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8x8 (EGHT) investor relations material
8x8 Wells Fargo's 9th Annual TMT Summit summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Business momentum and financial performance
Consistent investment in innovation, with about 15% of non-GAAP revenue allocated to R&D, driving new AI-based products and platform enhancements.
Acquisition of Fuze added significant revenue and engineering talent, with customer migration to the main platform nearly complete by year-end.
Debt reduced by 41% since August 2022, improving financial flexibility and lowering interest expenses by about $10 million annually.
Positive cash flow from operations for 19 consecutive quarters, with recent quarters showing renewed year-over-year revenue growth after a period of headwinds.
Usage-based revenue now represents nearly 20% of service revenue, up from 13% last year, and is a key driver of growth.
Product innovation and customer strategy
Multi-product adoption is emphasized, with over one-third of ARR from customers using three or more products, increasing stickiness and net revenue retention.
Usage-based and AI-driven products such as ICA, Smart Assist, and conversational intelligence are gaining traction and driving revenue.
Engage, an internal outreach tool, and voice-based AI tools are experiencing strong growth, with high accuracy in multi-language transcription.
Platform integration enables seamless customer experiences across UCaaS, CPaaS, and contact center solutions, differentiating from siloed competitors.
Fuze acquisition brought valuable engineering teams, accelerating product development and innovation cycles.
Market trends and forward outlook
UCaaS and CCaaS markets have stabilized post-COVID, with usage-based solutions helping offset seat reductions from customer downsizing.
Usage-based revenue, especially in South and Southeast Asia, is growing, though with a different margin profile than core services.
UCaaS deal velocity is faster than contact center, with Microsoft Teams integration boosting attach rates for contact center upsells.
AI is embedded across the platform, with most current activity in contact center but expanding to all product lines.
Expectation of continued growth in usage-based and AI-driven revenue, with a shift toward pay-as-you-use models and increasing gross profit dollars.
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