8x8 (EGHT) Reports Q1: Everything You Need To Know Ahead Of Earnings

Kayode Omotosho /
2024/05/07 3:11 am EDT

Business communications software company 8x8 (NYSE:EGHT) will be reporting results tomorrow afternoon. Here's what investors should know.

8x8 missed analysts' revenue expectations by 1.3% last quarter, reporting revenues of $181 million, down 1.8% year on year. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' ARR (annual recurring revenue) estimates.

Is 8x8 a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting 8x8's revenue to decline 3.1% year on year to $178.8 million, a reversal from the 1.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.

8x8 Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. 8x8 has missed Wall Street's revenue estimates five times over the last two years.

Looking at 8x8's peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Five9 delivered year-on-year revenue growth of 13.1%, beating analysts' expectations by 2.9%, and ServiceNow reported revenues up 24.2%, in line with consensus estimates. Five9 traded up 2.1% following the results while ServiceNow was down 4.1%.

Read our full analysis of Five9's results here and ServiceNow's results here.

Investors in the productivity software segment have had fairly steady hands going into earnings, with share prices down 1.5% on average over the last month. 8x8 is down 7.9% during the same time and is heading into earnings with an average analyst price target of $4.1 (compared to the current share price of $2.33).

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