8X8 INC /DE/0001023731false00010237312025-02-042025-02-04

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
February 4, 2025
Date of Report (Date of earliest event reported)
8x8-Logo-DkGrey.jpg
(Exact name of registrant as specified in its charter)
Delaware001-3831277-0142404
 (State or other jurisdiction of incorporation)
 (Commission File Number)
(I.R.S. Employer Identification Number)
675 Creekside Way
Campbell, CA 95008
(Address of principal executive offices including zip code)
(408) 727-1885
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
COMMON STOCK, PAR VALUE $.001 PER SHARE
EGHT
Nasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company    ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐



Item 2.02. Results of Operations and Financial Condition.
On February 4, 2025, 8x8, Inc. (the "Company") issued a press release announcing its financial results for the three months ended December 31, 2024. A copy of this press release is furnished as Exhibit 99.1 to this report and should be read in conjunction with the statements regarding forward-looking statements, which are included in the text of the release.
The press release is furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The press release should be read in conjunction with the statements regarding forward-looking statements, which are included in the text of the release.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
ExhibitDescription
104Cover Page Interactive Data File, formatted in Inline XBRL.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: February 4, 2025
8x8, Inc.
 By: /s/ KEVIN KRAUS
 Kevin Kraus
 Chief Financial Officer
(Principal Financial Officer)


Exhibit 99.1
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8x8, Inc. Announces Third Quarter Fiscal Year 2025 Financial Results
•Service revenue of $173 million and total revenue of $179 million
•Delivered 16th consecutive quarter of positive cash flow from operations
•Continued strong growth in new products
CAMPBELL, CA, February 4, 2025 – 8x8, Inc. (NASDAQ: EGHT), the industry's most integrated Platform for CX that combines Contact Center, Unified Communication, and CPaaS APIs, today reported financial results for the third quarter of fiscal year 2025 ended December 31, 2024.
"Our third quarter results highlight further progress and continued momentum in our transformation journey. We delivered solid financial performance, with record cash flow from operations and strong adoption of our AI-powered customer experience solutions, driving a 60% year-over-year increase in new products . As we move forward, our focus remains on enhancing customer value, accelerating growth, and driving long-term profitability. With a clear strategy and a strong team, I believe we are well-positioned to capitalize on the opportunities ahead," said Samuel Wilson, Chief Executive Officer at 8x8, Inc.
Third Quarter Fiscal Year 2025 Financial Results:
•Total revenue of $178.9 million, compared to $181.0 million in the third quarter of fiscal 2024.
•Service revenue of $173.5 million, compared to $175.1 million in the third quarter of fiscal 2024.
•GAAP operating income was $9.0 million, compared to GAAP operating loss of $9.4 million in the third quarter of fiscal 2024.
•Non-GAAP operating profit was $19.1 million, compared to non-GAAP operating profit of $24.3 million in the third quarter of fiscal 2024.
•GAAP net income was $3.0 million, compared to GAAP net loss of $21.2 million in the third quarter of fiscal 2024.
•Non-GAAP net income was $14.5 million, compared to non-GAAP net income of $14.8 million in the third quarter of fiscal 2024.
•Adjusted EBITDA was $23.9 million, compared to Adjusted EBITDA of $30.7 million in the third quarter of fiscal 2024.
•Cash flow from operations of $27.2 million, compared to cash flow from operations of $22.4 million in the third quarter of fiscal 2024.
•Ending cash and equivalents, including restricted cash, of $104.6 million reflected the repayment of $33.0 million of principal payments made on the 2024 Term Loan during the third quarter.
"We delivered solid service and total revenue performance relative to our guidance, despite unfavorable foreign exchange rates compared to the rates prevailing when we established our outlook for the quarter. Additionally, record cash flow from operations further reinforced our confidence in our ability to consistently generate cash. As a result, we were comfortable making an additional $15 million term loan prepayment in January, further strengthening our balance sheet and positioning us for long-term financial flexibility," said Kevin Kraus, Chief Financial Officer at 8x8, Inc.
A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and other information relating to non-GAAP measures is included in the supplemental reconciliation at the end of this release.
