Research Desk Line-up: IDT Corp. Post Earnings Coverage
LONDON, UK / ACCESSWIRE / June 20, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on 8x8, Inc. (NASDAQ: EGHT), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=EGHT, following the Company's posting of its fourth quarter and fiscal 2017 financial results on May 25, 2017. The telecommunications services Company outperformed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Diversified Communication Services industry. Pro-TD has currently selected IDT Corporation (NYSE: IDT) for due-diligence and potential coverage as the Company reported on June 06, 2017, its financial results for Q3 FY17 which ended on April 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on IDT Corp. when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on EGHT; also brushing on IDT. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
For Q4 FY17, 8x8's total revenue increased 16% to $66.49 million compared to revenue of $57.33 million in Q4 FY16. On an adjusted basis, total revenue increased 19%. The Company's revenue number exceeded analysts' estimates of $65.6 million.
For FY17, 8x8 Inc. posted total revenue of $253 million at the high-end of the Company's guidance, despite currency headwinds of $4 million and the discontinuation of a non-core product of $1.4 million, reflecting an increase of 21% y-o-y and 23% on a fully adjusted basis.
During Q4 FY17, 8x8's total service revenue increased 20% to $62.65 million compared to revenue of $52.17 million in Q4 FY16. Adjusted for constant currency and the exclusion of a discontinued, non-core DXI business segment, service revenue increased 24%. The Company's product revenue, which constituted approximately 6% of total revenue, declined 26% to $3.83 million in Q4 FY17 compared to $5.16 million in the year ago corresponding quarter.
For Q4 FY17, 8x8's GAAP gross margin was 77% compared with 72% in Q4 FY16. The Company's non-GAAP gross margin was 79% compared with 74% in the prior year's same quarter. 8x8's non-GAAP service margin was 84% compared with 83% in Q4 FY16. The Company's product margin in the reported quarter was negative 9.2% compared with negative 18.3% in the year ago same period.
8x8 reported GAAP net loss of $2.9 million, or $0.03 per diluted share, for Q4 FY17 compared to GAAP net loss of $1.08 million, or $0.01 per diluted share. On an adjusted basis, the Company posted net income of $5.1 million, or $0.05 per share, compared with $3.2 million, or $0.03 per share, in Q4 FY16. 8x8's earnings numbers surpassed Wall Street's expectations of $0.03 per share. For FY17, the Company reported a net loss of $4.75 million, or $0.05 per share, compared to net loss of $5.12 million, or $0.06 per share.
Operating Metrics
During Q4 FY17, 8x8's average revenue per mid-market and enterprise customers grew to $4,494 compared to $4,083 in Q4 FY16. The Company's average revenue per business customer was $426 compared with $385 in the prior year's same quarter. 8x8's gross monthly business service revenue churn, on an organic basis, was 0.7% in the reported quarter compared with 0.4% in Q4 FY16.
8x8 stated that new monthly recurring revenue (MRR) from mid-market and enterprise customers and by channel sales team comprised 66% of the total new MRR, monthly recurring revenue, booked in Q4 FY17. The Company's bookings from mid-market and enterprise declined 7% on an adjusted basis compared to the year earlier same quarter.
Balance sheet and cash flow
8x8's cash, cash equivalents, and investments were $175 million at March 31, 2017, compared with $163 million at the end of FY16. The Company's cash flow from operating activities was $66.3 million in the reported quarter, and capital expenditures, including capitalized software, were $3.9 million. For FY17, 8x8's cash flow from operating activities was $28.5 million compared with $23.6 million in FY16.
During FY17, 8x8's capital expenditures, including capitalized software, were $14.4 million, or 6% of revenue, compared with $7 million, or 3% of revenue for fiscal 2016. The increase in capital expenditures was due to global expansion and support for new product introductions.
On May 23, 2017, 8x8's Board of Directors approved a new share repurchase program, authorizing up to $25 million in repurchases of the Company's outstanding shares of common stock.
Outlook
For FY18, 8x8 is forecasting service revenue in the range of $280 million to $285 million and total revenue in the range of $296 million to $300 million, representing approximately 17% to 19% y-o-y increase. The Company is projecting non-GAAP pretax net income in the range of $21 million to $26 million, or approximately 7% to 9% of revenue.
Stock Performance
At the closing bell, on Monday, June 19, 2017, 8x8's stock rose slightly by 0.34%, ending the trading session at $14.80. A total volume of 980.29 thousand shares have exchanged hands, which was higher than the 3-month average volume of 813.49 thousand shares. The Company's stock price surged 15.18% in the last one month and 7.40% in the previous twelve months. Moreover, the stock rallied 3.50% since the start of the year. The stock currently has a market cap of $1.36 million.
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