8x8 Inc · NASDAQ:EGHT
8x8 — Q1 FY2022 Earnings Presentation
26 slides from 8x8's earnings presentation, Aug 4, 2021
Slide 1: First Quarter Fiscal 2022 (Ended June 30, 2021)
First Quarter Fiscal 2022 (Ended June 30, 2021) August 4, 2021 © 8x8, Inc. 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. These statements relate to the release of new products, market demand for products, chan
Slide 3: 8x8 By the Numbers
8x8 By the Numbers 1 2.1 Million $536 Million Platform for Paid business Total ARR* Customers users 58,000+ 24% 250+ Customers Total ARR Growth* Patents * Annualized Recurring Subscriptions and Usage (“ARR”) equals the sum of the most recent month of (i) recurring subscription amounts and (ii) platf
Slide 4: Apps & Experiences Capabilities
Powering All Personas Company-Wide Phone Inbound 8x8 Work Capabilities Apps & Experiences * Employee Customer Messaging Digital Receptionist Experience Experience Agent Video Video Outbound Platform </> Third-Party Analytics & AI Integrations CPaaS Apps 4 © 8x8, Inc. All Rights Reserved.
Slide 5: Guidance vs. Financial Results Q1 Fiscal 2022
Guidance vs. Financial Results Q1 Fiscal 2022 Q1 F2022 Guidance Results (May 10, 2021) (August 4, 2021) Total Revenue $142.0 – 143.5m $148.3m % Growth Y/Y 17 – 18% 22% Service Revenue $132.5 – 133.5m $137.8m % Growth Y/Y 16 – 17% 21% Non-GAAP Operating Margin* Positive 0.9% * For a reconciliation of
Slide 6: Q1 Fiscal 2022 Financial Highlights
Q1 Fiscal 2022 Financial Highlights Service Revenue1 $138 million, 21% Y/Y growth Revenue Other Revenue2 $11 million, 38% Y/Y growth Total Revenue $148 million, 22% Y/Y growth Total ARR3 $536 million, 24% Y/Y growth Small Business4 $172 million, 7% Y/Y growth ARR Mid-Market5 $103 million, 22% Y/Y gr
Slide 7: Business Highlights
Business Highlights Product Innovation ■ Introduced XCaaS (eXperience Communications as a Service) for customer and employee engagement. ■ Launched the industry’s first and only financially-backed, platform-wide 99.999% SLA across an integrated cloud UCaaS and CCaaS solution. ■ Released support for 50
Slide 8: Business Highlights (continued)
Business Highlights (continued) Industry Recognition ■ Named a Leader in the Aragon Research Globe for Unified Communications and Collaboration, 2021. ■ Named a Leader in the Aragon Research Globe for Intelligent Contact Centers, 2021. ■ Awarded Frost & Sullivan’s Global Competitive Strategy Leadersh
Slide 9: Strong Revenue Growth at Scale
Revenue Strong Revenue Growth at Scale ($ in millions) Fiscal Q1 Total Revenue Fiscal Q1 Service Revenue 19% Y/Y 22% Y/Y 21% Y/Y 19% Y/Y $145 $148 $134 $496$138 $122 $114 $414 $145 Q1'21 Q4'21 Q1'22 Q1'21 Q4'21 Q1’22 9 © 8x8, Inc. All Rights Reserved.
Slide 10: Enterprise Customers >$100K ARR
Enterprise Customers >$100K ARR # of Customers (cumulative) 36% Y/Y 824 761 606 Q1'21 Q4'21 Q1'22 * Annualized Recurring Subscriptions and Usage (“ARR”) equals the sum of the most recent month of (i) recurring subscription amounts and (ii) platform usage charges for all CPaaS customers (subject to a
Slide 11: Non-GAAP Margins: Gross Margin & Service Margin
Non-GAAP Margins* Gross Margin & Service Margin 68.9% 67.7% 67.2% Gross Margin Service 62.6% Margin 61.3% 61.2% Q1'21 Q4'21 Q1’22 * For a reconciliation of GAAP to Non-GAAP metrics, refer to the Appendix for additional information. 11 © 8x8, Inc. All Rights Reserved.
