8 x 8 INC (EGHT)

[TechKim]

I do not think that the expected forward thinking outlook of the CEO, even though the CEO has time and time again proven the business plan continues to work found favor with some of the investment community. The momentum is not stopping, either is the revenue, just a temporary adjustment in operating expenses to evolve the company into a bigger revenue maker.

"We are therefore adjusting our fiscal 2018 non-GAAP pre-tax income guidance from a previously announced range of approximately 7% to 9% of revenue to approximately 3% of revenue, while maintaining our revenue guidance. This increased investment will allow us to accelerate future growth and continue to drive attractive shareholder returns.”

The first part, the adjustment, is what was read and learned, all the while missing the second part future growth.

So I expect that 8x8 will once again have to prove it meaning the future growth.

OPINION

[TechKim]

EGHT enthusiasm. Good reason to feel good.

[TechKim]

AVANT Communications https://www.avantcommunications.net/

[TechKim]

Merrill Lynch upgraded stock price to $19.

[TechKim]

AZURE http://www.azure.com.mt/

[TechKim]

More than 180 major manufacturers partner with Jenne including Avaya, ADTRAN, Extreme Networks, Hanwha Techwin, Konftel, Mitel, Lifesize, Panasonic, Plantronics, Spectralink, Status Solutions, Vidyo, VTech and Yealink.

[TechKim]

Shift to higher quality revenues continues;
re-iterate BUY and $19 (Merrill Lynch)

[TechKim]

Reiterate Rating: BUY | PO:$19.00 USD Merrill Lynch

[TechKim]

Kaboom! 8x8 in motion rising to the next level. Going to be some exciting times rolling along, as 8x8 expands.

I made it in time to the questions and answers. At least I caught part of the conference call.

Looking at the pre market today says investors like it very well. Now it is time to see what the institutional investors do as the market opens.

[TechKim]

Five powerhouse investor conferences forthcoming.

[TechKim]

REGUS - More than 50% of Fortune 500 Companies Choose Regus
http://www.regus.com/

[TechKim]

So we had a big dip day because some analyst out of the blue tosses spooks to investors without any real negative news, other than the company has not found a suitable buyer. Those analyst really need to go back and read and re-read the filings and the transcripts. It is obvious they did not. 8x8 will not be sold to just any buyer. There is a number which has not been released by the company of what they expect the company worth is per share. It is not that there has not been any interest.

Besides 8x8 does not have to be sold. Growth is fabulous. 8x8 is out doing the major telecoms, Fact! The sabotage on the share price is not going to pressure the company to sell for an undervalued price.


Enjoy the show, and buy the dips.

OPINION!

[TechKim]

All the major telecoms delivered less than EGHT.

[TechKim]

$14.95

[TechKim]

My opinion might mean little or maybe a lot to some, but I believe that 8x8 should be in the $21 stock price range as I post. Believing in that opinion I see no reason not to believe that $32 would be a low ball figure on a buy out. Year over year expansion and revenue growth has been extensive and is projected to repeat the same for some time to come. That is fact. So would $42 a share on a buy out be outlandish on the long term outlook?

I ask myself the question. Would shareholders make out better on a buy out or holding 8x8 over time? Like it was mentioned, whether a buyer comes along or not. 8X8 is still going forward.


That is a good question?

[TechKim]

If China Telecom took over 8x8 it could service 20 provinces in China.

[TechKim]

Conference call question on being acquired. Credibility

Jonathan Kees

Okay, thanks for that clarification, that explanation there. My next question is at a higher level. There's been talk in the news in terms of 8x8 being acquired or the Board seeking a strategic alternatives. I guess I want to reconfirm that the Board does not seek strategic alternatives and then two, if you can humorous who could possibly be interested in 8x8. We like the hypothetical just humor us.

Vik Verma

Look, here is the thing. I think you've seen our governance score as a company that I don’t remember the exactly the calculated but we are as shareholder friendly company. I have no blocking rights. I have no - nor do I see, we don't have multiple classes of shares, we don't have classification everything is - I think is blue ribbon from a governance perspective as possible.

We will do what's right for the shareholders. So from time-to-time people express an interest that's fine. Everybody is entitled to express an interest, we have a view on what this company is worth and our view is that the larger the customer - when we can get our midmarket enterprise base, we’re very significant portion of our revenue, the value of the company because the net present value for midmarket and enterprise customers about 35 to 40 times that of SMB customer, that transition we think is well underway and we have - with all of these enterprise customers we have the land and expand opportunities.

So, I think we believe we can get to a certain place on our own so, in order for somebody to make a compelling offer they have to kind of bake in that value for us to be fair to our shareholders but I have a general philosophy if anybody ever comes in and gives us an indication of interest or even kind of makes an overture, I always involve my Board because I believe that is my responsibility, I'm not trying to run this company like a [indiscernible].

