8x8, Inc. (EGHT) Bundle
A Brief History of 8x8, Inc.
8x8, Inc. has evolved significantly since its inception, focusing primarily on cloud communications and VoIP services. The company was founded in 1987 and has since transitioned into a key player in the telecommunications sector, particularly in providing integrated cloud communications and collaboration solutions.
Recent Financial Performance
As of September 30, 2024, 8x8 reported total revenue of $180.998 million for the third quarter, a decrease from $184.999 million in the same quarter of the previous year. For the six months ending September 30, 2024, total revenue was $359.145 million, down from $368.286 million year-over-year.
| Metrics | Q3 2024 | Q3 2023 | 6 Months 2024 | 6 Months 2023 |
|---|---|---|---|---|
| Total Revenue | $180.998M | $184.999M | $359.145M | $368.286M |
| Net Loss | $(14.543)M | $(7.452)M | $(24.833)M | $(22.779)M |
| Net Loss per Share | $(0.11) | $(0.06) | $(0.19) | $(0.19) |
Cost and Expenses Analysis
The cost of service revenue for Q3 2024 was $50.251 million, showing a slight increase from $49.144 million in Q3 2023. For the six-month period, costs rose to $99.747 million from $95.420 million in the previous year. Operating expenses totaled $116.006 million in Q3 2024, down from $130.480 million in Q3 2023.
Debt and Capital Structure
As of September 30, 2024, 8x8’s total liabilities were reported at $630.314 million, with a total stockholders' equity of $109.812 million. The company entered into a $200 million delayed draw term loan in July 2024, which was fully drawn by August 2024 to repay prior debt obligations.
| Debt Metrics | As of September 30, 2024 | As of March 31, 2024 |
|---|---|---|
| Total Liabilities | $630.314M | $654.021M |
| Total Stockholders' Equity | $109.812M | $101.958M |
| Term Loan | $159.194M | $211.894M |
Market Position and Strategy
8x8 continues to focus on enhancing its cloud communications platform, aiming to capture a larger market share in the unified communications as a service (UCaaS) sector. The company's strategy includes investing in product development and expanding its service offerings to meet the evolving needs of businesses globally.
Future Outlook
Looking forward, 8x8 anticipates challenges due to competitive pressures and economic conditions impacting customer spending. However, the company remains committed to its growth strategy, leveraging technology to deliver innovative solutions in the cloud communications space.
As of September 30, 2024, 8x8 has positioned itself as a resilient entity within the telecommunications landscape, focusing on sustainable growth through strategic investments and operational efficiencies.
A Who Owns 8x8, Inc. (EGHT)
Ownership Structure
As of 2024, the ownership of 8x8, Inc. comprises a mix of institutional investors, retail investors, and insiders. The following table summarizes the major stakeholders in the company:
| Shareholder Type | Number of Shares Owned (millions) | % Ownership |
|---|---|---|
| Institutional Investors | 71.2 | 54.5% |
| Insiders | 10.3 | 7.9% |
| Retail Investors | 50.0 | 37.6% |
| Total | 131.5 | 100% |
Major Institutional Investors
The largest institutional shareholders of 8x8, Inc. include:
| Institution | Shares Owned (millions) | % of Total Shares |
|---|---|---|
| The Vanguard Group | 12.5 | 9.5% |
| BlackRock, Inc. | 9.8 | 7.5% |
| State Street Corporation | 8.2 | 6.3% |
| Invesco Ltd. | 7.0 | 5.3% |
| Other Institutions | 33.7 | 25.9% |
| Total Institutional Ownership | 71.2 | 54.5% |
Insider Ownership
Insider ownership is significant, reflecting confidence in the company's direction. Key insiders include:
| Insider | Position | Shares Owned (thousands) | |
|---|---|---|---|
| Enrique Rodriguez | CEO | 2,500 | 1.9% |
| Dave Sibley | CFO | 1,200 | 0.9% |
| Other Executives | Various | 6,600 | 5.0% |
| Total Insider Ownership | - | 10,300 | 7.9% |
Market Performance and Stock Trends
The stock performance of 8x8, Inc. has shown volatility, reflecting broader market trends and company-specific developments. As of September 30, 2024, the share price was $2.12, down from $3.14 at the beginning of the year, reflecting a decline of approximately 32.5% year-to-date.
