8x8, Inc. Common Stock Investor update

Welcome, everyone. Thanks for joining us today for our 8x8 Investor update. We are going to handle this a little bit differently today, more of a talk show format with slides accompanying it. I am here with Sam Wilson, our CEO, Bryan Martin, our CTO, and Kevin Kraus, our CFO, and they will be here to answer questions and take us through. Before we get started, I want to transition to our safe harbor statement and a couple of other housekeeping items. I just want to caution, let me remind you that today's discussion includes forward-looking statements about future financial performance, including investments in innovation, focus on profitability and cash flow, and other statements regarding our business, products, and growth strategies. We caution you to not put any undue reliance on these and take no obligation to update.

I also want to remind you that we will include non-GAAP financial measures, and the appendix to the slides will have a reconciliation of those non-GAAP to the corresponding GAAP metrics. With that, let's turn over to our regular content. Oops. Oh, sorry. You have a question.

Housekeeping. Yes, housekeeping item. If you would like to ask any questions in the chat, this is how to do it. Hover over the bottom of your screen. The chat window or the menu will come up. Just click on the chat window, and you can enter your question. I will be monitoring that chat window for any questions that come up. Okay. I think, Sam, it is a good time for you to talk about why 8x8.

Okay. I feel passionately about this because it's 8x8, and I'm the Chief Executive Officer of the company. I just want to remind investors some of the basics about what we do and how we do it, right? It's a large and growing market opportunity, and by large it's, I don't know, $100 billion, $150 billion, $200 billion. A really big number compared to our $735 million a year in revenue. It's super important that we remember that this is a large opportunity that is coming our way because we are still in the process of moving from on-prem to cloud. Our opportunity inside of the large TAM is a growing opportunity around the cloud version of it. That growth has slowed down from the heyday, like all technology adoptions.

They slow down from the heyday. You still have a core tailwind around the on-prem to cloud. Second, voice network creates a structural advantage. There's this belief that with the hyperscalers in existence, the ability for software companies to create structural advantage, infrastructure advantage if you will, is changed. Maybe it has for some companies, but it certainly hasn't for us, right? We have a global voice network that we've been investing in. We offer PSTN replacement to 59 countries. We have users in 150 countries. We make billions of phone calls per year, and it transverses across our network. We believe this voice network becomes more important in an age of AI. I gave a talk not too long ago, and I showed a picture of James Kirk from "Star Trek" talking to his AI in the sixties.

Gene Roddenberry clearly understood that Kirk was going to speak to his AI. He had no keyboard. He was not furiously typing away at 30 words a minute. He was speaking to his AI. I'm a firm believer that the next billion phone numbers used in the world will be with AI agents, and those will be used, and we offer a global voice network, and that is a structural advantage. We have a unified platform with native AI. What does that mean? We offer voice, video, chat, contact center, field service workers. We offer CPaaS. We offer it on one unified platform, which means common analytics, common administration, common user interface, common conversational OS, common capabilities that allow users and customers to mix and match that technology for success. We've re-accelerated growth, right? We've had 5 quarters of year-over-year growth.

We dipped as we retrenched the company and expanded our product portfolio. There was much doubt in the investor community whether we'd grow again. We've had record revenues. Lastly, we've had record profitability in terms of dollars of profits over the last year or 2, and we've used that to continue to de-lever the balance sheet, pay off debt, and drive more and more profits into the company. Remember, when we pay off debt, that means less interest. Less interest means higher EPS over time, all things being equal. I think these are just core aspects of what makes us a company, right? We're a software company in the telecom space. We have AI, we have a unified platform, we have global capabilities, and our customers value that tremendously from us.

Okay, we'll come back to each of those as we go through the presentation. I am now going to turn it to Kevin to take us through the numbers.

Yeah. Okay. This complements some of what Sam has already said. We are a growing business. Last fiscal year, $736 million in revenue. We serve over 52,000 customers globally. You heard from Sam, we're a PSTN replacement in over 50 countries around the world. We have a lot of third-party validation that goes along with our success. We've been a multi-year Gartner Magic Quadrant winner in both unified communications and contact center. Strong Performer awards for both unified communications and contact center in Forrester. We've got a lot of other customer success-oriented awards, lots of Stevies.