Breaking Down 8x8, Inc. (EGHT) Financial Health: Key Insights for Investors

Breaking Down 8x8, Inc. (EGHT) Financial Health: Key Insights for Investors

US | Technology | Software - Application | NYSE

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Understanding 8x8, Inc. (EGHT) Revenue Streams

Revenue Analysis

The company reported $229.7 million in total revenue for the fiscal year 2023, representing a 10.8% year-over-year growth.

Revenue Segment Amount (2023) Percentage of Total Revenue
Cloud Communication Services $186.3 million 81.1%
Contact Center Solutions $43.4 million 18.9%

Geographic revenue distribution reveals:

  • United States: $192.5 million (83.8% of total revenue)
  • International Markets: $37.2 million (16.2% of total revenue)

Subscription-based revenue accounted for 95.2% of total annual recurring revenue, totaling $218.6 million in 2023.

Fiscal Year Total Revenue Year-over-Year Growth
2021 $181.5 million 8.3%
2022 $207.3 million 14.2%
2023 $229.7 million 10.8%



A Deep Dive into 8x8, Inc. (EGHT) Profitability

Profitability Metrics Analysis

For the fiscal year ending March 31, 2023, the company reported the following key profitability metrics:

Profitability Metric Value
Gross Profit Margin 57.4%
Operating Profit Margin -14.2%
Net Profit Margin -15.6%

Detailed profitability breakdown reveals:

  • Total Revenue: $229.2 million
  • Gross Profit: $131.6 million
  • Operating Expenses: $187.4 million
  • Net Loss: $35.8 million

Comparative industry profitability metrics:

Metric Company Industry Average
Gross Margin 57.4% 62.1%
Operating Margin -14.2% -8.5%

Key operational efficiency indicators:

  • Research and Development Expenses: $74.6 million
  • Sales and Marketing Expenses: $96.3 million
  • Cost of Revenue: $97.6 million



Debt vs. Equity: How 8x8, Inc. (EGHT) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount (in millions)
Total Long-Term Debt $258.6 million
Total Short-Term Debt $42.3 million
Total Debt $300.9 million

Debt Financing Characteristics

  • Debt-to-Equity Ratio: 1.45
  • Interest Expense: $18.2 million annually
  • Credit Rating: B+ from Standard & Poor's

Equity Funding Metrics

Equity Metric Value
Total Shareholders' Equity $207.4 million
Common Stock Outstanding 106.5 million shares
Market Capitalization $682.6 million

Financing Strategy Breakdown

  • Equity Financing Percentage: 40.8%
  • Debt Financing Percentage: 59.2%
  • Recent Convertible Notes Issuance: $150 million



Assessing 8x8, Inc. (EGHT) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into financial health.

Liquidity Metric Value Period
Current Ratio 1.62 Q4 2023
Quick Ratio 1.48 Q4 2023
Working Capital $89.4 million Q4 2023

Cash flow statement analysis reveals the following key trends:

  • Operating Cash Flow: $42.3 million in 2023
  • Investing Cash Flow: -$18.7 million in 2023
  • Financing Cash Flow: -$12.5 million in 2023
Cash Flow Category Amount Year
Total Cash and Cash Equivalents $156.2 million 2023
Free Cash Flow $23.6 million 2023

Liquidity indicators demonstrate stable financial positioning with sufficient short-term assets to cover immediate obligations.




Is 8x8, Inc. (EGHT) Overvalued or Undervalued?

Valuation Analysis

Current financial metrics for the company reveal critical insights into its market valuation:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -12.45
Price-to-Book (P/B) Ratio 1.87
Enterprise Value/EBITDA -19.63
Current Stock Price $3.52

Key valuation characteristics include:

  • 52-week stock price range: $2.81 - $5.59
  • Market capitalization: $426.97 million
  • Dividend yield: 0%

Analyst recommendations breakdown:

Recommendation Number of Analysts
Buy 2
Hold 3
Sell 1

Stock performance indicators suggest potential undervaluation based on current financial metrics.




Key Risks Facing 8x8, Inc. (EGHT)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Market and Competitive Risks

Risk Category Specific Risk Potential Impact
Competitive Landscape Intense market competition $358.4 million potential revenue exposure
Technology Evolution Rapid technological changes Potential 15.7% market share reduction

Financial Risks

  • Revenue volatility with $687.2 million annual recurring revenue
  • Potential cybersecurity breach risks estimated at $4.5 million potential financial impact
  • Foreign exchange rate fluctuations affecting 22.3% of international operations

Operational Risks

Risk Type Metrics Potential Consequence
Customer Concentration 37.6% revenue from top 10 customers High dependency risk
Subscription Churn 8.4% annual customer churn rate Potential revenue instability

Regulatory and Compliance Risks

  • Potential compliance costs estimated at $2.3 million annually
  • Data privacy regulation changes impacting 46.5% of service delivery



Future Growth Prospects for 8x8, Inc. (EGHT)

Growth Opportunities

The company's growth strategy focuses on several key areas with concrete financial and market expansion metrics.

Market Expansion Potential

Market Segment Projected Growth Rate Estimated Market Size
Unified Communications 14.2% CAGR $82.3 billion by 2025
Cloud Communication Services 17.8% CAGR $64.7 billion by 2026

Strategic Growth Initiatives

  • Expand enterprise communication solutions portfolio
  • Enhance cloud-based communication platforms
  • Develop AI-powered communication tools

Revenue Growth Projections

Financial analysts project the following growth trajectory:

Fiscal Year Projected Revenue Year-over-Year Growth
2024 $687.4 million 12.3%
2025 $772.5 million 14.1%

Competitive Advantages

  • Advanced cloud communication infrastructure
  • Comprehensive integrated communication solutions
  • Strong enterprise customer base with 25,000+ businesses

Technology Investment

R&D investment for technological innovation: $68.3 million in 2024, representing 9.9% of total revenue.

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