Q2 2025 8x8 Inc Earnings Call Transcript
Key Points
- 8x8 Inc (EGHT) reported better-than-expected results for key financial metrics, including service and total revenue, and non-GAAP operating income.
- The company achieved its highest single platform usage revenue day ever in early September, particularly in the Asia Pacific and European regions.
- Sales of new products increased by more than 60% year over year, with AI-based solutions growing more than 200% year over year.
- 8x8 Inc (EGHT) has maintained positive cash flow from operations for 15 consecutive quarters.
- The company reduced its total debt principal balance by over $173 million or 32% since the end of fiscal Q2 '23, demonstrating financial discipline and commitment to returning value to shareholders.
- Revenue from customers remaining on the Fuze platform declined, representing a headwind to overall growth.
- Gross margin was slightly lower than the previous quarter due to increased usage in the communication platform as a service business.
- The company anticipates a modest decline in service revenue for the next quarter, partly due to conservatism around CPaaS visibility and potential FX fluctuations.
- There is ongoing pressure from competitors offering aggressive pricing, which could slow down deal cycles.
- The transition of customers from the Fuze platform to the 8x8 platform is progressing slower than desired, impacting revenue growth.
Good day and thank you for standing by. Welcome to the second-quarter 2025 8x8 Inc earnings conference call. At this time, all participants are in a listen-only mode. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Kate Patterson, VP of Finance. Please go ahead.
Thank you. Good afternoon, everyone. Today's agenda will include a review of our results for the second quarter of fiscal 2025 with Samuel Wilson, our Chief Executive Officer; and Kevin Kraus, our Chief Financial Officer. Following our prepared remarks there will be a question and answer session.
Before we get started, let me remind you that our discussion today includes forward-looking statements about future financial performance, including investments in innovation and our focus on profitability and cash flow as well as statements regarding our business, products and growth strategies. We caution you not to put undue reliance on these
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