What is the market's earnings forecast for 8x8 next quarter?

What were the key takeaways from 8x8’s earnings call?

What factors drove the changes in 8x8's revenue and profit?

What is the revenue and EPS growth rate for 8x8 year over year?

What does 8x8 do and what are its main business segments?

What were the key takeaways from 8x8's earnings call?

What is 8x8's latest dividend and current dividend yield?

What guidance did 8x8's management provide for the next earnings period?

- **Revenue Growth**: Q2 service revenue up 2.3% YoY, with usage-based revenue at 19% of total (vs. 13% in Q2 '25).
- **AI-Driven Innovation**: Free WFM launch signals shift to product-led growth; AI adoption in customer engagement (e.g., agentless payments, digital channels) driving retention.
- **Financial Strength**: Operating margin 9.4%, cash flow $8.8M, and $224M debt reduction since 2022 peak.
- **Strategic Moves**: Free WFM rollout, international expansion focus, and cautious usage-based growth guidance.
- **Customer Success**: Consolidation of communication systems (e.g., UK dealer reducing 9 vendors to 1) and multiproduct adoption boosting LTV.


**【CEO Opening Remarks】**
- Q2 marked the second consecutive quarter of year-over-year revenue growth, driven by usage-based offerings and disciplined execution.
- AI integration across the platform is a key growth driver, with examples like real-time call summarization, agentless payments, and digital channels (Viber, RCS).
- Introduction of **8x8 Workforce Management (WFM)** as a free offering for all contact center customers, part of a product-led growth (PLG) strategy. A premium version is planned for future release.
- Customer success stories highlight consolidation of communication systems (e.g., UK automotive dealer reducing 9 vendors to 1) and deep partnerships (e.g., multi-product adoption in a software company).

**【CFO Financial Highlights】**
- **Total Revenue**: $184.1M (service: $179.1M), exceeding guidance by $4M, with service revenue up 2.3% YoY.
- **Usage Revenue**: 19% of service revenue, up from 13% in Q2 '25, reflecting strong CPaaS adoption.
- **Gross Profit**: $120.9M, above guidance midpoint, with gross margin 65.7% (down sequentially due to usage mix).
- **Operating Income**: $17.3M (9.4% margin), exceeding expectations.
- **Cash Flow**: $8.8M from operations, with $76.7M in cash and $224M debt reduction since August 2022.
- **Q3 Guidance**: Service revenue $172-177M, gross margin 64-66%, EPS $0.08-0.09.
- **FY26 Guidance**: Service revenue $692-706M, gross margin 65-66%, EPS $0.31-0.33.

**【Q&A Highlights】**
- **Revenue Mix**: Excluding Fuze, service revenue grew 6% YoY, with remaining Fuze customers expected to migrate by year-end.
- **Pricing Pressure**: Primarily volume-driven, with stable margins on application side; cautious on usage-based growth due to seasonality.
- **Pipeline Quality**: Stage 3+ deals (7-stage process) up, aided by AI in sales and more structured SDR processes.
- **M&A Strategy**: Actively evaluating tuck-in acquisitions for geographic or product expansion, with debt covenant flexibility.
- **International Growth**: Non-U.S. markets (40% of revenue) growing faster than U.S., driven by lower price compression and AI adoption.
- **AI Adoption**: Internal AI use cases (e.g., right-sizing software purchases) improving operational efficiency.


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