Core Insights - The article compares two stocks in the Internet - Software sector, 8x8 (EGHT) and BlackLine (BL), to determine which is more attractive to value investors [1] Valuation Metrics - 8x8 (EGHT) has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to BlackLine (BL), which has a Zacks Rank of 4 (Sell) [3] - EGHT has a forward P/E ratio of 7.92, significantly lower than BL's forward P/E of 23.76, suggesting EGHT is undervalued [5] - The PEG ratio for EGHT is 0.68, while BL's PEG ratio is 4.70, indicating that EGHT is expected to grow earnings at a more favorable rate relative to its price [5] - EGHT's P/B ratio is 3.27, compared to BL's P/B of 6.90, further supporting the notion that EGHT is more attractively valued [6] - Based on these metrics, EGHT holds a Value grade of B, while BL has a Value grade of D, making EGHT the preferred choice for value investors [6]

Core Viewpoint - Investors are encouraged to consider 8x8 (EGHT) due to solid improvements in earnings estimates and positive short-term price momentum [1][2] Earnings Estimates - Analysts are increasingly optimistic about 8x8's earnings prospects, leading to higher estimates that are expected to positively impact the stock price [2] - The Zacks Rank system indicates a strong correlation between earnings estimate revisions and stock price movements [2] Current-Quarter Estimate Revisions - The current quarter's earnings estimate for 8x8 is projected at $0.08 per share, reflecting no year-over-year change [4] - Over the past 30 days, one estimate has increased while there were no negative revisions, resulting in a 50% increase in the Zacks Consensus Estimate [4] Current-Year Estimate Revisions - For the full year, the earnings estimate stands at $0.36 per share, which is a decrease of 23.4% from the previous year [5] - In the last month, four estimates have been revised upward with no negative revisions, leading to a 300% increase in the consensus estimate [5] Zacks Rank - The positive estimate revisions have earned 8x8 a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [6] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [6] Stock Performance - 8x8 shares have increased by 10.9% over the past four weeks, suggesting investor confidence in the company's earnings growth prospects [7]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - Investing in bargain stocks with recent price momentum may be a safer approach [2] Group 2: Stock Analysis - 8x8 (EGHT) - 8x8 (EGHT) has shown a four-week price change of 10.9%, indicating growing investor interest [3] - The stock gained 3.6% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - EGHT has a beta of 1.66, suggesting it moves 66% more than the market in either direction [4] - The stock has a Momentum Score of A, indicating a favorable entry point for investors [5] - EGHT has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - The stock is trading at a Price-to-Sales ratio of 0.52, suggesting it is undervalued at 52 cents for each dollar of sales [6] Group 3: Investment Opportunities - EGHT appears to have significant growth potential and is part of a broader list of stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria [7] - There are over 45 Zacks Premium Screens available to help identify winning stock picks based on various investing styles [8]

