8x8 Q3 revenue beats analyst expectations

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

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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