8x8 Inc · NASDAQ:EGHT
8x8 — Merger or Acquisition (December 2021)
28 slides from 8x8's merger presentation, Dec 1, 2021
Slide 1: 8x8 to Acquire Fuze
© 8x8, Inc. Copyright and confidential. The eXperience Communications Platform 8x8 to Acquire Fuze December 1, 2021
Slide 2: Forward-looking statements
© 8x8, Inc. Copyright and confidential. 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 pr
Slide 3: Today's speakers
© 8x8, Inc. Copyright and confidential. Today’s speakers Dave Sipes 8x8 CEO Sam Wilson 8x8 CFO
Slide 4: 8x8 to acquire Fuze
© 8x8, Inc. Copyright and confidential. 8x8 to acquire Fuze Combination to accelerate XCaaS innovation, expand enterprise customer base, and extend presence in continental Europe ■ Approximately $250 million in aggregate consideration, subject to certain adjustments, comprised of approximately $130
Slide 5: Strategic rationale
© 8x8, Inc. Copyright and confidential. With the acquisition of Fuze, we immediately increase our capacity to innovate and extend our XCaaS platform advantage. We also broaden our base of enterprise customers, increase the scale of our operations, and expand our global presence. I believe our common
Slide 6: Key messages
© 8x8, Inc. Copyright and confidential. Key messages Strategic ■ Accelerates XCaaS innovation ■ Expands enterprise base ■ $50M+ cross-sell opportunity ■ European expansion ■ Good fit / low integration risk Financial ■ Remain non-GAAP profitable ■ Reiterate long term model
Slide 7: 8x8 and Fuze Comparative Metrics
© 8x8, Inc. Copyright and confidential. 8x8 and Fuze Comparative Metrics 8x8 Fuze5 TTM Total Revenue1 $581M ~$130M Annualized International Revenue2 (as a % of total revenue) 31% ~30% Annualized Investment in R&D (non-GAAP)3 ~$75M ~$25M Enterprise Customers4 ~900 ~300 Paid Business Users 2M+ 400K+ 1
Slide 8: Total addressable market for cloud communications by 2023
© 8x8, Inc. Copyright and confidential. Total addressable market for cloud communications by 2023 $75B+ UCaaS, CCaaS, and CPaaS $60B UCaaS and CCaaS $15B Differentiator: Integrated UCaaS and CCaaS Source: IDC and 8x8 estimates.
Slide 9: The importance of an integrated platform
© 8x8, Inc. Copyright and confidential. 87% of IT leaders say an integrated communications platform is the future of business communications.1 UC CC 1. 2021 survey of 400 IT decision makers conducted by Hanover Research 2. Metrigy’s Report Real-World Benefits of Integrated Cloud Unified Communicatio
Slide 10: 8x8 strategic priorities
© 8x8, Inc. Copyright and confidential. 8x8 strategic priorities Expanding Platform Advantage Integrated UCaaS & CCaaS Winning Together With Partners Channel Partner Engagement Driving Operational Excellence Tailored GTM to Drive Scale and Efficiency Expanding the Base Upsell, Cross-sell, Retention
Slide 11: Expanding the platform advantage
© 8x8, Inc. Copyright and confidential. Expanding the platform advantage The information provided on this slide is forward-looking and based upon assumptions with respect to future decisions, which are subject to change. Actual results may vary and those variations may be material. For discussion of
Slide 12: Path to $1 billion +
© 8x8, Inc. Copyright and confidential. Path to $1 billion + Differentiated product offerings Massive market opportunity Multiple routes to market Operational rigor
Slide 13: Financials
© 8x8, Inc. Copyright and confidential. The eXperience Communications Platform Financials Sam Wilson Chief Financial Officer
Slide 14: Financial Summary
© 8x8, Inc. Copyright and confidential. Financial Summary ● Approximately $250 million in aggregate consideration, subject to certain adjustments. ● Up to $130 million in cash will be used to retire Fuze’s debt and pay for the equity owned by non-accredited stockholders of Fuze. ● 8x8 expects to fil
Slide 15: GAAP and Non-GAAP Financial Metrics: 8x8 Financial Model Framework
