8x8 Inc · NASDAQ:EGHT

8x8 — Q2 FY2021 Earnings Presentation

23 slides from 8x8's earnings presentation, Oct 28, 2020

  1. Slide 1: Earnings Results Second Quarter Fiscal 2021

    Earnings Results Second Quarter Fiscal 2021 (Ended September 30, 2020) October 28, 2020 © 8x8, Inc. All Rights Reserved.

  2. 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

  3. 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 e ● 15 offices in 8 countries ● Co-browse / screen ● Workforce Engagement o ss de ag share ● AI/Automation & Assist

  4. Slide 4: Financial Results vs. Guidance | Q2 Fiscal 2021

    Financial Results vs. Guidance | Q2 Fiscal 2021 Q2 F2021 Guidance Results (July 30, 2020) (October 28, 2020) Total Revenue $125.5 – 126.5m $129.1m % Growth Y/Y 15-16% 18% Service Revenue $117.3 – 118.3m $120.9m % Growth Y/Y 16-17% 19% Pre-Tax Loss (Non-GAAP) (~$7.5m) ($3.3m) 8x8 Fiscal Q2 2021 Earni

  5. Slide 5: Q2 Fiscal 2021 | Business Highlights

    Q2 Fiscal 2021 | Business Highlights Strong and Growing Large Deals With Annual Recurring Revenue (ARR) Greater than $100,000: • 670 customers with Annual Recurring Revenue (ARR) > $100,000, 25% year-over-year growth • Closed record 48 new customer deals with ARR > $100,000, 60% year-over-year growt

  6. Slide 6: Q2 Fiscal 2021 | Business Highlights (continued ...)

    Q2 Fiscal 2021 | Business Highlights (continued ...) Channel Momentum: • Channel Bookings grew 23% year-over-year and represented 59% of new bookings • 9 of top 10 new bookings from channel partners • 1,169 active channel partners, 29% year-over-year growth • Added Value-Added Resellers (VARs) CERA

  7. Slide 7: New Bookings | Customers >$100K ARR

    New Bookings | Customers >$100K ARR # of Customers (cumulative) % of New Bookings 670 41% 43% 42% 592 611 606 536 33% 34% 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 Annual Recurring Revenue (ARR) = annualized subscription revenue and the annualized platform usage revenue for all CPaaS custome

  8. Slide 8: ARR | By Customer Size

    ARR | By Customer Size Total ARR Growth of +20% YOY with Strong Growth & Contribution From Mid-Market & Enterprise Customers +44% COMBINED yoy growth 20% MID-MARKET AND ENTERPRISE +11% ENTERPRISE yoy growth 54% +32% +25% SMALL BUSINESS ARR By Customer Size yoy growth yoy growth 27% (based on company

  9. Slide 9: Revenue | Strong Continued Increases

    Revenue | Strong Continued Increases ($ in millions) Total Revenue Service Revenue $121.8 $129.1 $120.9 $118.6 $121.5 $109.5 6% 7% 7% 6% $114.2 8% $112.5 $110.4 93% 93% 94% 94% $101.3 92% 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 Service Revenue Other Revenue 8x8 Fiscal Q2 2021 Earnings Resu

  10. Slide 10: 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 $45 $177 $174 $173 $167 $167 $43 $42 $42 $40 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 Average Annual Service Revenue Per Customer (in

  11. Slide 11: Gross Margin | Non-GAAP Margins

    Gross Margin | Non-GAAP Margins* 67.9% 67.7% 66.4% 66.7% 66.8% 61.3% 60.9% 58.4% 58.0% 56.7% 2Q20 3Q20 4Q20 1Q21 2Q21 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

  12. Slide 12: 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) $21.4 $21.5 $22.4 16.1% $20.3 $20.8 2Q21 R&D $8.1 INVESTMENT $6.6 $8.4 $8.1 $8.8 (% of Revenue) 31% 34% 36% 39% 39% 6.3% 43% 2Q21 36% CAPITALIZED COSTS (% of Revenue) $14.8 $14

  13. Slide 13: Guidance | Q3 and Full-Year Fiscal 2021

    Guidance | Q3 and Full-Year Fiscal 2021 Q3 F2021 FY F2021 Ending December 31, 2020 Ending March 31, 2021 Total Revenue $132.0 – 133.0m $519.0 – 522.0m % Growth Y/Y 11-12% 16-17% Service Revenue $124.0 – 125.0m $489.0 – 492.0m % Growth Y/Y 12-13% 18-19% Pre-Tax Loss (Non-GAAP) (~$3.0m) (~$16.0m) Guid

  14. Slide 14: 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

  15. Slide 15: Thank you.

    Thank you. 8x8 Fiscal Q2 2021 Earnings Results 15 © 8x8, Inc. All Rights Reserved.

  16. Slide 16: APPENDIX

    APPENDIX 8x8 Fiscal Q2 2021 Earnings Results 16 © 8x8, Inc. All Rights Reserved.

  17. Slide 17: 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 September 30, Cost of Service Revenue: 2020 2019 GAAP cost of service revenue $44,803 $35,813 Amortization of acquired intangible assets (1,425) (1,796) Stock-based compensation expense and re

  18. Slide 18: 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 September 30, Cost of Other Revenue: 2020 2019 GAAP cost of other revenue $11,693 $13,884 Stock-based compensation expense and related taxes (1,190) (757) Severance and related termination costs

  19. Slide 19: Reconciliation of GAAP to Non-GAAP | Research and Development

    Reconciliation of GAAP to Non-GAAP | Research and Development ($ in thousands, Unaudited) Three Months Ended September 30, Research and Development Expense: 2020 2019 GAAP research and development $21,567 $19,434 Stock-based compensation expense and related taxes (8,547) (4,217) Acquisition and inte

  20. Slide 20: Reconciliation of GAAP to Non-GAAP | Sales and Marketing

    Reconciliation of GAAP to Non-GAAP | Sales and Marketing ($ in thousands, Unaudited) Three Months Ended September 30, Sales and Marketing Expense: 2020 2019 GAAP sales and marketing $61,399 $57,895 Amortization of acquired intangible assets (402) (507) Stock-based compensation expense and related ta

  21. Slide 21: Reconciliation of GAAP to Non-GAAP | General and Administrative

    Reconciliation of GAAP to Non-GAAP | General and Administrative ($ in thousands, Unaudited) Three Months Ended September 30, General and Administrative Expenses: 2020 2019 GAAP general and administrative $22,769 $20,435 Stock-based compensation expense and related taxes (6,647) (5,895) Acquisition a

  22. Slide 22: 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 September 30, Net Loss: 2020 2019 GAAP net loss ($38,413) ($40,932) Adjustments: Amortization of acquired intangible assets 1,827 2,303 Stock-based compensation expense and related taxes 26,291 1

  23. Slide 23: 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

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