Summary
8x8 closed fiscal 2022 with fourth quarter revenue of $181.37 million, up 25.3% from the prior-year quarter. Full fiscal year revenue was $638.13 million, up 19.9% from fiscal 2021. Gross profit was $112.87 million, up 35.0% from the prior-year quarter, and gross margin was 62.2%, up from the prior-year quarter. The top line carried acquisition lift from Fuze, but GAAP profitability remained negative. GAAP operating loss was $40.54 million, and the loss widened from the prior-year quarter. Net loss was $45.58 million, and the loss widened. Diluted EPS was negative $0.39, and the loss per share narrowed.
Cash generation improved sharply. Operating cash flow was $16.53 million in the quarter, up from the prior-year quarter, and $34.68 million for the full fiscal year, up from fiscal 2021. Capital expenditures were $1.22 million in the quarter, down from the prior-year quarter, and $4.14 million for the fiscal year, down from fiscal 2021. Deferred revenue, current portion, was $34.26 million, up 65.2% from the prior-year quarter. On a non-GAAP basis, operating profit was $4.2 million in the quarter, compared with $0.6 million in the prior-year quarter, and $10.6 million for fiscal 2022, compared with a non-GAAP operating loss of $11.1 million in fiscal 2021. Non-GAAP gross margin was 67%, compared with 61% in the prior-year quarter. The company still reported a GAAP operating margin of negative 22.4%, an improvement from the prior-year quarter. For the full fiscal year, GAAP operating margin was negative 24.2%, an improvement from fiscal 2021.
The customer mix continued to shift upmarket. Total ARR grew 33% to $687 million. Enterprise ARR rose 55% to $393 million, and enterprise customers with ARR above $100,000 reached 1,320, an increase of 73% from the end of 2021. Enterprise ARR was 57% of total ARR, mid-market was 19%, and small business was 24%. Mid-market ARR was $128 million, and small business ARR was $166 million. Total ARR included approximately $113 million acquired through the Fuze transaction. The service subscriber base grew from approximately 58,000 customers on March 31, 2021 to more than 60,000 on March 31, 2022. Fuze, acquired in January 2022 for approximately $213.8 million in stock and cash, contributed about ten weeks of results. Product news included general availability of 8x8 Agent Workspace, the launch of 8x8 Conversation IQ, and expansion of 8x8 Global Reach to 50 countries and territories, covering approximately 85% of world GDP. The company also delivered an integrated cloud phone and contact center solution in Indonesia and received industry recognition, including a Best of Enterprise Connect 2022 award.
Guidance points to continued growth with a modest non-GAAP profit target. For the first quarter of fiscal 2023 ending June 30, 2022, total revenue is expected to be $185 million to $188 million, with service revenue of $177 million to $180 million and a non-GAAP operating margin of 2% to 2.5%. For the full fiscal year 2023 ending March 31, 2023, total revenue is expected to be $775 million to $790 million, service revenue is expected to be $740 million to $755 million, and non-GAAP operating margin is expected to be 2% to 3%. Management does not reconcile forward-looking non-GAAP operating margin to GAAP because of uncertainty around excluded items such as stock-based compensation and acquisition costs. Risks include lower customer adoption and demand, economic downturns tied to COVID-19, Russia's invasion of Ukraine, inflation and rising interest rates, competitive changes in cloud communications, supply chain disruptions, intellectual property claims, and higher customer churn. The company also flagged that other revenue could decrease in fiscal 2023 because of continued supply chain limitations, and it will need to refinance $500 million of convertible senior notes before maturity on February 1, 2024. No single customer represented more than 10% of total revenues during fiscal 2022.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2022 | Q3 FY2022 | QoQ | Q4 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $181.4M | $156.9M | +15.6% | $144.7M | +25.3% |
| Research & development | $30.6M | $27.9M | +9.6% | $25.3M | +21.0% |
| Sales & marketing | $84.8M | $76.8M | +10.4% | $70.7M | +19.9% |
| General & administrative | $38.0M | $29.9M | +27.0% | $27.7M | +37.4% |
| Total operating expenses | $221.9M | $194.5M | +14.1% | $184.8M | +20.1% |
| Operating income (loss) | -$40.5M | -$37.6M | -7.8% | -$40.0M | -1.3% |
| Operating margin | -22.4% | -24.0% | +1.6 pp | -27.7% | +5.3 pp |
| Net income (loss) | -$45.6M | -$43.6M | -4.6% | -$45.0M | -1.2% |
| Net margin | -25.1% | -27.8% | +2.6 pp | -31.1% | +6.0 pp |
| Diluted EPS | -$0.40 | -$0.38 | -$0.02 | — | — |
| Customers | 8 | 734 | -98.9% | 8 | ±0.0% |
Risks
8x8 recorded an operating loss of approximately $154.1 million for the twelve months ended March 31, 2022 and ended the period with an accumulated deficit of approximately $766.4 million; it expects to continue incurring losses in the near future as it invests in sales and marketing and research and development.
The company expects it will need to refinance $500 million of convertible senior notes prior to maturity on February 1, 2024, and the notes are described as significantly out of the money; failure to refinance or generate sufficient cash flow could lead to default or highly dilutive alternatives.
The January 2022 Fuze acquisition for approximately $213.8 million in stock and cash may not realize anticipated growth opportunities and synergies, with risks including integration delays, retaining key employees, undisclosed liabilities, and dilution from shares issued to former Fuze securityholders.
The Russia-Ukraine conflict and related sanctions could disrupt operations because 8x8 has a significant engineering and operations presence in Romania, which borders Ukraine; expansion of the conflict to surrounding countries would negatively impact the company and its employees.
Competitors are increasing compensation and paying more for similar roles, and 8x8 has seen attrition increase in the last 12 months; retaining senior management, sales, and engineering talent may require higher compensation or more equity, increasing operating losses and stockholder dilution.
Inflationary pressures impacting the company's cost structure, COVID-19 variants, and any resulting downturn in general economic conditions may slow revenue growth, increase churn, or require access to capital markets at an unfavorable time.
As 8x8 increases sales to mid-market and enterprise customers, its sales process has become more complex and resource-intensive, its average sales cycle has become longer, and predicting when sales will close has become more difficult.
Other revenue decreased slightly in fiscal 2022 due to difficulty obtaining hardware from supply chain issues, and management expects other revenue could decrease in fiscal 2023 due to continued supply chain limitations.
The cloud communications market is intensely competitive, with large competitors such as Microsoft, Zoom, RingCentral, and others that may have greater resources, brand awareness, aggressive pricing, or bundled offerings, potentially requiring 8x8 to lower prices and reduce revenue.
The risk factors note that a decline in usage related to increases in return to office could affect operating results, and MD&A states it is possible that as businesses return to in-person work, demand for some products could decline.
Taxing authorities have asserted that 8x8 should have collected sales and use, value added, or similar taxes; the company files more than 1,000 state and municipal tax returns monthly and several jurisdictions are conducting audits, with unsuccessful positions potentially resulting in payments, interest, and penalties in excess of accruals.
SaaS KPIs
All quarters →Non-GAAP gross margin
Total ARR
Non-GAAP Operating Profit
Non-GAAP operating margin
Enterprise ARR
Customers > $100K ARR
Non-GAAP Service Margin
Mid-market and enterprise ARR as % of total ARR
Summary, forecast, risks and KPIs are extracted from 8X8 INC /DE/'s SEC filings for Q4 FY2022 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.