8x8, Inc. reported its financial results for the three and six months ended September 30, 2024, revealing a decline in total revenue and an increase in operating expenses compared to the previous fiscal period. Total revenue for the three months was $180.998 million, down from $184.999 million in the same period of 2023. For the six months, revenue decreased to $359.145 million from $368.286 million year-over-year. The decline in revenue was primarily attributed to a decrease in subscription revenue from the Fuze platform, which fell by $3.8 million in Q3 2024 and $9.6 million for the six-month period.
Despite the revenue drop, total operating expenses for the three months ended September 30, 2024, decreased to $116.006 million from $130.480 million in the prior year, contributing to an income from operations of $7.169 million, a significant improvement from a loss of $2.583 million in Q3 2023. However, the company reported a net loss of $14.543 million for the three months, compared to a net loss of $7.452 million in the same period last year. For the six months, the net loss increased to $24.833 million from $22.779 million in 2023.
The company’s cash and cash equivalents as of September 30, 2024, totaled $117.405 million, a slight increase from $116.262 million at the end of the previous fiscal period. Accounts receivable also rose to $64.567 million from $58.979 million. Total current liabilities increased significantly to $208.840 million from $172.584 million, reflecting the company’s ongoing financial obligations.
In terms of strategic developments, 8x8 entered into a new term loan agreement in July 2024, securing $200 million to refinance its previous debt. The entire amount was drawn on August 5, 2024, to repay the $225 million outstanding on the 2022 Term Loan, resulting in a $12 million loss on debt extinguishment. The new loan has an effective interest rate of 8.76% and is set to mature in August 2027.
The company also faced regulatory scrutiny, having received an inquiry from the FCC regarding potential violations related to prior filings. In November 2024, 8x8 entered into a Consent Decree with the FCC, agreeing to implement a compliance plan and pay a civil penalty of $0.3 million.
Overall, 8x8's financial performance reflects challenges in revenue generation amid increased operational costs and ongoing regulatory matters, while the company continues to navigate its strategic financial restructuring.
About 8X8 INC /DE/
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