8×8 Earnings: Here’s Why Investors are Not Happy Now
8×8 Inc. (NASDAQ:EGHT) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 8.41%.
8×8 Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 66.67% to $0.05 in the quarter versus EPS of $0.03 in the year-earlier quarter.
Revenue: Rose 18.6% to $28.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: 8×8 Inc. reported adjusted EPS income of $0.05 per share. By that measure, the company missed the mean analyst estimate of $0.06. It beat the average revenue estimate of $28.28 million.
Quoting Management: “I am pleased to report another solid year of record revenue growth and margin expansion,” said 8×8 Chairman & CEO Bryan Martin. “While the growth of our core business communications offerings to small businesses remained strong, increased interest from mid-market customers who are deploying these services in much larger, distributed environments further validated our efforts to move upmarket and our credibility as an enterprise-class cloud services provider. These accomplishments were heightened by new SaaS licensing partnerships with SoftBank and CoSentry, centered around our subscription-based virtualized cloud data services, as well as the formal launch of our services in Canada, phase one of our Global Reach initiative.”
Key Stats (on next page)…