8x8(EGHT)2025-02-05 21:12Revenue Performance - Service revenue for the three months ended December 31, 2024, was 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 2.7 million increase in platform usage revenue[115]. - Service revenue decreased by 13.9 million[116]. - Other revenue decreased by 2.7 million and 3.022 million for the three months ended December 31, 2024, compared to a net loss of 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 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 12.2 million in costs to deliver subscription and platform usage services[122]. - Research and development 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 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 116.3 million as of March 31, 2024[149]. - Net cash provided by operating activities decreased by 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 225.0 million[155]. - As of December 31, 2024, the remaining principal amount of the 2024 Term Loan after payments is 403.8 million principal amount of 0.50% convertible senior notes due 2024 for cash plus 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].