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8x8 Inc
8x8, Inc. engages in the provision of enterprise communication solutions. The company is headquartered in Campbell, California and currently employs 1,696 full-time employees. The firm's solutions are delivered through a software as a service (SaaS) business model. The firm's 8x8 open communications platform is a highly available, fully redundant solution, supported by a single, standard and financially backed service-level agreement across unified communications as a service (UCaaS) and contact center as a service (CCaaS). Through its integrated technology platform, the Company offer its customers a portfolio of voice, video, contact center, chat and team collaboration, communication application programming interface (APIs) and business analytics solutions which include 8x8 Work, 8x8 Contact Center, 8x8 Meet, 8x8 Team Messaging, 8x8 CPaaS, and 8x8 X Series. 8x8 Work is a self-contained, feature-rich, end-to-end United Communications solution that delivers enterprise voice with public switched telephone network (PSTN) connectivity.
8x8, Inc. engages in the provision of enterprise communication solutions. The company is headquartered in Campbell, California and currently employs 1,696 full-time employees. The firm's solutions are delivered through a software as a service (SaaS) business model. The firm's 8x8 open communications platform is a highly available, fully redundant solution, supported by a single, standard and financially backed service-level agreement across unified communications as a service (UCaaS) and contact center as a service (CCaaS). Through its integrated technology platform, the Company offer its customers a portfolio of voice, video, contact center, chat and team collaboration, communication application programming interface (APIs) and business analytics solutions which include 8x8 Work, 8x8 Contact Center, 8x8 Meet, 8x8 Team Messaging, 8x8 CPaaS, and 8x8 X Series. 8x8 Work is a self-contained, feature-rich, end-to-end United Communications solution that delivers enterprise voice with public switched telephone network (PSTN) connectivity.
Revenue Beat: Q2 total revenue was $184.1 million, and service revenue was $179.1 million, both exceeding guidance by about $4 million.
Usage-Based Growth: Usage-based revenue reached a record 19% of service revenue, up from 13% a year ago, driving overall growth but impacting gross margin.
Gross Margin Pressure: Gross margin came in at 65.7%, slightly down sequentially due to a higher mix of lower-margin usage revenue, with further declines expected as this mix grows.
Operating Profitability: Operating income was $17.3 million (9.4% margin), and EPS was $0.09, both above the high end of guidance.
Cost Controls & Deleveraging: Ongoing cost discipline, use of AI internally, lower stock-based comp, and $15 million in recent term loan repayments further strengthened the balance sheet.
New Product Launch: 8x8 launched free Workforce Management for all contact center customers as its first product-led growth initiative, with more apps to follow.
Guidance Update: Q3 and full-year revenue and margin guidance set, reflecting cautious usage growth forecasts and continued lower gross margins, but stable operating profitability.
AI & Multiproduct Momentum: AI innovation is driving product adoption and customer stickiness, with cross-sell and multiproduct customers seeing higher retention and average revenue.