"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 ...

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]

Industry Overview - The Internet Software industry is expected to show evolving enterprise software adoption patterns, resilience in subscription models, and ongoing platform consolidation trends in Q4 2025 [1] - There is selective demand for specialized software solutions, continued preference for cloud-based deployments, and cautious IT spending optimization [1] Company Performance Insights - Leading players like 8x8, Intapp, Match Group, and Digital Turbine are anticipated to benefit from subscription renewals and vertical-specific solution demand, with SaaS spending maintaining growth momentum due to cloud adoption and digital transformation initiatives [2] - AI-enhanced workflow automation and analytics capabilities are driving operational efficiency and productivity gains, with generative AI integration gaining traction [3] Market Challenges - The industry's performance may be affected by macroeconomic headwinds and changing spending priorities, with enterprises focusing on software consolidation and strategic portfolio management [4] - Mixed revenue growth is expected for the Internet Software industry in Q4 2025, with companies demonstrating strong customer retention and differentiated solutions likely performing better [4] Company-Specific Developments - Match Group is expected to have momentum from product innovations at Tinder and Hinge, with new features enhancing user engagement and international expansion supporting subscriber growth [6] - However, user experience testing at Tinder may have created near-term revenue headwinds, alongside weaker trends at Evergreen and Emerging brands [7] - 8x8 is anticipated to benefit from usage-based revenue offerings and strong adoption of CPaaS communication APIs, although a shift toward lower-margin revenues may pressure gross margins [10][11] - Intapp is expected to leverage its cloud migration and AI integration initiatives, with a focus on vertical AI strategies driving customer engagement [13] - Digital Turbine is likely to see growth from its On Device Solutions and App Growth Platform segments, although macroeconomic uncertainties may pose challenges [16][17]

Earnings Performance - Calix reported quarterly earnings of $0.39 per share, exceeding the Zacks Consensus Estimate of $0.38 per share, and significantly up from $0.08 per share a year ago [1] - The earnings surprise for this quarter was +1.75%, following a previous quarter where earnings were $0.44 per share against an expectation of $0.34, resulting in a surprise of +29.41% [2] - Over the last four quarters, Calix has consistently surpassed consensus EPS estimates [2] Revenue Performance - The company posted revenues of $272.45 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.90% and up from $206.12 million year-over-year [3] - Calix has also topped consensus revenue estimates in each of the last four quarters [3] Stock Performance and Outlook - Calix shares have increased by approximately 5.8% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [4] - The future performance of the stock will largely depend on management's commentary during the earnings call and the earnings outlook [4][5] - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $271.94 million, and for the current fiscal year, it is $1.91 on revenues of $1.14 billion [8] Industry Context - The Internet - Software industry, to which Calix belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook [9] - Historical data suggests that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [9]

Company Performance - Zoom Communications (ZM) has seen a stock increase of 6.3% over the past month, reaching a new 52-week high of $91.43 [1] - Year-to-date, Zoom's stock has gained 9.7%, compared to a 25.5% gain for the Zacks Computer and Technology sector and a 7.5% return for the Zacks Internet - Software industry [1] Earnings and Revenue - Zoom has a strong record of positive earnings surprises, not missing earnings consensus estimates in the last four quarters. In the latest earnings report on November 24, 2025, Zoom reported EPS of $1.52 against a consensus estimate of $1.43 [2] - For the current fiscal year, Zoom is expected to post earnings of $5.94 per share on revenues of $4.85 billion, reflecting a 7.22% change in EPS and a 3.92% change in revenues. For the next fiscal year, earnings are projected at $5.93 per share on revenues of $5 billion, indicating a year-over-year change of -0.2% in EPS and 3.21% in revenues [3] Valuation Metrics - Zoom's current valuation metrics show a trading multiple of 15.1X current fiscal year EPS estimates, below the peer industry average of 29.2X. On a trailing cash flow basis, it trades at 20.8X compared to the peer group's average of 23.9X. The stock has a PEG ratio of 5.25, which does not place it among the top echelon of stocks from a value perspective [7] Zacks Rank and Style Scores - Zoom holds a Zacks Rank of 2 (Buy) due to a solid earnings estimate revision trend, meeting the criteria for investors looking for stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B [8] - The company has a Value Score of C, a Growth Score of B, and a Momentum Score of C, resulting in a combined VGM Score of B [6] Industry Comparison - The Internet - Software industry is positioned in the top 23% of all industries, indicating favorable conditions for both Zoom and its peer, 8x8 Inc (EGHT), which also has a Zacks Rank of 2 (Buy) [11]