Recent Business Highlights:
8x8 Platform for CX innovation
The latest innovations leverage AI-driven automation, advanced security, and seamless integrations to simplify complex operations and enhance efficiency for customers. Key enhancements include:
•Effortless Secure Payments - Anywhere, Anytime: Expanded 8x8 Secure Pay to enable secure and compliant payments across voice, touch-tone, SMS and email, through a fully automated customer experience via interactive voice response (IVR) or with an agent’s assistance.
•Secure, AI-powered Payments through 8x8 Intelligent Customer Assistant: Organizations can now enable 8x8 Secure Pay to allow customers to pay through 8x8 Intelligent Customer Assistant for a fully automated path to process payments, rather than waiting to speak with an agent, by either speaking payment details or entering the information via the phone's keypad. The new functionality enables customers to make payments quickly and securely, while increasing payment capture for businesses by allowing 24/7 payment.
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•Voice Intelligent Directory for 8x8 Intelligent Customer Assistant: 8x8 Intelligent Customer Assistant now delivers a faster, natural sounding service with the newly introduced Voice Intelligent Directory. Callers simply speak their request and the AI matches it to a comprehensive directory, ensuring seamless connections in seconds for improved CX through integration with 8x8 Contact Center and 8x8 Work.
•Faster Customer Support: 8x8 Knowledge Base Shortcuts help agents quickly access and share relevant information, improving response times.
•Enhanced Interaction Retrieval Widget for Proactive Monitoring: The Interaction Retrieval widget in 8x8 Supervisor Workspace empowers supervisors to quickly locate all contact center interactions, including voice calls, digital messages, transcriptions from 8x8 Speech Analytics, and voicemails. With enhanced functionality, supervisors can now download multiple interactions in bulk and effortlessly retrieve archived interactions, saving valuable time.
•8x8 Meetings Assets Sharing: Meeting assets, such as participant list, recording, screenshots, chat, transcriptions, summaries, action items, and links to shared files can be easily shared to streamline post-meeting follow-ups and keep everyone informed.
•Mobile Device Management Support for Retail: Mobile Device Management (MDM) support and streamlined, credential-free authentication for shared devices for retail operations. This new, configurable user experience ensures secure and effortless access, tailored specifically for retail scenarios with retail staff in shared-device environments, such as stores with multiple departments or locations.
•Desk Phones Multicast Paging: Multicast paging is now available on supported Yealink phones and the Algo 8180, allowing quick and easy broadcasting of instant audio announcements. In addition to Yealink-to-Yealink or Poly-to-Poly paging, customers can configure paging groups with supported Yealink, Poly, and Algo devices, allowing cross-vendor paging.
•Connect Multi-Channel Sender: Users can now launch text-to-speech messaging campaigns directly on 8x8 Connect multi-channel sender. This powerful new feature enables organizations to add voice to their communication strategy, enhancing accessibility and connecting with customers like never before.
8x8 Technology Partner Ecosystem Expansion
•CallCabinet, a leader in compliant call recording, joined the 8x8 Technology Partner Ecosystem. This partnership provides Microsoft-certified compliance call recording to customers using 8x8 for Microsoft Teams, further strengthening the value delivered to organizations looking to enhance compliance within Microsoft Teams. This partnership expands 8x8 for Microsoft Teams portfolio, reinforcing 8x8's commitment to provide customers with seamless, Microsoft-certified solutions for their business communications and contact center needs.
New Brand and Messaging Reflects CX Transformation
•Launched a new, modern brand that captures the energy and ambition of the Company's CX transformation and mission of empowering CX leaders. Learn more about the new 8x8 brand by reading the blog post from 8x8 CMO, Bruno Bertini.
Recognition for the 8x8 Platform for CX, Contact Center, Customer Service and Sustainable Business Practices
•Included in the Newsweek Excellence 1000 Index, a list of the top 1000 US companies that have demonstrated best practices across a range of metrics, including R&D investment in innovation, financial responsibility, stakeholder ratings, and social responsibility ratings.
•Awarded 43 badges in the G2 Winter 2025 Awards for 8x8 Contact Center and 8x8 Work, including "Leader in Enterprise" and "Users Most Likely to Recommend for Enterprise" badges.