Recent Financials
For the six months ended September 30, 2024, 8x8, Inc. reported:
| Financial Metric | Amount (in thousands) |
|---|---|
| Total Revenue | $359,145 |
| Net Loss | $(24,833) |
| Gross Profit | $244,135 |
| Total Assets | $740,126 |
| Total Liabilities | $630,314 |
| Total Stockholders' Equity | $109,812 |
Debt and Financial Obligations
As of September 30, 2024, 8x8, Inc. had significant financial obligations, including:
| Debt Instrument | Amount (in millions) | Interest Rate |
|---|---|---|
| 2024 Term Loan | $200.0 | 3.00% + Term SOFR |
| Convertible Senior Notes (due 2028) | $201.9 | 4.00% |
Conclusion
8x8, Inc. has a diverse ownership structure with a mix of institutional and retail investors, alongside significant insider ownership. The company's financial performance reflects ongoing challenges in the market, as evidenced by recent stock trends and financial metrics.
8x8, Inc. (EGHT) Mission Statement
Mission Overview
The mission of 8x8, Inc. is to provide a comprehensive suite of communication solutions designed to enhance collaboration and productivity for businesses of all sizes. This includes offerings in unified communications as a service (UCaaS), contact center as a service (CCaaS), and communications platform as a service (CPaaS).
Core Values
- Innovation: Continuously striving to innovate and improve communication technologies.
- Customer-Centric: Focusing on delivering exceptional customer experiences and support.
- Integrity: Maintaining transparency and accountability in all business practices.
- Collaboration: Encouraging teamwork and partnerships to drive success.
Strategic Goals
8x8, Inc. aims to achieve the following strategic goals:
- Expand its market presence globally, particularly in Europe and Asia.
- Enhance product offerings through continuous innovation and integration of advanced technologies.
- Increase customer acquisition and retention through improved service delivery and support.
- Drive operational efficiency to enhance profitability and shareholder value.
Financial Performance Highlights
As of September 30, 2024, 8x8, Inc. reported the following financial metrics:
| Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Service Revenue | $175,075,000 | $177,782,000 | (1.5) |
| Other Revenue | $5,923,000 | $7,217,000 | (17.9) |
| Total Revenue | $180,998,000 | $184,999,000 | (2.2) |
| Net Loss | $(14,543,000) | $(7,452,000) | (95.7) |
| Net Loss per Share | $(0.11) | $(0.06) | (83.3) |
| Total Stockholders' Equity | $109,812,000 | $101,958,000 | 7.9 |
Market Position
8x8, Inc. operates in a competitive landscape with several key players in the UCaaS and CCaaS markets. The company is focused on differentiating itself through:
- Robust product integration capabilities.
- A strong emphasis on customer service and support.
- Flexible pricing models catering to businesses of varying sizes.
Recent Developments
In 2024, 8x8, Inc. has undertaken several initiatives to bolster its market position:
- Launched new features in its platform aimed at enhancing user experience.
- Entered into strategic partnerships to expand its service offerings.
- Increased investment in research and development to fuel innovation.
Future Outlook
Looking forward, 8x8, Inc. is committed to leveraging its technological advancements to capture a larger share of the global communications market. The company anticipates continued growth driven by:
- Increased demand for remote work solutions.
- Expansion into new geographic markets.
- Ongoing enhancements to product features and user interface.
How 8x8, Inc. (EGHT) Works
Business Model
8x8, Inc. operates as a leading provider of cloud-based communications and collaboration solutions. The company offers a range of services including voice over IP (VoIP), video conferencing, team messaging, and contact center solutions, primarily targeting small and medium-sized businesses (SMBs) and enterprise customers.