Slide 12: Press & Channel Awards and Recognition
Press & Channel Awards and Recognition CRN Tech Innovator Award for AVANT Special Forces Customer Experience Innovation 8x8 X Series, 2018 Summit – Top Vendor Award – 8x8 Contact Center TMC’s Sales Performance, 2019 CUSTOMER Magazine, 2019 CRN Tech Innovator Award for 8x8 Contact Center, 2019 AVANT
Slide 13: Press & Channel Awards and Recognition
Press & Channel Awards and Recognition Gartner UCaaS Magic Quadrant Strong Performer in The Forrester Aragon Research Globe for Leader, 2012–2020 Wave: Cloud Contact Centers, 2018 Unified Communications and Collaboration Leader, 2021 Gartner CCaaS Magic Quadrant Strong Performer in The Forrester Chal
Slide 14: Guidance Q2 Fiscal 2022
Guidance Q2 Fiscal 2022 Q2 F2022 Total Revenue $147.5 – 149.0m % Growth Y/Y 14 – 15% Service Revenue $138.5 – 139.5m % Growth Y/Y 15% Non-GAAP Operating Margin Positive Guidance as of August 4, 2021. Refer to Forward Looking Statement for a discussion of factors that could cause actual results to di
Slide 15: Guidance Full-Year Fiscal 2022
Guidance Full-Year Fiscal 2022 Prior New Total Revenue $595.0 – 605.0m $604.0 – 612.0m % Growth Y/Y 12 – 14% 13 – 15% Service Revenue $555.0 – 565.0m $564.0 – 572.0m % Growth Y/Y 12 – 14% 14 – 15% Positive each quarter Positive each quarter Non-GAAP Operating Margin Exit (4Q) at ~2% Exit (4Q) at ~2%
Slide 16: Investment Thesis
Investment Thesis Large Compelling Recurring Long-Term Underpenetrated Land and Expand Business Model Profitable Growth TAM Model $75B+ cloud ~2.1M paid business Predictable subscription Improving margin communications market users and large business with profile to fund future with strong expansion o
Slide 17: Reconciliation
GAAP to Non-GAAP Reconciliation 17 © 8x8, Inc. All Rights Reserved.
Slide 18: Non-GAAP Measures
Non-GAAP Measures This presentation contains certain financial information that has not been prepared in accordance with Generally Accepted Accounting Principles (GAAP). Management uses these non-GAAP financial measures internally in analyzing the Company’s financial results and believes they are usefu
Slide 19: Reconciliation of Cost of Service Revenue
Reconciliation of GAAP to Non-GAAP Cost of Service Revenue ($ in thousands, Unaudited) Fiscal Quarter Cost of Service Revenue: Q1'21 Q1'22 GAAP cost of service revenue $40,996 $46,010 Amortization of acquired intangible assets (1,426) (1,066) Stock-based compensation expense and related employer pay
Slide 20: Reconciliation of Cost of Other Revenue
Reconciliation of GAAP to Non-GAAP Cost of Other Revenue ($ in thousands, Unaudited) Fiscal Quarter Cost of Other Revenue: Q1'21 Q1'22 GAAP cost of other revenue $11,137 $13,746 Stock-based compensation expense and related employer payroll taxes (837) (1,135) Legal and regulatory costs - 5 Severance
Slide 21: Reconciliation of Gross Margin
Reconciliation of GAAP to Non-GAAP Gross Margin ($ in thousands, Unaudited) Fiscal Quarter Gross Margin: Q1'21 Q1'22 Non-GAAP cost of service revenue $36,871 $42,909 Non-GAAP cost of other revenue 10,270 12,595 Non-GAAP cost of revenue $47,141 $55,504 Non-GAAP gross margin 61.3% 62.6% 21 © 8x8, Inc.
Slide 22: Reconciliation of Sales and Marketing
Reconciliation of GAAP to Non-GAAP Sales and Marketing ($ in thousands, Unaudited) Fiscal Quarter Sales and Marketing Expense: Q1'21 Q1'22 GAAP sales and marketing $60,150 $75,915 Amortization of acquired intangible assets (802) (219) Stock-based compensation expense and related employer payroll tax
Slide 23: Reconciliation of Research and Development
Reconciliation of GAAP to Non-GAAP Research and Development ($ in thousands, Unaudited) Fiscal Quarter Research and Development Expense: Q1'21 Q1'22 GAAP research and development $21,494 $25,392 Stock-based compensation expense and related employer payroll taxes (6,777) (9,073) Legal and regulatory
Slide 24: Reconciliation of General and Administrative
Reconciliation of GAAP to Non-GAAP General and Administrative ($ in thousands, Unaudited) Fiscal Quarter General and Administrative Expenses: Q1'21 Q1'22 GAAP general and administrative $25,790 $26,091 Stock-based compensation expense and related employer payroll taxes (7,996) (10,904) Acquisition a
Slide 25: Reconciliation of Operating Margin
Reconciliation of GAAP to Non-GAAP Operating Margin ($ in thousands, Unaudited) Fiscal Quarter Operating Margin: Q1'21 Q1'22 GAAP loss from operations ($37,760) ($38,827) Amortization of acquired intangible assets 2,228 1,285 Stock-based compensation expense and related employer payroll taxes 23,434
Slide 26: 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