Financial Data and Key Metrics Changes - Full year non-GAAP operating profit was 49 million, an increase of 41% from fiscal 2022 [2][14] - Total revenue for Q4 was 176.6 million, both increasing 2% year-over-year [46] Business Line Data and Key Metrics Changes - Service revenue growth was 2% in Q4, with enterprise and XCaaS ARR both up year-over-year, XCaaS increasing in the mid-teens percentage [42] - Fuze accounted for 775 million, up from 100 million annually in R&D for future development, targeting innovations in AI and customer experience [10][43] - The strategy includes leveraging partnerships and focusing on high-quality pipeline opportunities [106][124] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in repaying remaining convertible notes and generating positive cash flow [4][15] - The company anticipates solid profitability to continue throughout fiscal 2024, with gross margin expected to remain consistent [8][62] - Management acknowledged economic headwinds but noted high retention rates and strong collections as positive indicators [68][74] Other Important Information - The company achieved a non-GAAP operating margin of 13.5% in Q4, exceeding the 10% guidance [56] - Total cash, cash equivalents, and restricted cash ended Q4 at approximately $139 million, despite higher cash interest expenses [3] Q&A Session Summary Question: What levels of churn are being seen and how much is attributable to macro factors? - Management noted high retention rates and expects enterprise growth to continue, with new products anticipated to drive revenue acceleration in the back half of the year [85][86] Question: Can you provide insight into customer renewals and any changes due to macro conditions? - Retention rates were at record highs, with no significant changes in renewals attributed to macro conditions [92][93] Question: What initiatives are being taken for sustainable margin expansion? - Continuous improvements in automation and efficiency in sales and marketing are being implemented to maintain or increase operating margins [78] Question: How is the pipeline looking and are there any changes? - Pipeline numbers are positive, suggesting potential revenue reacceleration, although timing remains a factor [105] Question: What is the strategy regarding internal versus external R&D? - The company plans to focus on internal development for core competencies while partnering with specialists for other areas [126][128]
8x8(EGHT) - 2023 Q4 - Earnings Call Transcript