Slide 1: Fourth Quarter and Fiscal Year 2022
Fourth Quarter and Fiscal Year 2022 Ended March 31, 2022 May 10, 2022 The eXperience Communications Platform © 8x8, Inc. Copyright and confidential.
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
Slide 3: Strategic Priorities
Strategic Priorities 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 confidential.
Slide 4: Q4 2022 Financial Highlights
Q4 2022 Financial Highlights ■ Continued expansion of Enterprise ARR and customer base ■ XCaaS ARR growth accelerated to >45% YoY ■ Increased channel engagement and contribution ■ Improved customer retention rate ■ Completed Fuze acquisition and made significant cost reductions; accretive to operatin
Slide 5: Q4 2022 Business Highlights
Q4 2022 Business Highlights Product Innovation ■ Announced general availability of 8x8 Agent Workspace, a new 8x8 Contact Center composed experience that is transforming the contact center agent role. 8x8 Agent Workspace is a fully browser-based, design-led interface delivering a tailored and intuit
Slide 6: Q4 2022 Results vs. Guidance
Q4 2022 Results vs. Guidance Q4 F2022 Guidance Results (February 2, 2022) (March 31, 2022) Service Revenue $173.5 – 175.5m $172.8m % Growth Y/Y 30 – 31% 29% Total Revenue $180 – 182m $181.4m % Growth Y/Y 24 – 26% 25% Non-GAAP Operating Margin* Positive 2.3% * For a reconciliation of GAAP to Non-GAAP
Slide 7: Full Year Fiscal 2022 Performance vs. Guidance
Full Year Fiscal 2022 Performance vs. Guidance1 Ending March 31, 2022 5/2/21 8/4/21 11/2/21 2/2/222 FY 20223 Service Revenue $555.0 – 565.0m $564.0 – 572.0m $572.5 – 576.5m $603 – 605m $602.4m % Growth Y/Y 12 – 14% 14 – 15% 15 – 16% ~22% 21% Total Revenue $595.0 – 605.0m $604.0 – 612.0m $611.0 – 615
Slide 8: 8x8 By the Numbers (Q4 2022)
8x8 By the Numbers (Q4 2022) $687M 45%+ One platform Global coverage 8x8 Voice for MS Teams Total ARR(1)(2) YoY XCaaS ARR growth(1) 2.5M+ 55%+ 150K+ Paid business users YoY Enterprise ARR growth(1)(2) 60K+ 77%+ Single, all-in-one Full PSTN Industry-leading platform for replacement in integration for
Slide 9: Q4 and FY 2022 Financial Metrics
Q4 and FY 2022 Financial Metrics* Service Revenue1,7 $172.8 million, 29% Y/Y growth Q4 2022 Other Revenue2,7 $8.6 million, (22)% Y/Y growth Revenue Total Revenue7 $181.4 million, 25% Y/Y growth Service Revenue1,7 $602.4 million, 21% Y/Y growth FY 2022 Other Revenue2,7 $35.8 million, (2)% Y/Y growth
Slide 10: Revenue Growth
Revenue Growth Fiscal Q4 Total Revenue1 Fiscal Q4 Service Revenue2 ($ in millions) ($ in millions) 25% Y/Y 29% Y/Y $181 $173 15% Y/Y 18% Y/Y $157 $149 $145 $134 $414 $145 Q4'21 Q3’22 Q4'22 Q4'21 Q3'22 Q4’22 1. Q4’22 Total revenue includes Fuze revenue of $24.1 million.. 2. Q4’22 Service revenue incl
Slide 11: Enterprise Customers >$100K ARR
Enterprise Customers >$100K ARR Fiscal Q4 Enterprise ARR1 Fiscal Q4 Enterprise Customers2 ($ in millions) 55% Y/Y 73% Y/Y $393 1,320 30% Y/Y 24% Y/Y $307 $496 907 $253 761 $414 $145 Q4'21 Q3'22 Q4'22 Q4'21 Q3'22 Q4’22 1. Q4’22 Enterprise ARR includes Fuze enterprise ARR.. 2. Q4’22 Enterprise custome
Slide 12: Increasing Non-GAAP Gross Margins
Increasing Non-GAAP Gross Margins* Non-GAAP Total and Service Gross Margins as a % of Revenue 72.2% 69.6% 67.2% Non-GAAP Total Gross Margin* 66.7% Non-GAAP 64.7% Service Revenue Gross Margin* 61.2% Q4'21 Q3'22 Q4’22 * For a reconciliation of GAAP to Non-GAAP metrics, refer to the Appendix for additi
Slide 13: Non-GAAP Operating Expenses and Total Costs
Non-GAAP Operating Expenses and Total Costs* As a % of Total Revenue 99.6% 98.0% 97.7% Non-GAAP Operating Expenses** Non-GAAP Total 64.3% Costs*** 60.8% 62.7% Q4'21 Q3'22 Q4’22 * For a reconciliation of GAAP to Non-GAAP metrics, refer to the Appendix for additional information. ** Non-GAAP Operating
Slide 14: Q1 2023 Guidance
Q1 2023 Guidance1 Q1 F2023 Service Revenue $177 – 180m % Growth Y/Y 29 – 31% Total Revenue $185 – 188m % Growth Y/Y 25 – 27% Non-GAAP Operating Margin 2.0 – 2.5 % 1. Guidance as of May 10, 2022. Refer to Forward Looking Statement for a discussion of factors that could cause actual results to differ
Slide 15: FY 2023 Guidance
FY 2023 Guidance1 FY F2023 Service Revenue $740 – 755m % Growth Y/Y 23 – 25% Total Revenue $775 – 790m % Growth Y/Y 21 – 24% Non-GAAP Operating Margin 2 – 3% 1. Guidance as of May 10, 2022. Refer to Forward Looking Statement for a discussion of factors that could cause actual results to differ from
Slide 16: Industry recognition
Industry recognition UC Vendor, 2021 Best UC Collaboration Top Overall Supplier, 2021 5-Star Partner Program, Top New Provider, 2021 Platform, 2021 International Vendor 2021-2022 of the Year, 2020 Tech Innovator Award Special Forces Summit – for 8x8 XCaaS, 2021 Top Vendor Sales UK Cloud Services Per
Slide 17: Analyst Recognition
Analyst Recognition Gartner UCaaS Magic Quadrant Strong Performer in the IDC Worldwide Unified Leader, 2012–2021 Forrester Wave: UCaaS, 2019 Communication and Collaboration MarketScape Leader, 2021 Gartner CCaaS Magic Quadrant Challenger, 2015–2021 IDC Worldwide UCaaS MarketScape Leader for Enterpris
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 8x8, Inc. Copyright and confidential.
