"Selecting the right partner was critical for us,†said Jan Collins, Managing Director at KCOM Enterprise. "We ran a rigorous tender process and looked across the market for a platform that could meet the needs of our customers, from everyday business communications through to mission-critical contact center environments. 8x8 stood out not only for the strength of its unified communications and contact center platform, but for its cultural alignment and the way our teams have collaborated to bring this partn ...

Investors interested in stocks from the Internet - Software sector have probably already heard of 8x8 (EGHT) and F5 Networks (FFIV) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stoc ...

Core Viewpoint - 8x8 (EGHT) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company-Specific Insights - For 8x8, the upgrade reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [5]. - The Zacks Consensus Estimate for 8x8 has increased by 37.9% over the past three months, with expected earnings of $0.36 per share for the fiscal year ending March 2026, unchanged from the previous year [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Core Insights - The Zacks Internet Software industry is experiencing volatility due to fears of AI disrupting the traditional SaaS space, alongside heightened geopolitical risks and tariff uncertainties. However, companies like MongoDB, Digital Turbine, and 8x8 are benefiting from increased demand for digital transformation and cloud solutions driven by the need for remote working and AI-powered applications [1] Industry Overview - The Zacks Internet Software industry includes companies that provide application performance monitoring, infrastructure and application software, DevOps deployment, and security software. The primary revenue sources are subscription and advertising, targeting various end markets such as banking, education, and healthcare [2] Trends Shaping the Industry - **Adoption of SaaS Grows**: The industry benefits from the demand for digital transformation, with SaaS providing a flexible and cost-effective delivery method for applications, enhancing customer satisfaction and retention [3] - **Pay-As-You-Go Model Gains Traction**: The customer-centric approach allows users to scale offerings according to needs, with the subscription model ensuring recurring revenues and affordability for small and medium-sized businesses [4] - **Ongoing Transition to Cloud Creates Opportunities**: The need for secure cloud platforms amid rising cyberattacks drives demand for web-based cybersecurity software and performance management tools [5] Industry Performance - The Zacks Internet Software industry holds a Zacks Industry Rank of 139, placing it in the bottom 43% of over 250 Zacks industries, indicating dull near-term prospects [6][7] - The industry has underperformed the S&P 500 and the broader Computer and Technology sector, returning 16.9% over the past year compared to the S&P 500's 17.2% and the sector's 23.1% [10] Current Valuation - The industry is currently trading at a forward 12-month price-to-sales (P/S) ratio of 4.09X, lower than the S&P 500's 5.30X and the sector's 6.8X, with historical trading ranging from 4.09X to 5.99X over the past five years [13] Company Highlights - **MongoDB**: This company has seen a 29% year-over-year revenue increase in Q2 of fiscal 2026, adding over 5,000 customers in the past two quarters. Its shares have appreciated 29% in the past year, with a consensus estimate for fiscal 2027 earnings at $5.61 per share [17][18][19] - **Digital Turbine**: Expected revenues for fiscal 2026 are projected between $553 million and $558 million, with shares dropping 24% in the past year. The consensus estimate for fiscal 2026 earnings is 36 cents per share [22][23] - **8x8**: This company has experienced nearly 60% year-over-year growth in usage-based offerings, with shares down 19% over the past year. The consensus estimate for fiscal 2026 earnings is also 36 cents per share [26][27]

Core Insights - 8x8, Inc. has launched 8x8 Silent Mobile Authentication in the Philippines to address mobile fraud [1] Company and Industry Summary - The launch is in partnership with PLDT Enterprise, indicating a strategic collaboration to enhance mobile security [1] - The initiative aims to combat the increasing issue of mobile fraud, which is a growing concern in the telecommunications industry [1]

Core Insights - 8x8 (EGHT) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2] Earnings Estimate Revisions - The upward trend in earnings estimate revisions indicates growing analyst optimism regarding 8x8's earnings prospects, which is expected to positively influence its stock price [2] - The consensus earnings estimate for the current quarter is $0.07 per share, reflecting a 12.5% decrease from the previous year, but has increased by 50% over the last 30 days due to one upward revision [5] - For the full year, the earnings estimate stands at $0.36 per share, showing no year-over-year change, with a positive trend in estimate revisions as one estimate has increased without any negative revisions [6] Zacks Rank and Performance - 8x8 has achieved a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance based on favorable estimate revisions [7] - Historically, Zacks Rank 1 stocks have generated an average annual return of +25% since 2008, suggesting a strong correlation between earnings estimate revisions and stock performance [3][7] Stock Performance - The stock has gained 36.5% over the past four weeks, driven by solid estimate revisions, indicating strong earnings growth prospects that may further elevate the stock price [8]

Core Viewpoint - Investors are evaluating which stock presents a better value opportunity between 8x8 (EGHT) and F5 Networks (FFIV) [1] Valuation Metrics - 8x8 (EGHT) has a forward P/E ratio of 7.28, significantly lower than F5 Networks (FFIV) at 17.68 [5] - The PEG ratio for EGHT is 1.03, while FFIV has a PEG ratio of 6.08, indicating EGHT's earnings growth is more favorably priced [5] - EGHT's P/B ratio stands at 2.56 compared to FFIV's 4.42, further highlighting EGHT's relative undervaluation [6] Zacks Rank and Earnings Outlook - 8x8 currently holds a Zacks Rank of 1 (Strong Buy), while F5 Networks has a Zacks Rank of 3 (Hold), suggesting a more favorable earnings outlook for EGHT [3] - The Zacks Rank system favors stocks with positive earnings estimate revisions, which supports the notion that EGHT has an improving earnings outlook [2][3] Value Grade Comparison - 8x8 has a Value grade of A, while F5 Networks has a Value grade of D, indicating that EGHT is viewed as a better value investment [6][7] - Stronger estimate revision activity and more attractive valuation metrics for EGHT suggest it is the superior option for value investors at this time [7]

