Needham & Company Reiterates Buy on 8x8, Inc. (EGHT) Following Top and Bottom Line Beat

Needham & Company reiterated a Buy rating and $14.00 price target on 8x8 (NASDAQ: EGHT) following the company's 3Q earnings report. Results were solid across the board, with top and bottom line beating Street consensus by $1.2 million, and $0.02.

Analyst Michael Huang commented, "Q3 was solid across the board, highlighted by a top and bottom line beat (beat Street consensus by $1.2 million, $0.02), raised guidance (revenue up $1 million at the midpoint and net income margins guided up to 6-7% from 6% previously), impressive midmarket/channel MRR growth (up 94% y/y and 66% organic y/y) and consistently strong service revenue growth. Notably, bookings were impressive even despite no new mega deals signed in the quarter, which suggests broad-based strength across multiple channels (SMB team, Midmarket/Enterprise team, Channel). MRR growth, improving large customer referenceability, accelerated deployment capabilities and an expanding midmarket/enterprise/channel pipeline suggest accelerated service revenue growth rates and continued premium MRR growth rates ahead."

For an analyst ratings summary and ratings history on 8x8 click here. For more ratings news on 8x8 click here.

Shares of 8x8 closed at $11.16 yesterday.

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