Slide 19: Non-GAAP Measures
Non-GAAP Measures This presentation contains certain financial information that has not been prepared in accordance with Generally Accepted Accounting Principles (GAAP). Management uses these non-GAAP financial measures internally in analyzing the Company’s financial results and believes they are usefu
Slide 20: Reconciliation of GAAP to Non-GAAP: Cost of Service Revenue
Reconciliation of GAAP to Non-GAAP Cost of Service Revenue ($ in thousands, Unaudited) Fiscal Quarter Cost of Service Revenue: Q4'21 Q3’22 Q4'22 GAAP cost of service revenue $47,239 $48,763 $53,938 Amortization of acquired intangible assets (1,074) (858) (2,159) Stock-based compensation expense and
Slide 21: Reconciliation of GAAP to Non-GAAP: Cost of Other Revenue
Reconciliation of GAAP to Non-GAAP Cost of Other Revenue ($ in thousands, Unaudited) Fiscal Quarter Q4’21 Q3’22 Q4'22 Cost of Other Revenue: GAAP cost of other revenue $13,874 $11,071 $14,563 Stock-based compensation expense and related (1,540) (1,286) (1,253) employer payroll taxes Legal and regula
Slide 22: Reconciliation of GAAP to Non-GAAP: Gross Margin
Reconciliation of GAAP to Non-GAAP Gross Margin ($ in thousands, Unaudited) Fiscal Quarter Q4'21 Q3’22 Q4’22 Gross Margin: Non-GAAP cost of service revenue $43,881 $45,460 $48,068 Non-GAAP cost of other revenue 12,334 9,887 12,414 Non-GAAP cost of revenue $56,215 $55,347 $60,482 Non-GAAP gross margi
Slide 23: Reconciliation of GAAP to Non-GAAP: Sales and Marketing
Reconciliation of GAAP to Non-GAAP Sales and Marketing Expense ($ in thousands, Unaudited) Fiscal Quarter Sales and Marketing Expense: Q4’21 Q3’22 Q4’22 GAAP sales and marketing $70,696 $76,797 $84,785 Amortization of acquired intangible assets (222) (221) (2,529) Stock-based compensation expense an
Slide 24: Reconciliation of GAAP to Non-GAAP: Research and Development
Reconciliation of GAAP to Non-GAAP Research and Development Expense ($ in thousands, Unaudited) Fiscal Quarter Research and Development Expense: Q4'21 Q3’22 Q4'22 GAAP research and development $25,271 $27,911 $30,586 Stock-based compensation expense and related (9,412) (8,711) (6,243) employer payro
Slide 25: Reconciliation of GAAP to Non-GAAP: General and Administrative
Reconciliation of GAAP to Non-GAAP General and Administrative Expense ($ in thousands, Unaudited) Fiscal Quarter General and Administrative Expenses: Q4'21 Q3’22 Q4'22 GAAP general and administrative $27,675 $29,950 $38,039 Stock-based compensation expense and related (9,442) (10,193) (9,324) employ
Slide 26: Reconciliation of GAAP to Non-GAAP: Total Operating Expenses
Reconciliation of GAAP to Non-GAAP Total Operating Expenses ($ in thousands, Unaudited) Fiscal Quarter Operating Expenses: Q4'21 Q3'22 Q4'22 Non-GAAP sales and marketing $57,602 $64,640 $71,258 Non-GAAP research and development 15,815 19,076 23,516 Non-GAAP general and administrative 14,520 14,678 2
Slide 27: Reconciliation of GAAP to Non-GAAP: Total Expense
Reconciliation of GAAP to Non-GAAP Total Expense ($ in thousands, Unaudited) Fiscal Quarter Q4'21 Q3’22 Q4'22 Total Expense: Non-GAAP cost of revenue $56,215 $55,347 $60,482 Non-GAAP operating expenses 87,937 98,394 116,715 Non-GAAP total expense $144,152 $153,741 $177,197 Non-GAAP total expense as
Slide 28: Reconciliation of GAAP to Non-GAAP: Operating Margin
Reconciliation of GAAP to Non-GAAP Operating Margin ($ in thousands, Unaudited) Fiscal Quarter Operating Margin: Q4'21 Q3'22 Q4'22 GAAP loss from operations ($40,036) ($37,618) ($40,539) Amortization of acquired intangible assets 1,296 1,079 4,688 Stock-based compensation expense and related 35,295
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