8x8 Shares Rise 2% on Strong Earnings and Guidance Surpassing Expectations

CAMPBELL, Calif. - Cloud communications provider 8x8, Inc. (NASDAQ:EGHT) saw its shares rise by 2% in after-hours trading on Monday following the announcement of better-than-expected second-quarter results and positive guidance. The company reported a diluted earnings per share of $0.09 for the quarter ending on September 30, surpassing analysts' estimate of $0.08. Revenue came in at $181 million, exceeding the consensus expectation of $178.38 million. Service revenue, which constitutes a large portion of 8x8's total revenue, was $175.1 million in the second quarter, showing a slight decline compared to $177.8 million in the same period last year. However, the company highlighted that sales of new products, driven by AI-based solutions, increased by more than 60% year-over-year. 8x8's CEO, Samuel Wilson, stated, "We are pleased to report a solid quarter reflecting the initial signs of success from our investments in innovation and transformation strategy." Looking ahead, 8x8 provided a revenue forecast for the third quarter of $177 million to $182 million, against the analysts' expectation of $181 million. For the full fiscal year 2025, the company predicts revenue in the range of $714 million to $727 million, compared to the consensus estimate of $720 million. The company also reported its positive cash flow from operations for the 15th consecutive quarter, highlighting its improving financial position. 8x8 has reduced its total debt by more than $173 million, or 32%, over the last two years.