8×8, Inc. Reports Fourth Quarter and Fiscal 2018 Financial Results

8X8 Inc (NYSE:EGHT), a leading provider of cloud phone, meeting, collaboration and contact center solutions reported financial results for the fourth quarter and fiscal year ended March 31, 2018.

As quoted in the press release:

Fourth Quarter Fiscal 2018 Financial Results:

• Revenue: Service revenue increased 20% year-over-year to $75.3 million. Adjusting for constant currency, service revenue increased 19%. Total revenue increased 19% year-over-year to $79.3 million. Adjusting for constant currency, total revenue increased 18%.
• Service revenue from mid-market and enterprise customers increased 29% year-over-year and represented 60% of total service revenue.
• GAAP net loss was $13.3 million or ($0.14) per diluted share.
• Non-GAAP net loss was $2.9 million or ($0.03) per diluted share.
• Margins: GAAP gross margin was 75%, compared with 77% in the same period last year. Non-GAAP gross margin was 77%, compared with 79% in the same period last year. GAAP service margin was 81%, compared with 83% in the same period last year. Non-GAAP service margin was 83%, compared with 84% in the same period last year.
• Cash generated from operating activities was $2.7 million.

“The fourth quarter was a strong finish to a transformational year at 8×8. Our solid performance reflects successful execution against our strategic initiatives and is validation of the investments we continue to make to accelerate service revenue growth,” said Vik Verma, Chief Executive Officer at 8×8, Inc.

Full-Year Fiscal 2018 Financial Results:

• Revenue: Service revenue increased 19% year-over-year to $280.4 million. Adjusting for constant currency and the discontinued revenue from the non-core, voice broadcasting segment of DXI, service revenue increased 19%. Total revenue increased 17% year-over-year to $296.5 million. Adjusting for constant currency and the discontinued revenue from the non-core, voice broadcasting segment of DXI, total revenue increased 17%.
• Service revenue from mid-market and enterprise customers increased 29% year-over-year and represented 58% of total service revenue.
• GAAP net loss was $104.5 million or ($1.14) per diluted share, inclusive of two special items in the third fiscal quarter. The special items were: 1) $71 million of non-cash, non-recurring tax charges as a result of the Tax Cuts and Jobs Act and the Company’s decision to record a valuation allowance against its deferred tax assets; and 2) $9 million non-cash, non-recurring impairment of goodwill and other assets related to UK EasyContactNow.
• Non-GAAP net income was $5.9 million, or $0.06 per diluted share, excluding special items.
• Margins: GAAP gross margin was 76%, compared with 75% in the same period last year. Non-GAAP gross margin was 78%, compared with 77% in the same period last year. GAAP service margin was 82% compared with 82% in the same period last year. Non-GAAP service margin was 84%, compared with 84% in the same period last year.
• Cash Flow: Cash generated from operating activities was $22 million. Cash, restricted cash and investments were $160 million at March 31, 2018.

Click here for the full text release.