8x8, Inc. (EGHT) Bundle
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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