So who's interested, you know look all kinds, I mean you can get - there is an alphabet soup of companies that one time or the other either express their interest or circled around adding that to me it really comes down to our - when somebody is willing to pay what I think the company is worth, that’s actually the board's discretion, will do the right thing for our shareholders. Ultimately we serve at a pleasure of shareholders and the goal is to ensure we maximize value for shareholders.

[TechKim]

Like I stated in my previous post. $21 to $32 is where I believe the share price should be. Now on a buy out takeover scenario I believe the high end $32 to $41 is cheap. Year over year growth is fantastic. Some major with their already developed inroads should be able to explode the growth like never been seen before. I just trust that 8x8 will not be sold at bargain prices. 8x8 is going to grow with or without a buyout.
Can those interested companies lay claim that they can and have been growing like EGHT? I doubt it.


http://seekingalpha.com/news/3246509-comms-firm-8x8-jumps-9-percent-report-exploring-sale-bankers

Comms firm 8x8 jumps 9% on report it's exploring sale with bankers

Feb. 24, 2017 3:42 PM ET|By: Jason Aycock, SA News Editor
Comms firm 8x8 (NASDAQ:EGHT) has vaulted 9% on reports that it's exploring a sale.

The company is reportedly working with Morgan Stanley to explore the prospect. Reuters cites sources who say 8x8 could sell to another firm or to private equity.

Market cap for 8x8 is now just about $1.45B.

[TechKim]

EGHT could have added another 3 million to the net profit.

"To date, our exposure to exchange rate volatility has not been significant. However, the June 2016 vote on a referendum to exit the European Union decision has resulted in a steep decline in the exchange rate for GBP to USD. The impact of Brexit to our results of operations for the period ended December 31, 2016 was approximately $3.0 million. "

[TechKim]

Major upgrade from Merril Lynch to $19 target.

8x8, Inc.
Large wins as mid-market accelerates;
reiterate BUY, PO to $19 from $18
Reiterate Rating: BUY | PO: 19.00 USD | Price: 16.40 USD Equity

3Q results continue set up for sustained revs acceleration
3QFY17 showed again both strong mid-market and enterprise traction, including a win
with a division of a Fortune 50 company. More mid-market and enterprise wins are
significant for 8x8 in several ways: (1) 8x8 gains important enterprise reference
customers; (2) it validates 8x8’s strategy of targeting global accounts; (3) validates the
product portfolio; (4) accelerates the shift to high quality revenues; (5) validates our view
that cloud unified communications is an early market at an inflection point with midmarket/
enterprise adoption just beginning.

Acceleration in mid-market revenues
3Q revenues and net income came in ahead of our estimates (see variance on pg 3).
Constant currency (CC) organic services revenue growth (SR) was 28% y/y, up from 25%
in 1HFY17 and 23% in FY16. CC total revenue growth was 24% vs 22% 1HFY17 as
product revenues decline with more customers choosing mobile only solutions, a trend
that will help overall margins. Mid-market represented 55% of services revs (up 45% y/y
CC organically) vs 36% y/y in Q1FY17 and 40% in 2QFY17. New MRR from midmarket/
enterprise customers/channel grew CC organic 10% y/y vs 40% in 2QFY17 on
tough comps and larger customer deployments taking longer. 50%+ of new MRR came
from the install base.

Several revenue growth drivers
8x8 is going through rejuvenation with several key hires and expanded strategy, which is
adding new growth vectors: (1) traction in the enterprise; (2) global expansion; (3)
several major new channel partners (Arrow, CDW, Intelisys, CSG in Australia/New
Zealand); (4) opening up of the line-of-business opportunity; (5) cross -sell/upsell.

Reiterate BUY, PO to $19 from $18
We raised our PO to $19 based on 5x CY18E EV/Revs (previously $18 based on 5.3x
CY17E EV/Revs), ahead of SaaS comps at 4.2x in light of accelerating organic constant
currency service revenue growth rate (23% in FY16, 25% in 1HFY17, 28% in 3QFY17).
We believe 8x8 has bias for revenue acceleration, profitable/capex light model, large
market opportunity.

[nickyKO]

Thanks, Kim.

[TechKim]

Transcript link below. Very rewarding conference call. I have heard many, but this one warms the investor blood in me more than the normal. Pay attention to the Mary Ellen answers. It gives a clearer insight into the financial pathways that is present and guides into the future in my opinion.

http://finance.yahoo.com/news/edited-transcript-eght-earnings-conference-042246828.html

[TechKim]

I listened to the conference call. I remember a while back the main reason why Vic was picked to lead the company. To take the company global. Vic has done that. Now Vic is ready to broaden the global paths in a phase two project he announced today. Mid market growth is phenomenal. One story told was that 8x8 knocked out a competing 12 vendors, while getting in late to the game, to win the customer business. The same story is repeated over and over again per Vic.

