8×8, Inc. (NASDAQ:EGHT)
8×8, Inc. (NASDAQ:EGHT) has moved to expand its global cloud communications network with the signing of a new agreement partnership with IWG plc. The agreement expands the two companies existing contract for cloud-based unified communications to 13 new countries. The two have also agreed to provide a broad range of services to Regus customers after extending the term of their contract to 2020.
8×8 –IWG Agreement
The agreement provides a framework for the two companies to accelerate deployment of office centers in the U.S, UK, Ireland and Germany in addition to the 13 other countries. Regus clients will also be able to enjoy additional communications, collaboration and contact center services in addition to basic UC Service offerings.
“We want to provide our hundreds of thousands of business customers that currently utilize our traditional on-premises voice services with access to the most reliable and advanced cloud-based communications services available, including mobile apps, messaging, web, and video conferencing, collaboration and contact center. 8×8’s services have been instrumental thus far in advancing our global communications and contact center initiatives […],” said Chief information officer, Andre Sharpe.
The signing of the extended partnership with IWG plc. Comes on the heels of 8×8, Inc. (NASDAQ:EGHT) reporting fourth-quarter earnings that beat Wall Street estimates. The developer of world’s first communications cloud says it generated a net loss of (-$2.9) million or (-$0.03) a share. Analysts were expecting the company to post a net loss of (-$0.05) a share.
Revenues also beat Wall Street estimates, having increased by 16% to $66.5 million against analysts’ estimates of $65.6 million. Gross margin was also up having soared to 77% from 72% reported for the previous year.
For the full year FY2017, 8×8, Inc. (NASDAQ:EGHT) revenues totaled $253.4 million representing a 23% YoY increase. Service revenues from mid-market/enterprise customers also grew by 37% compared to last year same period. Net loss for the full year soared to (-$4.8) million compared to a net income of $21.6 million reported in F2016.
Full year gross margin improved to 75% compared to 73% in fiscal 2016. 8×8 cash and cash equivalent as of March 31, 2017, stood at $175 million compared to $163 million as of March 31, 2016.
The financial results according to the chief executive officer Vik Verma demonstrate ongoing growth in mid-market and enterprise business segments.
8×8, Inc. (NASDAQ:EGHT) stock was up by 2.66% in Friday’s trading session after ending the day at $13.5 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.