8x8’s first quarter results aligned with Wall Street’s expectations, reflecting a period marked by modest year-over-year revenue decline and ongoing macroeconomic uncertainty. Management attributed the stability to operational discipline, continued platform innovation, and a sharpened focus on cross-selling to existing customers. CEO Samuel Wilson emphasized the company’s progress on foundational changes and noted, “The flywheel is starting to turn,” pointing to increased multi-product adoption and improved core revenue growth as key contributors.
Is now the time to buy EGHT? Find out in our full research report (it’s free).
8x8 (EGHT) Q1 CY2025 Highlights:
- Revenue: $177 million vs analyst estimates of $177.9 million (1.3% year-on-year decline, in line)
- Adjusted EPS: $0.08 vs analyst estimates of $0.08 (in line)
- Adjusted Operating Income: $17.71 million vs analyst estimates of $16.91 million (10% margin, 4.7% beat)
- Revenue Guidance for Q2 CY2025 is $178.5 million at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 0.2%, up from -7.9% in the same quarter last year
- Annual Recurring Revenue: $736.7 million at quarter end, up 5.7% year on year
- Billings: $179.1 million at quarter end, in line with the same quarter last year
- Market Capitalization: $278.3 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions 8x8’s Q1 Earnings Call
-
Peter Levine (Evercore): Asked about macroeconomic impacts on sales cycles and deal size. CEO Samuel Wilson explained that recent tariff actions created volatility in the US, leading to elongated deal cycles and sometimes smaller deals, but noted that conditions had stabilized somewhat in May.
-
Siti Panigrahi (Mizuho): Inquired about the drivers behind management’s goal of high single-digit growth, specifically whether it stems from go-to-market changes or market demand. Wilson said the growth outlook is primarily tied to internal execution and multi-product adoption rather than external market trends.
-
Siti Panigrahi (Mizuho): Asked for clarification on expectations for cash flow given margin contraction. CFO Kevin Kraus said the guidance reflects ongoing investment in growth, and that net income is expected to remain stable despite some margin pressure.
-
Catharine Trebnick (Rosenblatt Securities): Asked why 8x8 is winning contact center business and about CPaaS performance in APAC. Wilson highlighted the appeal of an integrated platform and best-of-breed partnerships, with CPaaS continuing to show high growth, particularly in Asia-Pacific.
-
Michael Funk (Bank of America): Sought details on what will drive higher growth after Fuze revenue is phased out. Wilson pointed to increasing wallet share from multi-product customers and a growing usage-based business as key contributors to future growth.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace at which remaining Fuze customers are transitioned to the 8x8 platform, (2) adoption rates for new AI-powered features and integrated solutions, and (3) the effectiveness of go-to-market changes in boosting new customer acquisition and expanding multi-product sales. Progress on these fronts will be critical for sustainable revenue and margin improvement.
8x8 currently trades at $2.09, up from $1.79 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
The Best Stocks for High-Quality Investors
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