Group 1 - The individual investor focuses on undercovered companies, particularly in technology, software, electronics, and energy transition sectors [1] - The investor has over 7 years of personal capital investment experience across a broad range of global companies [1] - The investor aims to identify asymmetric investment opportunities to achieve market-beating returns through diligent research of small to mid-cap companies [1] Group 2 - The investor holds a Master's degree in Electrical Engineering and works as an automotive battery R&D engineer in Sweden [1] - The write-ups on Seeking Alpha serve as a platform for the investor to present investment theses and receive community feedback [1]

Revenue Performance - Service revenue for the three months ended December 31, 2025, increased by $6.2 million, or 3.6%, compared to the same period in 2024, driven by a $14.0 million increase in platform usage revenue in the Asia-Pacific region [121]. - Subscription revenue decreased by $7.8 million, primarily due to a decline in former Fuze customers [121]. - Service revenue for the nine months ended December 31, 2025, was $535.1 million, reflecting a 2.6% increase from $521.3 million in the same period of 2024 [120]. - Service revenue increased by $13.7 million, or 2.6%, for the nine months ended December 31, 2025, driven by a $34.2 million increase in platform usage revenue, primarily in the Asia-Pacific region [122]. Profitability and Expenses - Gross profit margin for the three months ended December 31, 2025, was 63.9%, down from 67.7% in the same period of 2024 [109]. - Net income for the three months ended December 31, 2025, was $5.1 million, representing 2.8% of total revenue, compared to a net loss of $14.5 million in the same period of 2024 [109]. - Cost of service revenue increased by $20.8 million, or 13.8%, for the nine months ended December 31, 2025, primarily due to a $28.2 million increase in network and carrier service provider costs [128]. - Research and development expenses decreased by $9.8 million, or 10.5%, for the nine months ended December 31, 2025, primarily due to decreases in stock-based compensation and costs to operate data centers [134]. - Sales and marketing expenses decreased by $5.1 million, or 2.6%, for the nine months ended December 31, 2025, primarily due to decreases in channel commissions and stock-based compensation [137]. - General and administrative expenses increased by $6.8 million, or 11.4%, for the nine months ended December 31, 2025, primarily due to increases in legal and regulatory costs [140]. Financing and Cash Flow - Interest expense decreased by $10.3 million, or 43.5%, for the nine months ended December 31, 2025, primarily due to a lower interest rate and principal balance on the 2024 Term Loan [141]. - Other income, net for the nine months ended December 31, 2025, was $1.3 million, a significant improvement from a $10.2 million expense in the same period in 2024, driven by a decrease in loss on debt extinguishment of $12.1 million [145]. - Provision for income taxes decreased by $0.7 million for the nine months ended December 31, 2025, compared to the same period in 2024, primarily due to changes in federal and state tax provisions [148]. - Cash provided by operating activities decreased by $16.3 million to $41.4 million for the nine months ended December 31, 2025, primarily due to reduced net loss and changes in working capital [154]. - Cash used in investing activities increased by $2.6 million to $12.8 million for the nine months ended December 31, 2025, mainly due to increased capitalized internal-use software costs [154]. - Cash used in financing activities decreased by $27.3 million to $31.8 million for the nine months ended December 31, 2025, primarily due to principal repayments for the term loan and share repurchases [154]. - As of December 31, 2025, cash and cash equivalents totaled $86.9 million, a slight decrease from $88.1 million as of March 31, 2025 [150]. - The 2024 Term Loan has an outstanding principal of $122.0 million after repayments, with scheduled remaining principal repayments of $39.5 million in fiscal year 2027 and $82.5 million due before or upon maturity in fiscal year 2028 [159]. - During the nine months ended December 31, 2025, the company repurchased 1.0 million shares of common stock for approximately $1.8 million at an average price of $1.83 per share [152]. - The company anticipates that existing cash and cash flows from operations will be sufficient to meet working capital and contractual obligations for at least the next twelve months [149]. Strategic Initiatives - The company aims to increase service revenue through new customer acquisition, cross-selling, and strategic acquisitions of technologies and businesses [110]. - The focus on mid-market and public sector organizations aligns with the company's strengths in eliminating communication silos and enhancing customer interactions [98]. - The company plans to invest in research and development to enhance its Platform for CX and expand its ecosystem of integrated third-party applications [106]. - The company is enhancing its platform with AI-based capabilities and expanding its Technology Partner Ecosystem to provide tailored solutions [107]. - The company expects variability in results due to factors such as macroeconomic conditions, customer buying behavior, and technological changes [108]. Accounting and Risk Management - The company's consolidated financial statements are prepared in accordance with U.S. GAAP, with no significant changes to critical accounting policies during the nine months ended December 31, 2025 [166]. - There have been no material changes in the company's exposures to market risk since March 31, 2025, including interest rate and foreign currency exchange risks [168]. - The preparation of financial statements requires estimates and judgments that affect reported amounts of assets, liabilities, revenue, and expenses [165].

分组1 - 8x8 reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, and showing an increase from $0.11 per share a year ago, resulting in an earnings surprise of +33.33% [1] - The company achieved revenues of $185.05 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.04%, and an increase from $178.88 million year-over-year [2] - Over the last four quarters, 8x8 has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed, losing about 12.7% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.06 on revenues of $174.06 million, and for the current fiscal year, it is $0.32 on revenues of $719.11 million [7] 分组3 - The Zacks Industry Rank indicates that the Internet - Software sector is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this category [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]