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8x8 (EGHT) Q1 Earnings Report Preview: What To Look For


Adam Hejl /
2022/05/09 7:43 am EDT

Business communications software company 8x8 (NYSE:EGHT) will be announcing earnings results tomorrow after the bell. Here's what to expect.

Last quarter 8x8 reported revenues of $156.8 million, up 14.7% year on year, beating analyst revenue expectations by 2.07%. It was a solid quarter for the company, with a very optimistic guidance for the next quarter. The company added 36 enterprise customers paying more than $100,000 annually to a total of 907.

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 grow 24.9% year on year to $180.8 million, improving on the 19.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.0 per share.

8x8 Total Revenue

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 has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.42%.

Looking at 8x8's peers in the productivity software segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Five9 delivered top-line growth of 32.5% year on year, beating analyst estimates by 6.96% and Atlassian reported revenues up 30.2% year on year, exceeding estimates by 5.2%. Five9 traded up 5.2% on the results, and Atlassian was down 3.8%. Read our full analysis of Five9's results here and Atlassian's results here.

Tech stocks have been facing declining investor sentiment in 2022 and software stocks have not been spared, with share price down on average 18.1% over the last month. 8x8 is down 25.4% during the same time, and is heading into the earnings with analyst price target of $21.5, compared to share price of $8.68.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.