Investing
8×8’s (NASDAQ:EGHT) Posts Q2 Sales In Line With Estimates
8×8’s (NASDAQ:EGHT) Posts Q2 Sales In Line With Estimates
Business communications software company 8×8 (NYSE:EGHT)
reported results in line with analysts’ expectations in Q2 FY2024, with revenue down 1.28% year on year to $185 million. The company also expects next quarter’s revenue to be around $183 million, slightly below analysts’ estimates. Turning to EPS, 8×8 made a non-GAAP profit of $0.14 per share, improving from its profit of $0.05 per share in the same quarter last year.
Is now the time to buy 8×8? Find out by reading the original article on StockStory.
8×8 (EGHT) Q2 FY2024 Highlights:
- Revenue: $185 million vs analyst estimates of $183.6 million (small beat)
- EPS (non-GAAP): $0.14 vs analyst estimates of $0.09 ($0.05 beat)
- Revenue Guidance for Q3 2024 is $183 million at the midpoint, below analyst estimates of $184.7 million
- The company reconfirmed its revenue guidance for the full year of $737.5 million at the midpoint
- Free Cash Flow of $20.9 million, down 33.9% from the previous quarter
- Gross Margin (GAAP): 69.1%, up from 66.9% in the same quarter last year
“I am pleased to report that we met or exceeded our guidance ranges for service revenue, total revenue, and operating margin in the second quarter,” said Samuel Wilson, Chief Executive Officer of 8×8,
Founded in 1987, 8×8 (NYSE:EGHT) provides software for organizations to efficiently communicate and collaborate with their customers, employees, and partners.
Video ConferencingWork is becoming more distributed, both across geographies and devices. In order for businesses to keep functioning efficiently, they need to be able to communicate as well as they did when the teams were co-located, which drives the demand for integrated communication platforms.
Sales GrowthAs you can see below, 8×8’s revenue growth has been unremarkable over the last two years, growing from $151.6 million in Q2 FY2022 to $185 million this quarter.
This quarter, 8×8’s revenue was down 1.28% year on year, which might disappointment some shareholders.
Next quarter, 8×8 is guiding for a 0.76% year-on-year revenue decline to $183 million, a further deceleration from the 17.5% year-on-year decrease it recorded in the same quarter last year. Looking ahead, analysts covering the company were expecting sales to grow 1.67% over the next 12 months before the earnings results announcement.
Key Takeaways from 8×8’s Q2 Results
With a market capitalization of $285.5 million, 8×8 is among smaller companies, but its $148.8 million cash balance and positive free cash flow over the last 12 months give us confidence that it has the resources needed to pursue a high-growth business strategy.
8×8’s free cash flow came in at $20.9 million in Q2, up 60.9% year on year. On the other hand, its revenue guidance for next quarter underwhelmed and its gross margin decreased. Overall, this was a mixed quarter for 8×8. The stock is up 1.34% after reporting and currently trades at $2.32 per share.
The author has no position in any of the stocks mentioned in this report.
Read the full article here
-
Passive Income7 days ago
Are You Running Your Business, or Is Your Business Running You?
-
Side Hustles7 days ago
How Your Body Language Can Help Win a Disagreement
-
Side Hustles6 days ago
How to Be Unapologetically You and Why It Matters
-
Side Hustles6 days ago
With AI Magicx, It’s Like Getting an Entire Creative Team in One Money-Saving AI Tool
-
Side Hustles7 days ago
OpenAI Raises Record $6.6 Billion, Adds 50 Million New Users
-
Investing7 days ago
7 Marketing Strategies to Help Your Startup Grow and Scale
-
Investing5 days ago
Nvidia CEO Jensen Huang: Demand For Blackwell AI Is Insane
-
Side Hustles5 days ago
Mark Zuckerberg Is Now Second Richest Person in the World