid
Cash Flow from Operations and Cash Interest Paid Fiscal Q1 Cash Flow from Operations TTM Cash Flow from Operations and and Cash Interest Paid Cash Interest Paid (3 months, $ millions) (12 Months, $ millions) $35.6 $4.9 $37.4 $25.8 $79.0 $26.5 $6.7 $10.9 $69.4 $70.7 $18.1 $12.7 Q1'24 Q4’24 Q1’25 TTM
Slide 25: Q2 FY 2025 Guidance
Q2 FY 2025 Guidance1 Q2 FY 2025 as of August 7, 2024 Service Revenue $170 – 174M % Growth Y/Y (4) - (2)% Total Revenue $175 – 181M % Growth Y/Y (5) – (2)% Non-GAAP Operating Margin1 10-11% 1. Reconciliation to nearest GAAP metric not available for forward looking Non-GAAP Operating Margin. Refer to
Slide 26: Updated FY 2025 Guidance
Updated FY 2025 Guidance1 FY 2025 as of May 8 20241 Updated August 7, 20241 Service Revenue $693 - 707M $685 - 707M % Growth Y/Y (1) - 1% (2) - 1% Total Revenue $720 - 738M $710 - 732M % Growth Y/Y (1) - 1% (3) - 0% Non-GAAP Operating Margin1 11.5 - 13.0% 10.0 - 11.0%% Non-GAAP Net Income per Share
Slide 27: Additional Financial Model Commentary
Additional Financial Model Commentary FY’26 and Q1’25A Q2’25 FY’25 As of 5/8/24 Beyond Non-GAAP Interest Expense ~$8.9M ~$7.2M $28-29M Cash Interest Paid ~$6.7M ~9.2M $28-29M $59-64M Less than Q1 due to No change from prior $18.1M timing of cash interest commentary; $15-20M less in Paid $5.6M of $10
Slide 28: Additional Financial Model Commentary
Additional Financial Model Commentary Non-GAAP Cost Structure1 Near-Term FY’22 FY’23 FY’24 % of revenue “Target”2 Non-GAAP Gross margin 64.6% 70.8% 71.7% Non-GAAP R&D 12.1% 14.8% 15.2% ~15% Non-GAAP Sales and 40.5% 36.1% 33.0% 33 - 34% Marketing Non-GAAP G&A 10.4% 11.6% 10.5% 10 - 11% Non-GAAP Opera
Slide 29: Appendix
Appendix Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 30: Supplemental Details on Other (Expense) Income, Net
Supplemental Details on Other (Expense) Income, Net Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 31: Outstanding Debt as of 6/30/24
Outstanding Debt as of 6/30/24 For more detailed disclosures on the terms of the Company’s convertible senior notes and term loan, see the Company’s most recent 10K filing. Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 32: 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 10K filing. Copyright 2024 8x8, Inc. or its affiliates
Slide 33: History of Debt Repayments
History of Debt Repayments Reduced Principal Amount of Debt by $121M since August 2022. 35% completion against goal of repaying $250M from FY’24 thru FY’26 Repaid >121M of Aggregate Principal 2027 Term 2024 Convert Loan ~$33M Additional Notes Repurchases of 2024 Notes Voluntary Principal Paydown Ter
Slide 34: Debt Maturity by Fiscal Year
Debt Maturity by Fiscal Year As of 8/5/24 2024 Notes Repaid with cash on 2/1/24 Term Loan with Francisco Partners repaid on 8/5/24 with proceeds from new $200M bank loan + Term $25M from cash. Loan due 8/3/27 Convertible Notes due 2/1/28 Copyright 2024 8x8, Inc. or its affiliates. All rights reserved
Slide 35: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 36: 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 37: Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 38: Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 39: Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Copyright 2024 8x8, Inc. or its affiliates. All rights reserved.
Slide 40: 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
Slide 41: Q1 2025 Financial Metrics continued
Q1 2025 Financial Metrics continued Q1’24 Q1’25 $ Millions $ Millions YoY Cash & Investments1 $139.2M $131.2M (7.9M) Cash Operating Cash Flow $26.5M $18.1M (8.3M) Metrics Decrease in cash Cap Ex & Cap SW (3.7M) ($3.4M) (0.3M) reflects redemption of remaining 2024 notes for cash in February, Accounts