•Received TrustRadius Tech Cares and TrustRadius "Top Rated" Awards for Unified Communications as a Service and Contact Center. The Trust Radius Tech Cares Award highlights companies that have excelled in their Corporate Social Responsibility (CSR) initiatives, while the TrustRadius 2024 Top Rated awards are driven by customer sentiment in reviews on TrustRadius.
•Michelle Paitich, 8x8's Channel Chief and Global Vice President, Channel Sales, was named in the 2025 CRN® Channel Chiefs List, which recognizes the IT vendor and distribution executives who are driving strategy and setting the channel agenda for their companies.

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Corporate and Leadership Updates
•Appointed Joel Neeb as Chief Transformation and Business Operations Officer to drive alignment and accelerate transformation across the company. Mr. Neeb will be responsible for aligning 8x8’s strategic initiatives with operational outcomes, driving organizational excellence and fostering a culture of accountability and innovation.
•Appointed Darren Remblence as Chief Information Security Officer to oversee the company’s cybersecurity strategy. This appointment underscores 8x8’s commitment to cybersecurity, data protection, and maintaining trust with customers and partners.
•Expanded the Board of Directors to eight members with the appointment of John Pagliuca, President and Chief Executive Officer of N-able.
•Established a new Employee Resource Group (ERG) for Parents and Caregivers of Neurodivergent Children and supported the Company's Women in Tech ERG with an expanded calendar of activities.
Fourth Quarter and Updated Fiscal Year 2025 Financial Outlook:
Management provides expected ranges for total revenue, service revenue, non-GAAP operating margin, and non-GAAP net income per share, diluted, based on its evaluation of the current business environment. The Company emphasizes that these expectations are subject to various important cautionary factors referenced in the section entitled "Forward-Looking Statements" below.
Fourth Quarter Fiscal Year 2025 Ending March 31, 2025
•Service revenue in the range of $170.0 million to $175.0 million.
•Total revenue in the range of $175.0 million to $181.0 million.
•Non-GAAP operating margin in the range of approximately 9% to 10%.
Fiscal Year 2025 Ending March 31, 2025
•Service revenue in the range of $691.3 million to $696.3 million.
•Total revenue in the range of $713.0 million to $719.0 million.
•Non-GAAP operating margin is projected between 10.7% and 11.0%.
•Non-GAAP net income per share, diluted, in the range of $0.35 to $0.37.
The Company does not reconcile its forward-looking estimates of non-GAAP operating margin to the corresponding GAAP measure of GAAP operating margin or non-GAAP net income per share, basic and diluted, to the corresponding GAAP measure of GAAP net income (loss) per share due to the significant variability of, and difficulty in making accurate forecasts and projections with regards to, the various expenses excluded by these metrics. For example, future hiring and employee turnover may not be reasonably predictable, stock-based compensation expense depends on variables that are largely not within the control of nor predictable by management, such as the market price of 8x8 common stock, and may also be significantly impacted by events like acquisitions, the timing and nature of which are difficult to predict with accuracy. The actual amounts of these excluded items could have a significant impact on the Company's GAAP operating margin and GAAP net income per share, basic and diluted. Accordingly, management believes that reconciliations of these forward-looking non-GAAP financial measures to their corresponding GAAP measures are not available without unreasonable effort. See the "Explanation of GAAP to Non-GAAP Reconciliation" below for the definition of non-GAAP operating margin and non-GAAP net income per share, basic and diluted.
All projections are on a non-GAAP basis. Additionally, our increased emphasis on profitability and cash flow generation may not be successful. The reduction in our total costs as a percentage of revenue may negatively impact our revenue and our business in ways we don't anticipate and may not achieve the desired outcome.

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Conference Call Information:
Management will host a conference call to discuss earnings results on February 4, 2025 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call will last approximately 60 minutes. Participants may:
•Register to participate in the live call at:
https://register.vevent.com/register/BIf6409dc6cc484dc787a96317e8bb0d4f
•Access the live webcast directly at https://edge.media-server.com/mmc/p/vgcdunvx
The live webcast and replay will be available from the Company’s investor relations events page at https://8x8.gcs-web.com/news-events/events-presentations. Participants should plan to dial in or log on 10 minutes prior to the start time. The webcast will be archived on 8x8's website for a period of at least 30 days. For additional information, visit https://8x8.gcs-web.com/.
About 8x8. Inc.
