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.
8x8, Inc. (EGHT) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.