8x8 (EGHT) Investor update summary

Market Opportunity and Platform Strategy

• Addressing a $100B+ market with a focus on cloud migration, unified communications, and a $22B+ voice AI market by 2026, leveraging a global voice network and AI-driven platform for competitive advantage.

• Unified platform integrates voice, video, chat, meetings, contact center, CPaaS, collaboration, digital engagement, agentic AI, and APIs, enabling seamless analytics, administration, and enhanced customer relationships.

• Recognized as a market leader in UCaaS and CCaaS, with presence in 50+ countries and over 52,000 global customers.

• Large and growing market opportunity, with structural advantage from a global voice network and unified AI-enabled platform.

Financial Performance and Growth Drivers

• Fiscal year revenue reached $736M, with Q1'27 service revenue of $185M (+5.1% YoY) and total revenue of $190M (+4.9% YoY), serving over 52,000 customers globally.

• Fifth consecutive quarter of year-over-year growth, with 18% YoY growth in customers using 3+ products and 22 consecutive quarters of positive operating cash flow.

• Multi-product customer growth up 18%, and excluding Fuze migration headwinds, revenue growth rate was 8% last quarter.

• Non-GAAP operating margin was 9.9%, with $17M in operating cash flow and $92M in cash at quarter end.

• Debt reduced by 40% since FY'23, with continued repayments funded by cash flow and a target of zero net debt.

AI Innovation and Product Development

• Early adopter of AI in communications, now offering a holistic AI approach across all communications data for better outcomes.

• AI Studio launched, enabling rapid deployment of AI agents, with over 3,200 agents built and 75% conversion to paying customers within 10 weeks of open beta.

• 67% YoY increase in customers with paid AI solutions, and 18% YoY increase in recurring revenue from AI products; these customers generate 14x the average annual revenue and >100% net retention.

• AI-driven features include real-time transcription, conversation intelligence, smart replies, advanced analytics, and support for compliance and security needs.

• AI products drive higher retention and larger deal sizes, with 9% of recurring revenue now attached to AI offerings.