8x8, Inc. (NASDAQ: EGHT) connects people and organizations through seamless communication on the industry's most integrated platform for Customer Experience—combining Contact Center, Unified Communication, and CPaaS APIs. The 8x8® Platform for CX integrates AI at every level to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. We help customer experience and IT leaders become the heartbeat of their organizations, empowering them to unlock the potential of every interaction. For additional information, visit www.8x8.com, or follow 8x8 on LinkedIn, X, and Facebook.
8x8® is a trademark of 8x8, Inc.
Forward Looking Statements:
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Any statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," "estimates," "predicts," "potential," "continue," "strategy," "believes," "anticipates," "plans," "expects," "intends," and similar expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to: changing industry trends; the size of our market opportunity; the potential success and impact of our investments in artificial intelligence technologies; our strategic transformation initiatives; our ability to drive increased platform and multi product adoption; our ability to increase profitability and cash flow; deleverage our balance sheet and fund investment in innovation; whether our unified communication and contact center traffic will increase; whether we can increase customer retention; our future revenue and growth (including platform usage revenue); whether we can sustain an increasing pace of innovation; the success of our go-to-market engine; our ability to improve general and administrative synergies; our ability to enhance shareholder value; and our financial outlook, revenue growth, and profitability, including whether we will achieve sustainable growth and profitability.
You should not place undue reliance on such forward-looking statements. Actual results could differ materially from those projected in forward-looking statements depending on a variety of factors, including, but not limited to: a reduction in our total costs as a percentage of revenue may negatively impact our revenues and our business; customer adoption and demand for our products may be lower than we anticipate; the impact of economic downturns on us and our customers; ongoing volatility and conflict in the political environment; inflationary pressures and rising interest rates; competitive dynamics of the cloud communication and collaboration markets, including voice, contact center, video, messaging, and communication application programming interfaces, as well as our competitors' use of AI, in which we compete, may change in ways we are not anticipating; third parties may assert ownership rights in our IP, which may limit or prevent our continued use of the core technologies behind our solutions; our customer churn rate may be higher than we anticipate; our investments in marketing, channel and value-added resellers, new products, and our acquisition of Fuze, Inc. may not result in meeting our revenue or operating margin targets we forecast in our guidance, for a particular quarter or for the full fiscal year. Our increased emphasis on profitability and cash flow generation may not be successful. The reduction in our total costs as a percentage of revenue may negatively impact our revenue and our business in ways we do not anticipate and may not achieve the desired outcome.
For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's reports on Forms 10-K and 10-Q, as well as other reports that 8x8, Inc. files from time to time with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and 8x8, Inc. undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.

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Explanation of GAAP to Non-GAAP Reconciliation
The Company has provided in this release financial information that has not been prepared in accordance with Generally Accepted Accounting Principles (GAAP). Management uses these Non-GAAP financial measures internally to understand, manage, and evaluate the business, and to make operating decisions. Management believes they are useful to investors, as a supplement to GAAP measures, in evaluating the Company's ongoing operational performance. Management also believes that some of 8x8’s investors use these Non-GAAP financial measures as an additional tool in evaluating 8x8's "core operating performance" in the ordinary, ongoing, and customary course of the Company's operations. Core operating performance excludes items that are non-cash, not expected to recur, or not reflective of ongoing financial results. Management also believes that looking at the Company’s core operating performance provides consistency in period-to-period comparisons and trends.
These Non-GAAP financial measures may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies, which limits the usefulness of these measures for comparative purposes. Management recognizes that these Non-GAAP financial measures have limitations as analytical tools, including the fact that management must exercise judgment in determining which types of items to exclude from the Non-GAAP financial information. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these Non-GAAP financial measures to their most directly comparable GAAP financial measures in the table titled "Reconciliation of GAAP to Non-GAAP Financial Measures". Detailed explanations of the adjustments from comparable GAAP to Non-GAAP financial measures are as follows:
Non-GAAP Costs of Revenue, Costs of Service Revenue and Costs of Other Revenue
Non-GAAP Costs of Revenue includes: (i) Non-GAAP Cost of Service Revenue, which is Cost of Service Revenue excluding amortization of acquired intangible assets, stock-based compensation expense and related employer payroll taxes, and certain severance, transition and contract exit costs; and (ii) Non-GAAP Cost of Other Revenue, which is Cost of Other Revenue excluding stock-based compensation expense and related employer payroll taxes, and certain severance, transition and contract exit costs.