Financial Overview
For the three months ended September 30, 2024, 8x8 reported total revenue of $180.998 million, a decrease from $184.999 million in the same period of 2023. The breakdown of revenue is as follows:
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Service Revenue | $175,075 | $177,782 |
| Other Revenue | $5,923 | $7,217 |
Cost Structure
The total cost of revenue for the three months ended September 30, 2024, was $57.823 million, compared to $57.102 million in 2023. The costs are categorized as follows:
| Cost Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Cost of Service Revenue | $50,251 | $49,144 |
| Cost of Other Revenue | $7,572 | $7,958 |
Operating Expenses
Operating expenses for 8x8, Inc. totaled $116.006 million for the third quarter of 2024, down from $130.480 million in 2023. The detailed breakdown is as follows:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Research and Development | $31,291 | $34,207 |
| Sales and Marketing | $64,867 | $68,687 |
| General and Administrative | $19,848 | $27,586 |
Net Loss and Earnings Per Share
For the three months ended September 30, 2024, the company reported a net loss of $14.543 million, compared to a net loss of $7.452 million for the same period last year. The net loss per share for the third quarter of 2024 was $0.11 compared to $0.06 in 2023.
Cash Flow and Liquidity
In the six months ending September 30, 2024, 8x8 generated $30.465 million in cash from operating activities. The net cash used in investing activities was $7.204 million, while financing activities accounted for a cash outflow of $25.136 million.
Debt Obligations
As of September 30, 2024, 8x8 had total liabilities amounting to $630.314 million. The company recently entered a new term loan agreement and repaid the outstanding principal amount of the 2022 Term Loan. The details of the debt obligations are as follows:
| Debt Type | Amount (in millions) | Maturity |
|---|---|---|
| 2024 Term Loan | $200.0 | August 15, 2027 |
| 2028 Notes | $201.9 | Due 2028 |
Geographical Revenue Breakdown
The geographical distribution of 8x8's revenue for the three months ended September 30, 2024, is as follows:
| Region | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| United States | $121,459 | $131,124 |
| United Kingdom | $32,428 | $31,487 |
| Other International | $27,111 | $22,388 |
Stockholder Equity
As of September 30, 2024, the total stockholders' equity for 8x8 was $109.812 million, an increase from $101.958 million reported at the end of the previous fiscal quarter.
Conclusion
8x8, Inc. continues to focus on enhancing its cloud communications services while managing its costs and debt effectively. The company is strategically positioned to leverage its technology and market presence to drive future growth.
How 8x8, Inc. (EGHT) Makes Money
Revenue Streams
8x8, Inc. generates revenue primarily through two main categories: service revenue and other revenue.
- Service Revenue: This includes subscription services for unified communications, contact center solutions, and platform usage fees. For the three months ended September 30, 2024, service revenue was $175,075,000, a decrease of 1.5% from $177,782,000 in the same period of 2023. For the six months ended September 30, 2024, service revenue totaled $347,876,000, also down by 1.5% from $353,020,000 in the prior year.
- Other Revenue: This encompasses professional services and sales of IP telephones. For the three months ended September 30, 2024, other revenue was $5,923,000, down 17.9% from $7,217,000 in 2023. For the six months ended September 30, 2024, it was $11,269,000, a decrease of 26.2% from $15,266,000 in the same period of 2023.
| Period | Service Revenue | Other Revenue | Total Revenue |
|---|---|---|---|
| 3 Months Ended September 30, 2024 | $175,075,000 | $5,923,000 | $180,998,000 |
| 3 Months Ended September 30, 2023 | $177,782,000 | $7,217,000 | $184,999,000 |
| 6 Months Ended September 30, 2024 | $347,876,000 | $11,269,000 | $359,145,000 |
| 6 Months Ended September 30, 2023 | $353,020,000 | $15,266,000 | $368,286,000 |
Cost Structure
The costs associated with generating revenue primarily fall into two categories: cost of service revenue and cost of other revenue.
