8X8 Inc 10-K for FY2024

8X8 Inc (EGHT)

10-K 2024-05-21 For: 2024-03-31

Added on April 06, 2026

About this 10-K

8X8 Inc filed this 10-K on May 21, 2024, covering the fiscal year ended March 31, 2024 (FY2024).

Headline figures

Fiscal year ended March 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $728.71M; down 2.0% from $743.94M a year earlier
Net loss: $67.59M; compared with a net loss of $73.14M a year earlier
Diluted EPS: -$0.56; compared with -$0.63 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Delaware			77-0142404
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification Number)


Title of each class	Trading Symbol	Name of each exchange on which registered
COMMON STOCK, PAR VALUE $.001 PER SHARE	EGHT	Nasdaq Global Select Market


Part I.		Page
Forward-Looking Statements and Risk Factors		3
Item 1.	Business	4
Item 1A.	Risk Factors	12
Item 1B.	Unresolved Staff Comments	30
Item 1C.	Cybersecurity	30
Item 2.	Properties	31
Item 3.	Legal Proceedings	31
Item 4.	Mine Safety Disclosures	31
Part II.
Item 5.	Market for Registrant's Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities	32
Item 6.	[Reserved]	33
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	34
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	43
Item 8.	Financial Statements and Supplementary Data	44
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	75
Item 9A.	Controls and Procedures	75
Item 9B.	Other Information	75
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	75
Part III.
Item 10.	Directors, Executive Officers and Corporate Governance	76
Item 11.	Executive Compensation	76
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	76
Item 13.	Certain Relationships and Related Transactions and Director Independence	76
Item 14.	Principal Accountant Fees and Services	76
Part IV.
Item 15.	Exhibits and Financial Statement Schedules	77
Item 16.	Form 10-K Summary	80
Signatures		81


Risk Factors Summary
Risks Related to our Business and Industry
Risks Related to our Products and Operations
Risks Related to Regulatory Matters
Risks Related to Intellectual Property
Risks Related to our Debt, our Stock, and our Charter
General Risk Factors


	March 31,
	2019		2020		2021		2022		2023		2024
8x8, Inc.	$	100.00	$	68.61	$	160.59	$	62.33	$	20.64	$	13.37
Russell 2000	100.00		74.89		144.21		134.45		117.06		137.98
NASDAQ Composite	100.00		99.62		171.38		183.98		158.12		211.91
NASDAQ Telecommunications	100.00		83.39		117.69		109.84		96.48		97.49
NYSE Composite	100.00		81.14		122.88		131.30		121.09		144.23


	For the years ended March 31,
(in thousands, except percentages)	2024			2023			Change
Service revenue	$	700,579		$	710,044		$	(9,465)	(1.3)	%
Percentage of total revenue	96.1		%	95.4		%


	Years Ended March 31,
(In thousands)	2024		2023		2022
Net cash provided by operating activities	$	78,985	$	48,786	$	34,680
Net cash provided by (used in) investing activities	8,546		6,050		(159,978)
Net cash provided by (used in) financing activities	(83,411)		(37,784)		105,425
Effect of exchange rate changes on cash	(126)		(5,037)		(585)
Net increase (decrease) in cash and cash equivalents	$	3,994	$	12,015	$	(20,458)


	Total		Less than 1 year		1-3 years		3-5 years		Thereafter
2028 Notes
Principal payments	$	201,914	$	—	$	201,914	$	—	$	—
Interest payments	32,307		8,077		24,230		—		—
Term loan(1)
Principal payments	225,000		—		225,000		—		—
Interest payments(2)	92,393		27,718		64,675		—		—
Operating lease obligations(3)	77,284		13,737		23,964		21,148		18,435
Purchase obligations	61,154		44,855		15,150		877		272
Total	$	690,052	$	94,387	$	554,933	$	22,025	$	18,707


			Page
FINANCIAL STATEMENTS:
Reports of Independent Registered Public Accounting Firm (Moss Adams LLP, Campbell, California, PCAOB ID: 659)			45
Consolidated Balance Sheets			46
Consolidated Statements of Operations			47
Consolidated Statements of Comprehensive Loss			48
Consolidated Statements of Stockholders' Equity			49
Consolidated Statements of Cash Flows			50
Notes to Consolidated Financial Statements			52