Non-GAAP Service Revenue Gross Margin, Other Revenue Gross Margin, and Total Revenue Gross Margin
Non-GAAP Service Revenue Gross Profit and Margin as a percentage of Service Revenue and Non-GAAP Other Revenue Gross Profit and Margin as a percentage of Other Revenue are computed as Service Revenue less Non-GAAP Cost of Service Revenue divided by Service Revenue and Other Revenue less Non-GAAP Cost of Other Revenue divided by Other Revenue, respectively. Non-GAAP Total Revenue Gross Profit and Margin as a percentage of Total Revenue is computed as Total Revenue less Non-GAAP Cost of Service Revenue and Non-GAAP Cost of Other Revenue divided by Total Revenue. Management believes the Company’s investors benefit from understanding these adjustments and from an alternative view of the Company’s Cost of Service Revenue and Cost of Other Revenue, as well as the Company's Service, Other and Total Revenue Gross Margin performance compared to prior periods and trends.
Non-GAAP Operating Profit and Non-GAAP Operating Margin
Non-GAAP Operating Profit excludes: amortization of acquired intangible assets, stock-based compensation expense and related employer payroll taxes, acquisition and integration expenses, certain legal and regulatory costs, certain severance, transition and contract exit costs, and impairment of long-lived assets from Operating Profit (Loss). Non-GAAP Operating Margin is Non-GAAP Operating Profit divided by Revenue. Management believes that these exclusions provide investors with a supplemental view of the Company’s ongoing operating performance.
Non-GAAP Net Income and Adjusted EBITDA
Non-GAAP Net Income excludes: amortization of acquired intangible assets, stock-based compensation expense and related employer payroll taxes, acquisition and integration expenses, certain legal and regulatory costs, certain severance, transition and contract exit costs, impairment of long-lived assets, amortization of debt discount and issuance cost, loss on debt extinguishment, gain on remeasurement of warrants, and other income. Adjusted EBITDA excludes interest expense, provision (benefit) for income taxes, depreciation, amortization of capitalized internal-use software costs, and other income (expense), net from non-GAAP net income. Management believes the Company’s investors benefit from understanding these adjustments and an alternative view of our net income performance as compared to prior periods and trends.

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Non-GAAP Net Income Per Share – Basic and Non-GAAP Net Income Per Share - Diluted
Non-GAAP Net Income Per Share – Basic is Non-GAAP Net Income divided by the weighted-average basic shares outstanding. Non-GAAP Net Income Per Share – Diluted is Non-GAAP Net Income divided by the weighted-average diluted shares outstanding. Diluted shares outstanding include the effect of potentially dilutive securities from stock-based benefit plans and convertible senior notes. These potentially dilutive securities are excluded from the computation of net loss per share attributable to common stockholders on a GAAP basis because the effect would have been anti-dilutive. They are added for the computation of diluted net income per share on a non-GAAP basis in periods when 8x8 has net profit on a non-GAAP basis as their inclusion provides a better indication of 8x8’s underlying business performance. Management believes the Company’s investors benefit by understanding our Non-GAAP net income performance as reflected in a per share calculation as ways of measuring performance by ownership in the Company. Management believes these adjustments offer investors a useful view of the Company’s diluted net income per share as compared to prior periods and trends.
Management evaluates and makes decisions about its business operations based on Non-GAAP financial information by excluding items management does not consider to be “core costs” or “core proceeds.” Management believes some of its investors also evaluate our "core operating performance" as a means of evaluating our performance in the ordinary, ongoing, and customary course of our operations. Management excludes the amortization of acquired intangible assets, which primarily represents a non-cash expense of technology and/or customer relationships already developed, to provide a supplemental way for investors to compare the Company’s operations pre-acquisition to those post-acquisition and to those of our competitors that have pursued internal growth strategies. Stock-based compensation expense has been excluded because it is a non-cash expense and relies on valuations based on future conditions and events, such as the market price of 8x8 common stock, that are difficult to predict and/or largely not within the control of management. The related employer payroll taxes for stock-based compensation are excluded since they are incurred only due to the associated stock-based compensation expense. Acquisition and integration expenses consist of external and incremental costs resulting directly from merger and acquisition and strategic investment activities such as legal and other professional services, due diligence, integration, and other closing costs, which are costs that vary significantly in amount and timing. Legal and regulatory costs include litigation and other professional services, as well as certain tax and regulatory liabilities. Severance, transition and contract exit costs include employee termination benefits, executive severance agreements, and cancellation of certain contracts and lease impairments. Debt amortization expenses relate to the non-cash accretion of the debt discount.
