Cloud communications provider 8x8 (NASDAQ: EGHT) will be reporting results this Tuesday after market hours. Here’s what investors should know.
8x8 beat analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $184.1 million, up 1.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ revenue estimates.
Is 8x8 a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting 8x8’s revenue to be flat year on year at $179.7 million, improving from the 1.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. 8x8 has missed Wall Street’s revenue estimates four times over the last two years.
Looking at 8x8’s peers in the productivity software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Microsoft delivered year-on-year revenue growth of 16.7%, beating analysts’ expectations by 1.2%, and ServiceNow reported revenues up 20.7%, topping estimates by 1%. Microsoft traded down 5.9% following the results while ServiceNow was also down 10.2%.
Read our full analysis of Microsoft’s results here and ServiceNow’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the productivity software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 12.5% on average over the last month. 8x8 is down 14.9% during the same time and is heading into earnings with an average analyst price target of $2.25 (compared to the current share price of $1.67).
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