Post Earnings Coverage as 8×8 Revenue Surged 23%; Raised Non-GAAP Net Income Guidance

Upcoming AWS Coverage on SBA Communications

LONDON, UK / ACCESSWIRE / February 6, 2017 / Active Wall St. announces its post-earnings coverage on 8×8 Inc. (NASDAQ: EGHT). The Company released its third quarter fiscal 2017 results on January 25, 2017. The telecommunications services Company’s earnings numbers outperformed market estimates. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of 8×8’s competitors within the Diversified Communication Services space, SBA Communications Corp, (NASDAQ: SBAC), is estimated to report earnings on February 23, 2017. AWS will be initiating a research report on SBA Communications following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on EGHT; touching on SBAC. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=EGHT

http://www.activewallst.com/registration-3/?symbol=SBAC

Earnings Reviewed

For the quarter ended December 31, 2016, 8×8’s service revenue grew 23% on a y-o-y basis to $60.1 million, while total revenue grew 20% on a y-o-y basis to $63.7 million. Adjusting for constant currency and the discontinued segment of the Company’s UK operations, service revenue grew 28%, and total revenue grew 24% compared to the year earlier same period.

8×8’s GAAP gross margin was 77% in Q3 FY17 compared to 72% in Q3 FY16. The Company’s non-GAAP gross margin was 79% in the reported quarter compared to 75% in the same period last year. GAAP service margin was 83% compared to 80% in the year earlier comparable quarter, while non-GAAP service margin was 84% compared to 83% in the same period last year.

8×8’s net income for Q3 FY17 was $5.8 million representing 9% of revenue compared to $4.3 million, or 8.1% of revenue, in Q3 FY16. On a constant currency basis, net income benefited by approximately 50 basis points, or approximately $300,000. 8×8’s GAAP net loss was $1.3 million, or $0.01 per diluted share. The Company’s non-GAAP net income was $5.8 million, or $0.06 per diluted share. The Company’s adjusted earnings results outperformed Wall Street’s expectations of $0.04 per share. The reported quarter was 8 x 8’s 27th consecutive quarter of profitability on a non-GAAP net income basis.

Segment Results

For Q3 FY17, 8×8’s service revenue from mid-market and enterprise customers grew 36% on a y-o-y basis 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 Q3 FY17. Adjusting for constant currency and the discontinued DXI business segment, bookings from mid-market and enterprise customers and by channel sales teams grew 10% on a y-o-y basis. 8×8’s gross monthly business service revenue churn on an organic basis was 1% in Q3 FY17 compared to 1.2% in Q3 FY16.

During Q3 FY17, 8×8’s average monthly service revenue (ARPU) per business customer grew to $414 compared to $369 in Q3 FY16. ARPU per mid-market and enterprise customer grew to $4,412 compared to $4,017 in the year ago corresponding period.

Cash Flow & Balance Sheet

8×8′ generated cash of $8.8 million during Q3 FY17 compared to $8.3 million in the same period last year. As of December 31, 2016, the Company’s cash, cash equivalents, and investments were $173 million compared to $155 million at December 31, 2015.

During the reported quarter, 8×8’s Capital expenditures were $2.8 million representing 4% of revenue compared to $1.7 million, or 3% of revenue, in Q3 FY16.

Outlook

8×8 maintained its annual guidance of revenue for FY17 in the range of $251.0 million to $254.0 million and raised non-GAAP net income guidance to a range of $18.0 million 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.

Stock Performance

On Friday, February 03, 2017, the stock closed the trading session at $15.85, slightly climbing 0.32% from its previous closing price of $15.80. A total volume of 435.46 thousand shares have exchanged hands. 8×8’s stock price rallied 7.46% in the last month, 16.37% in the past six months, and 27.11% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 10.84%. The stock currently has a market cap of $1.44 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 454326