8x8 Inc · NASDAQ:EGHT

8x8 — Q4 FY2021 Earnings Presentation

28 slides from 8x8's earnings presentation, May 10, 2021

1. Slide 1: Fourth Quarter Fiscal 2021

   Fourth Quarter Fiscal 2021 (Ended March 31, 2021) May 10, 2021 © 8x8, Inc. All Rights Reserved.

2. 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

3. Slide 3: 8x8 By the Numbers

   8x8 By the Numbers 1 1.8 Million 532 Million Platform for Paid business Total revenue Customers users FY 2021 58,000+ 22% 250+ Customers Total ARR Growth* Patents * Total ARR is defined as annualized subscription revenue and the annualized platform usage revenue for all CPaaS customers who meet a min

4. Slide 4: Powering All Personas Company-Wide

   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.

5. Slide 5: Guidance vs. Financial Results Q4 Fiscal 2021

   Guidance vs. Financial Results Q4 Fiscal 2021 Q4 F2021 Guidance Results (January 28, 2021) (May 10, 2021) Total Revenue $138.5 – 140.5m $144.7m % Growth Y/Y 14 –16% 19.1% Service Revenue $130.8 – 131.8m $133.8m % Growth Y/Y 16 –17% 18.9% Pre-Tax Profit (Non-GAAP) (~$0.8m) $0.1m * For a reconciliation

6. Slide 6: Guidance vs. Financial Results Full-Year Fiscal 2021

   Guidance vs. Financial Results Full-Year Fiscal 2021 FY F2021 Guidance Results (January 28, 2021) (May 10, 2021) Total Revenue $526.1 – 528.1m $532.3m % Growth Y/Y 18% 19.3% Service Revenue $493.0 – 494.0m $496.0m % Growth Y/Y 19% 19.8% Pre-Tax Loss (Non-GAAP) (~$13.7m) (~$12.8m) * For a reconciliat

7. Slide 7: Q4 Fiscal 2021 Financial Highlights

   Q4 Fiscal 2021 Financial Highlights Service Revenue1 $134 million, 19% Y/Y growth Revenue Other Revenue2 $11 million, 23% Y/Y growth Total Revenue $145 million, 19% Y/Y growth Total ARR3 $518 million, 22% Y/Y growth Small Business4 $270 million, 17% Y/Y growth ARR Mid-Market5 $138 million, 14% Y/Y g

8. Slide 8: Business Highlights

   Business Highlights Integrated UCaaS and CCaaS ■ 9 of top 10 deals were integrated contact center and communications ■ Contact center and communications represented 75% of new bookings that were $12K or more in ARR ■ Contact center new bookings grew 33% year-over-year and represented 20% of total ne

9. Slide 9: Business Highlights (continued)

   Business Highlights (continued) Strong and Growing Large Deals With Annual Recurring Revenue (ARR) Greater than $100,000 ■ 761 customers with Annual Recurring Revenue (ARR) > $100,000, 25% year-over-year growth ■ Closed 45 new customer deals with ARR > $100,000, 7% year-over-year growth. These deals

10. Slide 10: Business Highlights (continued)

    Business Highlights (continued) Leadership Updates ■ Announced that Amrit Chaudhuri has joined the Company as Chief Marketing Officer ■ Announced that Walt Weisner has joined the Company as Chief Customer Officer Industry Recognition ■ Named Leader in the IDC MarketScape: Worldwide UCaaS Service Provide

11. Slide 11: Revenue: Strong Revenue Growth at Scale

    Revenue Strong Revenue Growth at Scale ($ in millions) Fiscal Q4 Total Revenue Fiscal Q4 Service Revenue 19% Y/Y 19% Y/Y 15% Y/Y 15% Y/Y $145 $134 $137 $127 $496 $122 $113 $414 $145 Q4'20 Q3'21 Q4'21 Q4'20 Q3'21 Q4'21 11 © 8x8, Inc. All Rights Reserved.

12. Slide 12: Revenue: Strong Revenue Growth at Scale

    Revenue Strong Revenue Growth at Scale ($ in millions) Fiscal Full-Year Total Revenue Fiscal Full-Year Service Revenue 19% Y/Y 20% Y/Y $532 $496 $496 $446 $414 $414 FY'20 FY'21 FY'20 FY'21 12 © 8x8, Inc. All Rights Reserved.

13. Slide 13: New Bookings: Customers >$100K ARR

    New Bookings Customers >$100K ARR # of Customers (cumulative) 25% Y/Y 761 734 611 Q4'20 Q3'21 Q4'21 Annual Recurring Revenue (ARR) = annualized subscription revenue and the annualized platform usage revenue for all CPaaS customers who meet a minimum revenue threshold for a period of at least 6 conse

14. Slide 14: ARR By Customer Size

    ARR By Customer Size 27% Combined Mid-Market Mid-Market ENTERPRISE and Enterprise 27% 52% Small Business YoY Growth SMALL ARR By Customer Size MID-MARKET BUSINESS (based on company $ revenue) 21% Enterprise SMALL BUSINESS = <$50M MID-MARKET = $50M - $1B ENTERPRISE = >$1B Annual Recurring Revenue (AR

