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Dec 31, 2022
8x8 Q3 2023 Earnings Report
Reported an increase in service and total revenue, with improved margins and cash flow.
Key Takeaways
8x8, Inc. reported an 18% year-over-year increase in both service and total revenue for Q3 2023. The company's GAAP and non-GAAP gross and operating margins reached multi-year highs, and cash flow from operations increased significantly. They repurchased $21.8 million in convertible senior notes.
Total revenue increased 18% year-over-year to $184.4 million, including Fuze revenue of $26.5 million.
Service revenue increased 18% year-over-year to $175.8 million, including Fuze revenue of $26.5 million.
GAAP operating loss was $18.1 million, improved from an operating loss of $37.6 million in the same quarter last year.
Non-GAAP operating profit was $18.3 million, a 485% increase compared to $3.1 million in the third quarter of fiscal 2022.
Forward Guidance
The company provided financial outlook for Q4 2023 and fiscal year 2023, including service revenue, total revenue, and non-GAAP operating margin.
Positive Outlook
- Service revenue is expected to be in the range of $175 million to $178 million, representing year-over-year growth of approximately 2% at the midpoint.
- Total revenue is expected to be in the range of $184 million to $187 million, representing year-over-year growth of approximately 2% at the midpoint.
- Non-GAAP operating margin of approximately 10% is expected for Q4 2023.
- Service revenue for fiscal year 2023 is expected to be in the range of $708.5 million to $711.5 million, representing year-over-year growth of 18% at the midpoint.
- Total revenue for fiscal year 2023 is expected to be in the range of $743.4 million to $746.4 million, representing year-over-year growth of approximately 17% at the midpoint.
Challenges Ahead
- The expectations are subject to various important cautionary factors.
- Foreign currency exchange fluctuations may negatively impact guidance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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