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8x8 Earnings: Flat Revenue Ahead?
3 Aug
Summary
- 8x8's Q2 revenue was $185.2 million, a 4.6% year-on-year increase.
- This quarter, analysts expect 8x8's revenue to be flat year-on-year.
- Competitors RingCentral and Microsoft saw significant revenue growth.
Cloud communications provider 8x8 will release its earnings results this Tuesday after market close. The company exceeded revenue expectations in the previous quarter, reporting $185.2 million, marking a 4.6% year-on-year increase. Analysts' guidance for the upcoming quarter also surpassed expectations.
For the current quarter, however, the market anticipates 8x8's revenue to be flat compared to the same period last year. This contrasts with the modest 1.8% increase recorded in the prior year's quarter. Analysts have largely maintained their estimates, suggesting a stable outlook.
Peers in the productivity software segment have already reported. RingCentral posted a 5.9% year-on-year revenue growth, beating estimates, while Microsoft saw revenues rise 17.7%, also topping expectations. Both companies experienced significant stock price increases following their earnings announcements.
Investor sentiment in the productivity software sector has been positive, with average share prices rising 2.7% over the past month. 8x8's stock has slightly declined by 1% in the same period. The current share price of $1.94 is below the average analyst price target of $2.50.