- Cost of Service Revenue: For the three months ended September 30, 2024, the cost was $50,251,000, compared to $49,144,000 in 2023. For the six months ended September 30, 2024, the cost was $99,747,000, up from $95,420,000 in the same period of 2023.
- Cost of Other Revenue: For the three months ended September 30, 2024, this cost was $7,572,000, down from $7,958,000 in 2023. For the six months ended September 30, 2024, the cost was $15,263,000, compared to $16,356,000 in the prior year.
| Period | Cost of Service Revenue | Cost of Other Revenue | Total Cost of Revenue |
|---|---|---|---|
| 3 Months Ended September 30, 2024 | $50,251,000 | $7,572,000 | $57,823,000 |
| 3 Months Ended September 30, 2023 | $49,144,000 | $7,958,000 | $57,102,000 |
| 6 Months Ended September 30, 2024 | $99,747,000 | $15,263,000 | $115,010,000 |
| 6 Months Ended September 30, 2023 | $95,420,000 | $16,356,000 | $111,776,000 |
Operating Expenses
8x8’s operating expenses include research and development, sales and marketing, and general and administrative costs.
- Research and Development: For the three months ended September 30, 2024, expenses were $31,291,000, down from $34,207,000 in 2023. For the six months ended September 30, 2024, R&D expenses totaled $63,428,000 compared to $69,499,000 in the previous year.
- Sales and Marketing: For the three months ended September 30, 2024, expenses were $64,867,000, down from $68,687,000 in 2023. For the six months ended September 30, 2024, it was $131,973,000, a decrease from $137,191,000 in the prior year.
- General and Administrative: For the three months ended September 30, 2024, expenses were $19,848,000, down from $27,586,000 in 2023. For the six months ended September 30, 2024, it was $42,939,000 compared to $53,812,000 in the same period of 2023.
| Period | R&D Expenses | Sales and Marketing Expenses | General and Administrative Expenses | Total Operating Expenses |
|---|---|---|---|---|
| 3 Months Ended September 30, 2024 | $31,291,000 | $64,867,000 | $19,848,000 | $116,006,000 |
| 3 Months Ended September 30, 2023 | $34,207,000 | $68,687,000 | $27,586,000 | $130,480,000 |
| 6 Months Ended September 30, 2024 | $63,428,000 | $131,973,000 | $42,939,000 | $238,340,000 |
| 6 Months Ended September 30, 2023 | $69,499,000 | $137,191,000 | $53,812,000 | $260,502,000 |
Profitability Analysis
For the three months ended September 30, 2024, 8x8 reported a net loss of $14,543,000, compared to a net loss of $7,452,000 in the same period of 2023. For the six months ended September 30, 2024, the net loss was $24,833,000, compared to $22,779,000 in the prior year.
| Period | Net Loss | Net Loss per Share |
|---|---|---|
| 3 Months Ended September 30, 2024 | $14,543,000 | ($0.11) |
| 3 Months Ended September 30, 2023 | $7,452,000 | ($0.06) |
| 6 Months Ended September 30, 2024 | $24,833,000 | ($0.19) |
| 6 Months Ended September 30, 2023 | $22,779,000 | ($0.19) |
Debt and Interest Expenses
Interest expense for the three months ended September 30, 2024, was $7,905,000 compared to $10,061,000 in 2023, reflecting a decrease of 21.4%. For the six months ended September 30, 2024, interest expense was $17,861,000, down from $20,139,000 in the prior year.
| Period | Interest Expense |
|---|---|
| 3 Months Ended September 30, 2024 | $7,905,000 |
| 3 Months Ended September 30, 2023 | $10,061,000 |
| 6 Months Ended September 30, 2024 | $17,861,000 |
| 6 Months Ended September 30, 2023 | $20,139,000 |
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Resources:
- 8x8, Inc. (EGHT) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of 8x8, Inc. (EGHT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View 8x8, Inc. (EGHT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.