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EGHT Nasdaq· 8X8 Inc
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EGHT Nasdaq· 8X8 Inc
Earnings report Q4 2023

8x8 Inc. Reports 2% Decrease in Total Revenue in Q3 2024

Segments of Revenue

In the third quarter of fiscal 2024, 8x8 Inc. reported a total revenue of $181.0 million, representing a decrease of $3.4 million or approximately 2% compared to the same quarter last year. This decrease was primarily driven by a $2.7 million decrease in other revenue and a $0.7 million decrease in service revenue.

Strengths

Despite the decrease in total revenue, 8x8 Inc. has been strategically focusing on expanding its enterprise customer base and growing its revenue. The company has implemented cost reduction measures to improve its sales efficiency and has increased its investment in research and development. By targeting mid-market and enterprise customers, 8x8 Inc. aims to maximize the benefits of its unified XCaaS platform. Additionally, the company has expanded its partner programs to extend its reach within this market.

Challenges

One of the weaknesses observed in 8x8 Inc.'s financial performance is the decrease in other revenue and service revenue. The company needs to address the factors contributing to this decline and develop strategies to mitigate the impact. Furthermore, the increase in operating expenses, particularly in sales and marketing, has put pressure on the company's profitability.

Noteworthy

It is worth mentioning that 8x8 Inc. excluded potentially weighted-average common shares from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. This indicates that the company's diluted earnings per share may have been higher if these shares were included.

Summary

8x8 Inc. experienced a 2% decrease in total revenue in the third quarter of fiscal 2024. The decline was primarily driven by decreases in other revenue and service revenue. However, the company has shown strengths in its strategic focus on expanding its enterprise customer base, reducing costs, and investing in research and development. 8x8 Inc. needs to address the challenges posed by the decline in revenue and the increase in operating expenses. The exclusion of potentially weighted-average common shares from diluted earnings per share calculation is noteworthy, indicating a potential impact on the company's earnings.

Source documents

Form 10-Q  filed on Feb 01, 2024
115 pages scanned

Reference data

Company financials Q4 revenue 181M
Analyst estimates Q4 EPS beat by 20.93%
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