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

- **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.


8x8, Inc. (EGHT) Q2 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

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Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

EGHT

EGHT fundamentals

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