8x8, Inc. delivers a comprehensive suite of cloud-based communication and collaboration tools, encompassing telephony, video conferencing, instant messaging, customer engagement platforms, and ...
8x8, Inc. is a technology company that delivers a comprehensive suite of cloud-based communication and collaboration tools, encompassing telephony, video conferencing, instant messaging, customer engagement platforms, and powerful API services. As a Software-as-a-Service (SaaS) provider, 8x8 caters to a diverse global clientele ranging from small and medium-sized enterprises to major ...8x8, Inc. is a technology company that delivers a comprehensive suite of cloud-based communication and collaboration tools, encompassing telephony, video conferencing, instant messaging, customer engagement platforms, and powerful API services. As a Software-as-a-Service (SaaS) provider, 8x8 caters to a diverse global clientele ranging from small and medium-sized enterprises to major corporations, government bodies, and various other organizations. The company's flagship product, 8x8 Work, is an all-in-one unified communications platform that provides enterprise-grade voice services with public telephone network connectivity, video conferencing, and a consolidated messaging hub for direct chats, public/private team rooms, and multimedia content. Additionally, 8x8 Contact Center offers a versatile, cloud-native solution for managing multi-channel customer interactions. The company also provides 8x8 CPaaS (Communications Platform-as-a-Service), a global platform that enables developers to embed communication functionalities directly into their applications. 8x8 offers various subscription tiers, from X1 through X8, designed to deliver advanced unified communications, video conferencing, team collaboration, and contact center capabilities tailored for enterprise use. The company employs a multifaceted approach to market its services, utilizing digital strategies such as search engine optimization and paid advertising, along with webinars, industry conferences, and trade shows. Lead generation from third-party sources and a dedicated direct sales team further bolster their market outreach. Financially, 8x8 has a market capitalization of approximately $319.7 million, with a beta of 1.839, indicating higher volatility than the market. The company's revenue per share is $5.244, and it has a net profit margin of 0.6%. 8x8 invests significantly in research and development, with R&D expenses accounting for 15.2% of revenue. Key financial ratios include a price-to-sales ratio of 0.429, a price-to-book ratio of 2.166, and a debt-to-equity ratio of 2.419, reflecting a leveraged capital structure. The company has a gross profit margin of 63.4% and an EBITDA margin of 7.8%. Established in 1987, 8x8 maintains its principal office in Campbell, California. As of the latest data, the company employs 1,819 full-time employees. The CEO, Samuel C. Wilson, has been in his role since May 2023, bringing over 25 years of experience in financial analysis and investment management. The company continues to innovate with AI-powered solutions like 8x8 AI Routing and AI Studio, aiming to enhance customer experience and operational efficiency. With a history of over 125 patents, 8x8 has been recognized as a leader in Unified Communications as a Service by Gartner for eight consecutive years. The company's commitment to integrating AI into its platform positions it for future growth in the competitive communications market.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$735.8M
+2.9%
+2.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$1.6M
+106.1%
-1232.1%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+64.6%
-4.9%
-3.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+2.6%
+21.1%
-41.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+0.2%
+105.9%
-1202.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$52.0M
+3.9%
+18.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+7.1%
+1.0%
+15.3%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
253.0%
-24.6%
-4.4%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.09x
-9.7%
-3.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, and thank you for standing by. Welcome to the 8x8 Q4 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to today, Kate Patterson, Head of Investor Relations.
Kate Patterson: Thank you. Good afternoon, everyone. Today's agenda will include a review of our results for the fourth quarter of fiscal 2026 with Samuel Wilson, our Chief Executive Officer; and Kevin Kraus, our Chief Financial Officer. Following our prepared remarks, there will be a question-and-answer session. In addition to our prepared remarks, we have posted a more detailed letter to shareholders in the quarterly results section of our Investor Relations website. Before we get started, let me remind you that our discussion today includes forward-looking statements about our future financial performance, including investments in innovation and our focus on profitability and cash flow, as well as statements regarding our business, products and growth strategies. We caution you not to put undue reliance on these forward-looking statements as they involve risks and uncertainties that may cause actual results to vary materially from forward-looking statements. as described in our risk factors in our reports filed with the SEC. Any forward-looking statements made on this call and in the presentation slides reflect our analysis as of today, and we have no plans or obligations to update them. All financial metrics that will be discussed on this call are non-GAAP, unless otherwise noted. These non-GAAP metrics, together with year-over-year comparisons in some cases, were not prepared in accordance with the U.S. generally accepted accounting principles or GAAP. A reconciliation of these non-GAAP metrics to the closest comparable GAAP metric is provided in our earnings press release and earnings presentation slides which are available on 8x8 Investor Relations website at investors.8x8.com. With that, I'll turn the call over to our Chief Executive Officer, Samuel Wilson.
Samuel Wilson: Good afternoon, everyone, and thank you for joining us. Fiscal 2026 marked a turning point for 8x8. Our Q4 results demonstrated improving execution, operating discipline and a growing momentum across the business. We've delivered 4 consecutive quarters of year-over-year revenue growth, generated our first GAAP profitable full fiscal year since 2015, increased net income and earnings per share and strengthened our balance sheet. Most importantly, I believe this year validated the strategy we've been building towards for several years. It is clear the business communications market is changing rapidly. The driver is straightforward. AI is beginning to handle low-level repetitive work that used to require people, routine inquiries, transactions, first-line support. We're still early, but the trajectory is clear. and customers are making architectural decisions today …