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Technology Stocks : 8x8 (EGHT)
EGHT 32.97+1.1%Apr 20 4:00 PM EDT

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From: Savant1/26/2017 10:57:40 AM
   of 1926
Yesterday, EGHT made new yr hi, has been giving some back, since.

CC on site available.

8x8, Inc. Reports Third Quarter Fiscal 2017 Financial Results

4:05 PM ET 1/25/17 | BusinessWire
--Mid-Market and Enterprise Service Revenue Increases 36%

--GAAP Net Loss of ($1.3 Million); Non-GAAP Net Income of $5.8 Million

--Cash from Operating Activities of $8.8 Million

8x8, Inc. (NASDAQ:EGHT), the leading provider of Enterprise Communications as a Service (ECaaS), today reported financial results for the third quarter of fiscal 2017 ended December 31, 2016.

Third Quarter Fiscal 2017 Financial Results:

-- Service revenue grew 23% year-over-year to $60.1 million; total revenue grew 20% year-over-year to $63.7 million.

-- GAAP gross margin was 77%, compared with 72% in the same period last year; non-GAAP gross margin was 79%, compared with 75% in the same period last year.

-- GAAP service margin was 83%, compared with 80% in the same period last year; non-GAAP service margin was 84%, compared with 83% in the same period last year.

-- GAAP net loss was ($1.3 million), or ($0.01) per diluted share; non-GAAP net income was $5.8 million, or $0.06 per diluted share.

-- Cash generated from operating activities was $8.8 million, compared with $8.3 million in the same period last year.

-- Cash, cash equivalents and investments were $173 million at December 31, 2016, compared with $155 million at December 31, 2015.

"Our financial results for the third quarter of fiscal 2017 were very strong with solid revenue growth and increasing gross and non-GAAP net income margins. Adjusting for constant currency and the discontinued segment of our UK business which we previously reported, service revenue increased 28% and total revenue increased 24%," said 8x8 CEO Vik Verma. "We are continuing to see enterprise customers transition their communications infrastructure to the cloud, evidenced this quarter by the addition of two new enterprise logos, including one Fortune 50 corporation."

"As we prepare for our next phase of growth, we are focused on enhancing our global systems and worldwide customer support organization to better serve the needs of our multinational customers," Verma continued. "We are also further expanding the breadth and capabilities of our platform with a new, recently completed technology acquisition in the collaboration space that will be unveiled in March at the Enterprise Connect Conference."

Additional Third Quarter and Year-to-Date Highlights:

-- Service revenue from mid-market and enterprise customers grew 36% year-over-year and represents 55% of the Company's total service revenue.

-- New monthly recurring revenue (MRR) sold to mid-market and enterprise customers and by channel sales teams accounted for 60% of total new MRR booked in the quarter.

-- Average monthly service revenue (ARPU) per business customer grew to $414, compared with $369 in the same year ago period; ARPU per mid-market and enterprise customer grew to $4,412, compared with $4,017 in the same year ago period.

-- Gross monthly revenue churn was 1.0%, compared with 1.2% in the same period last year.

-- New enterprise Master Service Agreement signed with a Fortune 50 health care corporation to provide services to up to 10,000 users in 450 medical offices.

-- New enterprise agreement signed with a national retail chain for over 10,000 seats across 3500 locations.

-- 2.0 Global Channel Program and new PartnerConnect Channel Portal launched.

-- New channel partners Telarus, LANtelligence and PERRY proTECH in North America, and Great Outcomes in NZ added.

-- Acquired a small, innovative technology company in the collaboration space, completed in early January.

-- Three new patents awarded related to technology innovations enabling seamless global enterprise communications and enhanced contact center user experience for a total of 128 awarded patents to date.

-- Virtual Office Pro acknowledged with PCMag Editors' Choice Award.

-- Virtual Contact Center acknowledged with TMC's Customer Experience Innovation Award.

8x8 maintained its annual guidance of revenue for fiscal 2017 in the range of $251.0 million to $254.0 million and raised non-GAAP net income guidance to a range of $18.0 to $20.0 million, representing non-GAAP net income as a percent of revenue of 7.0% to 8.0%, from previously issued non-GAAP net income guidance in the range of $16.0 million to $20.0 million.

Conference Call Information:

Management will host a conference call to discuss these results and other matters related to the Company's business today, January 25, 2017 at 4:30 pm ET. The call is accessible via the following numbers and webcast links:

Dial In:  (877) 843-0417, domestic            (408) 427-3791, international  Replay:   (855) 859-2056, domestic (Conference ID #46149120)            (404) 537-3406, international (Conference ID #46149120)  Webcast:    
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 February 1, 2017. The webcast will be archived on 8x8's website for a period of one year. For additional information, visit

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, or connect with 8x8 on LinkedIn, Twitter, Google+ and Facebook.

Non-GAAP Measures

The Company has provided in this release 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 our financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating the Company's ongoing operational performance. Management believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating 8x8's ongoing operating results and trends and in comparing financial results with other companies in the industry, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. This reconciliation has been provided in the financial statement tables included below in this press release.

Non-GAAP Net Income and Non-GAAP Net Income Per Share

We have defined non-GAAP net income as net income for GAAP plus non-cash tax adjustments, stock-based compensation, amortization of acquired intangible assets, impairment of long-lived assets, and acquisition-related costs. Non-cash tax adjustments represent the difference between the amount of taxes we expect to pay and our GAAP tax provision each period. We have excluded stock-based compensation expense because it relies on estimates and assumptions about future events, such as our future common stock price and the duration of employee service, as well as valuations that are affected by market factors largely outside management's control. Amortization of acquired intangible assets is excluded because it is a non-cash expense that we do not consider part of ongoing operations when assessing our financial performance, as it relates to accounting for certain purchased assets. We have excluded impairment of long-lived assets because we consider it to be an isolated transaction and believe it is not reflective of our ongoing operations, and it reduces comparability of periodic operating results when it is included. We have excluded acquisition-related expenses because these expenses are difficult to predict and are often one-time. We define non-GAAP net income per share as non-GAAP net income divided by the weighted-average diluted shares outstanding. We define non-GAAP net income percentage of revenue as non-GAAP net income divided by revenue. The GAAP and non-GAAP weighted average number of diluted shares to calculate GAAP and non-GAAP earnings per share are the same. We believe that such exclusions facilitate comparisons to our historical operating results and to the results of other companies in the same industry, and provides investors with information that we use in evaluating management's performance on a quarterly and annual basis.

Forward Looking Statements
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