8x8, Inc.
Media:
PR@8x8.com
Investor Relations:
Investor.relations@8x8.com
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8x8, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited, in thousands, except per share amounts)
Three Months Ended December 31,Nine Months Ended December 31,
2024202320242023
Service revenue$173,459 $175,069 $521,335 $528,089 
Other revenue5,423 5,937 16,692 21,203 
Total revenue178,882 181,006 538,027 549,292 
Cost of service revenue50,529 48,983 150,276 144,403 
Cost of other revenue7,268 7,177 22,531 23,533 
Total cost of revenue57,797 56,160 172,807 167,936 
Gross profit121,085 124,846 365,220 381,356 
Operating expenses:
Research and development29,833 32,787 93,261 102,286 
Sales and marketing65,644 66,997 197,617 204,189 
General and administrative16,629 23,419 59,568 77,231 
Impairment of long-lived assets— 11,034 — 11,034 
Total operating expenses112,106 134,237 350,446 394,740 
Income (loss) from operations8,979 (9,391)14,774 (13,384)
Interest expense(5,842)(10,035)(23,703)(30,174)
Other income (expense), net793 (1,275)(10,200)1,133 
Income (loss) before provision for income taxes3,930 (20,701)(19,129)(42,425)
Provision for income taxes908 521 2,682 1,576 
Net income (loss)$3,022 $(21,222)$(21,811)$(44,001)
Net income (loss) per share:
Basic$0.02 $(0.17)$(0.17)$(0.37)
Diluted$0.02 $(0.17)$(0.17)$(0.37)
Weighted average number of shares:
Basic130,970 122,556 128,750 120,042 
Diluted135,742 122,556 128,750 120,042 
Comprehensive loss
Net income (loss)$3,022 $(21,222)$(21,811)$(44,001)
Unrealized gain (loss) on investments in securities— (16)(5)281 
Foreign currency translation adjustment(9,321)5,987 (1,312)3,108 
Comprehensive loss$(6,299)$(15,251)$(23,128)$(40,612)
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8x8, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
December 31, 2024March 31, 2024
ASSETS
Current assets:
Cash and cash equivalents$104,165 $116,262 
Restricted cash462 356 
Short-term investments— 1,048 
Accounts receivable, net52,312 58,979 
Deferred sales commission costs32,046 35,933 
Other current assets30,105 35,258 
Total current assets219,090 247,836 
Property and equipment, net49,228 53,181 
Operating lease, right-of-use assets32,777 35,924 
Intangible assets, net71,420 86,717 
Goodwill266,217 266,574 
Restricted cash, non-current— 105 
Deferred sales commission costs, non-current45,154 52,859 
Other assets, non-current14,325 12,783 
Total assets$698,211 $755,979 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$53,072 $48,862 
Accrued and other liabilities61,601 78,102 
Operating lease liabilities11,386 11,295 
Deferred revenue33,394 34,325 
Term loan, current16,524 — 
Total current liabilities175,977 172,584 
Operating lease liabilities, non-current49,842 56,647 
Deferred revenue, non-current5,960 7,810 
Convertible senior notes, non-current198,569 197,796 
Term loan149,437 211,894 
Other liabilities, non-current5,413 7,290 
Total liabilities585,198 654,021 
Stockholders' equity:
Preferred stock: $0.001 par value, 5,000,000 shares authorized, none issued and
outstanding as of December 31, 2024 and March 31, 2024
— — 
Common stock: $0.001 par value, 300,000,000 shares authorized, 131,472,684 shares and 125,193,573 shares issued and outstanding as of December 31, 2024 and March 31, 2024, respectively
131 125 
Additional paid-in capital1,008,072 973,895 
Accumulated other comprehensive loss(12,870)(11,553)
Accumulated deficit(882,320)(860,509)
Total stockholders' equity113,013 101,958 
Total liabilities and stockholders' equity$698,211 $755,979 
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8x8, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Nine Months Ended December 31,
