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Mar 31, 2023
8x8 Q4 2023 Earnings Report
Reported fourth quarter and fiscal year 2023 financial results, showcasing service revenue growth and improved profitability.
Key Takeaways
8x8, Inc. reported a 2% year-over-year increase in total revenue for the fourth quarter of fiscal year 2023, reaching $184.5 million. The company achieved a GAAP operating profit of $3.5 million, a significant improvement from the previous year's loss of $40.5 million. Non-GAAP operating profit was $24.8 million, representing 13.5% of revenue, compared to $4.2 million in the fourth quarter of fiscal 2022. The company prepaid $25 million on its term loan in early May.
Total revenue increased 2% year-over-year to $184.5 million.
Service revenue increased 2% year-over-year to $176.6 million.
GAAP operating profit was $3.5 million, compared to GAAP operating loss of $40.5 million in the fourth quarter fiscal 2022.
Non-GAAP operating profit was $24.8 million, or 13.5% of revenue, compared to non-GAAP operating profit of $4.2 million, or 2.3% of revenue, in fourth quarter fiscal 2022.
8x8
8x8
Forward Guidance
8x8 provided financial outlook for the first quarter and fiscal year 2024, including expected ranges for service revenue, total revenue, and non-GAAP operating margin.
Positive Outlook
- Service revenue in the range of $178.5 million to $180.5 million for Q1 2024.
- Total revenue in the range of $186 million to $188 million for Q1 2024.
- Non-GAAP operating margin in the range of 12.5% to 13% for Q1 2024.
- Service revenue in the range of $725 million to $732 million for FY 2024.
- Total revenue in the range of $755 million to $763 million for FY 2024.
Challenges Ahead
- Non-GAAP operating margin in the range of 12% to 13% for fiscal year 2024.
- Expectations are subject to various important cautionary factors.
- Future hiring and employee turnover may not be reasonably predictable.
- Stock-based compensation expense depends on variables largely not within the control of management.
- The actual amounts of excluded items could have a significant impact on the Company's GAAP operating margin.