Slide 1: Second Quarter Fiscal 2022
Second Quarter Fiscal 2022 (Ended September 30, 2021) November 2, 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: Q2 2022 Summary
Q2 2022 Summary ■ Total and Service Revenue above high end of guidance ranges ■ Revenue Outlook for FY 2022 (March 2022) increased by more than Q2 over-performance ■ Strength in Enterprise customer segment: Customers +30% and ARR +33% YoY ■ Focus on operational excellence: Gross and operating margin
Slide 4: Guidance vs. Financial Results Q2 Fiscal 2022
Guidance vs. Financial Results Q2 Fiscal 2022 Q2 F2022 Guidance Results (August 4, 2021) (November 2, 2021) Total Revenue $147.5 – 149.0m $151.6m % Growth Y/Y 14 – 15% 17% Service Revenue $138.5 – 139.5m $142.4m % Growth Y/Y ~15% 18% Non-GAAP Operating Margin* Positive 1.3% * For a reconciliation of
Slide 5: Strategic Priorities for Fiscal 2022
Strategic Priorities for Fiscal 2022 Expanding Platform Winning Together Expanding the Driving Operational Advantage With Partners Base Excellence Integrated Channel Partner Upsell, Cross-sell, Tailored GTM to Drive UCaaS & CCaaS Engagement Retention Scale and Efficiency 5 © 8x8, Inc. All Rights Reser
Slide 6: XCaaS: Empowering all employees globally
XCaaS: Empowering all employees globally Phone Inbound 8x8 Work Experiences Capabilities Employee Customer Messaging Experience Experience * Digital Frontdesk & Apps Agent Video Video Outbound Platform </> Third-Party Apps Analytics & AI Integrations CPaaS 6 © 8x8, Inc. All Rights Reserved.
Slide 7: 8x8 By the Numbers Q2 Fiscal 2022
8x8 By the Numbers Q2 Fiscal 2022 * * 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 minimum billings threshold for a period of at least six conse
Slide 8: Investment Thesis
Investment Thesis Large Compelling Recurring Long-Term Underpenetrated Land and Expand Business Model Profitable Growth TAM Model $75B+ cloud 2M+ paid business users Predictable subscription Improving margin communications market and large expansion business with profile to fund future with strong opp
Slide 9: Q2 2022 Business Highlights
Q2 2022 Business Highlights Product Innovation ■ Introduced 8x8 Frontdesk, a new XCaaS composed experience that provides a great first impression for organizations as they adapt to the hybrid workplace. Frontdesk empowers the receptionist with advanced contact center and UC capabilities within a pers
Slide 10: Q2 2022 Business Highlights (continued)
Q2 2022 Business Highlights (continued) Strategic Partnerships ■ Formed a strategic distribution agreement with SYNNEX Corporation, a leading provider of distribution, systems design, and integration services for the technology industry. SYNNEX will provide XCaaS to Resellers in North America. ■ Ver
Slide 11: Q2 Fiscal 2022 Financial Highlights
Q2 Fiscal 2022 Financial Highlights Service Revenue1 $142 million, 18% Y/Y growth Revenue Other Revenue2 $9 million, 12% Y/Y growth Total Revenue $152 million, 17% Y/Y growth Total ARR3 $553 million, 18% Y/Y growth Enterprise4 $282 million, 33% Y/Y growth ARR Mid-Market5 $103 million, 14% Y/Y growth
Slide 12: Revenue: Delivering Growth at Scale
Revenue Delivering Growth at Scale Fiscal Q2 Total Revenue Fiscal Q2 Service Revenue ($ in millions) ($ in millions) 22% Y/Y 17% Y/Y 18% Y/Y 21% Y/Y $148 $152 $142 $138 $496 $129 $121 $414 $145 Q2'21 Q1'22 Q2'22 Q2'21 Q1'22 Q2’22 12 © 8x8, Inc. All Rights Reserved.
Slide 13: Enterprise Customers >$100K ARR
Enterprise Customers >$100K ARR Fiscal Q2 Enterprise ARR Fiscal Q2 Enterprise Customers ($ in millions) 33% Y/Y 30% Y/Y 40% Y/Y 36% Y/Y 871 $282 $262 824 $496 $213 670 $414 $145 Q2'21 Q1'22 Q2'22 Q2'21 Q1'22 Q2’22 13 © 8x8, Inc. All Rights Reserved.
