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Strong service growth for services related to challenging …

  • Total turnover: 177 million US dollars near the center of the instructions.

  • Service income: 171.6 million US dollars, near the middle of the instructions.

  • 8×8 Standalone Service Revenue Growth: 4.6% compared to the previous year in the fourth quarter, 2.8% for the 2025 financial year.

  • Gross marge: 69%at the lower end of the guide area.

  • Operating range: 10%at the upper end of the guide area.

  • Operating cash flow: 5.9 million US dollars in the fourth quarter; 63.6 million US dollars for the 2025 financial year.

  • Reduction in debt: Over 209 million US dollars have been lowering the climax since August 2022.

  • Cash and cash equivalent: 89.3 million US dollars at the end of the fourth quarter.

  • Net debt for EBITDA ratio: About 2.7 times.

  • Stock -based remuneration: 4.6% of total sales, a multi -year low.

  • Instructions for the q1 '26 financial year: Service sales between $ 170 million and 175 million US dollars; Total turnover between $ 175 million and $ 182 million; Non-GAAP operating margin between 9% and 9.5%.

  • Guidelines for the 2026 financial year: Service sales between USD 682 million and $ 702 million; Total turnover between USD 702 million and $ 724 million; Operating margin between 9% and 10%.

Appearance date: May 19, 2025

You can find the complete copy of the earnings call in the complete earnings call.

  • 8×8 INC (Nasdaq: EGHT) recorded growth of service sales compared to the previous year, without Fuze, of 4.6% in the fourth quarter and marked the highest growth rate in 10 quarters.

  • The company achieved the highest two -year cash flow from business and exceeded half of its market capitalization.

  • The customer with three or more products showed an increase of 13% compared to the previous year, which indicates that a successful cross-selling and new customer acquisition.

  • A strong dynamic was observed in sales of Microsoft teams, with the new license turnover increased by 72% in the fourth quarter.

  • 8×8 INC (NASDAQ: EGHT) made considerable progress in upgrading customers from the Fuze platform and expected a complete transition until the end of the calendar year.

  • The economic environment is still a challenge, with global uncertainties and customs measures affect market dynamics.

  • The company still navigates the transition from Fuze customers, which is a risk of loss of revenue during the migration process.

  • The gross margin was at the lower end of the instructions due to a shift in sales of the use of the platform with lower margins.

  • Due to investments in growth and innovation, there is permanent pressure on non-GAAP operating margins.

  • The macroeconomic environment has led to elongated deal cycles and shrinking deal sizes that affect sales.

Q: Can you share insights into the macro effects of your field representatives and partners? Are there any delays in sales cycles or expenses? A: Samuel Wilson, CEO: In March and April we noticed chaos with elongated deal cycles and shrinking deal sizes in the USA. May, however, was calmer. The rest of the world does not seem to be affected by the US dynamics.

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