Business communications software company 8x8 (NYSE:EGHT) will be announcing earnings results tomorrow afternoon. Here's what investors should know.
Last quarter 8x8 reported revenues of $187.3 million, up 23.6% year on year, in line with analyst expectations. It was a mixed quarter for the company, with accelerating growth in large customers but underwhelming revenue guidance for the next quarter. The company added 14 enterprise customers paying more than $100,000 annually to a total of 1,291.
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 18.1% year on year to $185.3 million, improving on the 14.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.9%.
Looking at 8x8's peers in the productivity software segment, only ServiceNow has so far reported results, delivering top-line growth of 20.1% year on year, inline with analyst estimates. The stock traded down 4.34% on the results. Read our full analysis of ServiceNow's earnings results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 12.1% over the last month. 8x8 is up 5.76% during the same time, and is heading into the earnings with with analyst price target of $5.4, compared to share price of $4.59.
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The author has no position in any of the stocks mentioned.