Revenue Performance - Service revenue for the three months ended December 31, 2024, was $173.459 million, a decrease of $1.610 million or 0.9% compared to the same period in 2023[114]. - The percentage of service revenue to total revenue increased to 97.0% for the three months ended December 31, 2024, compared to 96.7% in the same period of 2023[114]. - Revenue from subscriptions decreased by $4.3 million primarily due to a decline in revenue from customers on the Fuze platform, partially offset by a $2.7 million increase in platform usage revenue[115]. - Service revenue decreased by $6.8 million, or 1.3%, for the nine months ended December 31, 2024 compared to the same period in 2023, driven by a decline in subscription revenue of $13.9 million[116]. - Other revenue decreased by $4.5 million, or 21.3%, for the nine months ended December 31, 2024, primarily due to lower professional service and product revenue of $2.7 million and $1.8 million, respectively[119]. - Other revenue represented 3.1% of total revenue for the nine months ended December 31, 2024, down from 3.9% in the same period of 2023[117]. Financial Performance - The company reported a net income of $3.022 million for the three months ended December 31, 2024, compared to a net loss of $14.543 million in the same period of 2023[102]. - The gross profit margin for the three months ended December 31, 2024, was 67.7%, slightly down from 69.0% in the same period of 2023[102]. - Interest expense decreased by $4.2 million, or 41.8%, for the three months ended December 31, 2024, compared to the same period in 2023, primarily due to the extinguishment of the 2022 Term Loan and decreased interest rates[140]. - For the nine months ended December 31, 2024, interest expense decreased by $6.5 million, or 21.4%, compared to the same period in 2023, attributed to similar factors as the quarterly results[141]. - The provision for income taxes increased by $0.4 million for the three months ended December 31, 2024, compared to the same period in 2023, driven by higher estimated cash taxes[146]. Cost Management - Cost of service revenue increased by $5.9 million, or 4.1%, for the nine months ended December 31, 2024, primarily due to an increase of $12.2 million in costs to deliver subscription and platform usage services[122]. - Research and development expenses decreased by $9.0 million, or 8.8%, for the nine months ended December 31, 2024, primarily due to decreases in stock-based compensation and other costs[129]. - Sales and marketing expenses decreased by $6.6 million, or 3.2%, for the nine months ended December 31, 2024, primarily due to decreases in stock-based compensation and channel commissions[132]. - General and administrative expenses decreased by $17.7 million, or 22.9%, for the nine months ended December 31, 2024, primarily due to a decrease associated with legal and regulatory matters[136]. - Cost of other revenue decreased by $1.0 million, or 4.3%, for the nine months ended December 31, 2024, primarily due to lower product costs associated with IP telephone hardware[125]. - Cost of service revenue as a percentage of service revenue increased to 28.8% for the nine months ended December 31, 2024, compared to 27.3% in the same period of 2023[120]. Strategic Initiatives - The company aims to increase service revenue through new customer acquisition, cross-selling additional products, and geographic expansion outside the United States[103]. - The company continues to focus on innovation, particularly in its platform and contact center as-a-service offerings, to attract and retain mid-market and enterprise customers[100]. - The company has expanded its customer success organization and invested in back-office process improvements to enhance operational efficiency[101]. - The company plans to maintain a high level of investment in engineering to deliver product innovation across its Platform for CX[99]. Debt and Cash Management - Cash and cash equivalents totaled $104.2 million as of December 31, 2024, down from $116.3 million as of March 31, 2024[149]. - Net cash provided by operating activities decreased by $8.7 million to $57.7 million for the nine months ended December 31, 2024, mainly due to increased cash paid to suppliers and employees[152]. - The company entered into a new term loan credit agreement with a principal amount of up to $200.0 million maturing on August 15, 2027[154]. - The 2024 Term Loan was fully drawn on August 5, 2024, to repay the outstanding principal and interest of the 2022 Term Loan, totaling $225.0 million[155]. - As of December 31, 2024, the remaining principal amount of the 2024 Term Loan after payments is $167.0 million[157]. - The company utilized proceeds from the 2022 Credit Agreement to fund the cash portion of an exchange involving approximately $403.8 million principal amount of 0.50% convertible senior notes due 2024 for cash plus approximately $201.9 million of 4.00% convertible senior notes due 2028[159]. - The company repurchased approximately $60.0 million of its common stock in conjunction with the convertible notes exchange[159]. Accounting and Compliance - 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, 2024[162]. - The company has made estimates and judgments affecting reported amounts of assets, liabilities, revenue, and expenses based on historical experience and reasonable assumptions[161]. - The company continues to evaluate its critical accounting policies and estimates on an ongoing basis[161]. - There have been no material changes in the company's exposures to market risk since March 31, 2024[163].

Investors interested in Internet - Software stocks are likely familiar with 8x8 (EGHT) and Five9 (FIVN) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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 highli ...