	As of March 31,
	2024		2023
ASSETS
Current assets:
Cash and cash equivalents	$	116,262	$	111,400
Restricted cash, current	356		511
Short-term investments	1,048		26,228
Accounts receivable, net	58,979		62,307
Deferred sales commission costs, current	35,933		38,048
Other current assets	35,258		34,630
Total current assets	247,836		273,124
Property and equipment, net	53,181		57,871
Operating lease, right-of-use assets	35,924		52,444
Intangible assets, net	86,717		107,112
Goodwill	266,574		266,863
Restricted cash, non-current	105		818

Deferred sales commission costs, non-current	52,859		67,644
Other assets, non-current	12,783		15,934
Total assets	$	755,979	$	841,810

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	48,862	$	46,802
Accrued and other liabilities	78,102		73,740
Operating lease liabilities, current	11,295		11,504
Deferred revenue, current	34,325		34,909
Convertible senior notes, current	—		62,932
Total current liabilities	172,584		229,887
Operating lease liabilities, non-current	56,647		65,623
Deferred revenue, non-current	7,810		10,615
Convertible senior notes, non-current	197,796		196,821
Term loan	211,894		231,993
Other liabilities, non-current	7,290		6,965
Total liabilities	654,021		741,904
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock: $0.001 par value, 5,000,000 shares authorized, none issued and outstanding as of March 31, 2024 and 2023	—		—
Common stock: $0.001 par value, 300,000,000 shares authorized, 125,193,573 shares and 114,659,255 shares issued and outstanding at March 31, 2024 and 2023, respectively	125		115
Additional paid-in capital	973,895		905,635
Accumulated other comprehensive loss	(11,553)		(12,927)
Accumulated deficit	(860,509)		(792,917)
Total stockholders' equity	101,958		99,906
Total liabilities and stockholders' equity	$	755,979	$	841,810


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total
	Shares	Amount
Balance at March 31, 2021	109,134,739	$	109	$	755,643	$	(4,193)	$	(591,055)	$	160,504
Issuance of common stock under stock plans, less withholding	6,969,809	7		15,915		—		—		15,922
Stock-based compensation expense	—	—		132,736		—		—		132,736
Stock-based compensation expense related to Fuze acquisition	53,498	—		828		—		—		828
Forfeiture of common stock related to Wavecell acquisition	(25,536)	—		—		—		—		—
Issuance of common stock related to Fuze acquisition	4,070,355	4		80,852		—		—		80,856
Share repurchases	(2,340,058)	(2)		(44,974)		—		—		(44,976)
Equity component of convertible senior notes, net of issuance cost	—	—		15,599		—		—		15,599
Unrealized investment loss	—	—		—		(571)		—		(571)
Foreign currency translation adjustment	—	—		—		(3,149)		—		(3,149)
Net loss	—	—		—		—		(175,383)		(175,383)
Balance at March 31, 2022	117,862,807	118		956,599		(7,913)		(766,438)		182,366
Adjustment related to adoption of ASU 2020-06	—	—		(92,832)		—		46,672		(46,160)
Issuance of common stock under stock plans, less withholding	6,498,922	7		4,678		—		—		4,685
Stock-based compensation expense	—	—		92,065		—		—		92,065
Forfeiture of common stock related to Wavecell acquisition	(22,311)	—		—		—		—		—
Repurchase of capped calls	—	—		244		—		—		244
Share repurchases	(10,695,187)	(11)		(60,203)		—		—		(60,214)
Shares issued for debt issuance	1,015,024	1		5,084		—		—		5,085
Dissolution of investment in foreign subsidiary	—	—		—		—		(8)		(8)
Unrealized investment loss	—	—		—		(184)		—		(184)
Foreign currency translation adjustment	—	—		—		(4,830)		—		(4,830)
Net loss	—	—		—		—		(73,143)		(73,143)
Balance at March 31, 2023	114,659,255	115		905,635		(12,927)		(792,917)		99,906
Issuance of common stock under stock plans, less withholding	7,612,910	7		(7)		—		—		—
ESPP issuance	1,883,318	2		4,882		—		—		4,884
Stock-based compensation expense	—	—		63,386		—		—		63,386
Issuance of common stock under stock plans, less withholding, related to Fuze acquisition	1,038,090	1		(1)		—		—		—
Unrealized investment gain	—	—		—		280		—		280
Foreign currency translation adjustment	—	—		—		1,094		—		1,094
Net loss	—	—		—		—		(67,592)		(67,592)
Balance at March 31, 2024	125,193,573	$	125	$	973,895	$	(11,553)	$	(860,509)	$	101,958