20242023
Cash flows from operating activities:
Net loss$(21,811)$(44,001)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation5,622 6,133 
Amortization of intangible assets15,296 15,296 
Amortization of capitalized internal-use software costs9,981 14,418 
Amortization of debt discount and issuance costs2,145 3,397 
Amortization of deferred sales commission costs28,981 30,150 
Allowance for credit losses1,425 1,663 
Operating lease expense, net of accretion8,907 8,057 
Impairment of right-of-use assets— 11,034 
Stock-based compensation expense31,710 46,835 
Loss on debt extinguishment12,212 1,766 
Gain on remeasurement of warrants(1,197)(1,234)
Other855 (570)
Changes in assets and liabilities:
Accounts receivable, net5,146 (2,188)
Deferred sales commission costs(17,581)(17,095)
Other current and non-current assets(1,943)(586)
Accounts payable and accruals(19,181)(4,471)
Deferred revenue(2,886)(2,272)
Net cash provided by operating activities57,681 66,332 
Cash flows from investing activities:
Purchases of property and equipment(2,045)(2,341)
Capitalized internal-use software costs(8,462)(10,913)
Purchase of investments— (6,174)
Purchase of cost investment(771)— 
Maturities of investments1,048 31,659 
Net cash (used in) provided by investing activities(10,230)12,231 
Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock plans1,681 2,365 
Payments for debt issuance costs(1,517)— 
Repayment of principal on term loan(258,000)(25,000)
Gross proceeds from term loan200,000 — 
Other financing activities(1,261)— 
Net cash used in financing activities(59,097)(22,635)
Effect of exchange rate changes on cash(450)674 
Net increase (decrease) in cash and cash equivalents(12,096)56,602 
Cash, cash equivalents and restricted cash, beginning of year116,723 112,729 
Cash, cash equivalents and restricted cash, end of period$104,627 $169,331 
Supplemental disclosures of cash flow information:
Interest paid$19,517 $24,663 
Income taxes paid$3,094 $5,444 
Payables and accruals for property and equipment$2,861 $3,861 
9

8x8, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited, in thousands, except per share amounts)
Three Months Ended December 31,Nine Months Ended December 31,
2024202320242023
Cost of Revenue:
GAAP cost of service revenue (as a percentage of service revenue)$50,529 29.1 %$48,983 28.0 %$150,276 28.8 %$144,403 27.3 %
Amortization of acquired intangible assets(2,117)(2,118)(6,352)(6,354)
Stock-based compensation expense and related employer payroll taxes(857)(1,694)(3,695)(5,661)
Legal and regulatory costs55 — 55 — 
Severance, transition and contract exit costs3 (444)(574)(732)
Non-GAAP cost of service revenue (as a percentage of service revenue)$47,613 27.4 %$44,727 25.5 %$139,710 26.8 %$131,656 24.9 %
GAAP service revenue margin (as a percentage of service revenue)$122,930 70.9 %$126,086 72.0 %$371,059 71.2 %$383,686 72.7 %
Non-GAAP service revenue margin (as a percentage of service revenue)$125,846 72.6 %$130,342 74.5 %$381,625 73.2 %$396,433 75.1 %
GAAP cost of other revenue (as a percentage of other revenue)$7,268 134.0 %$7,177 120.9 %$22,531 135.0 %$23,533 111.0 %
Stock-based compensation expense and related employer payroll taxes(272)(459)(995)(1,578)
Legal and regulatory costs62 — 62 — 
Severance, transition and contract exit costs(130)(74)(386)(124)
Non-GAAP cost of other revenue (as a percentage of other revenue)$6,928 127.8 %$6,644 111.9 %$21,212 127.1 %$21,831 103.0 %
GAAP other revenue margin (as a percentage of other revenue)$(1,845)(34.0)%$(1,240)(20.9)%$(5,839)(35.0)%$(2,330)(11.0)%
Non-GAAP other revenue margin (as a percentage of other revenue)$(1,505)(27.8)%$(707)(11.9)%$(4,520)(27.1)%$(628)(3.0)%