15. Slide 15: Non-GAAP Margins: Gross Margin & Service Margin

    Non-GAAP Margins* Gross Margin & Service Margin 66.7% 67.2% 66.0% Gross Margin Service 61.2% Margin 59.6% 58.0% Q4'20 Q3'21 Q4'21 * For a reconciliation of GAAP to Non-GAAP metrics, refer to the Appendix for additional information. Post-reclassification of Professional Services for all quarters in fis

16. Slide 16: Guidance Q1 and Full-Year Fiscal 2022

    Guidance Q1 and Full-Year Fiscal 2022 Q1 F2022 FY F2022 Ending June 30, 2021 Ending March 31, 2022 Total Revenue $142.0 – 143.5m $595.0 – 605.0m % Growth Y/Y 17 – 18% 12 – 14% Service Revenue $132.5 – 133.5m $555.0 – 565.0m % Growth Y/Y 16 – 17% 12 – 14% Positive each quarter Non-GAAP Operating Marg

17. Slide 17: Long-Term Financial Framework

    Long-Term Financial Framework Intermediate Long-Term FY’20 FY’21 FY’22 Non-GAAP Profile Profile Results Results Assumptions ~3 years 5+ years GAAP Total Revenue Growth 27% 19% 12-14% 20%+ 20%+ Gross Margin 59.1% 60.7% 61-64% 63-67% 70%+ S&M as % of Revenue 47.7% 40.8% 40-45% 35-40% 35-40% R&D as a % o

18. Slide 18: Investment Thesis

    Investment Thesis Large Compelling Recurring Long-Term Underpenetrated Land and Expand Business Model Profitable Growth TAM Model $75B+ cloud ~1.8M paid business Predictable subscription Improving margin communications market users and large business with profile to fund future with strong expansion o

19. Slide 19: Appendix

    Appendix 19 © 8x8, Inc. All Rights Reserved.

20. Slide 20: 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

21. Slide 21: Reconciliation of GAAP to Non-GAAP Cost of Service Revenue

    Reconciliation of GAAP to Non-GAAP Cost of Service Revenue ($ in thousands, Unaudited) Fiscal Quarter Fiscal Year Cost of Service Revenue: Q4'21 Q3'21 Q4'20 2021 2020 GAAP cost of service revenue $47,239 $47,044 $43,114 $180,082 $145,013 Amortization of acquired intangible assets (1,074) (1,192) (1,

22. Slide 22: Reconciliation of GAAP to Non-GAAP Cost of Other Revenue

    Reconciliation of GAAP to Non-GAAP Cost of Other Revenue ($ in thousands, Unaudited) Fiscal Quarter Fiscal Year Cost of Other Revenue: Q4'21 Q3'21 Q4'20 2021 2020 GAAP cost of other revenue $13,874 $13,364 $14,507 $50,068 $56,215 Stock-based compensation expense and related taxes (1,540) (1,196) (72

23. Slide 23: Reconciliation of GAAP to Non-GAAP Gross Margin

    Reconciliation of GAAP to Non-GAAP Gross Margin ($ in thousands, Unaudited) Fiscal Quarter Fiscal Year Gross Margin: Q4'21 Q3'21 Q4'20 2021 2020 Non-GAAP cost of service revenue $43,881 $43,171 $37,492 $164,018 $130,093 Non-GAAP cost of other revenue 12,334 12,028 13,492 45,090 52,371 Non-GAAP cost

24. Slide 24: Reconciliation of GAAP to Non-GAAP Sales and Marketing

    Reconciliation of GAAP to Non-GAAP Sales and Marketing ($ in thousands, Unaudited) Years Ended March 31, Sales and Marketing Expense: 2021 2020 GAAP sales and marketing $256,231 $240,013 Amortization of acquired intangible assets (1,769) (2,115) Stock-based compensation expense and related taxes (35

25. Slide 25: Reconciliation of GAAP to Non-GAAP Research and Development

    Reconciliation of GAAP to Non-GAAP Research and Development ($ in thousands, Unaudited) Years Ended March 31, Research and Development Expense: 2021 2020 GAAP research and development $92,034 $77,790 Stock-based compensation expense and related taxes (33,261) (20,173) Acquisition and integration cos

26. Slide 26: Reconciliation of GAAP to Non-GAAP General and Administrative

    Reconciliation of GAAP to Non-GAAP General and Administrative ($ in thousands, Unaudited) Years Ended March 31, General and Administrative Expenses: 2021 2020 GAAP general and administrative $100,078 $87,025 Stock-based compensation expense and related taxes (29,746) (22,818) Acquisition and integra

27. Slide 27: Reconciliation of GAAP to Non-GAAP Operating Margin

    Reconciliation of GAAP to Non-GAAP Operating Margin ($ in thousands, Unaudited) Years Ended March 31, Operating Margin: 2021 2020 GAAP loss from operations ($146,149) ($159,819) Amortization of acquired intangible assets 6,886 8,842 Stock-based compensation expense and related taxes 112,505 72,096 A

28. Slide 28: 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

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