Slide 1: Earnings Results First Quarter Fiscal 2021
Earnings Results First Quarter Fiscal 2021 (Ended June 30, 2020) July 30, 2020 © 8x8, Inc. All Rights Reserved.
Slide 2: 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 3: 8x8 - A Leader in Cloud Communications Services
8x8 - A Leader in Cloud Communications Services CoCen gs About 8x8 Inc. tin nt te ● Video conferencing Voice ac ● Routing ee ● 1,600+ employees ● Voice conferencing t ● Analytics M M r ● 15 offices in 8 countries e ● Co-browse / screen ● Workforce Engagement o ss de ag ● 1M+ business users in share
Slide 4: Financial Results vs. Guidance | Q1 Fiscal 2021
Financial Results vs. Guidance | Q1 Fiscal 2021 Q1 F2021 Guidance Results (May 12, 2020) (July 30, 2020) Total Revenue $120.0 – 121.0m $121.8m % Growth Y/Y 24-25% 26.0% Service Revenue $112.5 – 113.5m $114.2m % Growth Y/Y 25-26% 27.1% Pre-Tax Loss (Non-GAAP) (~$12.0m) ($7.6m) 8x8 Fiscal Q1 2021 Earn
Slide 5: Q1 Fiscal 2021 | Business Highlights
Q1 Fiscal 2021 | Business Highlights Strong and Growing Large Deals With Annual Recurring Revenue (ARR) Greater than $100,000: • 606 customers with Annual Recurring Revenue (ARR) > $100,000, 35% year-over-year growth • Closed 38 new customer deals with ARR > $100,000. These deals represented 43% of
Slide 6: Q1 Fiscal 2021 | Business Highlights (continued ...)
Q1 Fiscal 2021 | Business Highlights (continued ...) Continued Contact Center Traction with Customer: • 7 of top 10 new bookings were bundled deals • Contact center new bookings represented 32% of total new bookings and grew 194% year-over-year • Expanded 8x8 Virtual Agent conversational AI to inclu
Slide 7: Q1 Fiscal 2021 | Business Highlights (continued ...)
Q1 Fiscal 2021 | Business Highlights (continued ...) • Launched 8x8 Open Communications Platform, an enterprise communications platform, combining voice, team chat, meetings, and contact centers solutions with shared intelligent communications services like AI-driven expert routing and predictive an
Slide 8: New Bookings | Customers >$100K ARR
New Bookings | Customers >$100K ARR (Annual Recurring Revenue*) # of Customers (cumulative) % of New Bookings 611 606 43% 592 41% 536 33% 34% 449 31% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 *Annual Recurring Revenue (ARR) = annualized subscription revenue and the annualized platform usage
Slide 9: Annual Recurring Revenue (ARR) | By Customer Size
Annual Recurring Revenue (ARR*) | By Customer Size Total ARR Growth of +30% YOY with Strong Growth & Contribution From Mid-Market & Enterprise Customers +72% COMBINED yoy growth 19% MID-MARKET ENTERPRISE +16% AND yoy growth ENTERPRISE 55% +52% SMALL +40% BUSINESS ARR By Customer Size** yoy growth yo
Slide 10: Revenue | Strong Continued Increases
Revenue | Strong Continued Increases ($ in millions) Total Revenue Service Revenue $121.5 $121.8 $114.2 $118.6 $110.4 $112.5 $109.5 7% 6% $101.3 $96.7 7% 8% $89.8 7% 93% 93% 94% 92% 93% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 Service Revenue Other Revenue 8x8 Fiscal Q1 2021 Earnings Result
Slide 11: Revenue Per Customer | Increasingly Attractive Economics
Revenue Per Customer | Increasingly Attractive Economics Unit Level Customer Economics ... With Particular Strength in Larger Customers Mid-Market Enterprise $43 $177 $174 $42 $42 $167 $167 $40 $151 $37 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 Average Annual Service Revenue Per Customer (in
Slide 12: Gross Margin | Non-GAAP Margins
Gross Margin | Non-GAAP Margins* 74.4% 67.9% 66.4% 66.7% 67.7% 64.2% 61.3% 58.4% 56.7% 58.0% 1Q20 2Q20 3Q20 4Q20 1Q21 Gross Margin Service Margin * For a reconciliation of GAAP to Non-GAAP metrics, refer to the Appendix for additional information. Post-reclassification of Professional Services for a
Slide 13: Single Technology Platform | 8x8 R&D Innovation
Single Technology Platform | 8x8 R&D Innovation Strong Continued Innovation With Large Total R&D Investment ($ in millions) 18.4% $22.4 1Q21 R&D $21.8 $21.4 $21.5 $20.3 INVESTMENT $7.3 $8.1 (% of Revenue) $6.6 $8.4 $8.8 6.7% 33% 34% 36% 1Q21 31% 39% 43% CAPITALIZED COSTS 36% (% of Revenue) $14.5 $14
Slide 14: Guidance | Q2 Fiscal 2021
Guidance | Q2 Fiscal 2021 Q2 F2021 Guidance (July 30, 2020) Total Revenue $125.5 – 126.5m % Growth Y/Y 15-16% Service Revenue $117.3 – 118.3m % Growth Y/Y 16-17% Pre-Tax Loss (Non-GAAP) (~$7.5m) 8x8 Fiscal Q1 2021 Earnings Results 14 © 8x8, Inc. All Rights Reserved.
