8x8, Inc. (EGHT) Misses Q4 EPS by 3c, Slight Miss on Revenues; Offers FY19 Revenue Mid-Point Outlok Above Consensus
8x8, Inc. (NASDAQ: EGHT) reported Q4 EPS of ($0.03), $0.03 worse than the analyst estimate of $0.00. Revenue for the quarter came in at $75.3 million versus the consensus estimate of $76.84 million.
Fourth Quarter Fiscal 2018 Financial Results:
- Revenue: Service revenue increased 20% year-over-year to $75.3 million. Adjusting for constant currency, service revenue increased 19%. Total revenue increased 19% year-over-year to $79.3 million. Adjusting for constant currency, total revenue increased 18%.
- Service revenue from mid-market and enterprise customers increased 29% year-over-year and represented 60% of total service revenue.
- GAAP net loss was $13.3 million or ($0.14) per diluted share.
- Non-GAAP net loss was $2.9 million or ($0.03) per diluted share.
- Margins: GAAP gross margin was 75%, compared with 77% in the same period last year. Non-GAAP gross margin was 77%, compared with 79% in the same period last year. GAAP service margin was 81%, compared with 83% in the same period last year. Non-GAAP service margin was 83%, compared with 84% in the same period last year.
- Cash generated from operating activities was $2.7 million.
“The fourth quarter was a strong finish to a transformational year at 8x8. Our solid performance reflects successful execution against our strategic initiatives and is validation of the investments we continue to make to accelerate service revenue growth,” said Vik Verma, Chief Executive Officer at 8x8, Inc.
Full Year Fiscal 2019 Financial Outlook under ASC 606:
- Service revenue in the range of $333 million to $338 million, representing approximately 19% to 21% year-over-year increase.
- Excluding DXI revenue, service revenue growth in the range of 21% to 22%.
- Total revenue in the range of $347 million to $352 million, representing approximately 17% to 19% year-over-year increase.
- Non-GAAP pre-tax loss in the range of $13 million to $17 million.
First Fiscal Quarter 2019 Financial Outlook:
- Service revenue in the range of $77 million to $78 million, representing approximately 18% to 20% year-over-year increase.
- Excluding DXI revenue, service revenue growth in the range of 20% to 21%.
- Non-GAAP pre-tax loss in the range of $4 million to $5 million.
8x8, Inc. sees FY2019 revenue of $347-352 million, versus the consensus of $348.53 million.
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