Core Insights - GreetEat Corp has announced a strategic technology integration with 8x8, Inc. to enhance its virtual dining infrastructure through video-conferencing capabilities [1][9] About the Integration - GreetEat will utilize 8x8 Jitsi as a Service (JaaS) for hosting video meetings, providing a branded, secure, and scalable experience for various dining events [2][3] Key Features Enabled via 8x8 JaaS - Features include secure end-to-end encryption, HD video conferencing for up to 500 participants, group and private chat, remote control capabilities, connection quality controls, cloud recording, brand customization, AI-powered insights, virtual backgrounds, calendar integrations, YouTube integration, and multi-language support [6][7] Strategic Benefits to GreetEat Corp and Its Investors - The partnership allows GreetEat to scale its user base globally without the need to build its own video infrastructure, enhances user experience, and provides cost efficiency through a monthly active user pricing model [7][8][11] Why 8x8 (EGHT) Is a Strong Strategic Partner - 8x8 offers a unified communications platform with a global cloud-native architecture, ensuring high availability and security, which aligns with GreetEat's needs for a reliable video infrastructure [4][7] Company Overview - GreetEat Corporation is a technology-driven platform that combines video conferencing with meal delivery to create shared dining experiences, also owning WallStreetStats.io, a fintech app leveraging AI for market analysis [9]

Group 1: Market Sentiment - Wall Street shows strong bullish sentiment on the stocks discussed, with price targets indicating significant upside potential [1] - Analysts are generally reluctant to issue sell ratings due to potential conflicts of interest with their firms [1] Group 2: 8x8 (EGHT) - 8x8 has a consensus price target of $2.50, suggesting a 27.7% implied return [3] - The stock is currently trading at $1.96 per share, equating to 0.4x forward price-to-sales [5] - Concerns include stagnant billings, flat projected sales, and increased competition requiring higher marketing expenditures [10] Group 3: Malibu Boats (MBUU) - Malibu Boats has a consensus price target of $36.07, indicating a 34% implied return [6] - The stock trades at $26.92 per share, with a forward P/E ratio of 21.3x [8] - Issues include low demand reflected in underwhelming boat sales, declining earnings per share by 14.9% annually, and diminishing returns on capital [11] Group 4: Neogen (NEOG) - Neogen has a consensus price target of $8.17, suggesting a 34.1% implied return [9] - The company operates in the food safety and animal health sectors, developing diagnostic tests for dangerous substances [9]

Core Insights - 8x8's shares surged by as much as 27.7% following the release of Q2 2026 results, which exceeded Wall Street's expectations and included optimistic guidance for the upcoming quarters [1][7] Financial Performance - Q2 2026 sales for 8x8 increased by 1.7% year-over-year, reaching $184.1 million, marking the second consecutive quarter of revenue growth after a prolonged decline [2] - Adjusted earnings remained stable at $0.09 per diluted share, surpassing the consensus estimate of $0.07 per share, with revenues expected around $178 million [2] Company Outlook - Despite the positive revenue trends, 8x8 is still in a turnaround phase, having faced challenges in growing top-line sales, with the stock down approximately 20% in 2025 and 49% over the past three years [4] - The company is actively reducing long-term debt and integrating artificial intelligence features into its services, although the fastest-growing products have lower gross margins [5] Market Position - While 8x8's stock has recently gained, it remains significantly down over the past year, indicating ongoing challenges in the digital communications market [7]

Core Insights - 8x8, Inc. has introduced native support for Mitel SIP desk phones, allowing users to access the 8x8 platform while preserving their existing hardware investments and enhancing voice resiliency without disruptions [1][2][3] Company Developments - The integration of Mitel SIP support expands 8x8's enterprise voice capabilities, enabling businesses to modernize their communication systems without the need for device replacements [2][4] - 8x8's platform combines various communication tools, including business phone, contact center, chat, video, APIs, and AI, ensuring a comprehensive solution with a guaranteed 99.999% uptime SLA and global PSTN coverage in over 55 countries [4][7] Industry Context - The partnership with Mitel emphasizes the importance of physical handsets in enterprise communication, as they are trusted for their reliability and performance in various environments [5][3] - Mitel's recent relocation of IP phone production to Germany aims to enhance supply chain stability and reduce lead times for European customers, which is particularly beneficial for clients in regulated industries [9]