GAAP gross margin (as a percentage of total revenue)$121,085 67.7 %$124,846 69.0 %$365,220 67.9 %$381,356 69.4 %
Non-GAAP gross margin (as a percentage of total revenue)$124,341 69.5 %$129,635 71.6 %$377,105 70.1 %$395,805 72.1 %
 
Operating Profit (Loss):
GAAP income (loss) from operations (as a percentage of total revenue)$8,979 5.0 %$(9,391)(5.2)%$14,774 2.7 %$(13,384)(2.4)%
Amortization of acquired intangible assets5,098 5,100 15,296 15,300 
Stock-based compensation expense and related employer payroll taxes9,769 14,890 33,207 49,992 
Acquisition and integration costs244 102 560 752 
Legal and regulatory costs(1)
(6,849)98 (9,467)5,445 
Severance, transition and contract exit costs1,847 2,423 6,366 5,311 
Impairment of long-lived assets— 11,034 — 11,034 
Non-GAAP operating profit (as a percentage of total revenue)$19,088 10.7 %$24,256 13.4 %$60,736 11.3 %$74,450 13.6 %

10

Three Months Ended December 31,Nine Months Ended December 31,
2024202320242023
Net Income (Loss):
GAAP net income (loss) (as a percentage of total revenue)$3,022 1.7 %$(21,222)(11.7)%$(21,811)(4.1)%$(44,001)(8.0)%
Amortization of acquired intangible assets5,098 5,100 15,296 15,300 
Stock-based compensation expense and related employer payroll taxes9,769 14,890 33,207 49,992 
Acquisition and integration costs244 102 560 752 
Legal and regulatory costs(1)
(6,849)98 (9,467)5,445 
Severance, transition and contract exit costs1,847 2,423 6,366 5,311 
Impairment of long-lived assets— 11,034 — 11,034 
Amortization of debt discount and issuance cost427 1,157 2,145 3,398 
Loss on debt extinguishment216 — 12,212 1,766 
Gain on warrants remeasurement813 1,297 (1,197)(1,234)
Other income(116)(120)(348)(351)
Income tax expense effects, net (2)
— — — — 
Non-GAAP net income (as a percentage of total revenue)$14,471 8.1 %$14,759 8.2 %$36,963 6.9 %$47,412 8.6 %
Interest expense(3)
5,415 8,878 21,558 26,777 
Provision (benefit) for income taxes908 521 2,682 1,576 
Depreciation1,866 2,043 5,622 6,132 
Amortization of capitalized internal-use software costs2,959 4,358 9,981 14,418 
Other income (expense), net(1,706)98 (467)(1,314)
Adjusted EBITDA (as a percentage of total revenue)$23,913 13.4 %$30,657 16.9 %$76,339 14.2 %$95,001 17.3 %
Shares used in computing net income (loss) per share amounts:
Basic130,970 122,556 128,750 120,042 
Diluted135,742 124,253 131,744 121,874 
GAAP net income (loss) per share - Basic$0.02 $(0.17)$(0.17)$(0.37)
GAAP net income (loss) per share - Diluted$0.02 $(0.17)$(0.17)$(0.37)
Non-GAAP net income per share - Basic$0.11 $0.12 $0.29 $0.39 
Non-GAAP net income per share - Diluted$0.11 $0.12 $0.28 $0.39 
(1)Amount includes an out-of-period adjustment associated with state and local taxes.
(2)Non-GAAP adjustments do not have a material impact on our federal income tax provision due to past non-GAAP losses.
(3)Amounts represent contractual interest expense and does not include amortization of debt discount and issuance costs.
11
v3.25.0.1
Cover Page
Feb. 04, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 04, 2025
Entity Registrant Name 8X8 INC /DE/
Entity Incorporation, State or Country Code DE
Entity File Number 001-38312
Entity Tax Identification Number 77-0142404
Entity Address, Address Line One 675 Creekside Way
Entity Address, City or Town Campbell
Entity Address, State or Province CA
Entity Address, Postal Zip Code 95008
City Area Code 408
Local Phone Number 727-1885
Title of 12(b) Security COMMON STOCK, PAR VALUE $.001 PER SHARE
Trading Symbol EGHT
Security Exchange Name NASDAQ
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001023731
Amendment Flag false
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