© 8x8, Inc. Copyright and confidential. GAAP and Non-GAAP* Financial Metrics FY22 8x8 “Standalone” Assumptions (updated for 1H Actuals) As of 11/2/2021 Intermediate Objective in ~3 years Long-Term Objective in 5+ years Total Revenue Growth 15-16% 20%+ 20%+ Non-GAAP Gross Margin 61-64% 63-67% 70%+ No
Slide 16: Investment thesis
© 8x8, Inc. Copyright and confidential. Investment thesis Large & Underpenetrated TAM $75B+ cloud communications market with strong secular tailwinds in the early innings Compelling Land and Expand Model ~1.8M paid business users and large expansion opportunities Recurring Business Model Predictable
Slide 17: For more information
© 8x8, Inc. Copyright and confidential. For more information Press release > Webcast > 8x8 CEO message >
Slide 18: GAAP to Non-GAAP Reconciliation
© 8x8, Inc. Copyright and confidential. The eXperience Communications Platform GAAP to Non-GAAP Reconciliation
Slide 19: Non-GAAP Measures
© 8x8, Inc. Copyright and confidential. 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 fi
Slide 20: Reconciliation of GAAP to Non-GAAP: Cost of Service Revenue
© 8x8, Inc. Copyright and confidential. Reconciliation of GAAP to Non-GAAP 8x8 Cost of Service Revenue Cost of Service Revenue: Fiscal Quarter Q2'21 Q1'22 Q2'22 GAAP cost of service revenue $44,803 $46,010 $47,198 Amortization of acquired intangible assets (1,425) (1,066) (1,044) Stock-based compens
Slide 21: Reconciliation of GAAP to Non-GAAP: Cost of Other Revenue
© 8x8, Inc. Copyright and confidential. Reconciliation of GAAP to Non-GAAP 8x8 Cost of Other Revenue Cost of Other Revenue: Fiscal Quarter Q2'21 Q1’22 Q2'22 GAAP cost of other revenue $11,693 $13,746 $12,269 Stock-based compensation expense and related employer payroll taxes (1,190) (1,135) (1,372)
Slide 22: Reconciliation of GAAP to Non-GAAP: Sales and Marketing
© 8x8, Inc. Copyright and confidential. Reconciliation of GAAP to Non-GAAP 8x8 Sales and Marketing Sales and Marketing Expense: Fiscal Quarter 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 expe
Slide 23: Reconciliation of GAAP to Non-GAAP: Research and Development
© 8x8, Inc. Copyright and confidential. Reconciliation of GAAP to Non-GAAP 8x8 Research and Development Research and Development Expense: Fiscal Quarter Q2'21 Q1’22 Q2'22 GAAP research and development $21,567 $25,392 $28,498 Stock-based compensation expense and related employer payroll taxes (8,547)
Slide 24: Reconciliation of GAAP to Non-GAAP: General and Administrative
© 8x8, Inc. Copyright and confidential. Reconciliation of GAAP to Non-GAAP 8x8 General and Administrative General and Administrative Expenses: Fiscal Quarter Q2'21 Q1’22 Q2'22 GAAP general and administrative $22,769 $26,091 $24,023 Stock-based compensation expense and related employer payroll taxes
Slide 25: Reconciliation of GAAP to Non-GAAP: Operating Expenses
© 8x8, Inc. Copyright and confidential. Reconciliation of GAAP to Non-GAAP 8x8 Operating Expenses Operating Expenses: Fiscal Quarter 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 14,80
Slide 26: Reconciliation of GAAP to Non-GAAP: Total Expenses
© 8x8, Inc. Copyright and confidential. Reconciliation of GAAP to Non-GAAP 8x8 Total Expenses Total Expenses: Fiscal Quarter 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
Slide 27: Reconciliation of GAAP to Non-GAAP: Operating Margin
© 8x8, Inc. Copyright and confidential. Reconciliation of GAAP to Non-GAAP 8x8 Operating Margin Operating Margin: Fiscal Quarter 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
Slide 28: For the latest information on 8x8
8x8.com @8x8 facebook.com/8x8Inc linkedin.com/company/8x8 youtube.com/8x8Inc For the latest information on 8x8 © 8x8, Inc. All rights reserved. Unless otherwise specified, all trademarks identified by the ®, ™, or SM are registered trademarks, trademarks, or services marks respectively of 8x8, Inc.