Slide 14: Non-GAAP Gross Margins
Non-GAAP Gross Margins* Total and Service Revenue Non-GAAP Gross Margins 69.4% 68.9% 66.8% Total Non-GAAP Gross Margin 64.2% Non-GAAP Service Revenue Gross 62.6% Margin 60.9% Q2'21 Q1'22 Q2’22 * For a reconciliation of GAAP to Non-GAAP metrics, refer to the Appendix for additional information. 14 ©
Slide 15: Non-GAAP Operating Expenses and Total Expense
Non-GAAP Operating Expenses and Total Expense* As a % of Total Revenue 101.8% 99.1% 98.7% Non-GAAP Operating Expenses** Non-GAAP Total Expense*** 62.7% 62.9% 61.7% Q2'21 Q1'21 Q2’22 * For a reconciliation of GAAP to Non-GAAP metrics, refer to the Appendix for additional information. ** Non-GAAP Oper
Slide 16: Guidance Q3 Fiscal 2022
Guidance Q3 Fiscal 2022 Q3 F2022 Total Revenue $152.7 – 154.2m % Growth Y/Y 12 – 13% Service Revenue $144.0– 145.0m % Growth Y/Y 13 – 14% Non-GAAP Operating Margin Positive Guidance as of November 2, 2021. Refer to Forward Looking Statement for a discussion of factors that could cause actual results
Slide 17: Guidance Full Year Fiscal 2022
Guidance Full Year Fiscal 2022 (ending March 2022) Prior Prior New (5/2/21) (8/4/21) (11/2/21) Total Revenue $595.0 – 605.0m $604.0 – 612.0m $611.0 – 615.0m % Growth Y/Y 12 – 14% 13 – 15% 15 – 16% Service Revenue $555.0 -- 565.0m $564.0 – 572.0m $572.5 – 576.5m % Growth Y/Y 12 – 14% 14 – 15% 15 – 16
Slide 18: Industry Recognition
Industry Recognition UC Vendor, 2021 Best UC Collaboration Top Overall Supplier, 2021 5-Star Partner Program, Top New Provider, 2021 Platform, 2021 International Vendor 2021 of the Year, 2020 UK Cloud Services Special Forces Summit – Vendor of the Year, Top Vendor Sales 2020 Performance, 2019 Tech I
Slide 19: Analyst Recognition
Analyst Recognition Gartner UCaaS Magic Quadrant Strong Performer in the IDC Worldwide UCaaS MarketScape Leader, 2012–2021 Forrester Wave: UCaaS, 2019 Leader for Enterprise, 2021 Gartner CCaaS Magic Quadrant IDC Worldwide UCaaS MarketScape Challenger, 2015–2021 Leader for SMB, 2021 IDC Worldwide CPa
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 20 © 8x8, Inc. All Rights Reserved.
Slide 21: Non-GAAP Measures
Non-GAAP Measures This presentation contains certain financial information that has not been prepared in accordance with Generally Accepted Accounting Principles (GAAP). Management uses these non-GAAP financial measures internally in analyzing the Company’s financial results and believes they are usefu
Slide 22: Reconciliation: Cost of Service Revenue
Reconciliation of GAAP to Non-GAAP Cost of Service Revenue ($ in thousands, Unaudited) Fiscal Quarter Cost of Service Revenue: Q2'21 Q1'22 Q2'22 GAAP cost of service revenue $44,803 $46,010 $47,198 Amortization of acquired intangible assets (1,429) (1,066) (1,044) Stock-based compensation expense an
Slide 23: Reconciliation: Cost of Other Revenue
Reconciliation of GAAP to Non-GAAP Cost of Other Revenue ($ in thousands, Unaudited) Fiscal Quarter Cost of Other Revenue: Q2'21 Q1’22 Q2'22 GAAP cost of other revenue $11,693 $13,746 $12,269 Stock-based compensation expense and related employer (1,190) (1,135) (1,372) payroll taxes Legal and regula
Slide 24: Reconciliation: Gross Margin
Reconciliation of GAAP to Non-GAAP Gross Margin ($ in thousands, Unaudited) Fiscal Quarter Gross Margin: Q2'21 Q1’22 Q2’22 Non-GAAP cost of service revenue $40,095 $42,909 $43,571 Non-GAAP cost of other revenue 10,458 12,595 10,709 Non-GAAP cost of revenue $50,553 $55,504 $54,280 Non-GAAP gross marg
Slide 25: Reconciliation: Sales and Marketing
Reconciliation of GAAP to Non-GAAP Sales and Marketing ($ in thousands, Unaudited) Fiscal Quarter Sales and Marketing Expense: Q2’21 Q1’22 Q2’22 GAAP sales and marketing $61,399 $75,915 $76,726 Amortization of acquired intangible assets (402) (219) (221) Stock-based compensation expense and related
Slide 26: Reconciliation: Research and Development
Reconciliation of GAAP to Non-GAAP Research and Development ($ in thousands, Unaudited) Fiscal Quarter Research and Development Expense: Q2'21 Q1’22 Q2'22 GAAP research and development $21,567 $25,392 $28,498 Stock-based compensation expense and related employer (8,547) (9,073) (10,086) payroll taxe
Slide 27: Reconciliation: General and Administrative
Reconciliation of GAAP to Non-GAAP General and Administrative ($ in thousands, Unaudited) Fiscal Quarter General and Administrative Expenses: Q2'21 Q1’22 Q2'22 GAAP general and administrative $22,769 $26,091 $24,023 Stock-based compensation expense and related employer (6,647) (10,904) (10,423) payr
Slide 28: Reconciliation: Operating Expenses
Reconciliation of GAAP to Non-GAAP Operating Expenses ($ in thousands, Unaudited) Fiscal Quarter Operating Expenses: Q2'21 Q1’22 Q2'22 Non-GAAP sales and marketing $53,388 $60,374 $62,386 Non-GAAP research and development 12,749 16,258 18,370 Non-GAAP general and administrative 14,801 14,848 14,584
Slide 29: Reconciliation: Total Expenses
Reconciliation of GAAP to Non-GAAP Total Expenses ($ in thousands, Unaudited) Fiscal Quarter Total Expenses: Q2'21 Q1’22 Q2'22 Non-GAAP cost of revenue $50,553 $55,504 $54,280 Non-GAAP operating expenses 80,938 91,480 95,340 Non-GAAP total expenses $131,491 $146,984 $149,620 Non-GAAP total expenses
Slide 30: Reconciliation: Operating Margin
Reconciliation of GAAP to Non-GAAP Operating Margin ($ in thousands, Unaudited) Fiscal Quarter Operating Margin: Q2'21 Q1’22 Q2'22 GAAP loss from operations ($33,098) ($38,827) ($37,157) Amortization of acquired intangible assets 1,827 1,285 1,265 Stock-based compensation expense and related employe
Slide 31: 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