Q3 2026 8x8 Inc Earnings Call Transcript
Key Points
- 8x8 Inc (EGHT) reported its third consecutive quarter of year-over-year service revenue growth and its twentieth consecutive quarter of positive operating cash flow.
- Usage-based offerings grew nearly 60% year over year, now representing more than 20% of service revenue.
- The company saw a 70% year-over-year increase in customer contracts for its Intelligent Customer Assistant and a 200% increase in Voice AI interactions.
- 8x8 Engage, one of the company's fastest-growing products, achieved triple-digit growth year over year and won Gold at the London Design Awards for user experience.
- The company successfully completed the upgrade of Fuze customers to the 8x8 platform, improving operational efficiency and customer satisfaction.
- The decommissioning of the Fuze platform created a near-term revenue headwind, resulting in higher churn in Q3.
- Gross margin decreased due to a shift towards usage-based offerings, which carry a lower margin profile.
- The company anticipates a year-over-year decrease in revenue generated by former Fuze customers in the upcoming quarters.
- There is a need to accelerate installed base expansion and drive stronger channel momentum to navigate competitive market dynamics.
- Operating expenses are expected to increase in Q4 due to seasonal factors, impacting operating margins.
Good day, everyone. Welcome to 8x8, Inc.'s, third-quarter 2026 earnings conference call.
(Operator Instructions) This conference is being recorded.
Now, it's my pleasure to turn the call over to the Head of Investor Relations, Kate Patterson.
Thank you. Good afternoon, everyone.
Today's agenda will include a review of our results for the third quarter of fiscal 2026 with Samuel Wilson, our Chief Executive Officer; and Kevin Kraus, our Chief Financial Officer.
Following our prepared remarks, there will be a question-and-answer session.
In addition to our prepared remarks, we have posted a more detailed Letter to Shareholders in the Quarterly Results section of our Investor Relations website.
Before we get started, let me remind you that our discussion today includes forward-looking statements about future financial performance, including investments in innovation and our focus on profitability and cash flow, as well as
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