The following is a summary of the 8x8, Inc. (EGHT) Q4 2024 Earnings Call Transcript:
Financial Performance:
8x8 reported a Q4 in line with service and total revenue guidance, and above for operating margin.
Cash flow from operations exceeded expectations for Q4, rising 62% YoY; the company ended with $118 million in cash, restricted cash and investments.
Non-GAAP operating expenses reduced by over $47 million YoY in 2024.
Positive cash flow and non-GAAP operating margin achieved for 13 consecutive quarters.
8x8 ARR was sequentially flat for four quarters before CPaaS effects, which will affect revenue with a delay of two to three quarters.
-They repaid $88.3 million of principal in FY 2024, completing 35% of their commitment to returning $250 million to investors through debt repayments over three years.
A $10 million charge was booked in Q4 related to Fuze indirect tax liabilities.
Non-GAAP fully diluted earnings per share expected to be between $0.37 and $0.45 for FY 2025.
Business Progress:
Strategic initiatives include accelerating innovation in the CCaaS sector, establishing CPaaS leadership in the Asia Pacific region, and focusing more on small and mid-sized enterprises.
Introduced innovative products including AI-powered intelligent customer assistant, omni-channel engagement solutions, and Engage solution, driving a 50% year-on-year increase in new product sales for two consecutive quarters.
Partnerships with Microsoft Teams are providing value, with a high contact center attach rate, and a growing user base.
8x8 has increased investment in "top of the funnel" marketing activities and AI technology integration in products.
Partnerships with Cognigy, Awaken, Meta, Llama 4, and Open.AI are integrating AI technologies into their platform to provide value-added services and increase revenue per customer.
Headwinds experienced due to the Fuze deal and the seasonality of CPaaS sector, however, other operations remained steady, with no quarterly changes.
More details: 8x8 IR
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