Financial Data and Key Metrics Changes - For Q3 2025, total revenue was $178.9 million, near the midpoint of guidance, with service revenue at $173.5 million, exceeding guidance by $1 million [36] - Operating margin was reported at 10.7%, slightly above the midpoint of guidance, while gross margin was 69.5% [40] - The company generated record cash flow from operations of $27.2 million, marking the 16th consecutive quarter of positive cash flow [46] Business Line Data and Key Metrics Changes - New product monthly recurring revenue (MRR) increased over 60% year-over-year, driven by growth in AI-based solutions and video-enabled services [10] - Committed MRR from customers using three or more products increased over 10% since the start of the fiscal year, indicating effective cross-selling strategies [38] - The remaining Fuze customer base now accounts for approximately 5% of service revenue, down from 7% in the previous quarter [37] Market Data and Key Metrics Changes - The Asia-Pacific region saw significant growth, including the largest deal booked with a well-known auto manufacturer [11] - Customer satisfaction scores remained high, with CSAT scores in the mid- to high-90% range for targeted enterprise customers [12] Company Strategy and Development Direction - The company is focused on transforming into a customer experience (CX) leader, with a bold plan to enhance its product offerings and market presence [17] - The integration of Fuze is a priority, with plans to shut down the platform by the end of the calendar year [30] - Investments in R&D are being increased to design a CX platform tailored for small- and medium-sized enterprises, emphasizing simplicity and reliability [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the UC space, including pricing aggressiveness and market dynamics, but expressed confidence in the company's positioning and strategy [72][74] - The company aims to return to growth through a combination of new product revenue, multi-product customer retention, and customer acquisition [64] - Management remains optimistic about the future, despite acknowledging potential bumps along the transformation journey [31] Other Important Information - The company has reduced total debt from a peak of $548 million in August 2022 to approximately $354 million today, a 35% reduction [19] - The company was included in Newsweek's annual Excellence 1000 Index, highlighting its commitment to ethics and social responsibility [16] Q&A Session Summary Question: Record operating cash flow and growth progress - Management confirmed that service revenue would have been up quarter-over-quarter and year-over-year without FX impacts, with Q4 guidance reflecting similar trends [60] Question: AI offerings growth and future revenue - Management noted that new product revenue from AI is growing rapidly but still represents a small portion of overall revenue, with a goal to achieve consistent growth next fiscal year [63] Question: Transition from Fuze platform and cost savings - Management confirmed they are on track to shut down the Fuze platform by the end of the fiscal year, estimating mid-single-digit millions in hard savings from this transition [66] Question: Turbulence in the UC space - Management acknowledged pricing aggressiveness in the UC market but emphasized that their CX messaging is resonating well, leading to more platform wins [74] Question: International market opportunities - Management expressed optimism about international growth, particularly in the CPaaS business, and noted a more stable competitive environment compared to the U.S. [78] Question: Customer appetite for AI products - Management indicated strong interest in AI capabilities, particularly in the upper small business to low-end enterprise segments, with a focus on solving CX problems [86] Question: Go-to-market strategy adjustments - Management confirmed ongoing evolution in the sales organization towards consultative solution selling and emphasized the importance of branding as a CX company [118]

Third Quarter Fiscal 2025 For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Forms 10-K and 10-Q filed by 8x8, Inc. with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and 8x8, Inc. undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, eve ...

8x8 (EGHT) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 37.50%. A quarter ago, it was expected that this telecommunications services company would post earnings of $0.08 per share when it actually produced earnings of $0.09, delivering a surprise of 12.50%.Over the last four quarte ...

Exhibit 99.1 8x8, Inc. Announces Third Quarter Fiscal Year 2025 Financial Results CAMPBELL, CA, February 4, 2025 – 8x8, Inc. (NASDAQ: EGHT), the industry's most integrated Platform for CX that combines Contact Center, Unified Communication, and CPaaS APIs, today reported financial results for the third quarter of fiscal year 2025 ended December 31, 2024. "Our third quarter results highlight further progress and continued momentum in our transformation journey. We delivered solid financial performance, with ...

8x8 (EGHT) is slated to release its third-quarter fiscal 2025 results on Feb. 04. Find the latest EPS estimates and surprises on Zacks Earnings Calendar.For the fiscal third quarter, the company expects revenues between $177 million and $182 million.The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $179.18 million, suggesting a 1.01% year-over-year decline.The consensus mark for earnings is pegged at 8 cents per share, unchanged in the past 30 days. The projection suggests a 33.33% ...