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8x8 (EGHT) Degree of Operating Leverage : 64.06 (As of Mar. 2025)


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What is 8x8 Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. 8x8's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 64.06. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for 8x8's Degree of Operating Leverage or its related term are showing as below:

EGHT's Degree of Operating Leverage is ranked worse than
96.4% of 2665 companies
in the Software industry
Industry Median: 0.79 vs EGHT: 64.06

8x8 Degree of Operating Leverage Historical Data

The historical data trend for 8x8's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

8x8 Degree of Operating Leverage Chart

8x8 Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.45 0.24 -4.33 21.48 64.06

8x8 Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.48 5.50 -33.09 8.02 64.06

Competitive Comparison of 8x8's Degree of Operating Leverage

For the Software - Application subindustry, 8x8's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


8x8's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, 8x8's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where 8x8's Degree of Operating Leverage falls into.


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8x8 Degree of Operating Leverage Calculation

8x8's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 4.793 (Mar. 2025) / -24.126 (Mar. 2024) - 1 )/( 715.07 (Mar. 2025) / 728.705 (Mar. 2024) - 1 )
=-1.1987/-0.0187
=64.06***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


8x8  (NAS:EGHT) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


8x8 Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of 8x8's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


8x8 Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » 8x8 Inc (NAS:EGHT) » Definitions » Degree of Operating Leverage
Traded in Other Exchanges
Address
675 Creekside Way, Campbell, CA, USA, 95008
8x8 Inc provides contact-center-as-a-service and unified-communications-as-a-service software applications to approximately 2.5 million users. The company's unified platform enables omnichannel communication to assist employees in communicating across voice, video, text, chat, and contact centers. The Company also generates revenue from sales of hardware and professional services, which are complementary to the delivery of its integrated technology platform.. Geographically, it derives a majority of revenue from the United States.
Executives
Kevin Kraus officer: Interim Chief Financial Off. C/O 8X8 INC 675 CREEKSIDE WAY, CAMPBELL CA 95008
Laurence Denny officer: Chief Legal Officer C/O 8X8 INC 675 CREEKSIDE WAY, CAMPBELL CA 95008
Suzy M Seandel officer: Chief Accounting Officer C/O 8X8 INC. 675 CREEKSIDE WAY, CAMPBELL CA 95008
Hunter Middleton officer: Chief Product Officer C/O 8X8 INC 675 CREEKSIDE WAY, CAMPBELL CA 95008
Samuel C. Wilson officer: Chief Financial Officer C/O 8X8 INC, 675 CREEKSIDE WAY, CAMPBELL CA 95008
Monique Bonner director C/O 8X8, INC, 675 CREEKSIDE WAY, CAMPCALL CA 95008
Elizabeth Harriet Theophille director 26 FURFELDERSTRASSE, RIEHEN V8 4125
Daniel Patrick Gibson 10 percent owner 400 FAIRVIEW AVENUE NORTH, SUITE 1200, SEATTLE WA 98109
Sylebra Capital Ltd 10 percent owner 28 HENNESSY ROAD, 20TH FLOOR, WAN CHAI, HONG KONG K3 00000
Eric Salzman director C/O 8X8 INC., 675 CREEKSIDE WAY, CAMPCALL CA 95008
Matthew Zinn officer: SVP-GC,Secretary and CPO 2160 GOLD STREET, ALVISO CA 95002
David Sipes officer: Chief Executive Officer 1400 FASHION ISLAND BLVD.,, SUITE 7TH FLOOR, SAN MATEO CA 94404
Stephanie Garcia officer: Chief Human Resources Officer C/O 8X8 INC 675 CREEKSIDE WAY, CAMPBELL CA 95008
Dejan Deklich officer: Chief Product Officer 2125 O'NEL DR., SAN JOSE CA 95131
Germaine Cota officer: Chief Accting Off./Treasurer 675 CREEKSIDE DRIVE, CAMPBELL CA 95008