8x8 (EGHT) Reports Earnings Tomorrow. What To Expect

Petr Huřťák /
2023/05/10 6:57 am EDT

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

Last quarter 8x8 reported revenues of $184.4 million, up 17.5% year on year, missing analyst expectations by 0.91%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates. The company added 18 enterprise customers paying more than $100,000 annually to a total of 1,309.

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 2.41% year on year to $185.7 million, slowing down from the 25.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 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 missed Wall St's revenue estimates twice over the last two years.

Looking at 8x8's peers in the productivity software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Everbridge delivered top-line growth of 7.86% year on year, beating analyst estimates by 1.7% and ServiceNow reported revenues up 21.7% year on year, exceeding estimates by 0.5%. Everbridge traded up 3.53%, and ServiceNow was up 2.01%. Read our full analysis of Everbridge's results here and ServiceNow's results here.

Tech stocks have been under pressure since the end of last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 4.69% over the last month. 8x8 is down 21.7% during the same time, and is heading into the earnings with analyst price target of $5.8, compared to share price of $3.

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.