8x8(EGHT) - 2021 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q4 2021 was $144.7 million, a 19$138.5 million to $140.5 million [33] - Service revenue reached$133.8 million, also a 19% year-over-year increase, surpassing guidance of $130.8 million to$131.8 million [33] - Total Annual Recurring Revenue (ARR) was $518 million at quarter end, reflecting a 22$70,000, achieving profitability one quarter earlier than expected [37] Business Line Data and Key Metrics Changes - Integrated UCaaS and CCaaS offerings were key growth drivers, with over 760 customers generating more than $100,000 in ARR, a 25$1 million in ARR grew over 70% year-over-year, contributing to a 49% growth in enterprise ARR [9] - ARR from combo customers (those purchasing both UCaaS and CCaaS) represented over 30% of total company ARR [11] Market Data and Key Metrics Changes - International revenue represented 27% of total revenue and grew 48% year-over-year [84] - The cloud communications market is projected to exceed $75 billion by 2023, with UCaaS and CCaaS segments making up$60 billion [46][47] Company Strategy and Development Direction - The company aims to build a path to a 1 billion business by enhancing capabilities and operational rigor [42] - Focus on integrated solutions is emphasized, with a strategy to capitalize on the demand for single vendor solutions across UCaaS and CCaaS [48] - Plans to increase R&D investments, particularly in contact center capabilities, to enhance product offerings [70][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to leverage its integrated platform and market demand for cloud communications [87] - The focus for fiscal 2022 includes expanding the customer base, improving operational efficiency, and enhancing customer satisfaction [82][79] - Management anticipates a return to revenue growth rates of 20% or greater by late fiscal 2023 [102] Other Important Information - The company has phased out its unprofitable wholesale CPaaS business, which contributed 15 million in service revenue in fiscal 2021 [92] - The decision to focus on core market opportunities is expected to create a more favorable growth trajectory [93] Q&A Session Summary Question: Voice adoption for Teams users and Contact Center integration - Management was asked about the qualitative aspects of voice adoption for Teams users and the ease of adopting various voice options on Teams, as well as the relevance of legacy PBX providers for enterprises using new CCaaS solutions [108]