8x8 Q1 2023 Earnings Report
Key Takeaways
8x8's total revenue increased 26% year-over-year to $187.6 million, with service revenue up 30% to $179.2 million. The company's GAAP operating loss was $26.8 million, while non-GAAP operating profit was $10.1 million. Enterprise ARR increased 54% year-over-year to $403 million.
Total revenue increased 26% year-over-year to $187.6 million, including Fuze revenue of $29.5 million.
Service revenue increased 30% year-over-year to $179.2 million, including Fuze revenue of $29.3 million.
GAAP operating loss was $26.8 million, compared to operating loss of $38.8 million in the first quarter of fiscal 2022.
Non-GAAP operating profit was $10.1 million, compared to non-GAAP operating profit of $1.3 million in the first quarter of fiscal 2022.
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8x8 Revenue by Segment
Forward Guidance
8x8 provides financial outlook for the second quarter and updated fiscal year 2023, including service revenue, total revenue, and non-GAAP operating margin.
Positive Outlook
- Service revenue in the range of $177 million to $180 million for Q2 2023, representing year-over-year growth of approximately 25% at the midpoint.
- Total revenue in the range of $185 million to $188 million for Q2 2023, representing year-over-year growth of approximately 23% at the midpoint.
- Non-GAAP operating margin in the range of 2.5% to 3.0% for Q2 2023.
- Service revenue in the range of $720 million to $730 million for fiscal year 2023, representing year-over-year growth of 20% at the midpoint.
- Total revenue in the range of $747.5 million to $762.5 million for fiscal year 2023, representing year-over-year growth of approximately 18% at the midpoint.
Challenges Ahead
- Non-GAAP operating margin of approximately 4% for fiscal year 2023, with a goal of exiting fiscal 2023 with non-GAAP operating margin of at least 5%.
- Expectations are subject to various important cautionary factors referenced in the section entitled "Forward-Looking Statements".
- 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.
- Foreign currency exchange fluctuations may negatively impact our guidance.