Q3 2025 8x8 Inc Earnings Call Transcript
Key Points
- 8x8 Inc (EGHT) achieved service revenue above the midpoint of their guidance range despite facing a $2 million FX headwind.
- The company generated record cash flow from operations and used excess cash to reduce debt by $33 million in the quarter and an additional $15 million in early January.
- New product monthly recurring revenue (MRR) increased by more than 60% year-over-year, driven by growth in AI-based solutions.
- Customer satisfaction remains high, with CSAT scores in the mid to high 90% range for targeted enterprise customers.
- 8x8 Inc (EGHT) continues to expand its international presence, particularly in the Asia Pacific region, securing its largest deal ever with a well-known auto manufacturer.
- The company is still working through revenue headwinds from Fuze customer upgrades to the 8x8 platform.
- Foreign exchange headwinds impacted total revenue by approximately $2.2 million, affecting the company's ability to meet the high end of its guidance range.
- The anticipated decline in revenue from customers still on the Fuze platform continues to offset growth.
- Operating margin guidance for fiscal Q4 2025 is expected to be lower due to seasonally higher expenses.
- 8x8 Inc (EGHT) plans to make strategic investments in fiscal 2026 that may result in a lower non-GAAP operating margin compared to fiscal 2025.
Good morning, everyone and welcome to the third quarter 2025 8x8 Inc earnings conference call. (Operator Instructions). Please be advised that today's conference is being recorded. Now it's my pleasure to turn the call over to the Vice President of Investor Relations, Kate Patterson. Please proceed.
Thank you. Good afternoon, everyone. Today's agenda will include a review of our results for the third quarter of fiscal 2025 with Samuel Wilson, our Chief Executive Officer, and Kevin Kraus, our Chief Financial Officer. Following our prepared remarks, there will be a question-and-answer session.
Before we get started, let me remind you that our discussion today includes forward-looking statements about future financial performance, including investments in innovation and our focus on profitability and cash flow, as well as statements regarding our business, products, and growth strategies. We caution you not to put undue reliance on these forward-looking statements as they involve risks
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