	March 31, 2024		March 31, 2023
Contract assets, current (component of Other current assets)	$	9,453	$	11,023
Contract assets, non-current (component of Other assets)	7,879		10,570
Deferred revenue, current	34,325		34,909
Deferred revenue, non-current	7,810		10,615


As of March 31, 2024	Amortized Costs		Gross Unrealized Gain		Gross Unrealized Loss		Estimated Fair Value		Cash and Cash Equivalents		Restricted Cash (Current & Non-current)		Short-Term Investments
Cash	$	53,943	$	—	$	—	$	53,943	$	53,943	$	—	$	—
Level 1:
Money market funds	37,633		—		—		37,633		37,172		461		—
Subtotal	91,576		—		—		91,576		91,115		461		—
Level 2:
Term deposit	25,147		—		—		25,147		25,147		—		—
Commercial paper	1,049		—		(1)		1,048		—		—		1,048
Subtotal	26,196		—		(1)		26,195		25,147		—		1,048
Total assets	$	117,772	$	—	$	(1)	$	117,771	$	116,262	$	461	$	1,048


As of March 31, 2023	Amortized Costs		Gross Unrealized Gain		Gross Unrealized Loss		Estimated Fair Value		Cash and Cash Equivalents		Restricted Cash (Current & Non-current)		Short-Term Investments
Cash	$	95,828	$	—	$	—	$	95,828	$	95,828	$	—	$	—
Level 1:
Money market funds	8,935		—		—		8,935		8,935		—		—
Treasury securities	1,599		4		(1)		1,602		—		—		1,602
Subtotal	106,362		4		(1)		106,365		104,763		—		1,602
Level 2:
Certificate of deposit	1,329		—		—		1,329		—		1,329		—
Commercial paper	8,610		—		(2)		8,608		6,637		—		1,971
Corporate debt	22,625		55		(25)		22,655		—		—		22,655
Subtotal	32,564		55		(27)		32,592		6,637		1,329		24,626
Total assets	$	138,926	$	59	$	(28)	$	138,957	$	111,400	$	1,329	$	26,228


	March 31, 2024			March 31, 2023
Estimated fair value of detachable warrants	$	3,321		$	5,497
Unobservable inputs:
Stock volatility	87.2		%	67.2		%
Risk-free rate	4.3		%	3.6		%
Expected term	3.4 years			4.4 years


	For the years ended March 31,
	2024		2023		2022
Service revenue	$	700,579	$	710,044	$	602,357
Other revenue	28,126		33,894		35,773
Total revenue	728,705		743,938		638,130
Cost of service revenue	192,960		198,871		195,909
Cost of other revenue	31,945		42,604		51,649
Total cost of revenue	224,905		241,475		247,558
Gross profit	503,800		502,463		390,572
Operating expenses:
Research and development	136,216		142,491		112,387
Sales and marketing	271,944		311,883		314,223
General and administrative	112,209		108,001		118,103
Impairment of long-lived assets	11,034		6,380		—
Total operating expenses	531,403		568,755		544,713
Loss from operations	(27,603)		(66,292)		(154,141)
Other expense, net	(36,347)		(4,044)		(21,629)
Loss before provision (benefit) for income taxes	(63,950)		(70,336)		(175,770)
Provision (benefit) for income taxes	3,642		2,807		(387)
Net loss	$	(67,592)	$	(73,143)	$	(175,383)

Net loss per share:
Basic and diluted	$	(0.56)	$	(0.63)	$	(1.55)
Weighted average number of shares:
Basic and diluted	121,106		115,959		113,354


	For the years ended March 31,
	2024		2023		2022
Interest expense	$	(35,352)	$	(23,020)	$	(2,271)
Amortization of debt discount and issuance costs	(4,472)		(4,254)		(20,404)
Gain on warrants remeasurement	2,176		417		—
Gain (loss) on debt extinguishment	(1,766)		18,545		—
Gain (loss) on sale of assets	(179)		1,821		(68)
Gain (loss) on foreign exchange	(1,032)		993		908
Other income	4,278		1,454		206
Other expense, net	$	(36,347)	$	(4,044)	$	(21,629)


	March 31,
	2024		2023
Trade accounts receivable	$	59,757	$	63,501
Unbilled trade accounts receivable	4,470		5,668
Less: allowance for credit losses	(2,746)		(3,644)
Less: allowance for sales reserves	(2,502)		(3,218)
Total accounts receivable, net	$	58,979	$	62,307