Slide 15: Investment Highlights
Investment Highlights Compelling TAM Attractive Economics $60+ billion market in early innings solid customer land and expand of cloud migration Unique Tech Platform Strong SaaS Model single cloud technology platform subscription revenue and visibility Complete Cloud Offering Multiple Growth Drivers
Slide 16: Thank you.
Thank you. 8x8 Fiscal Q1 2021 Earnings Results 16 © 8x8, Inc. All Rights Reserved.
Slide 17: APPENDIX
APPENDIX 8x8 Fiscal Q1 2021 Earnings Results 17 © 8x8, Inc. All Rights Reserved.
Slide 18: Reconciliation of GAAP to Non-GAAP | Cost of Service Revenue
Reconciliation of GAAP to Non-GAAP | Cost of Service Revenue ($ in thousands, Unaudited) Three Months Ended June 30, Cost of Service Revenue: 2020 2019 GAAP cost of service revenue $40,996 $25,300 Amortization of acquired intangible assets ($1,426) ($1,310) Stock-based compensation expense and relat
Slide 19: Reconciliation of GAAP to Non-GAAP | Cost of Other Revenue
Reconciliation of GAAP to Non-GAAP | Cost of Other Revenue ($ in thousands, Unaudited) Three Months Ended June 30, Cost of Other Revenue: 2020 2019 GAAP cost of other revenue $11,137 $12,391 Stock-based compensation expense and related taxes ($837) ($734) Severance and related termination costs ($30
Slide 20: Reconciliation of GAAP to Non-GAAP | Research and Development
Reconciliation of GAAP to Non-GAAP | Research and Development ($ in thousands, Unaudited) Three Months Ended June 30, Research and Development Expense: 2020 2019 GAAP research and development $21,494 $18,331 Stock-based compensation expense and related taxes ($6,777) ($3,864) Acquisition and integra
Slide 21: Reconciliation of GAAP to Non-GAAP | Sales and Marketing
Reconciliation of GAAP to Non-GAAP | Sales and Marketing ($ in thousands, Unaudited) Three Months Ended June 30, Sales and Marketing Expense: 2020 2019 GAAP sales and marketing $60,150 $53,599 Amortization of acquired intangible assets ($802) ($214) Stock-based compensation expense and related taxes
Slide 22: Reconciliation of GAAP to Non-GAAP | General and Administrative
Reconciliation of GAAP to Non-GAAP | General and Administrative ($ in thousands, Unaudited) Three Months Ended June 30, General and Administrative Expenses: 2020 2019 GAAP general and administrative $25,790 $19,607 Stock-based compensation expense and related taxes ($7,996) ($4,081) Acquisition and
Slide 23: Reconciliation of GAAP to Non-GAAP | Net Loss / Per Share
Reconciliation of GAAP to Non-GAAP | Net Loss / Per Share ($ in thousands, Unaudited) Three Months Ended June 30, Net Loss: 2020 2019 GAAP net loss ($41,913) ($34,265) Adjustments: Amortization of acquired intangible assets $2,228 $1,524 Stock-based compensation expense and related taxes $23,434 $13
Slide 24: 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. Unless otherwise specified, all trademarks identified by the ®, ™, or SM are registered trademarks, trademarks, or services marks respectively o