8×8 Inc Stock Fair Value – 8X8 INC Reports First Quarter FY2024 Earnings, Ending August 8 2023
August 19, 2023
🌥️Earnings Overview
On August 8, 2023, 8X8 INC ($NASDAQ:EGHT) reported their fiscal first quarter earnings results for the period ending June 30, 2023. Total revenue for the quarter was USD 183.3 million, a 2.3% decrease year-over-year. Net income reported was -15.3 million, an improvement from -26.0 million in the prior year.
Price History
On Tuesday, 8X8 INC reported their first quarter earnings ending August 8 2023. As the stock opened at $4.5 per share, this was a 9.5% drop from their prior closing price of $4.6. Despite the dip in stock price, 8X8 INC is confident in their financial performance and outlook for the rest of the year. Revenue for the quarter was in line with analyst’s expectations and the company achieved an impressive growth in both their customer base and total contracts.
This strong performance was driven by the ongoing demand for their cutting-edge cloud solutions and expense management services. Looking ahead, 8X8 INC expects to continue to grow their business and increase shareholder value throughout the remainder of FY2024. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for 8×8 Inc. More…
| Total Revenues | Net Income | Net Margin |
| 739.61 | -62.43 | -10.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for 8×8 Inc. More…
| Operations | Investing | Financing |
| 69.42 | 18.68 | -62.85 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for 8×8 Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 828.46 | 723.59 | 0.9 |
Key Ratios Snapshot
Some of the financial key ratios for 8×8 Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.2% | -26.2% | -2.4% |
| FCF Margin | ROE | ROA |
| 7.3% | -10.8% | -1.3% |
Analysis – 8×8 Inc Stock Fair Value
At GoodWhale, we specialize in analyzing fundamentals of publicly traded stocks. Recently, we’ve taken a closer look at 8X8 INC and the results of our analysis are quite promising. Our proprietary Valuation Line has determined that the fair value of 8X8 INC share is around $17.4. However, the current price of the stock is just $4.2, which means it is undervalued by 75.8%. This offers investors an opportunity to buy a stock at a bargain price and benefit from its potential upside. We believe 8X8 INC’s strong fundamentals and attractive valuation makes it an attractive investment option. More…
Peers
It is the only company among its competitors, Consensus Cloud Solutions Inc, Dubber Corp Ltd, and Alarm.com Holdings Inc, to offer a comprehensive suite of cloud-based communication and collaboration services. 8×8 Inc is committed to providing businesses with an integrated, comprehensive and secure solution to their communication needs.
– Consensus Cloud Solutions Inc ($NASDAQ:CCSI)
Consensus Cloud Solutions Inc is a software technology company that provides cloud-based solutions to businesses and organizations. The company’s market cap of 1.17B as of 2023 reflects the value of the company in the eyes of the market. Furthermore, its Return on Equity of -36.59% reveals that it has not been successful in generating profits for its investors. Nevertheless, the company continues to invest in its cloud technology solutions, enabling businesses to improve their productivity and efficiency.
– Dubber Corp Ltd ($ASX:DUB)
Dubber Corp Ltd is a technology company that provides cloud-based call recording services. It has a market cap of 124.57M as of 2023 and a Return on Equity of -26.68%. This indicates that the company has been underperforming in terms of profitability and return for its investors. The market cap of 124.57M implies that the company is not highly valued by the market and that investors have not been overly optimistic about its future prospects. Despite this, Dubber Corp Ltd has continued to invest in innovation and technology, leading to steady growth in its customer base and revenues.
– Alarm.com Holdings Inc ($NASDAQ:ALRM)
Alarm.com Holdings Inc is a technology company that provides connected home solutions for homes and businesses. The company’s products include sensors, video surveillance, access control, energy management and home automation services. As of 2023, the company has a market cap of 2.83 billion and a Return on Equity of 5.57%, which indicates that the company is performing well financially. This is likely due to the increasing demand for their products and services as they continue to innovate and expand their offerings.
Summary
Investors responded negatively to 8X8 INC‘s first quarter FY2024 earnings report, as total revenues decreased by 2.3% year-over-year and net income resulted in a loss of -15.3 million, while the prior year had reported a loss of -26.0 million. This underperformance of the company’s financials has led to a decrease in stock price, suggesting investors are wary of 8X8 INC long-term prospects. Analysts should keep an eye on the company’s upcoming earnings reports to understand whether the company can recover from this setback and continue to deliver positive returns.
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