	March 31,
	2024				2023
	Credit Losses		Sales Reserves		Credit Losses		Sales Reserves
Beginning balance	$	(3,644)	$	(3,218)	$	(3,373)	$	(5,527)
Provision (reserve)	(1,969)		(3,581)		(3,255)		(3,421)
Recoveries (Write-offs)	2,867		4,297		2,984		5,730
Ending balance	$	(2,746)	$	(2,502)	$	(3,644)	$	(3,218)


	March 31, 2024						March 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology	$	46,454	$	(36,823)	$	9,631	$	46,461	$	(28,361)	$	18,100
Customer relationships	105,827		(28,741)		77,086		105,836		(16,824)		89,012
Trade names and domains	584		(584)		—		584		(584)		—
Total acquired identifiable intangible assets	$	152,865	$	(66,148)	$	86,717	$	152,881	$	(45,769)	$	107,112


	Amount
2025	$	19,095
2026	13,896
2027	11,757
2028	11,044
2029 and thereafter	30,925
Total	$	86,717


	Amount
Balance at March 31, 2022	$	266,867
Foreign currency translation	(4)
Balance at March 31, 2023	266,863
Foreign currency translation	(289)
Balance at March 31, 2024	$	266,574


	March 31, 2024	March 31, 2023
Weighted average remaining lease term	6.2 years	7.0 years
Weighted average discount rate	4.3%	4.1%


	March 31, 2024		March 31, 2023
Principal	$	—	$	63,295
Unamortized debt discount and issuance costs	—		(363)
Net carrying amount	$	—	$	62,932


	Year Ended March 31,
	2024		2023		2022
Contractual interest expense	$	265	$	1,177	$	2,271
Amortization of debt discount and issuance costs	363		1,694		20,404
Total interest expense	$	628	$	2,871	$	22,675


	Number of Shares	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (in Years)
Balance at March 31, 2021	8,646	$	19.27	1.85
Granted	8,333	21.37
Vested and released	(5,146)	19.82
Forfeited	(2,458)	20.85
Balance at March 31, 2022	9,375	20.41		2.11
Granted	13,297	5.71
Vested and released	(5,275)	19.18
Forfeited	(4,404)	12.46
Balance at March 31, 2023	12,993	8.56		1.84
Granted	7,186	3.85
Vested and released	(7,613)	8.87
Forfeited	(2,241)	7.13
Balance at March 31, 2024	10,325	$	5.36	1.75


Year Ended March 31,	Value per Weighted Average Share		Volatility Range			Risk-Free Interest Rate Range
2024	$	3.25	68.85%	—	68.97%	4.03%	—	4.08%
2023	$	7.05	51.96%	—	69.30%	3.15%	—	4.42%
2022	$	30.98	58.65%	—	59.67%	0.34%	—	0.40%


	March 31,
Current:	2024		2023		2022
Federal	$	714	$	423	$	—
State	2,384		1,331		145
Foreign	544		1,053		721
Total current tax provision	3,642		2,807		866
Deferred
Federal	—		—		(984)
State	—		—		(269)

Total deferred tax provision	—		—		(1,253)
Income tax provision (benefit)	$	3,642	$	2,807	$	(387)


Index to Financial Statements						Page
Report of Independent Registered Public Accounting Firm						45
Consolidated Balance Sheets						46
Consolidated Statements of Operations						47
Consolidated Statements of Comprehensive Loss						48
Consolidated Statements of Stockholders' Equity						49
Consolidated Statements of Cash Flows						50
Notes to Consolidated Financial Statements						52


			8X8, INC.
			By: /s/ Samuel Wilson Samuel Wilson Chief Executive Officer


Signature	Title	Date

/s/ Samuel Wilson Samuel Wilson	Chief Executive Officer and Director (Principal Executive Officer)	May 21, 2024

/s/ Kevin Kraus Kevin Kraus	Chief Financial Officer (Principal Financial Officer)	May 21, 2024

/s/ Suzy Seandel Suzy Seandel	Chief Accounting Officer (Principal Accounting Officer and Duly Authorized Officer)	May 21, 2024

/s/ Jaswinder Pal Singh Jaswinder Pal Singh	Chairman and Director	May 21, 2024

/s/ Monique Bonner Monique Bonner	Director	May 21, 2024

/s/Todd Ford Todd Ford	Director	May 21, 2024

/s/Alison Gleeson Alison Gleeson	Director	May 21, 2024

/s/ Elizabeth Theophille Elizabeth Theophille	Director	May 21, 2024


Name						Where Incorporated










8x8 UK Limited						United Kingdom













Fuze, Inc.						Delaware