8x8 (EGHT) Morgan Stanley Technology, Media & Telecom Conference summary

Transformation and growth strategy

• Completed Fuze acquisition, boosting engineering talent, enterprise customers, and financial flexibility.

• Paid down 35% of debt since August 2022, increasing flexibility for investments.

• Multi-product strategy and AI investments are key to future growth, with Fuze customer migration set for completion by December 31, 2025.

• New AI products are growing 60% year over year, and CPaaS business is also expanding.

• Revenue growth is expected to re-accelerate post-Fuze migration, despite near-term headwinds.

Sales, customer focus, and go-to-market

• Focus on selling customer outcomes and ROI, using AI to improve sales cycles and deal targeting.

• Multi-product customers see deal sizes 3x larger than two-product customers, with higher retention rates.

• Target market remains small to medium-sized enterprises, but solutions are applicable to all sizes, especially regulated industries.

• Differentiation comes from tailored deployment, professional services, and high retention among multi-product customers.

• Embracing a multi-channel strategy: direct, agency, and value-added resellers, with significant investments to support channel partners.

Product development and competitive landscape

• AI investments are made natively or via best-of-breed partners, prioritizing seamless customer experience.

• U.S. market is more competitive, especially in low-end UCaaS, but solution selling and platform integration provide an edge.

• Integration with Microsoft Teams is seen as an opportunity, with higher attach rates for contact center solutions.