Overview
Business communications provider's fiscal Q3 revenue rose, beating analyst expectations
Adjusted operating income for fiscal Q3 beat analyst expectations
Company reported strong growth in AI-based solutions and usage-based offerings
Outlook
Company provides fourth-quarter service revenue guidance to $173.5 mln-$178.5 mln
8x8 expects full-year service revenue between $708.6 mln and $713.6 mln
Company projects fourth-quarter non-GAAP net income per share of $0.07-$0.08
Result Drivers
AI SOLUTIONS - Strong growth in AI-based solutions contributed to record service revenue
STRATEGIC INVESTMENTS - Improved execution attributed to strategic investments, leading to increased customer interest in new products, per CEO Samuel Wilson
PLATFORM INNOVATIONS - Recent innovations on the 8x8 Platform for CX enhanced collaboration and engagement, supporting operational efficiency
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $185.10 mln | $179.61 mln (5 Analysts) |
Q3 Net Income | $5.10 mln | ||
Q3 Adjusted Operating Income | Beat | $21.70 mln | $16.60 mln (3 Analysts) |
Q3 Operating Income | $9.70 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the integrated telecommunications services peer group is "buy."
Wall Street's median 12-month price target for 8x8 Inc is $2.25, about 30.8% above its February 2 closing price of $1.72
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago
Press Release: ID:nBw586LWZa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)