One question was asked has there been buy out interest. The answer was yes, but it will not be Vic making that decision, but the board per Vic. So far from what I could comprehend. Does not appear to have been any real serious offers to pay what Vic feels is best for shareholders. ( I really enjoyed that question. Read the transcript.)

Vic emphasized that 8x8 still has to earn name recognition. Even though growth continues. The 8x8 brand name is still weak in the field as a well known name to shopping customers. I expect possibly to see a promo blitz in early spring to get the name out front. I expect Vic to succeed in this endeavor. My opinion.

My opinion is from my own comprehension. Please refer to replay call or transcript.

By the way the bottom line is: EGHT is moving up rapidly in customer based size. Mid market company customers.


:)

[TechKim]

Details of the conference call are as follows:

Date: January 25, 2017
Time: 4:30 pm EST
Dial In: [phone], domestic
[phone], international
Replay: [phone], domestic (Conference ID # 46149120)
[phone], international (Conference ID # 46149120)
Webcast:
http://investors.8x8.com

[TechKim]

$16.30 new 52 week high. Explosive share price growth working.

[TechKim]

BLACKROCK INC. Share power 9,962,577 (8x8)

[TechKim]

19th Annual Needham Growth Conference on January 11, 2017 at 12:50 pm ET at the Lotte New York Palace Hotel in New York City.


I would expect with investment managers looking for value. This conference should reward handsomely being that EGHT has not yet reached analysis pricing. Will be an interesting conference to see how the share price performs.

[TechKim]

Cash generated from operating activities was $6.9 million, compared with $2.5 million in the same period last year.


I would say this is explosive. This should have investors climbing the walls to buy shares. Again dormancy remains.


Merry Christmas and a Happy New Year to you also.

[nickyKO]

Or ... you're ahead of the times. Thanks for your insight. I appreciate it. Happy Holidays!

[TechKim]

Nickyko in response to your message. What are my projections? I must confess I feel I am behind the times. I have so much believed 8x8 should be in the $21 to $32 range ever since the success of the global business expansion. I have always believed it was a buy out candidate. So far either has developed. EGHT continues to bring in the business. Amazingly consistently even while project customers are being developed.

I see other companies in comparison who I refer to as toilet sinkers with there share price exceeding even future potentials. I do know that maybe the last four investor conferences found some great investor buyers as it appeared that is when we had out last price surge.


So take my bottom line if you like. $21

Please remember it is my POSITIVE OPINION.

[TechKim]

Insider Monkey gave very high positive analysis of EGHT.

EGHT 20 hedge funds

[TechKim]

http://www.telarus.com/

[TechKim]

On the opening activity, $15.89 new 52 week high.

[TechKim]

8x8 approaching the previous 52 week high level $15.67, light volume.

[TechKim]

Mid Market is accelerating, bringing in larger and larger customers.

[TechKim]

Trusted by more than 45,000 companies worldwide

[TechKim]

McDonald's likes 8x8 link below. :)

https://www.8x8.com/resources/customers/mcdonalds

[TechKim]

Dougherty & Company 2016 Institutional Investor Conference
September 28, 2016
Millennium Hotel, Minneapolis, MN
One-on-one format – no webcast

http://www.doughertymarkets.com/ecm-conference-companies/

[mckinley1]

New 52-week high may be hit tomorrow. EGHT has nothing stopping it from pushing forward IMO.

[TechKim]

Triple investor conferences. September 13, 14 and 28

2016 Deutsche Bank Technology Conference
September 13, 2016
Encore at Wynn, Las Vegas, NV
Presentation – 3:20 PM PDT
Webcast - http://investors.8x8.com/events.cfm

7th Annual Credit Suisse Small & Mid Cap Conference
September 14, 2016
Waldorf Astoria, New York, NY
Small group/one-on-one format – no webcast

Dougherty & Company 2016 Institutional Investor Conference
September 28, 2016
Millennium Hotel, Minneapolis, MN
One-on-one format – no webcast

[TechKim]

Baird Equity Research "In their research note, the analysts opined, "We are positive on the significant growth opportunities, and view M&A as a possible catalyst. On the other hand, expectations are already high, with valuation multiples near recent highs."


$15

[TechKim]

8x8 Positioned as a Leader in the Gartner Magic Quadrant for Unified Communications as a Service, Worldwide for Fifth Consecutive Year

Business Wire August 25, 2016
SAN JOSE, Calif.--(BUSINESS WIRE)--

8x8, Inc. (EGHT), the leading provider of global Enterprise Communications as a Service (ECaaS), today announced that the company has been recognized by Gartner as a Leader in the August 23, 2016 “Magic Quadrant for Unified Communications as a Service (UCaaS), Worldwide”1 for the fifth consecutive year. This is validation for 8x8’s momentum in the mid-market and enterprise segment; the reach of its global network, delivery and deployment capabilities; and the high quality, reliability and security of its global cloud communications solutions.

