|8x8, Inc. Reports Second Quarter Fiscal 2017 Financial Results|
4:05 PM ET 10/26/16 | BusinessWire
--Service Revenue from Mid-Market and Enterprise Customers Increases 36% YoY and Represents 53% of Total Service Revenue
--GAAP Net Income of $27k; Non-GAAP Net Income of $5.3 Million
8x8, Inc. (NASDAQ:EGHT), the leading provider of Enterprise Communications as a Service (ECaaS), today reported record financial results for the second quarter of fiscal 2017 ended September 30, 2016.
Second Quarter Fiscal 2017 Financial Highlights:
-- Total revenue grew 24% year-over-year to $63.2 million; service revenue grew 23% year-over-year to $57.7 million.
-- Service revenue from mid-market and enterprise customers grew 36% year-over-year organically and represents over 53% 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 30% year-over-year and accounted for 65% of total MRR booked in the quarter.
-- GAAP net income was $27k, or $0.00 per diluted share; non-GAAP net income was $5.3 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 remained unchanged year-over-year at 75%.
-- GAAP service margin was 81%, compared with 80% in the same period last year; non-GAAP service margin was 83%, compared with 82% in the same period last year.
"8x8 had a strong second quarter of fiscal 2017 with 24% year-over-year revenue growth and continued traction moving upmarket. 65% of the new monthly recurring revenue booked during the quarter came from our mid-market, enterprise and channel sales teams," said 8x8 CEO Vik Verma. "This segment of our business continues to be a strong growth driver and now accounts for over 53% of our services revenue, compared with 48% one year ago."
"Our integrated Virtual Office and Virtual Contact Center solution remains a key differentiator with these large customer wins, leading to six of our top ten deals in the quarter subscribing to both services. As customers and prospects learn more about the benefits of digital communications, enhanced features and capabilities are taking on greater importance and we look forward to driving continued technology innovation to maximize the business value of our solutions for customers worldwide."
Additional Second Quarter and Year-to-Date Highlights:
-- Average monthly service revenue per business customer was $409, compared with $360 in the same year ago period.
-- Gross monthly revenue churn was 0.6%, compared with 0.7% in the same period last year.
-- Cash generated from operating activities was $6.9 million, compared with $2.5 million in the same period last year.
-- Cash, cash equivalents and investments were $170 million at September 30, 2016, compared with $149 million on September 30, 2015.
-- Placement awarded in Leaders quadrant of the 2016 Gartner "Magic Quadrant for Unified Communications as a Service (UCaaS), Worldwide"for the fifth consecutive year.
-- Placement awarded in Challengers quadrant of the 2016 Gartner "Magic Quadrant for Contact Center as a Service (CCaaS), North America" for the second consecutive year.
-- Services platform launched in three international data centers - Amsterdam, Brazil and Singapore - for a total of 12 data centers worldwide.
-- New customer support center opened in Manila, Philippines.
-- Quality Management solution for Virtual Contact Center released to production.
-- Four new digital communications patents granted for a total of 125 awarded patents.
8x8 increased its annual revenue guidance for fiscal 2017 to a range of $251.0 million to $254.0 million from a range of $249.0 million to $253.0 million and maintained guidance for 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%.
Conference Call Information:
Management will host a conference call to discuss these results and other matters related to the Company's business today, October 26, 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 #92932960) (404) 537-3406, international (Conference ID #92932960) 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 November 2, 2016. The webcast will be archived on 8x8's website for a period of one year. For additional information, visit investors.8x8.com.