|EGHT fins out...snakey MMs moved it down pre report..now UP 4.5% in aftermarket...good report|
8x8, Inc. Reports First Quarter Fiscal 2017 Financial Results
4:05 PM ET 7/21/16 | BusinessWire
--Service Revenue from Midmarket and Enterprise Customers Increases 44% YoY
--GAAP Net Loss of ($0.5 Million); Non-GAAP Net Income of $5.4 Million
--Cash Flow from Operations of $6.5 Million
8x8, Inc. (NASDAQ:EGHT), the leading provider of Enterprise Communications as a Service (ECaaS), today reported record financial results for the first quarter of fiscal 2017 ended June 30, 2016.
First Quarter Fiscal 2017 Financial Highlights:
-- Total revenue of $60.0 million, a 25% year-over-year increase; service revenue of $55.3 million, a 25% year-over-year increase.
-- Service revenue from mid-market and enterprise customers grew 44% year-over-year and represents 52% of the Company's total service revenue.
-- New monthly recurring revenue (MRR) sold to mid-market and enterprise customers and by channel sales teams increased 62% year-over-year and accounted for 58% of total MRR booked in the quarter.
-- GAAP net loss was ($0.5 million), or ($0.01) per diluted share.
-- Non-GAAP net income was $5.4 million, or $0.06 per diluted share.
-- GAAP gross margin was 74%, compared with 73% in the same period last year; non-GAAP gross margin was 75%, compared with 74% in the same period last year.
-- GAAP service margin was 81%, compared with 81% in the same period last year; non-GAAP service margin was 83%, compared with 82% in the same period last year.
"8x8's fiscal 2017 is off to a great start with a 25% year-over-year increase in total revenue to a record $60 million, driven largely by the continued adoption of our global cloud communications and collaboration services by midmarket and enterprise customers," said 8x8 CEO Vik Verma. "The move to the cloud for enterprise communications is no longer a matter of if but when, and I'm very pleased with the progress we've made establishing 8x8 as the premiere provider of the industry's most secure, reliable and integrated pure-cloud solutions available."
Additional First Quarter and Year-to-Date Highlights:
-- Average monthly service revenue per business customer was $399, compared with $353 in the same year ago period.
-- Gross monthly revenue churn on an organic basis was 0.5%, compared with 1.0% in the same period last year.
-- Cash generated from operating activities was $6.5 million, compared with $4.7 million in the same period last year.
-- Cash, cash equivalents and investments were $167 million at June 30, 2016, compared with $157 million on June 30, 2015.
-- Jeff Romano appointed Senior Vice President of Global Services and Support to lead global deployment, professional services, program management and customer support.
-- Expansion of international footprint announced with three new datacenters, localization for six additional languages and two new customer support centers.
-- Three new communications patents granted for a total of 121 awarded patents.
8x8 reaffirmed its guidance for fiscal 2017 of annual revenue of $249.0 million to $253.0 million and full year non-GAAP net income in the range of $16.0 million to $20.0 million, representing non-GAAP net income as a percent of revenue of 6.5% to 8.0%.
8x8 also announced that on July 18, 2016, it awarded 29 new employees restricted stock units (RSUs) representing an aggregate of 145,940 shares of the Company's common stock, and an option to purchase 36,160 shares of common stock at an exercise price of $15.18 under the 8x8 "2013 New Employee Inducement Incentive Plan." These equity awards were approved by the 8x8 Board of Directors Compensation Committee and were granted as an inducement to the new employees entering into employment with 8x8, in accordance with Nasdaq Market Place Rule 5635(c)(4). Each of the awards is subject to vesting pursuant to the terms of the award agreements, which include that the recipient be employed through each vesting date.
Conference Call Information:
Management will host a conference call to discuss these results and other matters related to the Company's business today, July 21, 2016 at 4:30 pm ET. The call is accessible via the following numbers and webcast links:
View dataDial In: (877) 843-0417, domestic (408) 427-3791, international Replay: (855) 859-2056, domestic (Conference ID #42326861) (404) 537-3406, international (Conference ID #42326861) Webcast: investors.8x8.com
Participants should plan to dial in or log on ten minutes prior to the start time. A telephonic replay of the call will be available three hours after the conclusion of the call until July 28, 2016. The webcast will be archived on 8x8's website for a period of one year. For additional information, visit investors.8x8.com.
About 8x8, Inc.
8x8, Inc. (NASDAQ:EGHT) is the trusted provider of secure and reliable enterprise cloud communications solutions to more than 45,000 businesses operating in over 100 countries across six continents. 8x8's out-of-the-box cloud solutions replace traditional on-premises PBX hardware and software-based systems with a flexible and scalable Software as a Service (SaaS) alternative, encompassing cloud business phone service, contact center solutions, and conferencing. For additional information, visit www.8x8.com, www.8x8.com/UK or connect with 8x8 on LinkedIn, Twitter, Google+ and Facebook.