According to Gartner, “The UCaaS market as a whole is transitioning from the 'early adopter phase' to the 'early mainstream phase' for enterprise delivery. Many UCaaS providers now support global deployments spanning multiple regions (for example, 30 or more country markets). The larger UCaaS providers can now provide professional services, project management, local telephony services, customer support and import/export authority in dozens of country markets.”

“We are honored to be recognized once again as a leader in the Gartner Magic Quadrant,” said Vik Verma, CEO of 8x8. “This serves as an important milestone for us and we believe validates the significant strides we’ve made this year in the mid-market and enterprise with our global cloud communications platform. Customers around the world are recognizing the need for a tightly integrated single platform for all their communications requirements across unified communications and contact center, and 8x8 is the only vendor today that can deliver this at a global scale. In addition, with our increasing international footprint--Global Reach Network, extensive localization, deployment and support capabilities--we look forward to further supporting our customers’ global and regional expansion efforts.”

Enterprise Communications as a Service

8x8's innovative ECaaS solution brings all real time communications and contact center services together into one integrated cloud platform, delivering continuous communications experiences from desktop to mobile. These solutions enable companies of all sizes to solve critical business needs and modernize their infrastructure with world-class business communications, contact center solutions, conferencing, collaboration and advanced analytics.

To read more about 8x8’s leadership position in the Magic Quadrant for Unified Communications as a Service, Worldwide, read CEO Vik Verma’s blog post.

Download the Report

Download a complimentary copy of the 2016 Gartner Magic Quadrant Report for Unified Communications as a Service, Worldwide.

Gartner Disclaimer

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

1 Gartner: Magic Quadrant for Unified Communications as a Service, Worldwide, Daniel O’Connell, Bern Elliot, August 23, 2016.

About 8x8, Inc.

8x8, Inc. (EGHT) is the trusted provider of secure and reliable enterprise cloud communications solutions to more than 45,000 businesses operating in over 100 countries across six continents. 8x8's out-of-the-box cloud solutions replace traditional on-premises PBX hardware and software-based systems with a flexible and scalable Software as a Service (SaaS) alternative, encompassing cloud business phone service, contact center solutions, and conferencing. For additional information, visit www.8x8.com, www.8x8.com/UK or connect with 8x8 on LinkedIn,Twitter, Google+ and Facebook.


View source version on businesswire.com: http://www.businesswire.com/news/home/20160825005387/en/

Contact:
8x8, Inc.
Neha Mirchandani,669-256-5095
[e-mail]
or
Tracey Workman, 415-299-6590
[e-mail]

Be the first to commentCo

[TechKim]

Q: What did zero say to eight?

A: Nice belt.

[TechKim]

Actually as EGHT grow a bigger market share. EGHT become a target for takeover in this ever merging telecommunications market. I just hope it does not happen to soon before the share price graduates to higher levels before an offer bid is placed on the table.

EGHT has not even broke the $20's yet, to where I believe it should be.
I am uncertain if 8x8 qualifies for a higher exchange which would allow possibility more investor fund attraction, inclusive of investors.


Just thinking out loud.

OPINION

[mckinley1]

Yes EGHT will hit another 52 week high shortly mainly due to growth and expansion IMO. Just do not see a cap on EGHT. GLTY!

[TechKim]

For good reason! Growth has been nothing but spectacular. Nice to see the price per share finally moving back up.

[mckinley1]

EGHT making its move up again as volume begins to build. More buyers coming in at this level IMO.

[TechKim]

National Governors Association Summer Meeting just concluded States and Cyber Attacks conference. It is suspected that billions of dollars will be poured into IT (information technology) by the Federal government in the coming years. Computers are not going away anytime soon. Instead IT will become even more intrusive in the lives of those who serve this world.

You ask why I posted this note? It is supportive of information technology. The CLOUD as it is known is in its infancy. 8X8 is there now and 8X8 should be there in the future in one form or another. That is my opinion.

8x8 will evolve, as many other companies who want to stay in business will be doing. Evolving!

[TechKim]

I would tend to wonder if 8x8 will continue leasing the main office after the four year lease is up. This four year (48 months)lease will cost the company $5,302,901.64 dollars total.

8x8 has a fresh four years to plan. I think good location land and a building with most of the glittery options inclusive of a health club for employees could be obtained. Be a good way to cut some financial fat and grow real asset value.

Just a thought. opinion.

[mckinley1]

Look for EGHT to continue its strong move toward $20. Nothing in the way as more good news, more contracts, and more volume continues to roll in now. GLTY!