8×8 (Nasdaq: EGHT) reports Q4 in accordance with expectations, but the sales guidance for the entire year lacks expectations somewhat
Business Communications Software Company 8×8 (NYSE: EGHT) met Wall Street’s turnover expectations in Q4 CY2024, but sales fell by 1.2% years after year to $ 178.9 million. On the other hand, the income guidance of the next quarter of $ 178 million was less impressive, with 2% among the estimates of analysts. The non-Gaap profit of $ 0.11 per share was 27.6% above the consensus estimates of analysts.
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Gain: $ 178.9 million versus analysts of $ 179.3 million (1.2% on an annual basis, in line)
Custom EPS: $ 0.11 versus analyst estimates of $ 0.09 ($ 0.02 beat)
Adapted business income: $ 19.09 million versus analysts of $ 18.8 million (10.7% margin, 1.5% beat)
Income guidance for Q1 CY2025 is $ 178 million at the center, under the estimates of analysts of $ 181.7 million
Business margin: 5%, an increase of -5.2% in the same quarter last year
Free cash flow margin: 13.5%, an increase of 4.6% in the previous quarter
Billings: $ 173.1 million at the end of the quarter, a decrease of 4.4% year after year
Market capitalization: $ 355.4 million
“Our results of the third quarter emphasize further progress and constantly momentum in our transformation trip. We have delivered solid financial performance, with recordcash flow from operations and a strong acceptance of our AI-driven customer experience solutions, making an increase of 60% on an annual basis in an annual basis in New products.
Founded in 1987, 8×8 (NYSE: EGHT), it offers software for organizations to communicate efficiently and to collaborate with their customers, employees and partners.
Work is more distributed, both over regions and about devices. In order to continue to function efficiently, they must be able to communicate if the teams became co-location, which stimulates the demand for integrated communication platforms.
Reviewing the sales performance of a long -term company reveals insights into its quality. Every company can have success in the short term, but a top class is growing for years. Unfortunately, sales growth of 8×8 of 8.1% in the past three years was weak. This was under our standard for the software sector and is a poor basin for our analysis.
8×8 quarterly sales
This quarter 8×8 reported a rather non-inspiring turnover of 1.2% on an annual basis to $ 178.9 million in turnover, in line with the estimates of Wall Street. Business management is currently leading to a flat sale next quarter.
Looking ahead further, sales analysts expect that the income will grow 1.4% in the coming 12 months, a delay versus in the last three years. This projection is underwhelming and suggests that its products and services will see a number of roads.
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Billings is a non-Gaap-Metric who is often called ‘cash income’, because it shows how much money the company has collected in a certain period of customers. This differs from income, which must be recognized in documents over the length of a contract.
The invoicing of 8×8 came to $ 173.1 million in Q4 and it was an average of 2.5% on an annual basis in the last four quarters. These performance reflected its total turnover and shows that the company was confronted with challenges in acquiring and retaining customers. It also suggests that there can be increasing competition or market saturation.
8×8 Billings
The payback time of the Customer Acquisition Cost (CAC) measures the months that a company needs to earn back the money from acquiring a new customer. This metric helps assess how quickly a company can break, even with its sales and marketing investments.
The recent efforts of 8×8’s recent customer acquisition have not yielded any returns, because the payback time of CAC was negative this quarter, which means that sales and marketing investments have exceeded his income. The company’s inefficiency indicates that it works in a very competitive environment where there is little differentiation between 8×8 products and his colleagues.
It was encouraging to see the EBITDA expectations of 8×8 this quarter. On the other hand, the income guidance missed considerably for the next quarter and the invoicing was not brought to the estimates of Wall Street. In general, this quarter could have been better. The share traded by 3.8% to $ 2.75 immediately after the results.
The last winning report of 8×8 disappointed. A quarter does not define the quality of a company, so let’s investigate whether the share is a purchase for the current price. When making that decision, it is important to consider the appreciation, business qualities and what happened in the last quarter. We deal with that in our usable full research report that you can read here, it is free.
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