Business communications software company 8x8 (NYSE:EGHT) will be reporting results tomorrow after the bell. Here's what you need to know.
Last quarter 8x8 reported revenues of $184.5 million, up 1.74% year on year, missing analyst expectations by 0.65%. It was a weak quarter for the company, with underwhelming revenue guidance for the next year. The company lost 8 enterprise customers paying more than $100,000 annually and ended up with a total of 1,301.
Is 8x8 buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting 8x8's revenue to decline 0.28% year on year to $187.1 million, a further deceleration on the 26.5% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.
Looking at 8x8's peers in the productivity software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Dropbox delivered top-line growth of 8.7% year on year, beating analyst estimates by 1.49% and ServiceNow reported revenues up 22.7% year on year, exceeding estimates by 0.99%. Dropbox traded up 4.13% on the results, ServiceNow was down 1.77%. Read our full analysis of Dropbox's results here and ServiceNow's results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 2.69% over the last month. 8x8 is up 6.05% during the same time, and is heading into the earnings with analyst price target of $5.3, compared to share price of $4.6.
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The author has no position in any of the stocks mentioned.